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23 November 2021
Sioux Falls Man Charged with Felon in Possession of a FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Felon in Possession of a Firearm.
Omot Musa Karlo, age 20, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on November 22, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about August 31, 2021, Karlo, who had been convicted of a crime punishable by imprisonment for a term exceeding one year, knowingly possessed a Glock 19mm Luger caliber, semi-automatic pistol, which had been previously shipped and transported in interstate and foreign commerce.
The charge is merely an accusation and Karlo is presumed innocent until and unless proven guilty.
The investigation is being conducted by Homeland Security Investigations and the Sioux Falls Police Department. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Karlo was remanded to the custody of the State pending trial. A trial date has not been set.
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Shepherd restaurant owner admits theft in COVID-19 relief loan programRead the Press Release
BILLINGS – A Shepherd man who owns the Feedlot Steakhouse in Shepherd admitted to allegations today that he received approximately $75,000 in a COVID-19 relief loan from the Small Business Administration (SBA) for his business but used the funds to buy vintage automobiles as an investment, U.S. Attorney Leif M. Johnson said.
Michael Eugene Bolte, 70, pleaded guilty to theft of government money, property or records, a misdemeanor, as charged in a superseding information. Bolte faces a maximum of one year in prison, a $100,000 fine and one year of supervised release.
A plea agreement reached in the case calls for the government to recommend to the court at sentencing that an indictment be dismissed and for Bolte to be responsible for full restitution of $74,800. Bolte also agrees to a criminal forfeiture of the vintage automobiles, including a 1916 Studebaker, a 1929 Franklin, a 1939 Ford Deluxe and a 1941 Ford Super Deluxe.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for April 13, 2022. Bolte was released pending further proceedings.
“Federal programs, like the one at issue here, don’t work when people cheat. If someone like Bolte applies for federal program funds intended to help businesses survive the pandemic, but buys classic cars instead, that deprives other deserving applicants of the opportunity to use the funds. These government loan programs rely on the integrity of applicants to use the money as intended. When people try to cheat, they will be thoroughly investigated and prosecuted,” U.S. Attorney Johnson said.
“Individuals that attempt to defraud government programs meant to help struggling businesses and taxpayers will be brought to justice,” said Andy Tsui, IRS Criminal Investigation Special Agent in Charge, Denver Field Office. “We are pleased to work with our law enforcement partners to prosecute these crimes and to ensure the public is aware of our commitment to investigate those that commit these crimes.”
The government alleged in court documents that on April 1, 2020, Bolte applied to the SBA for a business loan under the Economic Injury Disaster Loan (EIDL) program, authorized by the Coronavirus Aid, Relief and Economic Security Act. On May 24, 2020, Bolte signed a loan agreement for $74,800 and expressly acknowledged the EIDL loan would be used solely as working capital for his business. Bolte’s intent at the time of signing for the loan was to buy vintage automobiles as an investment, and not as working capital for his business. Eleven days after receiving the loan, Bolte wrote a check for $75,000 for the purchase of four vintage vehicles. The SBA would not have approved or funded Bolte’s loan had it known Bolte’s intended and actual use of the funds.
Assistant U.S. Attorney Michael A. Kakuk prosecuted the case, which was investigated by the IRS Criminal Investigation, with assistance from the SBA Office of Inspector General and the U.S. Attorney’s Office.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
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San Diego Resident Sentenced to Nearly 14 Years for Distributing Fentanyl that Resulted in 18-Year-Old’s DeathRead the Press Release
Assistant U. S. Attorneys Owen Roth and Lawrence A. Casper (619) 546-7710
NEWS RELEASE SUMMARY—November 22, 2021
SAN DIEGO—San Diego resident Brandon Jacob Shepherd was sentenced in federal court today to thirteen years and eleven months in prison for selling fentanyl that resulted in the death of an 18-year-old San Diego woman, identified in court records as P.E.R., in January of 2020. He received one month of custodial credit for time served in a local facility before being transferred to federal custody, for a total period of 168 months in custody.
Shepherd previously admitted that on the evening of January 14, 2020, he agreed to coordinate a sale of fentanyl to the victim with co-defendant Leon Chester Kolin III. That evening, Shepherd sold P.E.R. and Kolin a gram of fentanyl for $100 or $120, in the hotel room that Shepherd was staying in and using to distribute fentanyl. After the sale, Shepherd smoked fentanyl with P.E.R. and Kolin; P.E.R. overdosed at that time, but did not die. Kolin took P.E.R. home, with additional fentanyl resin that Shepherd provided. After P.E.R. left, Shepherd told a friend that she nearly “fell out,” meaning she had almost died. Days later, P.E.R. smoked some of the fentanyl resin provided by Shepherd, overdosing and dying. She was only eighteen years old at the time of her death.
Special Agents and Task Force Officers with the Drug Enforcement Administration led the investigation into P.E.R.’s death and identified Shepherd as the source of the fentanyl. Investigators subsequently searched Shepherd’s hotel room. There, they found packages containing fentanyl powder, counterfeit blue “M30” pharmaceutical tablets laced with fentanyl, digital scales bearing fentanyl residue, cash, and unused plastic baggies. They also found and arrested co-defendants Anthony Gascon and Christopher Barksdale, with whom Shepherd was engaged in an ongoing fentanyl distribution scheme. These two defendants, as well as Kolin, were sentenced prior to today.
“Tragically, fentanyl has again cut down the life of a bright and promising future here in our community, whose loss will forever be felt by her family,” said Acting U.S. Attorney Randy Grossman. “This Office will continue to aggressively pursue and prosecute anyone who seeks to profit, or even to further their own addiction, by peddling this poison. If someone dies from fentanyl you provide them, we will use every tool at our disposal to hold you responsible.” Grossman praised prosecutors Owen Roth and Lawrence Casper as well as the Drug Enforcement Administration’s Narcotics Task Force Team 10 and officials from partnering state and federal agencies for their excellent work on this case.
“The United States just recorded the highest number of drug-overdose deaths in a 12-month period, with over 100,000 Americans losing their lives,” said DEA Acting Special Agent in Charge Shelly S. Howe. “Individuals like Brandon Shepherd are fueling the fire of the drug epidemic. His sentencing today sends a stark reminder that if you choose to sell drugs and risk the lives of others, you will be held accountable.”
“Removing these dangerous and often deadly drugs from the streets is a priority for HSI, as it’s critical to preventing additional overdose deaths in our communities,” said Chad Plantz, Special Agent in Charge for HSI San Diego. “I am extremely proud of our HSI Special Agents and law enforcement partners for the success of this investigation and for making our neighborhoods safer.”
This case is the result of ongoing efforts by the U.S. Attorney’s Office, the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the San Diego Police Department, and the California Department of Health Care Services to investigate and prosecute the distribution of dangerous illegal drugs—fentanyl in particular—that result in overdose deaths. The Drug Enforcement Administration created Narcotics Task Force Team 10 as a response to the increase in overdose deaths in San Diego County. Agents from Team 10 contributed to the investigation into P.E.R.’s death.
DEFENDANT Case Number 20-CR-810-BAS
Brandon Jacob Shepherd Age: 26 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Distribute Fentanyl – Title 21, United States Code, Sections 841(a) and (b)(1)(C)
Maximum penalty: Twenty years in prison
Distribution of Fentanyl – Title 21, United States Code, Section 841(a)(1)
Maximum penalty: Twenty years in prison
Conspiracy to Distribute 40 grams or More of Fentanyl – Title 21, United States Code, Sections 841(a) & (b)(1)(B)
Minimum penalty of 5 years and maximum penalty of 40 years in prison
AGENCY
Drug Enforcement Administration
Homeland Security Investigations
Federal Bureau of Investigation
San Diego Police Department
California Department of Health Care Services
Rosebud Woman Charged with Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Kendall Logan, age 28, was indicted on March 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 23, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The indictment alleges that on February 5, 2020, in Todd County, Logan did forcibly assault, resist, oppose, impede, intimidate, and interfere with a federal officer by using a dangerous weapon, shod feet, while the officer was engaged in his official duties.
The charge is merely an accusation and Kendall is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Kendall was released on bond pending trial. A trial date has not been set.
Rochester Man Going to Prison for More Than 10 Years for Violent CarjackingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced that Jacob R. Loyd, 21, of Rochester, N.Y., who was convicted of carjacking and possession of a firearm in furtherance of a drug trafficking crime, was sentenced to serve 123 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorneys Cassie Kocher and Matthew McGrath, who handled the case, stated that at approximately 6:30 p.m. on June 16, 2019, two victims (Victim A and Victim B) were sitting in a vehicle in the area of 115 Gothic Street in Rochester when Loyd and two others approached the vehicle. Loyd pointed a firearm at Victim A’s head and said, “don't do anything stupid, don't look up or I'll blow your head off,” and he ordered the victims to get out of the car. As Victim A exited the car, Loyd struck him in the head with the firearm. Loyd and the two others then drove away in the vehicle. Police officers recovered the vehicle at approximately 8:25 p.m. near 146 Alphonse Street in Rochester. The radio and hubcaps had been removed from the vehicle. Loyd was taken into custody a short time later with 15 bags of cocaine and a revolver in his possession.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David M. Smith, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
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Rochester Felon Going to Prison on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.-U.S. Attorney Trini E. Ross announced that John Moore, 37, of Rochester, NY, who was convicted of being a felon in possession of a firearm and possession of a firearm with an obliterated serial number, was sentenced to serve 51 months in prison by U.S. District Judge Charles J. Siragusa.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that Moore has four prior felony drug convictions in Monroe, Schuyler, and Steuben Counties and is legally prohibited from possessing a firearm. In April 2020, Rochester Police officers were called to Tremont Street for a report of a man named John in a blue minivan with a gun. Upon arrival, officers saw Moore near the driver door of the blue minivan before he quickly entered a nearby house through the front door. Officers subsequently recovered a silver revolver with an obliterated serial number under the driver seat of the blue minivan.
The case was brought by the U.S. Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Interim Chief David M. Smith, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. DeVito, New York Field Division.
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Repeat Child Sex Offender from Rock Hill Sentenced to More Than 11 and a Half Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Xanthus Nakia Murdaugh, 46, of Rock Hill, was sentenced to more than 11 and 1/2 years in federal prison after pleading guilty to an offense related to the attempted sexual exploitation of a child.
Evidence presented to the court showed that Murdaugh is a repeat offender, having a prior federal child pornography conviction and a prior state conviction for Solicitation of a Crime Against Nature. Murdaugh also admitted to the sexual abuse of numerous minors, including children in the foster system, for which he had never been held accountable.
Evidence presented in court further showed that on November 6, 2019, Murdaugh communicated with undercover law enforcement on a social media application that allows users anonymously communicate with other users. On that same date, Murdaugh began speaking with who he was told was a mother who needed help with her children. After Murdaugh was told the mother had a 13-year-old daughter, he indicated an interest in having sex with the minor. With condoms and lubricant, Murdaugh drove to a residence where he was told the 13-year-old minor would be present. Murdaugh was arrested that night and has remained in custody since that time. Murdaugh ultimately pled guilty to the attempted coercion and enticement of a minor.
United States District Judge J. Michelle Childs sentenced Murdaugh to 140 months in federal prison, near the top of his advisory guideline range, to be followed by a 10-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Department of Homeland Security (HSI), York County Sherriff’s Office, Federal Bureau of Investigation (FBI), United States Secret Service, South Carolina Attorney General’s Office, North Carolina State Bureau of Investigation, and Naval Criminal Investigative Service. Assistant United States Attorney Elliott B. Daniels prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Puerto Rican Man Sentenced to 40 Months in Federal Prison for Smuggling $3.75 Million Onboard a Vessel Interdicted Near Brewers Bay, St. Thomas, USVIRead the Press Release
St. Thomas, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Jerry Kirkland-Marrero, 31, from Puerto Rico, was sentenced today to 40 months imprisonment, followed by 30 months of supervised release, for conspiracy to conceal more than $100,000 on board a vessel outfitted for smuggling.
According to court documents, Kirkland-Marrero was one of three occupants on a vessel that U.S. Customs and Border Protection Air and Marine Operations (CBP AMO) interdicted in the waters near Brewers Bay, St. Thomas, USVI, on the night of April 21, 2020. The vessel was stopped after agents noticed it entering the area without its lights illuminated. As CBO AMO initiated a stop of the vessel, agents observed the vessel’s occupants throwing duffle bags overboard. The agents recovered three duffle bags from the water, as well as a fourth bag that one of the occupants had been in the process of trying to throw overboard when the agents boarded the vessel. Each of the duffle bags contained vacuum sealed bundles of U.S. currency, with a combined total value of approximately $3,765,740 in U.S. currency. One of the bags was equipped with a GPS tracker.
Court documents further reveal that, while on release pending resolution of this case, Kirkland-Marrero’s two co-defendants were fatally gunned down in Puerto Rico.
The U.S. Department of Homeland Security, Homeland Security Investigations, and U.S. Customs and Border Protection Air and Marine Operations investigated the case.
Assistant U.S. Attorney Meredith J. Edwards prosecuted the case, which is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Portage Woman Sentenced for Wire FraudRead the Press Release
HAMMOND – Jessica Guska (a/k/a Jessica Irvine, Jessica Brewer, Jessica Carrington and Jessica Hoggard), 43, Portage, Indiana was sentenced by United States District Court Chief Judge Jon E. DeGuilio upon her plea of guilty to wire fraud, announced United States Attorney Clifford D. Johnson.
Guska was sentenced to 4 months in prison followed by 4 months home detention and 2 years of supervised release. She was also ordered to pay $29,490.34 in restitution to the victim of her offense.
According to documents in this case, Guska was the president of Cedar Lake-based Riptide Travel Softball, a competitive softball club for girls. Guska was responsible for managing Riptide Travel Softball’s finances. From August 2018, until approximately October 2019, Guska embezzled money meant for Riptide Travel Softball and used it to pay her personal expenses, including health care costs, air travel, vacations and property taxes.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Cedar Lake Police Department. This case was prosecuted by Assistant United States Attorneys Molly Kelley and Diane Berkowitz.
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Pittsburgh Man Sentenced to Prison for Defrauding Financial InstitutionsRead the Press Release
PITTSBURGH, Pa. - A resident of Pittsburgh has been sentenced in federal court to 44 months in prison on his conviction of conspiracy, access device fraud, and aggravated identity theft, United States Attorney Cindy K. Chung announced today.
United States District Judge J. Nicolas Ranjan imposed the sentence on Sulemon Arowokoko, 32, of Pittsburgh, Pa.
According to information presented to the court, Arowokoko was part of a conspiracy that involved using stolen identity information to induce financial institutions to issue credit and debit cards on victim customers’ accounts. Over the course of approximately two years, Arowokoko used those fraudulently obtained credit and debit cards to obtain more than $250,000 worth of gift cards, clothes, jewelry, cologne, perfume, furniture, and other items. Some of those items were shipped to Nigeria as part of the conspiracy.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
United States Attorney Chung commended the Department of Homeland Security Investigations and United States Postal Inspection Service for the investigation leading to the successful prosecution of Arowokoko.
Parmelee Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Parmelee, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on November 22, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
William Henry Horse Looking, age 40, was sentenced to two months in federal prison, six months of home confinement, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Horse Looking was indicted by a federal grand jury on March 9, 2021. He pled guilty on November 22, 2021.
Between October 20, 2020, and January 6, 2021, Horse Looking, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender and update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Horse Looking was ordered to self-surrender to the U.S. Marshals Service in Pierre, South Dakota, by 2:00 p.m. on Wednesday, December 1, 2021.
Office Manager Admits She Embezzled More Than $350,000 from Home Healthcare Agency and its Elderly ClientsRead the Press Release
Assistant U. S. Attorney Oleksandra Johnson (619) 546-9769
NEWS RELEASE SUMMARY – November 23, 2021
SAN DIEGO –A former office manager for a healthcare provider pleaded guilty in federal court today to one count of wire fraud. As part of her plea agreement, Ana Phimmasone, 37, of Chula Vista, admitted that from April 2016 until April 2018, she stole $352,594.47 from a local company that provides in-home care services for mostly elderly individuals, as well as from several of its clients.
According to court documents, Phimmasone held a trusted position that allowed her access to client accounts. Between April 2016 and August 2016, Phimmasone embezzled $25,958.60 by stealing checks that were issued by, or belonged to, her employer, and deposited them into her own bank account. Then, between December 2016 and April 2018, Phimmasone exploited her access to clients’ credit card information by billing them using PayPal, Venmo, Square and Apple Pay and diverting the money to her own accounts instead of using the funds to pay her employer for the in-home care services. To make the fraudulent charges appear legitimate, Phimmasone falsely told the victims that the healthcare provider changed its existing payment processing company to PayPal. After receiving the funds, Phimmasone spent the money or diverted the payments into her personal bank accounts.
To further disguise the illegal transfers and avoid detection, Phimmasone created a fraudulent PayPal account using the name and personal information of C.P., an 87-year-old individual. Phimmasone then used the fraudulent PayPal account to bill the other victims’ credit cards, causing victims to believe they were being charged for legitimate medical care. To conceal the fact that some clients’ payments were diverted to her own accounts, Phimmasone also created false invoices for victims J.B. and E.B., that fraudulently inflated the amount due which was payable based on medical care services provided to the victims.
“This defendant exploited the trust that patients place in their care providers,” said Acting U.S. Attorney Randy Grossman. “This successful prosecution demonstrates that our office continues to prosecute anyone who targets vulnerable members of the community.” Grossman commended the prosecution team and the United States Postal Inspection Service for their efforts to bring this offender to justice.
Inspector in Charge of the Los Angeles Division Carroll N. Harris stated, “The United States Postal Inspection Service remains unwavering in its strong stance to protect the elderly and other vulnerable populations against criminal acts. Postal Inspectors will aggressively investigate and prosecute these cases to the fullest extent of the law.”
As part of her guilty plea, Phimmasone agreed to pay $352,586.22 in restitution to her former employer and a number of individual victims. Phimmasone is set to appear for sentencing on March 7, 2022.
DEFENDANTS Case Number 21cr3262-H
Ana Phimmasone Age: 37 Chula Vista, CA
SUMMARY OF CHARGES
Wire Fraud, 18 U.S.C. § 1343
Maximum penalty:
Twenty years’ imprisonment and a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater
AGENCY
United States Postal Inspection Service
Nicaraguan Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that EVERTO JAVIER URBINA-BALLADARES a/k/a “JOHAN MANUEL ALBIZU-ORTIZ, age 46, a native of Nicaragua, was charged on November 19, 2021 in a one-count indictment with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
URBINA-BALLADARES faces up to a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) year term of supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
New Obstruction-Related Charges Filed Against Former Bank Vice President Convicted in Insider Trading Securities Fraud ScamRead the Press Release
SAN JOSE – The U.S. Attorney’s Office has filed new federal criminal charges against former Silicon Valley Bank vice president Mounir Gad adding document tampering, identity theft, and criminal contempt to the list of federal charges the convicted fraudster now will face, announced Acting U.S. Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The new charges are filed in connection with allegedly false and altered documents Gad submitted to the federal court for his sentencing in his securities fraud case.
The criminal complaint was filed on November 19, 2021, and unsealed today. According to the complaint, on October 27, 2021, Gad, 35, of Los Gatos, submitted to the federal court 12 letters of support in advance of his sentencing for two counts of securities fraud. The criminal complaint alleges that half of these letters were improperly altered or entirely fabricated. Specifically, of the twelve letters submitted, Gad altered three of them without the authors’ knowledge, adding additional language praising Gad. Additionally, Gad submitted three more letters that were not written by the purported authors and without the purported authors’ knowledge. On November 3, 2021, before the alleged problems with the sentencing documents had come to light, the Honorable Lucy H. Koh, U.S. District Judge, sentenced Gad to two years of probation, a $500 fine, and a $200 assessment for each count of securities fraud. Gad now faces criminal charges in connection with the documents he submitted for that sentencing.
This sentencing followed Gad’s guilty plea to two counts of securities fraud, in violation of 15 U.S.C. § 78j(b) and 78ff, 17 C.F.R. §§ 240.10b-5, 240.10b5-1, and 240.10b5-2, 18 U.S.C. § 2. In connection with the guilty plea, Gad admitted he was a trained investment banking professional who repeatedly received training and guidance about the proper use of material non-public and confidential information. Gad also admitted he knew about the prohibitions against the improper use of such information including how the use of such information for personal gain may violate the insider trading laws. Gad nevertheless violated the insider trading laws on two occasions. Specifically, in April of 2015 and again in August of 2016, Gad obtained material non-public information through his employer when the bank advised clients about financial matters related to the acquisition of certain companies; Gad shared the non-public information with a codefendant who used the information to execute securities transactions.
After accepting Gad’s request to enter a plea of guilty, Judge Koh scheduled Gad’s sentencing hearing for November 3, 2021. According to the criminal complaint, one of Gad’s references, identified as B.L., prepared a letter for the court in advance of the hearing and emailed the letter to Gad. B.L. then attended the November 3 sentencing hearing. The criminal complaint describes how B.L. heard at the sentencing hearing the court reference statements in a letter submitted in her name that she had not written and were not true. B.L. contacted Gad’s defense attorney who, in turn, notified the Court. The criminal complaint further describes how the Court scheduled a subsequent hearing on November 10, 2021, at which Judge Koh stated, “What I considered and what I found to be very compelling about this letter, are lies that Mr. Gad put in the letter.”
In addition, the criminal complaint further describes how Gad allegedly altered the letters of two additional persons who submitted letters on Gad’s behalf. In each case, the alterations included praise of Gad’s good character, including praise for having “the highest integrity and character,” for being “productive in a moral and ethical way,” and for how Gad “saved [B.L.’s] life with his story, with his accountability, and with his dignity.” Furthermore, the complaint describes how Gad allegedly submitted three letters to the Court without the purported authors’ knowledge. The bogus letters were from Gad’s ex-fiancé, and two additional people who previously submitted letters on behalf of Gad in connection with other litigation.
In sum, the criminal complaint charges Gad with document tampering, in violation of 18 U.S.C. § 1512(c)(1); identity theft, in violation of 18 U.S.C. § 1028(a)(7); and criminal contempt, in violation of 18 U.S.C. § 401(1).
A criminal complaint contains allegations only. Gad is presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Gad faces a maximum statutory penalty of 20 years in prison and a fine of $250,000 for document tampering and 5 years in prison and a $250,000 fine for identity theft. There is no statutory maximum penalty for criminal contempt. The court also may order additional terms of supervised release and fines; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Gad made his initial federal court appearance today before U.S. Magistrate Judge Kandis Westmore. Magistrate Judge Westmore scheduled Gad’s ’s next appearance on the new charges for November 26, 2021, for detention and identification of counsel. Gad also is scheduled to appear December 8, 2021, before Judge Koh for further proceedings related to the securities fraud charges.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting this case with assistance from Lynette Dixon. The case is being investigated by the FBI.
Montgomery County Man Sentenced for Stealing Rare 1775 Rifle from Valley Forge State Park Museum in the 1970sRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Thomas Gavin, 78, of Pottstown, PA, was sentenced to one day in prison, three years of supervised release with the first year to be served on home confinement, a $25,000 fine and was ordered to pay $23,385 in restitution by United States District Court Judge Mark A. Kearney for selling an antique rifle dating back to the American Revolution that he had stolen from a local museum.
In July 2021, the defendant pleaded guilty to an Information charging him with a single count: disposal of an object of cultural heritage stolen from a museum. As part of his guilty plea, Gavin admitted that he had stolen the Christian Oerter Rifle from the Valley Forge State Park Museum in 1971. The rifle is a rare surviving 1775 rifle made by Christian Oerter, a master gunsmith from the Christian Springs Philadelphia-area gun-making center. The rifle is known to be one of two such rifles to have survived with its original flint mechanism bearing the maker’s name, site and date of manufacture, and is worth in excess of $175,000. The other Christian Oerter rifle is in the Royal Collection at Windsor Castle in England. Gavin also admitted that he kept the rifle for over 40 years and sold it in 2018, along with other items that he had stolen from museums back in the 1970’s.
“Stealing an artifact from a museum – literally a piece of American history – is a serious federal offense,” said U.S. Attorney Williams. “After four decades, justice finally caught up with this defendant. Thanks to the work of our law enforcement partners, the Christian Oerter rifle is safely back where it can be enjoyed by all Americans.”
“Thomas Gavin kept the stolen Oerter rifle squirreled away for decades, depriving all of us of this Revolutionary piece of our past,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “It is way past time for Mr. Gavin to be held accountable for his actions. This case is a great example of the FBI’s commitment to protecting and preserving the cultural property that helps tell the story of our nation.”
The case was investigated by members of the Federal Bureau of Investigation’s Art Crime Team and detectives with the Upper Merion Township Police Department, and is being prosecuted by Assistant United States Attorney K.T. Newton.
Missouri Man Charged with Interstate Threats Against the Pennsylvania State PoliceRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on November 22, 2021, Damian Smith-Birge, age 26, of Neosho, Missouri, was charged by criminal complaint with interstate threats and taken into custody by agents of the Federal Bureau of Investigation.
According to United States Attorney John C. Gurganus, the affidavit to the complaint alleges that on November 18, 2021, Smith-Birge called the Pennsylvania State Police Stroudsburg barracks and made threats against law enforcement. The affidavit also alleges that during the recorded calls, Smith-Birge referenced the December 2020 officer involved shooting incident that occurred in Hamilton Township, Monroe County, Pennsylvania. Smith-Birge appeared before a Federal Magistrate Judge in Missouri on November 23, 2021.
The case was investigated by the Federal Bureau of Investigation (FBI) and the Pennsylvania State Police. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
Criminal Complaints 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 five 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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Mission Man Sentenced for Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, man convicted of Sexual Abuse of a Minor was sentenced on November 22, 2021, by Chief Judge Roberto A. Lange, U.S. District Court Judge.
Julio Rodriguez, III, age 20, was sentenced to 18 months in federal prison, followed by 5 years supervised release, and $100 special assessment to the Federal Crime Victims Fund.
Rodriguez was indicted for Sexual Abuse of a Minor by a federal grand jury on February 8, 2021. He pled guilty on August 19, 2021.
The conviction stems from an incident on July 10, 2020, in Todd County, when Rodriguez, who was 18 years old, engaged in a sexual act with a minor who was 13 years old.
This case was investigated by Federal Bureau of Investigation. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Rodriguez was immediately turned over to the custody of the U.S. Marshals Service.
Mexican Man Charged with Illegally Using Social Security Number to Obtain EmploymentRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that JUAN RAMON MARTINEZ, age 42, a native of Mexico, was charged on November 19, 2021 in a one-count indictment with illegally using a social security number in order to obtain employment, in violation of Title 42, United States Code, Section 408(a)(7)(B).
MARTINEZ faces a maximum term of imprisonment of not more than five (5) years, a fine of up to $250,000.00, up to three (3) years supervised release, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Manchester Man Sentenced to 90 Months for Drug Trafficking Conspiracy and Firearm ChargesRead the Press Release
CONCORD - Gabriel Rivera, 41, of Manchester, was sentenced on Monday to 90 months in federal prison for drug conspiracy and firearm charges, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on two occasions in early 2020, a cooperating individual (CI) working with the Manchester Police Department bought fentanyl from Rivera and Ramon Guerrero at their shared apartment. While in the apartment, the CI observed quantities of suspected crack and methamphetamine as well as fentanyl.
On May 15, 2020, detectives observed Guerrero and a woman check into a local motel at 3:30 am under the woman’s name. After obtaining arrest and search warrants, officers entered the room. Detectives discovered $9,254 and several baggies containing cocaine, as well as fentanyl in pill form. Investigators executed a search of the apartment and found Rivera sitting on a couch with an open fanny pack next to him, an open safe at his feet, and a handgun tucked behind the cushion. On his person, detectives located $1,151. The safe and pack contained crack, over 76 grams of cocaine, and over 162 grams of fentanyl. As a convicted felon, Rivera was prohibited from possessing a firearm.
Rivera and Guerrero previously pleaded guilty on August 3, 2021. Guerrero is scheduled to be sentenced on November 23, 2021.
“Drug traffickers continue to endanger our community by selling deadly substances,” said Acting U.S. Attorney Farley. “When drug dealers are armed, they also present a serious risk of violence. As this case demonstrates, we are working closely with the Manchester Police to identify and prosecute the armed drug traffickers who pose a threat to the citizens of Manchester.”
This matter was investigated by the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Man Sentenced for Child Pornography Distribution on PinterestRead the Press Release
Acting United States Attorney Jan Sharp announced that Timothy E. Caruso, 45, was sentenced today by Chief United States District Robert F. Rossiter, Jr. after being found guilty by a jury on July 15, 2021 of charges of distributing of child pornography and accessing with intent to view child pornography. Caruso was sentenced to 180 months’ imprisonment for the child pornography offenses and 14 months for a violation of supervised release, which will be served consecutive to his sentence for the child pornography offense. Caruso will be on supervised release for life upon his release from prison. There is no parole in the federal system.
Caruso was on federal supervision after a prior conviction for failing to register as a sex offender. In December 2018, Caruso uploaded an image of child pornography to a private section of Pinterest. Pinterest reported the upload to the National Center for Missing and Exploited Children. The image was traced back to a Google account used by Caruso and sent from an IP address where he was staying. Further investigation discovered Caruso’s search terms indicating an interest in young girls. His messages on Pinterest included that he had lost his child pornography collection and was seeking to trade child pornography and acquire new images.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Man Pleads Guilty to 3 Bank RobberiesRead the Press Release
NEW ORLEANS – ZACHARY VERDIN, age 29, a resident of Marrero, Louisiana pleaded guilty to three counts of bank robbery before the Honorable Susie Morgan, announced U.S. Attorney Duane A. Evans. VERDIN faces up to twenty (20) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment fee, as to each count. Sentencing is currently scheduled for February 22, 2022.
According to Count One of the bill of information, on or about July 19, 2021, VERDIN robbed the Capital One Bank located in Marrero, Louisiana. He obtained approximately $521 in the robbery. According to Count Two of the bill of information, on or about July 26, 2021, VERDIN robbed the Chase Bank located in New Orleans, Louisiana. He obtained approximately $1,000 in that robbery. According to Count Three of the bill of information, on or about August 2, 2021, VERDIN robbed the Regions Bank located in Gretna, Louisiana. He obtained approximately $12,540 in that robbery.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s Violent Crime Task Force and officers with the Jefferson Parish Sheriff’s Office and New Orleans Police Department. Assistant U.S. Attorney Jon Maestri is handling the prosecution.
Long Island Pain Management Doctor Pleads Guilty to Tax EvasionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, Thomas Fattorusso, Special Agent in Charge of the Internal Revenue Service - Criminal Investigation (“IRS-CI”) New York Field Office, and Keith Kruskall, Acting Special Agent in Charge of the New York Office of the Drug Enforcement Administration (“DEA”), today announced that defendant JORDAN SUDBERG pled guilty to tax evasion for the calendar years 2015 through 2017, in connection with false deductions from a scheme involving his issuance of hundreds of business checks falsely purporting to be payments for business services, which he provided in exchange for cash to a black market money exchange network. As part of his plea SUDBERG agreed to pay $551,660 in restitution to the Internal Revenue Service (“IRS”), and forfeit an additional $243,257. SUDGERG pled guilty today before U.S. District Judge Paul A. Crotty.
U.S. Attorney Damian Williams said: “As he admitted in court today, Jordan Sudberg engaged in a years-long pattern of fabricating false business expenses to conceal from the IRS large portions of his substantial income earned from his medical practices. He fraudulently claimed more than $1 million in deductions that should have been reported to the IRS as taxable income, and allowed other individuals to create purportedly legitimate origin for their illicit cash in the process. Now Sudberg awaits sentencing for his crime.”
IRS-CI Special Agent in Charge Thomas Fattorusso said: “Medical professionals should be in the business of caring for people, not evading taxes. IRS-CI agents are specially trained to detect tax fraud – even elaborate schemes like the one Sudberg allegedly devised.”
DEA Acting Special Agent in Charge Keith Kruskall said: “This defendant allegedly engaged in a scheme where he purposefully claimed a significantly lower income to evade U.S. tax law. Thanks to the dedication of our law enforcement partners, the defendant will finally be paying his fair share.”
According to the allegations contained in the Information to which SUDBERG pled guilty, a Civil Forfeiture Complaint filed against funds seized from SUDBERG, a Criminal Complaint and Information filed against SUDBERG’s co-conspirator Hua Fen Bi, and statements made in court:
From at least 2015 through 2017, SUDBERG devised and perpetrated a scheme to evade a substantial portion of his personal income taxes. During that period, SUDBERG owned two S-corporations through which he operated a medical practice, specializing in pain management, at locations located in Manhattan, Long Island, and Queens, New York. SUDBERG issued hundreds of checks made payable to various companies and falsely purporting to be payments for business services. In fact, those companies had not performed any business services for SUDBERG’s corporations. In exchange for the checks, SUDBERG received sums of cash that were equal to the value of the checks minus a small fee. SUDBERG falsely reported to the IRS that the checks were for legitimate business expenses and claimed deductions in the amount of the checks, thereby substantially understating his taxable income.
SUDBERG’s tax evasion helped support an unlicensed money services network operated by a number of co-conspirators, including Hua Fen Bi, who was sentenced by U.S. District Judge Colleen McMahon on May 24, 2021, for his role in conspiring to operate an unlicensed money transmitting business. This network permitted individuals to exchange cash for business checks like those provided by SUDBERG, thereby generating a false and nominally legitimate source of funds, including for the laundering of narcotics proceeds.
SUDBERG pled guilty to one count of tax evasion, which carries a maximum penalty of five years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
SUDBERG is scheduled to be sentenced on February 23, 2022.
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Mr. Williams praised the outstanding work of the Internal Revenue Service and the Drug Enforcement Administration on this case. He also thanked the Office of the Inspector General of the United States Department of Health and Human Services and the New York Drug Enforcement Task Force for their support and assistance.
The prosecution of this case is being overseen by the Office’s Money Laundering and Transnational Criminal Enterprise Unit. Assistant U.S. Attorneys Emily Deininger and Alexandra Rothman are in charge of the case.
Little Valley Man Pleads Guilty for His Role in A Nearly $1,000,000 COVID-19 Relief Fraud SchemeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, NY – U.S. Attorney Trini E. Ross announced today that Adam Arena, 44, of Little Valley, NY, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiracy to commit bank fraud and engaging in monetary transactions with criminally derived proceeds for his role in fraudulently obtaining and laundering nearly $1 million in funds from the COVID-19 relief Paycheck Protection Program (PPP). The charges carry a maximum penalty of 30 years and a $1,000,000 fine.
Assistant U.S. Attorney Laura A. Higgins and Cory E. Jacobs of the Criminal Division’s Fraud Section, who are handling the case, stated that in May 2020, Arena reinstated his previously inactive business, ADA Auto Group, which had been inactive since 2018. Arena then provided his date of birth, social security number, address, and ADA Auto Group’s Employer Identification Number, Articles of Incorporation, along with a bank account number, for the purpose of facilitating the preparation of a fraudulent Paycheck Protection Program (PPP) loan. On July 27, co-defendant Amanda J. Gloria submitted a PPP loan application for ADA Auto Group to a financial institution via email seeking a $954,000 loan. Along with the application, Gloria submitted fraudulent supporting documents, including tax forms and payroll reports. These documents claimed ADA Auto Group employed 50 people in 2019 with an annual payroll of more than $4.4 million. On August 10, 2020, Arena directed the financial institution to wire the proceeds of the approved PPP loan for ADA Auto Group into a business account controlled exclusively by him. On September 11, 2020, Arena paid Gloria approximately $24,135 in PPP funds for facilitating the submission of the fraudulent PPP loan application. None of the funds Arena received were ever used for business-related expenses.
Charges remain pending against Amanda J. Gloria. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia and the Internal Revenue Service, Criminal Investigation Division, under the direction of Thomas Fattorusso, Special Agent-in-Charge.
Sentencing is scheduled for March 2, 2022, at 10:00 a.m. before Judge Skretny.
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Leader of Local Drug Trafficking Organization Pleads GuiltyRead the Press Release
PORTLAND, Ore.—A Mexican national residing in Oregon City, Oregon pleaded guilty today for his leadership role in a conspiracy to traffic large quantities of methamphetamine, heroin and fentanyl from Mexico for resale in Oregon and Washington State.
Victor Alvarez Farfan, 49, pleaded guilty to conspiring to possess with intent to distribute and distribute controlled substances and illegal reentry.
Farfan is the last of 23 defendants charged in the conspiracy to plead guilty. This is Farfan’s second federal conviction in the District of Oregon for drug trafficking and illegal reentry.
According to court documents, Farfan received approximately 20 kilograms of methamphetamine, half a kilogram of heroin and two kilograms of fentanyl from a drug cartel based in Michoacan, Mexico. He and his associates would then resell the methamphetamine and heroin in Hillsboro, Gresham, Portland and Hood River, Oregon, and Tacoma, Washington. Farfan also oversaw the manufacturing of crystal methamphetamine from its liquid form. As part of the conspiracy, one of Farfan’s co-conspirators, Eduardo Alvarez Farfan, 27, of Gresham, provided the two kilograms of fentanyl to a co-conspirator, Noe Antonio Machado-Madrano, 26, who had flown in from Baltimore, Maryland. Investigators arrested Machado-Madrano at a bus station and seized the fentanyl.
On October 17, 2018, a federal grand jury in Portland returned a nine-count indictment charging Farfan and 21 co-defendants with conspiracy to possess with the intent to distribute and distribute methamphetamine, heroin, and cocaine; use of a communication facility, including cellular telephones, in the commission of a controlled substances felony; maintaining drug-involved premises to manufacture and distribute controlled substances; interstate distribution of drug proceeds and money laundering.
On October 24, 2018, a coordinated law enforcement operation led by the FBI with assistance from Homeland Security Investigations, the Westside Interagency Narcotics (WIN) Task Force and the Clackamas County Interagency Task Force (CCITF) resulted in the arrest of Farfan and 17 co-defendants.
Later, on November 27, 2018, Farfan was charged in a second indictment with illegal reentry.
Farfan faces a maximum sentence of life in prison with a 10-year mandatory minimum sentence and a fine of $10 million or twice the gross gains or losses resulting from his offense. With Farfan’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a sentence of 180 months in federal prison when he is sentenced on February 15, 2022 before U.S. District Court Judge Michael H. Simon.
As part of the plea agreement, Farfan has agreed to forfeit any criminally-derived proceeds and property used to facilitate his crimes identified by the government prior to sentencing and pay $100,000 to satisfy a forfeiture money judgment.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case is being prosecuted by the U.S. Attorney’s Office for the District of Oregon and is the result of a joint investigation by FBI, HSI, WIN, and CCITF. Forfeiture was litigated by the U.S. Attorney’s Office Asset Recovery and Money Laundering Division.
WIN includes representatives from the Washington County Sheriff's Office, the Beaverton Police Department, the Hillsboro Police Department, the Tigard Police Department, the Oregon National Guard Counterdrug Program, and the FBI. CCITF includes representatives from the Clackamas County Sheriff's Office, Clackamas County Community Corrections, Oregon City Police Department, Canby Police Department, FBI and Homeland Security Investigations (HSI).
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) Strike Force Initiative, which provides for the establishment of permanent multi-agency task force teams that work side-by-side in the same location. This co-located model enables agents from different agencies to collaborate on intelligence-driven, multi-jurisdictional operations to disrupt and dismantle the most significant drug traffickers, money launderers, gangs, and transnational criminal organizations.
Lake Tahoe Area Man Indicted for Committing $4.5 Million Bank Fraud Scheme and Identity TheftRead the Press Release
RENO – A Glenbrook, Nevada, man was arrested yesterday in Reno on criminal charges related to allegedly obtaining at least $4.5 million through a bank fraud scheme.
According to allegations in the indictment, in April and May 2019, Sukhdev Singh Sidhu (36) used more than 26 bank accounts at over 11 financial institutions to carry out his bank fraud scheme. Sidhu falsely claimed that he did not authorize Automated Clearing House withdrawals from his bank accounts. But in fact, Sidhu knew the withdrawals were being deposited in “pass-through” accounts that were held in his father’s name, and the monies were then transferred to a receiving account that Sidhu controlled at a different bank. As a result of the false claims, Sidhu obtained at least $4.5 million by the banks. Further, Sidhu fraudulently used his father’s identity — specifically, a driver’s license belonging to his father and a check drawn for an account in his father’s name — to execute the scheme.
Sidhu made his initial court appearance yesterday before U.S. Magistrate Judge Carla Baldwin. A jury trial is scheduled for February 14, 2022 before U.S. District Judge Robert C. Jones. Sidhu is charged with three counts of bank fraud and two counts of aggravated identity theft. If convicted, he faces a statutory maximum penalty of 30 years in prison for bank fraud and a mandatory minimum penalty of two years in prison for aggravated identity theft.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Aaron C. Rouse for the FBI made the announcement.
This case was investigated by the FBI. Assistant U.S. Attorneys Steven Myhre and Richard Casper are prosecuting the case.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Kentucky Physician Sentenced for Unlawful Kickback ConspiracyRead the Press Release
JOHNSTOWN, Pa. - A resident of Louisville, Kentucky, was sentenced in federal court today for one count of conspiracy to solicit and receive unlawful kickbacks, United States Attorney Cindy K. Chung announced.
United States District Judge Kim R. Gibson sentenced John Baird, 55, a physician, to five years of probation, including two years of home detention. Baird was also ordered to pay restitution totaling $567,609.36 to Medicare.
During the defendant’s plea hearing on July 16, 2018, Baird admitted that while practicing as a licensed physician specializing in physical medicine, rehabilitation, and pain treatment, he entered into an illegal kickbacks-for-referrals conspiracy with Williams Hughes, the owner and operator of Universal Oral Fluid Labs (“UOFL”), a clinical drug-testing laboratory in Greensburg, Pennsylvania. Pursuant to their arrangement, Baird received cash payments from UOFL in exchange for referring patients—including patients covered under Medicare—to the lab for drug testing services. Hughes, through UOFL, then submitted to, and received reimbursements from, Medicare for drug testing services for patients referred to the lab by Baird. As enrolled Medicare providers, Baird and UOFL were required to certify that they would comply with all applicable state and federal laws and regulations, including the federal anti-kickback prohibition. Baird further admitted that between May 2012 and July 2013, he received $567,609.36 in kickbacks from UOFL for his drug testing referrals.
Hughes separately pleaded guilty for conspiring to offer and pay kickbacks in connection with Medicaid referrals made by another Kentucky physician. On July 13, 2021, United States District Judge David S. Cercone sentenced Hughes to sixty days’ incarceration, followed by twelve months of home detention. Hughes was also ordered to pay a $5,000 fine, forfeit more than $750,000 in previously seized assets, and make restitution totaling $1,670,469.77 to the Kentucky Medicaid Program.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government. The Federal Bureau of Investigation, Health and Human Services Office of Inspector General, Internal Revenue Service - Criminal Investigation, and Pennsylvania Office of Attorney General Medicaid Fraud Control Unit conducted the investigation that led to the prosecution of Baird.
Kenneth L. Parker sworn in as U.S. AttorneyRead the Press Release
CINCINNATI – Kenneth L. Parker was sworn in today as United States Attorney, the chief law enforcement official, for the Southern District of Ohio. President Biden nominated Parker on Sept. 28, and the United States Senate approved his confirmation on Nov. 19.
Parker is a lifelong resident of the Cincinnati region and has served as an Assistant United States Attorney there since 1999. The 49-year-old has served in a variety of leadership roles as a federal prosecutor in the Office’s criminal division, including as Criminal Chief (2011 to 2019) and as the District’s OCDETF Chief (2010-2011).
Parker graduated from Tuskegee University in 1994 and earned his law degree from Indiana University in 1997. He clerked for the Hon. S. Arthur Spiegel in the United States District Court for the Southern District of Ohio.
He has served as president of the Cincinnati-Northern Kentucky Chapter of the Federal Bar Association and of the Black Lawyers Association of Cincinnati.
Throughout his career, Parker has been consistently dedicated to connecting with the community to promote crime prevention as an essential part of enforcement.
“As U.S. Attorney, I am committed to partnering with the community to strengthen relationships between our office, the law enforcement partners with whom we work, and government and non-government agencies,” said Parker. “In other words, building community trust will be an integral part of what we do.”
As an alumnus of the Summer Work Experience in Law program, Parker later served as Chair of the program, which seeks to increase the number of African Americans in the legal profession. He has helped expand the program to Hamilton, Dayton and Columbus.
The new U.S. Attorney resides in Cincinnati with his wife and their twin daughters.
The U.S. Attorney’s Office represents the United States in 48 of Ohio’s 88 counties. The Southern District of Ohio includes the metropolitan areas of Columbus, Cincinnati and Dayton.
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Kenner Man Pleads to Airline Baggage Scam Involving over $550,000 in False ClaimsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced that PERNELL ANTHONY JONES, JR., age 31, of Kenner, Louisiana, pled guilty to Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 1349 and Mail Fraud, in violation of Title 18, United States Code, Section 1341.
According to court documents, beginning in or around 2015, JONES took flights with commercial airlines under false or fictitious identities using fraudulent identification cards. When he arrived at the destination airport, JONES falsely claimed that his baggage was lost and requested reimbursement to compensate him for his lost luggage. Through this scheme, JONES and his co-conspirators submitted over 180 false claims to commercial airlines, including American, Alaska, Southwest, United, and JetBlue, requesting over $550,000 in reimbursement. In total, the airlines paid over $300,000 in fraudulent claims.
JONES’s plea documents state that, on April 7, 2018, JONES was arrested at Dallas Love Airport while attempting to go through screening by the Transportation Security Administration (“TSA”) with 36 fraudulent driver’s licenses and 47 credit cards under fictitious names. On March 5, 2020, JONES was arrested again while attempting to pick up a reimbursement check for a fraudulent baggage claim at Louis Armstrong International Airport in Kenner, Louisiana. Law enforcement searched JONES’s residence on March 5, 2020 and found 34 fraudulent driver’s licenses; 21 fake work identification cards; and a number of fraudulent airline employee badges containing JONES’s photograph.
For each count, JONES faces a maximum term of twenty (20) years imprisonment and/or a fine of $250,000, up to three (3) years of supervised release, and a $100 mandatory special assessment fee. U.S. District Judge Susie Morgan set sentencing for February 24, 2021.
U.S. Attorney Evans would like to acknowledge the investigation by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, Jefferson Parish Sheriff’s Office, and the City of Dallas Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Kansas Man Pleads Guilty to Income Tax FraudRead the Press Release
TOPEKA, KAN. – A Kansas man pleaded guilty to one count of making and subscribing a false return.
According to court documents, Randall Brammell, 65, of Berryton owned and operated Brammell Construction Company and Lawn Mowing. He pleaded guilty to submitting a false 2016 income tax return to the Internal Revenue Service after failing to inform his tax preparer about a substantial number of business checks made out to him personally that he cashed instead of depositing into his business bank account. As a result, the gross income of his business that year was underreported by $139,918.
“Mr. Brammell admitted that he knowingly filed a false income tax return with the IRS. IRS-Criminal Investigation takes all tax crimes very seriously. Those who file honest, accurate returns can be assured that we will investigate and hold accountable those who don’t,” said Tyler Hatcher, Special Agent in Charge, St. Louis Field Office, IRS-Criminal Investigation.
Brammell is scheduled to be sentenced February 16, 2022 and faces a maximum of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the IRS-Criminal Investigation.
Assistant U.S. Attorney Christine Kenney is prosecuting the case.
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Justice Department Sues to Block U.S. Sugar’s Proposed Acquisition of Imperial SugarRead the Press Release
The Department of Justice filed a civil antitrust lawsuit today to stop United States Sugar Corporation (U.S. Sugar) from acquiring its rival, Imperial Sugar Company (Imperial Sugar). The complaint, filed in the U.S. District Court for the District of Delaware, alleges that the transaction would leave an overwhelming majority of refined sugar sales across the Southeast in the hands of only two producers. As a result, American businesses and consumers would pay more for refined sugar, a significant input for many foods and beverages.
“Robust antitrust enforcement is an essential pillar of the Justice Department’s commitment to ensuring economic opportunity and fairness for all,” said Attorney General Merrick B. Garland. “We will not hesitate to challenge anticompetitive mergers that would harm American consumers and businesses alike.”
“U.S. Sugar and Imperial Sugar are already multibillion-dollar corporations and are seeking to further consolidate an already cozy sugar industry. Their merger would eliminate aggressive competition in the supply of refined sugar that leads to lower prices, better quality, and more reliable service,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “This deal substantially lessens competition at a time when global supply chain challenges already threaten steady access to important commodities and goods. The department’s lawsuit seeks to preserve the important competition between U.S. Sugar and Imperial Sugar and protect the resiliency of American domestic sugar supply.”
According to the department’s complaint, U.S. Sugar operates a large sugar refinery in Florida, and sells all of its refined sugar through United Sugars Corporation (United Sugars), a marketing cooperative owned by U.S. Sugar and three other refined sugar producers. Imperial Sugar operates its own sugar refinery in Georgia, and sells its refined sugar directly to customers. American Sugar Refining, known more commonly by its “Domino” brand name, is the other producer supplying a significant share of refined sugar in the southeastern United States. The complaint further alleges that United Sugars and Imperial Sugar compete head-to-head to supply refined sugar to customers across the Southeast in states stretching from Mississippi to Delaware. This competition has resulted in lower prices, better-quality products and more reliable service for customers across the region.
If U.S. Sugar is permitted to acquire Imperial Sugar, Imperial’s production would be folded into the United Sugars cooperative, leaving two significant sugar producers in the region. As alleged in the complaint, because transportation costs make up a significant portion of the total price customers pay for refined sugar, the nearest sugar producers tend to be a customer’s best competitive options. The complaint alleges that U.S. Sugar’s proposed acquisition of Imperial Sugar will further consolidate an already concentrated market for refined sugar. If the transaction is allowed to proceed, United Sugars and Domino would control the vast majority of refined sugar sales in the region, enhancing the likelihood going forward that they will coordinate with each other and refrain from competing aggressively.
U.S. Sugar, a Delaware corporation headquartered in Florida, is the world’s largest vertically-integrated cane sugar milling and refining operation. U.S. Sugar is one of four member-owners of United Sugars. In 2020, U.S. Sugar received payments of $533 million from United Sugars, representing the company’s share of United Sugars’s net sales.
United Sugars, a Minnesota corporation headquartered in Minnesota, markets and sells all of the refined sugar produced by its four member-owners — U.S. Sugar, American Crystal Sugar Company, Minn-Dak Farmers Cooperative, and Wyoming Sugar Company. Its member-owners operate a total of nine sugar refineries located in Florida, Minnesota, North Dakota, Montana and Wyoming. United Sugars’s revenues were $1.8 billion in 2020.
Imperial Sugar, a wholly-owned subsidiary of Louis Dreyfus Company LLC, is a producer of refined sugar in the United States and independently markets and sells its products on its own behalf. Imperial Sugar has a refinery in Savannah, Georgia, and an intermediate sugar transfer and liquification facility in Ludlow, Kentucky. Imperial Sugar’s revenues were over $700 million in 2020.
Louis Dreyfus Company LLC, a Delaware corporation headquartered in the Netherlands, is a worldwide leader in sugar trading and merchandising and among the largest cane sugar refiners in the world. In 2020, the company had over $33 billion in net sales.
Justice Department Resolves Sexual Harassment Lawsuit Against Massachusetts Landlord and His EmployeeRead the Press Release
The Justice Department announced today that it has secured a settlement resolving allegations that Worcester, Massachusetts, landlord Mohan Prashad and his maintenance worker, David Besaw, violated the Fair Housing Act by sexually harassing female tenants. The settlement also resolves claims against Lanaton LLC and Savton LLC, which, along with Prashad, owned the properties where the harassment occurred.
Under the consent decree, which still must be approved by the U.S. District Court for the District of Massachusetts, defendants are required to pay $65,000 to compensate individuals harmed by the harassment and a $10,000 civil penalty, and vacate a judgment that defendants had obtained against a former tenant in housing court. The consent decree bars future discrimination and retaliation, requires that property management responsibilities be turned over to one or more individuals approved by the United States, mandates the implementation of a sexual harassment policy and complaint procedure and Fair Housing Act training, and requires detailed reporting regarding property management activities and compliance with the terms of the consent decree. The consent decree also bars Prashad and Besaw from participating in property management responsibilities at residential rental properties.
“Sexually harassing tenants in their homes and retaliating against those who lodge complaints are egregious forms of sex discrimination that violate the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to safeguarding the rights of vulnerable tenants who are subjected to sexual harassment or retaliatory evictions because of their sex.”
“The sexual harassment of tenants is an appalling abuse of economic and social power that warrants serious consequences,” said Acting U.S. Attorney Nathaniel R. Mendell of the District of Massachusetts. “Everyone has a right to feel safe and secure in their home, and the Fair Housing Act gives us the tools to enforce that for tenants. My office will continue to enforce these important civil rights laws to protect vulnerable individuals, hold violators accountable and secure justice for victims.”
The lawsuit, filed in 2019, alleged that since at least 2009, Prashad subjected female tenants to harassment that included making unwelcome sexual advances and comments, making unscheduled and frequent visits to certain tenant units without legitimate property management reasons for the visits, and taking adverse actions against tenants who resisted his sexual overtures. The complaint further alleged that Besaw sexually harassed and assaulted tenants and that Prashad, after receiving notice of Besaw’s harassment, retaliated against one tenant by filing an eviction action against her and failed to take action to prevent Besaw from engaging in additional sexual harassment.
The case was jointly litigated by the Civil Rights Division and the Civil Rights Unit of the U.S. Attorney’s Office for the District of Massachusetts. The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 23 lawsuits alleging sexual harassment in housing and recovered over $4.9 million for victims of such harassment.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. Individuals may report sexual harassment or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, or submitting a report online. Individuals may also report such discrimination by contacting HUD at 1-800-669-9777 or by filing a complaint online.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
Columbia, South Carolina --- The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the District of South Carolina, three communities were awarded funding totaling just over $1.4 million.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“These grants highlight the Department of Justice’s commitment to law enforcement resources here in South Carolina,” said Acting U.S. Attorney DeHart. “This Office enjoys strong relationships with our local law enforcement partners, and we support their important work. These funds will mean nearly a dozen additional officers in these communities.”
The following communities in South Carolina received awards:
- City of North Myrtle Beach, $750,000;
- Williamsburg County, $422,804; and
- Town of Yemassee, $229,782.
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting police-based responses to persons in crisis. The complete list of awards can be found here. ‘
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award. For additional information about the COPS Office, please visit https://cops.usdoj.gov/.
The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Justice Department Announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
WASHINGTON, D.C. – The Department of Justice today announced more than $139 million in grant funding through the department’s Office of Community Oriented Policing Services (“COPS Office”) COPS Hiring Program (“CHP”). The awards provide direct funding to 183 law enforcement agencies across the nation, allowing those agencies to hire 1,066 additional full-time law enforcement professionals. In the Eastern District of Washington, the cities of Soap Lake and Zillah each received $125,000.
“We are committed to providing police departments with the resources needed to help ensure community safety and build community trust,” said Attorney General Merrick B. Garland. “The grants we are announcing today will enable law enforcement agencies across the country to hire more than 1,000 additional officers to support vitally important community oriented policing programs.”
“Local law enforcement is a crucial component of our mission to make and keep the communities of Eastern Washington safe and strong,” said United States Attorney Vanessa R. Waldref. “Effective, well-funded community policing efforts will help us to continue building trust between law enforcement and the communities we serve. I am particularly pleased that in the Eastern District we will be able to devote specific resources to combating gun violence and stamping out hate and domestic extremism. I commend the cities of Soap Lake and Zillah, which have been selected for this competitive program.”
CHP is a competitive award program intended to reduce crime and advance public safety through community policing. CHP provides funds directly to law enforcement agencies to hire new or rehire additional career law enforcement officers, thereby increasing their community policing capacity and crime prevention efforts. Of the 183 agencies awarded grants today, approximately half will use the funding to focus on building legitimacy and trust between law enforcement and communities; 41 agencies will seek to address high rates of gun violence; 21 will focus on other areas of violence; and 19 will focus CHP resources on combating hate and domestic extremism or supporting policebased responses to persons in crisis. The complete list of awards can be found here.
Since its creation in 1994, COPS has invested more than $14 billion to advance community policing, including grants awarded to more than 13,000 state, local and Tribal law enforcement agencies to fund the hiring and redeployment of more than 135,000 officers. CHP, COPS’ flagship program, continues to be in demand today: In FY21, COPS received 590 applications requesting nearly 3,000 law enforcement positions. For FY22, President Biden has requested $537 million for CHP, an increase of $300 million.
To learn more about CHP, please visit https://cops.usdoj.gov/chp-award . For additional information about the COPS Office, please visit https://cops.usdoj.gov/. The COPS Office is the federal component of the Department of Justice responsible for advancing community policing nationwide. The only Department of Justice agency with policing in its name, the COPS Office was established in 1994 and has been the cornerstone of the nation’s crime fighting strategy with grants, a variety of knowledge resource products, and training and technical assistance. Through the years, the COPS Office has become the go-to organization for law enforcement agencies across the country and continues to listen to the field and provide the resources that are needed to reduce crime and build trust between law enforcement and the communities served.
Jury Convicts Maryland Man for Membership in Computer Fraud and Identity Theft Ring that Targeted State GovernmentsRead the Press Release
ALBANY, NEW YORK - A jury yesterday voted to convict Guy Cuomo a/k/a “John Monaco,” age 54, of Frederick, Maryland, of computer fraud, misuse of a social security number, aggravated identity theft and related conspiracy charges for his role in a scheme to sell information unlawfully obtained from the New York State Department of Labor and workforce agencies in other states.
The announcement was made by United States Attorney Carla B. Freedman and Jonathan Mellone, Special Agent in Charge, New York Region, United States Department of Labor, Office of Inspector General (USDOL-OIG).
United States Attorney Carla B. Freedman stated: “Guy Cuomo and his co-conspirators ran a boiler room for identity theft. They used personal identifying information to trick state workforce agencies into disclosing the last known places of employment for thousands of victims. The defendants then sold this place-of-employment information to debt collectors, generating nearly $1 million in sales. Yesterday’s guilty verdict, on all counts, means Guy Cuomo will be going to prison for his leadership role in this despicable scheme.”
USDOL-OIG Special Agent in Charge Jonathan Mellone stated: “As found by the jury, Guy Cuomo worked in concert with his co-conspirators to systemically create unemployment insurance accounts in multiple state workforce agencies’ computer systems using the social security numbers and other personal identifiers of unknowing victims. Once in those accounts, Cuomo and his co-conspirators stole the protected employment information of the victims and sold that data commercially. Yesterday’s guilty verdict and the preceding guilty pleas secured in this case are a testament to our office’s unwavering commitment to investigate and bring to justice those who compromise the integrity of the unemployment insurance system.”
The evidence at Cuomo’s 5-day trial showed that Cuomo worked for and managed companies owned by Jason “J.R.” Trowbridge in Frederick, Maryland, including Paymerica Corporation. Paymerica researched where purported debtors worked and sold the employer information—called place-of-employment information or “POE”—to debt collectors and companies selling information to debt collectors. In the debt collecting industry, the process is known as “skiptracing.”
To obtain the place-of-employment information, Cuomo and other members of the conspiracy pretended to be the debtors, created thousands of online unemployment insurance applications in the debtors’ names and with the debtors’ personal identifiers, including social security numbers, and completed the applications to the point where each debtor’s last known place of employment appeared. After confirming that the debtors worked for the relevant employers, Paymerica sold the place-of-employment information for approximately $90 per debtor. Over the course of approximately three years, Paymerica made nearly $1 million selling the stolen place-of-employment information.
Cuomo, Trowbridge, and other conspirators took a number of steps to hide their activities from state agencies and law enforcement, including using Virtual Private Networks, or VPNs, to mask the Internet Protocol addresses used to access and fill out the unemployment insurance applications in the debtors’ names. The evidence showed that the scheme involved attempts to obtain place-of-employment information for as many as 200,000 people from all 50 states and that Paymerica sold place-of-employment information for at least 12,000 people from 40 states.
At sentencing on March 16, 2022 before Senior U.S. District Judge Thomas J. McAvoy, Cuomo faces a mandatory 2-year term of imprisonment on the aggravated identity theft charges and up to 20 years in prison on the remaining charges. His co-defendants pled guilty to the following charges and face the following terms of imprisonment when they are sentenced:
Defendant
Charge(s)
Maximum Prison Sentence
Jason “J.R.” Trowbridge a/k/a “Ted Frost,” age 42, of Frederick, Maryland
Conspiracy, misuse of social security number, aggravated identity theft
Agreed-upon sentence of 39 months subject to approval by the Court
Robin Chapin a/k/a “Thomas Price,” age 63, of Frederick, Maryland
Conspiracy to commit computer fraud, accessing a protected computer and obtaining information, aggravated identity theft
Two years for aggravated identity theft, maximum sentence of 10 years on remaining charges
Rebecca Fogle a/k/a “Roxanne Morris” and “Jessica Felton,” age 27, of Woodsboro, Maryland
Conspiracy to commit computer fraud, accessing a protected computer and obtaining information, aggravated identity theft
Two years for aggravated identity theft, maximum sentence of 10 years on remaining charges
Shamair Brison a/k/a “Felicia Carter,” age 36, of Frederick, Maryland
Aggravated identity theft
Two years
Sarah Bromfield a/k/a “Nicole Wagner,” age 41, of Frederick, Maryland
Aggravated identity theft
Two years
Anna Hardy a/k/a “Sarah Thomas,” age 68, of Frederick, Maryland
Aggravated identity theft
Two years
A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
The case was investigated by USDOL-OIG, with assistance from the New York State Department of Labor, Office of Special Investigations, and is being prosecuted by Assistant U.S. Attorneys Joshua R. Rosenthal and Cyrus P.W. Rieck. The case was also prosecuted to indictment by Assistant U.S. Attorney Wayne A. Myers.
Joliet Financial Advisor Indicted on Federal Fraud Charges for Allegedly Swindling Clients Out of Nearly $800,000Read the Press Release
CHICAGO — A Joliet financial advisor has been indicted on federal fraud charges for allegedly swindling several clients out of nearly $800,000.
RONALD T. MOLO, 61, of Shorewood, Ill., is charged in an indictment unsealed today in U.S. District Court in Chicago with six counts of wire fraud. Arraignment has not yet been scheduled.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Joliet Police Department, Illinois Securities Department, and the U.S. Securities and Exchange Commission. The government is represented by Assistant U.S. Attorney Brian Havey.
According to the indictment, Molo worked as a licensed financial advisor in the Joliet branch of a national financial services firm. From 2018 to earlier this year, Molo falsely represented to clients that their investments with him would be income-producing and tax-free, and that they would receive regular, periodic interest payments, the charges allege. In reality, Molo did not intend to invest client funds and instead misappropriated their money to pay for personal expenses, including Cadillac XT5 and GMC Yukon sport-utility vehicles, mortgage payments for himself and family members, home remodeling and construction costs, lottery tickets, travel and shopping expenses, and cash payments to family members, the indictment states.
As a result of the scheme, Molo caused at least three clients to suffer losses totaling $778,000, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of wire fraud is punishable by up to 20 years in federal prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
Jamestown Woman Sentenced for Allowing an Alleged Drug Dealer to Conduct His Drug Trafficking Operation Out of Her ResidenceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney Trini E. Ross announced today that Chelsey Hunt, 30, of Jamestown NY, who was convicted of maintaining a drug-involved premises, was sentenced to time serve and three years’ probation by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorneys Joshua A. Violanti and Misha Coulson, who handled the case, stated that between January and December 2018, Hunt rented the second floor of a residence on Linden Avenue in Jamestown. While living there with her children, Hunt allowed co-defendant Douglas Beardsley to live in the attic. Beardsley conducted a methamphetamine and heroin trafficking operation from the attic. Hunt took an active role in assisting the operation, such as helping with Beardsley’s customers and providing information about police activity around the residence. Hunt also sold small amounts of narcotics for Beardsley and purchased narcotics for her personal use as well.
Charges remain pending against Douglas Beardsley. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The sentencing is the result of an investigation by the Jamestown Police Department and the Jamestown Metro Drug Task Force, under the direction of Jamestown Police Chief Timothy Jackson; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Humberto Rodriguez, a/k/a “El Bori,” Pleads Guilty to April 2020 MurderRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that HUMBERTO RODRIGUEZ, a/k/a “El Bori,” pled guilty today in Manhattan federal court to the April 18, 2020, murder of Jorge Miguel Cabrera. U.S. District Judge P. Kevin Castel accepted the defendant’s guilty plea.
U.S. Attorney Damian Williams said: “In the early morning of April 18, 2020, Humberto Rodriguez shot and ultimately killed Miguel Cabrera in connection with a failed drug transaction. This case is yet another tragic reminder of the violence that often accompanies narcotics trafficking. We continue our daily work with our law enforcement partners to keep our communities safe by vigorously investigating and prosecuting acts of violence and drug trafficking.”
According to the allegations in the Second Superseding Indictment and other documents filed in federal court, as well as statements made in public court proceedings:
On or about April 18, 2020, RODRIGUEZ and other members of a Bronx-based narcotics trafficking organization attempted to purchase one kilogram of cocaine on East 175th Street in the Bronx. After obtaining the buyers’ money, the sellers attempted to flee the scene. At that point, RODRIGUEZ fired a gun at the sellers’ vehicles, striking Cabrera in the spine. Cabrera ultimately died from the gunshot wound.
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RODRIGUEZ, 27, pled guilty to one count of murder through the use of a firearm, in violation of Title 18, United States Code, Sections 924(j) and 2, which carries a maximum term of life in prison and a mandatory minimum term of five years in prison. The maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
RODRIGUEZ is scheduled to be sentenced by Judge Castel on March 9, 2022.
On July 27, 2021, Rodriguez’s codefendant Alex Melendez pled guilty to narcotics and firearms offenses. On November 11, 2021, Rodriguez’s codefendant Sharone Lewis pled guilty to a narcotics offense.
Mr. Williams praised the outstanding investigative work of Homeland Security Investigations, the Drug Enforcement Administration, the New York City Police Department, and the Organized Crime Drug Enforcement Task Force. This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The prosecution is being handled by the Office’s Narcotics Unit. Assistant United States Attorneys Peter J. Davis and Nicholas W. Chiuchiolo are in charge of the prosecution.
Guilty on all charges: Federal jury convicts Telfair County man in drug trafficking caseRead the Press Release
BRUNSWICK, GA: A Telfair County man faces up to life in federal prison after a jury convicted him on 36 counts related to a conspiracy to possess and distribute methamphetamine and cocaine.
A U.S. District Court jury found James Lamount Graham, 48, of Jacksonville, Ga., guilty of all 36 charges after a three-day trial, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Graham faces a minimum sentence of 10 years in federal prison, and three of the charges in the case carry a statutory penalty of up to life in prison. There is no parole in the federal system.
“James Graham was a significant drug trafficker in Telfair County and its environs,” said Acting U.S. Attorney Estes. “The jurors are holding Graham accountable for these crimes which cause serious social disruption in communities large and small throughout the Southern District of Georgia.”
After the trial before U.S. District Court Judge Lisa Godbey Wood, the jury found Graham guilty of Conspiracy to Possess and Distribute Controlled Substances; two counts of Distribution of 50 Grams or More of Methamphetamine; and 33 counts of Use of Communication Facility, a charge that refers to the use of telephones to facilitate the conspiracy. Graham will be sentenced after a background investigation by the U.S. Probation Office.
“The cocktail of deadly chemicals used to manufacture methamphetamine destroys families and communities,” said Robert J. Murphy, Special Agent in Charge of the U.S. Drug Enforcement Administration (DEA) Atlanta Field Division. “DEA and its law enforcement partners are committed to protecting and serving those communities. This investigation was a success because of the collective effort between DEA and its local, state and federal law enforcement counterparts.”
“Illegal drugs have no place in Georgia. They are dangerous and threaten the safety of our communities,” said Vic Reynolds, Director of the Georgia Bureau of Investigation (GBI). “We will continue to work diligently along with our local and federal partners to investigate and dismantle drug trafficking organizations.”
As spelled out in evidence and testimony presented during the trial, the DEA obtained telephone wiretap orders starting in April 2018 as part of Operation Rat Trap, and identified a network of persons involved in the unlawful distribution of methamphetamine and cocaine. Six of Graham’s alleged co-conspirators pleaded guilty to related offenses prior to trial.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The GBI and DEA Savannah Office investigated the case. Assistant U.S. Attorneys John Harper and Karl Knoche prosecuted the case for the United States with in-court assistance from Paralegal Specialist Vilmarie Alcaraz.
Goose Creek Correctional Center Officer Pleads Guilty to Conspiracy and Bribery ChargesRead the Press Release
ANCHORAGE – A correctional officer at Goose Creek Correctional Center (GCCC) pleaded guilty to conspiracy and bribery charges for smuggling contraband into the prison in Wasilla, Alaska.
According to court documents, Angela Lincoln, 43, was a correctional officer at the Alaska Department of Corrections (DOC) facility from 2014 through mid-2020. Beginning in about 2019 she began smuggling contraband into GCCC including Suboxone strips and cell phones for an inmate who is serving a 100-year sentence. The inmate distributed the drugs within the prison and paid tens of thousands of dollars in bribe payments to Lincoln.
With support from his family members and non-inmate associates, who he called “grinders,” this inmate secretly arranged to deliver the contraband and cash payments to Lincoln. His associates would secretly visit Lincoln’s home and drop the contraband and bribe payments near her fence while no one was looking. They would hide the controlled substances inside books, plastic bottles or candy wrappers to avoid suspicion when dropping the package at the fence. Lincoln would then smuggle the contraband into Goose Creek using her official position to evade security screening, knowing that doing so was in violation of her official duties and knowing that she would be paid in exchange for delivering the contraband and drugs inside GCCC. To deliver the bribe payments to Lincoln, the “grinders” would launder the funds and hide cash in phony trinkets, greeting cards and stuffed animals. Lincoln continued to conceal the conspiracy when initially questioned by FBI agents, falsely reporting that the money was payments for old DVDs, video games and an old meat grinder. None of that was true, and the payments were really bribes paid in exchange for her smuggling efforts.
As a correctional officer she was required to protect inmates and staff by, among other things, ensuring that contraband – including drugs and cell phones – did not enter or remain in the facility where inmates could access them.
Goose Creek Correctional Center is an Alaska DOC-run medium-security prison for men located in Wasilla, Alaska. The facility houses up to approximately 1,300 inmates and employs approximately 333 staff members.
Lincoln’s sentencing hearing has not yet been set. She faces a maximum penalty of fifteen years in prison for the bribery and conspiracy charges. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Bryan Wilson of the District of Alaska made the announcement.
The Federal Bureau of Investigation (FBI) is investigating the case with valuable assistance provided by the Alaska Department of Corrections.
Assistant U.S. Attorneys Emily Allen, Kelly Cavanaugh and Ryan Tansey are prosecuting the case.
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Georgia Man Sentenced to 21 Months for Bank Fraud ConspiracyRead the Press Release
CONCORD - Kizito Chukwujekwu, 38, of Morrow, Georgia, was sentenced to 21 months in federal prison for participating in a conspiracy to commit bank fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between June of 2016 and August of 2017, Chukwujekwu and others opened at least ten bank accounts at banks in New Hampshire, Massachusetts, and Georgia using other persons’ identification information. Chukwujekwu or his co-conspirators then deposited fraudulent checks into those accounts. After the money was credited to the account but before the bank determined the check was false, one of Chukwujekwu’s co-conspirators withdrew money from the bank accounts. During the scheme, the conspirators deposited fraudulent checks worth more than $119,000 and withdrew more than $69,000.
Chukwujekwu previously pleaded guilty on July 13, 2021. In addition to his sentence, Chukwujekwu was ordered to pay restitution in the amount of $69,168.25.
On January 3, 2020, Chinedu Ihejiere was sentenced to 25 months in prison for participating in the same scheme.
“Financial fraud schemes cause real damage to their victims,” said Acting U.S. Attorney Farley. “We work closely with our law enforcement partners to identify those who are responsible for committing bank fraud and other fraud offenses. As this case demonstrates, those who come to New Hampshire to commit fraud schemes will be prosecuted aggressively and will find themselves in federal prison.”
“Fueled by nothing more than pure and simple greed, Kizito Chukwujekwu and his co-conspirators stole tens of thousands of dollars from people they figured would never miss it. However, he was clearly wrong,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “This case demonstrates how the FBI, and our partners won’t stand for criminals who seek to enrich themselves at the expense of innocent Americans.”
This matter was investigated by the United States Postal Inspection Service and Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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Gary Woman Sentenced to 210 Months in PrisonRead the Press Release
HAMMOND- Patricia Carrington, 48, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to kidnapping, announced United States Attorney Clifford D. Johnson.
Carrington was sentenced to 210 months in prison followed by 3 years of supervised release.
According to documents in the case, on the night of April 14, 2019, Carrington participated in the kidnapping of a woman hoping to elicit information concerning the whereabouts of a witness in her son’s upcoming criminal case. Carrington participated in forcing the victim into a car at gunpoint, blindfolding and duct-taping her, and driving her around. The victim was beaten and threatened when she would not provide the information. The victim was thereafter dragged from the car to an area behind a house where she was shot in the face and arm and left for dead. The victim survived the attack.
This case was investigated by the Federal Bureau of Investigation’s Gang Response Investigative Team with the assistance of the Gary Police Department, Indiana State Police, and Lake County Prosecutor’s Office. This case was prosecuted by Assistant United States Attorneys Thomas Mahoney and Michael Toth.
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.
Gary M. Restaino Takes Office as United States AttorneyRead the Press Release
PHOENIX, Ariz. – Gary M. Restaino took office today as United States Attorney for the District of Arizona.
President Biden nominated Mr. Restaino to serve as U.S. Attorney on October 27, 2021.The Senate confirmed his nomination on November 19, 2021. Mr. Restaino was sworn into office by the Honorable Chief Judge G. Murray Snow this morning at the U.S. District Courthouse for the District of Arizona.
Mr. Restaino, 53, is assuming the position after having worked in the office for nearly two decades. During that time, he served as the Chief of the Criminal Division in Phoenix from 2012 to 2016 and as the Chief of the White Collar Crime Section from 2008 to 2009. From 2009 to 2010, Mr. Restaino was detailed as a Trial Attorney to the Public Integrity Section of the Department of Justice in Washington.
“I thank the President, and Senators Sinema and Kelly, for the trust they have placed in me. I am thrilled at the opportunity to partner with such fine colleagues at the U.S. Attorney’s Office and with the dedicated law enforcement professionals throughout the State. And I look forward to the opportunity to work with the civic and civil rights organizations who hold us accountable and who, with their energy and compassion, help push Arizona to be a better place,” said Mr. Restaino.
As an Assistant United States Attorney, Mr. Restaino handled numerous high-profile matters, including the successful prosecutions of former Fiesta Bowl executives in a scheme to make illegal campaign contributions, and of former U.S. Rep. Rick Renzi for extortion and bribery in connection with a federal land swap deal. Additionally, he prosecuted scores of cases involving investment fraud, money laundering and human smuggling. Aside from his litigation activities, he also collaborated extensively with prosecutors in Mexico and Colombia through the Department’s Office of Prosecutorial Development, Assistance and Training.
Mr. Restaino received his J.D. from the University of Virginia School of Law in 1996 and his B.A. from Haverford College in 1990. Prior to his employment as a federal prosecutor, Mr. Restaino was a civil rights lawyer from 1999 to 2003 with the Arizona Attorney General’s Office, and represented migrant and seasonal farmworkers with Community Legal Services, Inc. from 1996 to 1999. Between college and law school, he served for two years with the Peace Corps in rural Paraguay.
Mr. Restaino succeeds Glenn McCormick, who had been serving as Acting U.S. Attorney since April 24, 2021.
RELEASE NUMBER: 2021-088_Gary Restaino
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Freeburg Couple Sentenced for Defrauding Elderly Family MemberRead the Press Release
EAST ST. LOUIS, Ill. – Ronald Speiser, 81, and Jean Speiser, 81, of Freeburg, Illinois, will spend their next year in home confinement making restitution payments after defrauding an elderly family member out of nearly $200,000. The Speisers pled guilty to two counts of fraud and were sentenced on Thursday, November 18, 2021, in U.S. District Court in East St. Louis, Illinois.
According to Court documents, the Speisers were designated as the victim’s power of attorney and successor power of attorney in the victim’s estate plan. In June 2018, the Speisers exercised their authority over the victim’s finances by opening an account at Citizens Community Bank in Mascoutah, Illinois, and depositing a check for over $250,000 after selling the victim’s home.
Starting around December 2018, and continuing until at least June 2020, the Speisers abused their access to these funds by spending over $200,000 of the victim’s money without the victim’s knowledge or permission, and for purposes that did not benefit the victim. Their spending spree included over $50,000 in personal home renovations, paying over a year’s worth of personal credit card bills, purchasing a new camper and new truck, and making a down payment and thirteen mortgage payments on a second home.“The FBI recognizes that seniors can be a particularly vulnerable group,” said Special Agent in
Charge David Nanz. “In this case, Ronald and Jean Speiser were in a position of trust, not only as power of attorney but as a family member. Rather than being good stewards of the responsibilities entrusted to them, they chose to steal money and use it for their own personal gain. The FBI will not hesitate to investigate those who victimize and take advantage of the elderly citizens of our community.”While on home confinement, the Speisers will be restricted to their residence except for religious services, medical appointments, and other pre-approved activities. Their sentence also included an additional year of supervised release after home confinement and paying full restitution to the victim. The Speisers paid the victim an initial lump sum of $119,000 as part of their plea agreement. They will pay the remainder in monthly installments.
This case was brought as part of the Department of Justice’s Elder Fraud Initiative. Information about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S.
Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.The case was investigated by Adult Protective Services, St. Clair County Sheriff’s Department, and the Federal Bureau of Investigation - Springfield Division.
Franklin Man Sentenced to 96 Months for Distribution of Drugs and Firearm OffensesRead the Press Release
CONCORD - Jake Laurence Mason, 28, of Franklin, was sentenced on Monday to 96 months in federal prison for drug trafficking and possession of a firearm in furtherance of drug trafficking, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between March and July 2020, Franklin police were investigating Mason’s suspected drug distribution activities. Based on evidence gathered throughout the investigation, officers executed a search warrant on August 7, 2020. Mason was arrested at the scene when officers located suspected drugs in plain view on a table in front of Mason. A further search of the property revealed a loaded handgun stuffed in the couch cushions next to Mason. A backpack was located containing items associated with drug distribution as well as a cell phone, ledger $1,200 in cash and drugs packaged in various containers. Inside a locked closet, officers located a shotgun, handgun and AK-47 rifle as well as ammunition. Safes in the closet contained more items associated with drug distribution, $1,600 in cash and suspected drugs in various containers. Over 49 grams of methamphetamine and over 65 grams of fentanyl were located during the search.
“Armed drug traffickers like Mr. Mason present a significant risk to the community,” said Acting U.S. Attorney Farley. “While distributing drugs like methamphetamine and fentanyl endangers the community, that danger is even greater when drug dealers possess multiple firearms. In order to protect the citizens of the Granite State, we will continue to seek substantial prison sentences for the armed drug dealers who threaten public safety in our local communities.”
“DEA and our state and local counterparts will do everything in our power to bring to justice those who distribute methamphetamine,” said DEA Special Agent in Charge Brian D. Boyle. “Today’s sentence not only holds Mr. Mason accountable for his crimes but serves as a warning that DEA and its local and state partners will work diligently to keep this highly addictive drug off the streets of New Hampshire.”
This matter was investigated by Franklin Police Department with assistance from Drug Enforcement Administration, Merrimack County Sheriff’s Department, Andover Police Department, Tilton Police Department and Northfield Police Department. The case was prosecuted by Assistant U.S. Attorney Joachim H. Barth.
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Fox Point Man Indicted for Defrauding Investors of over $5.5 MillionRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on November 16, 2021, a federal grand jury indicted David O. Braeger (age: 54), of Fox Point, Wisconsin, for three counts of Wire Fraud, three counts of Bank Fraud, one count of Mail Fraud, and and two counts of Engaging in Unlawful Monetary Transactions, in violation of 18 U.S.C. §§ 1341, 1343, 1344, and 1957.
If convicted, Braeger faces a maximum sentence of thirty years in prison, up to five years of supervised release, and up to a $1,000,000 fine for each of the Bank Fraud counts. He faces a maximum sentence of twenty years in prison, up to five years of supervised release, and up to a $250,000 fine for each of the Wire Fraud counts and the Mail Fraud count. He also faces a maximum of ten years in prison, up to three years of supervised release, and up to a $250,000 fine for each of the Engaging in Unlawful Monetary Transaction counts.
According to the indictment, beginning on or about September 2016 and August 2017, Braeger engaged in two separate investment schemes in which he defrauded victims into investing in entities based on false representations and promises. The indictment alleges that instead of using the investor funds as promised, Braeger used a significant portion of the victims’ money to make Ponzi-like payments to prior investors and to fund his own lifestyle. The indictment further alleges that between 2016 and 2018, Braeger fraudulently obtained over $5.5 million from his victims.
In 2020, the Financial Industry Regulatory Authority (FINRA) barred Braeger from associating with any member in any capacity based on findings that Braeger made misrepresentations and omissions to customers concerning investments he sold and findings that he converted and misused customer funds.
The Wisconsin Department of Financial Institutions and the Federal Deposit Insurance Corporation-Office of the Inspector General investigated the case, which Assistant United States Attorney Julie F. Stewart will prosecute.
An indictment is only a charge and not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt
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Four Sentenced this Week for Roles in Pandemic Unemployment Fraud, Mail Fraud SchemeRead the Press Release
ABINGDON, Va. – Four more Southwest Virginia residents who conspired with over 30 other people to defraud the United States government by filing claims for more than $499,000 in pandemic unemployment benefits and committing mail fraud and other offenses were sentenced this week to federal prison time.
Randall Johnson, 42, of Castlewood, Virginia, was sentenced yesterday to 24 months in prison. Today, Steven Mullins, 34, of Big Stone Gap, Virginia, was sentenced to 27 months, Ajay Johnson, 26, of Fruitland Park, Florida, received a sentence of 30 months, and Patrick Payne, 43, of Big Stone Gap, was sentenced to 24 months in prison.
“The nearly $500,000 in funds stolen by this conspiracy could have gone to Virginians in critical need of support during a pandemic, but instead went into the hands of those undeserving,” United States Attorney Christopher R. Kavanaugh said today. “The sentences handed out this week prove that this Department of Justice will not standby as individuals take advantage of programs designed to help our nation recovery from this once in a generation health crisis.”
“These conspirators thought they could game the system and defraud the government during a time of national crisis,” said IRS-CI Washington DC Field Office Special Agent in Charge Darrell Waldon. “We will continue to root out Covid-19 related fraud and bring these bad actors to justice.”
“Randall Johnson, Steven Mullins, Ajay Johnson, and Patrick Payne, all sought to financially enrich themselves by engaging in a conspiracy to submit false claims for pandemic unemployment assistance (PUA) for ineligible claimants, to include prisoners. The U.S. Department of Labor Office of Inspector General and its partners, such as the Virginia Employment Commission and U.S. Attorney’s Office, will continue to work together to preserve the integrity of the PUA program by vigorously pursuing those who commit this type of fraud,” stated Special Agent-In-Charge Syreeta Scott, Philadelphia Region, U.S. Department of Labor Office of Inspector General.
According to court documents, R. Johnson, Mullins, Payne, and A. Johnson conspired with others to file claims for pandemic unemployment benefits through the Virginia Employment Commission (VEC) website. The scheme involved submitting claims for various individuals who were not eligible to receive pandemic unemployment benefits, including numerous inmates incarcerated in Southwest Virginia regional jails. To date, 23 of the co-conspirators have pleaded guilty to their roles in the broader conspiracy.
Conspiracy members lied on the VEC filings as part of the scheme to make filers appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, each of those filings re-verified and re-certified the false statements on numerous occasions throughout the scheme.
In all, the conspiracy participants filed fraudulent claims for approximately 37 individuals, causing at least $499,000 in false claims to be have been paid. In addition to those indicted, eight co-conspirators have already entered into plea agreements with the United States.
The Department of Labor – Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorney Daniel J. Murphy prosecuted the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or by accessing the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form .
Fort Wayne Man Sentenced to 180 Months in PrisonRead the Press Release
FORT WAYNE – Richard Klaff, 48 years old, of Fort Wayne, Indiana, was sentenced by United States District Court Judge Holly A. Brady after pleading guilty to distribution of 5 grams or more of methamphetamine, announced United States Attorney Clifford D. Johnson.
Klaff was sentenced to 180 months in prison followed by 4 years of supervised release.
According to documents in the case, Klaff distributed several ounces of methamphetamine in February 2020, and again in March of 2020.
This case was investigated by the Federal Bureau of Investigation with the assistance of the Fort Wayne Police Department. The case was prosecuted by Assistant United States Attorney Anthony W. Geller.
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Former Shadow Creek Ranch manager charged with wire fraudRead the Press Release
HOUSTON – A 62-year-old Houston resident is set to appear in federal court on charges she defrauded a property management company, announced Acting U.S. Attorney Jennifer B. Lowery.
Maria Denise Southall-Shaw is charged with one count of wire fraud. She is set to appear before U.S. Magistrate Judge Andrew Ellison at 2 p.m. today.
Southall-Shaw was the former manager of Shadow Creek Ranch in Pearland. First Service Residential (FSR) is Shadow Creek’s property management company and employed Southall-Shaw, according to the information.
She allegedly engaged in a scheme to defraud FSR. The information alleges that between December 2013 and November 2017, Southall-Shaw approved invoices from a ranch vendor for goods and services she knew the vendor had not provided, according to the allegations.
Southall-Shaw allegedly caused this vendor to kickback to her 50% of the payment the vendor received, which totaled $421,519.
If convicted, she faces up to 20 years in federal as well as a possible $250,000 maximum fine.
The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.
An information is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Former Norwell Youth Football Coach Sentenced to 45 Years in Prison for Sexually Exploiting ChildrenRead the Press Release
BOSTON – A former Norwell youth football coach was sentenced today in federal court in Boston for sexually exploiting children.
Derek Sheehan, 51, was sentenced by U.S. District Court Judge Richard G. Stearns to 45 years in prison and five years of supervised release. On July 20, 2021, Sheehan pleaded guilty to three counts of sexual exploitation of children.
“Mr. Sheehan abused his status as a youth football coach to prey on vulnerable children. He manipulated and sexually exploited them for months, and for that he will spend the rest of his life behind bars,” said Acting United States Attorney Nathaniel R. Mendell. “There are few crimes deserving of a life sentence, and this is one of them. We do all we can to protect our children and ensure their safety, as this case shows.”
“Adults who use their access to children for their own sexual gratification, like former football coach Derek Sheehan did, are both a danger and a disgrace. What Derek Sheehan did is absolutely horrific, and the impact on his victims is immeasurable. While today’s sentencing cannot erase that harm, it ensures he will remain behind bars for a very long time, unable to victimize anyone else, ever again,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “The FBI and our law enforcement partners will never stop working to put predators like him behind bars. These are incredibly disturbing cases, and each time we're able to step in and protect a child from further sexual abuse, it's a good day.”
In June 2018, one of the minor victims reported sexual abuse by Sheehan to local law enforcement. On Aug. 17, 2018, a search of Sheehan’s Norwell residence resulted in the seizure of electronic devices that contained child pornography. Subsequent analysis of those devices uncovered video evidence of Sheehan, a Norwell youth football coach at the time, sexually abusing three minors while they slept at his home on various dates between March 2017 and July 2018. The victims depicted in the footage, all of whom were known to Sheehan, were 11 and 12 years old when he sexually abused them.
Acting United States Attorney Mendell and FBI SAC Bonavolonta made the announcement today. Valuable assistance was provided by the Plymouth County and Cape and Islands District Attorney’s Offices; the Massachusetts State Police; and the Norwell Police Department. Assistant U.S. Attorney Anne Paruti, Chief of Mendell’s Major Crimes Unit and the Project Safe Childhood coordinator, and Assistant U.S. Attorney Charles Dell’Anno, of Mendell’s Major Crimes Unit, prosecuted the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Former Joplin Teacher Sentenced to 20 Years for Enticing a Minor for SexRead the Press Release
SPRINGFIELD, Mo. – A former Joplin, Missouri, middle school teacher was sentenced in federal court today for charges related to enticing one of her students to engage in illicit sex.
Amanda Ruth Schweitzer, 42, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole. The court also sentenced Schweitzer to 15 years of supervised release following incarceration.
On June 16, 2020, Schweitzer pleaded guilty to enticing a minor for illegal sexual activity. Schweitzer was a teacher at North Middle School in Joplin at the time of the offense.
The 13-year-old victim, who was a student of Schweitzer’s, reported Schweitzer sent nude photos of herself to the victim, with whom she primarily communicated via Instagram, and engaged in sexual intercourse with the victim on at least two occasions in March 2017. The victim reported that he also sent a nude image of himself to Schweitzer.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Southwest Missouri Cyber Crimes Task Force, the Joplin, Mo., Police Department, and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."