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22 November 2021
Narcotics Dealer Sentenced to Ten and a Half Years in Federal Prison for Federal Drug Trafficking Charges and Assault on a Federal OfficerRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Andrew Joseph Trimmer, age 32, of Bowie, Maryland to ten and a half years in federal prison, followed by three years of supervised release, for conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, and assault on a federal officer.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Jarod Forget of the Drug Enforcement Administration - Washington Division (DEA); Chief Malik Aziz of the Prince George’s County Police Department (PGPD); Chief Darryl McSwain of the Maryland National Capital Park Police, Montgomery County Division; Chief John Nesky of the Bowie Police Department; and Anne Arundel County Police Chief Amal E. Awad.
According to his plea agreement, between May 2018 to September 2020, Trimmer and his girlfriend, Alicia Walls, conspired with others to distribute and possess with the intent to distribute heroin and fentanyl.
Specifically, on May 28, 2018, in Bowie, Maryland, Trimmer sold fentanyl to Victim A. During the narcotics transaction, Victim A and Victim A’s friends ingested the heroin that Trimmer distributed. Shortly after ingestion, Victim A overdosed and lost consciousness. After receiving life support treatment, Victim A survived the overdose, which constituted a serious bodily injury. Prior to the overdose on May 28, 2018, Trimmer distributed at least one gram of heroin and fentanyl to Victim A approximately two times per week for two years.
Occasionally, Trimmer and Walls sold narcotics in the presence of a minor child. On July 16, 2019, while caring for a 9-month-old child, Walls fell asleep after ingesting narcotics, and the child obtained narcotics from Wall’s belongings, ingested the narcotics, and subsequently overdosed. Trimmer and Walls then transported the child to a nearby hospital where healthcare workers revived the child. After receiving additional lifesaving measures, the child survived.
Following the child’s overdose, law enforcement officers executed a search warrant at Trimmer and Walls’s hotel room. As agents announced themselves, Trimmer attempted to flee on foot. After disregarding law enforcement’s commands to stop, a federal task force officer attempted to physically stop Trimmer from fleeing. Trimmer then proceeded to grab the officer’s body armor and began to physically assault the officer. Eventually, Trimmer was apprehended. The officer sustained a torn meniscus as a result of the assault. During his altercation with the officer, Trimmer shed his jacket from which officers later recovered 30 grams of fentanyl. From Trimmer’s car, police recovered digital scales, plastic bags, and razor blades used by Trimmer and Walls to distribute drugs.
Trimmer and Walls had numerous narcotics customers in the Bowie area, including two other victims, Victim B and Victim C. After Trimmer was taken into custody, Walls continued to distribute heroin and fentanyl to Victim B and Victim C. In October 2020, after obtaining heroin and fentanyl from Walls, Victim B and Victim C both overdosed. Both were transported to the hospital for advanced life support and treatment and ultimately survived. Together, over a six month period, Walls and Trimmer distributed at least 240 grams of heroin and fentanyl to Victim B and Victim C.
Following his arrest and incarceration, Trimmer assaulted corrections officers on three separate occasions causing bodily injuries to several corrections officers. As part of his sentence, Judge Grimm ordered Trimmer pay restitution of $52,174.52 for injuries sustained by the federal task force officer and the corrections officers during the assaults by Trimmer.
United States Attorney Erek L. Barron commended the DEA, the PGPD, the Maryland National Capital Park Police, the Bowie Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Barron thanked Special Assistant U.S. Attorney Amy L. Schwartz, and Assistant U.S. Attorneys Jennifer L. Wine, and Dwight Draughon who prosecuted the case.
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Moline Man Sentenced for Drug Conspiracy Committed while Incarcerated in Federal Bureau of PrisonsRead the Press Release
DAVENPORT, Iowa – A Moline, Illinois man, Luis Alberto Hernandez-Barajas, a citizen of Mexico, was sentenced on Thursday, November 18, 2021 to 188 months in prison for Conspiracy to Distribute 50 Grams or More of Methamphetamine. Hernandez-Barajas was ordered to serve five years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
Hernandez-Barajas, age 42, supplied co-defendant, Christopher Hicks, with six pounds of methamphetamine and a half-pound of black tar heroin for distribution in the Quad Cities. In the summer and fall of 2019, Hernandez-Barajas supplied Hicks with hollowed out candles each filled with one pound of methamphetamine. In January 2020, Hernandez-Barajas supplied Hicks with black tar heroin for distribution. Hernandez-Barajas was incarcerated in the federal prison on a prior drug trafficking conviction at the time of this offense. Despite his incarceration, Hernandez-Barajas acquired a cell phone and communicated with Hicks and arranged for the shipments of these controlled substances. Hernandez-Barajas pleaded guilty to the charge on July 14, 2021.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Quad City Metropolitan Enforcement Group investigated the case.
Minnesota Man Sentenced to 5 Years on Methamphetamine ChargeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Zakaree Stelzer, 25, Lakeville, Minnesota, was sentenced today by U.S. District Judge William M. Conley to 5 years in federal prison for possessing methamphetamine with intent to distribute. Stelzer pleaded guilty to this charge on August 26, 2021.
On December 10, 2020, an officer from the Buffalo County Sheriff’s Department pulled over a car occupied by Stelzer and his co-defendant, Doua Moua, for a cracked windshield and reckless driving. The officer confirmed that Stelzer and Moua both had active state arrest warrants. Officers searched the car and found a toolbox in the trunk that contained approximately 465 grams, or just over 1 pound of methamphetamine. During post-arrest interviews, Stelzer and Moua admitted buying the methamphetamine together in the Twin Cities. Stelzer and Moua both stated that they intended to sell the methamphetamine in the Wisconsin Rapids area.
At the sentencing hearing, Judge Conley noted that Stelzer’s possession of a “staggering amount” of methamphetamine was troubling. Judge Conley stated that telephone records showed that Stelzer had a history of trafficking drugs in the Wisconsin Rapids area. However, Judge Conley also noted that Stelzer’s criminal history was limited.
Moua was previously sentenced by Judge Conley to 6 years in federal prison for his role in the offense on October 19, 2021.
The charge against Stelzer was a result of an investigation conducted by the West Central Drug Task Force, Buffalo County Sheriff’s Department, Mondovi Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorney Aaron Wegner handled the prosecution.
Mercer County Man Sentenced to 408 Months for Drug Trafficking and Possession of Firearm by Convicted FelonRead the Press Release
LEXINGTON, Ky.— A Harrodsburg, Ky., man, John Michael Essex, 58,was sentenced to 408 months in federal prison on Friday, by Chief U.S. District Judge Danny C. Reeves, after being convicted of possession with intent to distribute 50 grams or more of methamphetamine, possession with intent to distribute heroin, and possession of a firearm by a convicted felon.
According to the evidence presented at trial, on July 7, 2019, deputies with the Mercer County Sheriff’s Office executed a search warrant on a property being occupied and rented by Essex. During the search officers located approximately 354 grams of methamphetamine and 69 grams of a mixture of heroin and fentanyl, in multiple baggies packaged for distribution. A Remington rifle was also located in a vehicle belonging to the Essex. Essex had previously been convicted of a felony and was prohibited from possessing a firearm.
Essex was convicted in August 2021.
Under federal law, Essex must serve 85 percent of his prison sentence. Upon his release from prison, he will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, United States Attorney for the Eastern District of Kentucky; J. Todd Scott, Special Agent in Charge, DEA, Louisville Field Office; and Sheriff Ernie Kelty, Mercer County Sheriff’s Office; announced the sentence.
The investigation was conducted by DEA and the Mercer County Sherriff’s Office, with assistance from the Danville Police Department, Lincoln County Sherriff’s Office, and the Kentucky State Police Special Response Team. The United States was represented by Assistant U.S. Attorney Francisco Villalobos.
This case was prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. It involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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Mason City Man Sentenced to Federal Prison for Possessing and Distributing MethamphetamineRead the Press Release
A Mason City man who distributed large quantities of methamphetamine around the Mason City area was sentenced November 19, 2021 to 10 years in federal prison.
Jacinto Barrientes, age 56, from Mason City, Iowa, received the prison term after a July 1, 2021, guilty plea to one count of possessing methamphetamine and two counts of distributing methamphetamine.
At the plea hearing, Barrientes admitted to possessing with the intent to distribute and distributing large quantities of methamphetamine around the Northern District of Iowa, specifically Mason City, Iowa. Barrientes has an extensive history of criminal activity including driving while intoxicated, domestic abuse/assault, rioting, and a prior felony drug trafficking offense.
Barrientes was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Barrientes was sentenced to 120 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system.
Barrientes is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Jack Lammers and was investigated by the North Central Iowa Drug Task Force, the Cerro Gordo Sheriff’s Office, the Mason City Police Department, and the Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3008.
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Maryland Man Facing Federal Indictment for Drug Conspiracy and Firearms ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Elias Nick Costianes, Jr., age 43, of Nottingham, Maryland, for two counts of conspiracy to distribute and possess with intent to distribute a controlled substance—specifically, testosterone and cocaine. The indictment also charges Costianes with possession of firearms and ammunition by an unlawful user of any controlled substance. The indictment was returned on November 18, 2021 and Costianes will have an initial appearance in U.S. District Court in Baltimore at a later date. Costianes remains released under the supervision of U.S. Pretrial Services since his arrest on a related federal criminal complaint.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the three-count indictment and other court documents, on February 12, 2021, the FBI executed search warrants at Costianes’s residence, on his vehicle, and on Costianes’ cellphone. Court documents allege that law enforcement recovered four firearms from the residence: a 9mm pistol; a M&P 15 semi-automatic rifle; a .223 caliber semi-automatic rifle; and a 12-gauge shotgun, as well as 9mm, .22 caliber, .223 caliber, and shotgun ammunition. Law enforcement also allegedly recovered three vials of testosterone enanthate and one vial of testosterone cypionate, both controlled substances.
As detailed in court documents, the electronic evidence from Costianes’ phone, including photographs and text message conversations, allegedly revealed that Costianes used and conspired to traffic cocaine and testosterone by acquiring controlled substances from his suppliers to distribute to friends and associates. The indictment alleges that the conspiracy to distribute and possess with intent to distribute testosterone lasted from February 2020 through February 2021 and the conspiracy to distribute and possess with intent to distribute cocaine lasted from March through December 2020.
If convicted, Costianes faces a maximum sentence of 20 years in federal prison for each of the two counts of conspiracy to distribute and possess with intent to distribute a controlled substance; and a maximum of 10 years in prison for possession of firearms and ammunition by an unlawful user of a controlled substance. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI for its work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Jeffrey J. Izant, who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Man Sentenced to a Year in Federal Prison for Selling Weight-Loss Product Containing Unapproved AdditiveRead the Press Release
CHICAGO — A federal judge in Chicago has sentenced a man to a year in prison for manufacturing and selling a purported weight-loss product containing the unapproved additive 2,4-Dinitrophenol, known as DNP.
JONATHAN E. MCGRAW, 33, of Newberg, Oregon, obtained DNP from sources in China and used it as the primary ingredient in capsules that he manufactured in a makeshift lab in his garage and marketed online as a weight-loss product. McGraw sold the capsules to customers throughout the United States via his website – ScorpionDNP.com – and through postings on other sites, including reddit.com. In an effort to deceive regulatory and law enforcement agencies, McGraw falsely labeled his product as pesticide.
DNP is an organic compound that has not been approved by the U.S. Food and Drug Administration or any other regulatory agency for human consumption in the U.S. McGraw acknowledged in a plea agreement that he knew that the use of DNP by his customers created a risk of death or serious bodily injury.
McGraw pleaded guilty earlier this year to a federal charge of introducing a new drug into interstate commerce without approval. U.S. District Judge John Z. Lee on Friday sentenced McGraw to a year and a day in federal prison.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Lynda M. Burdelik, Special Agent-in-Charge of the Chicago Field Office of the U.S. Food and Drug Administration, Office of Criminal Investigations.
“Defendant engaged in a course of conduct over a prolonged period of time that exposed hundreds of individuals to a significant risk of harm or death,” Assistant U.S. Attorney Rick D. Young argued in the government’s sentencing memorandum. “Defendant was willing to subject hundreds of people to a risk of death in order to make money for himself.”
Latham Pharmacy Pays Civil Penalty for Improperly Filling Ketamine PrescriptionsRead the Press Release
ALBANY, NEW YORK – Fallon Wellness Pharmacy LLC (“Fallon”), of Latham, New York, has agreed to pay $7,150 to resolve allegations that it improperly filled intranasal ketamine prescriptions that raised “red flags.” Fallon admitted to dispensing ketamine to patients who were being treated by two Albany-area doctors who have since lost their ability to prescribe controlled substances.
The announcement was made by United States Attorney Carla B. Freedman and Acting Special Agent in Charge Keith Kruskall, U.S. Drug Enforcement Administration (DEA), New York Division.
“Fallon Wellness Pharmacy has accepted responsibility for dispensing ketamine prescriptions that never should have been written or filled,” said Carla Freedman, United States Attorney for the Northern District of New York. “Whenever a pharmacy receives a suspicious prescription, it must consult the New York State’s Internet System for Tracking Over-Prescribing (I-STOP) Prescription Monitoring Program (PMP). We will continue to use the Controlled Substances Act to prevent and deter the illegal distribution of controlled substances.”
“A DEA regulatory investigation uncovered suspicious prescriptions associated with Fallon Wellness Pharmacy,” said DEA Acting Special Agent in Charge Keith Kruskall. “Numerous red flags found by investigators indicated that this pharmacy was involved in illegitimate and reckless dispensing. I applaud the investigators and our law enforcement partners on this investigation.”
Ketamine is a Schedule III controlled substance that causes sedative and dissociative effects. It has legitimate medical uses, such as surgical anesthesia, and other “off label” uses, but it is also abused recreationally as a “party drug.”
Beginning in 2018, two Albany-area physicians, Dr. Scott McMahon and Dr. Larry Bruni, began prescribing intranasal ketamine for substance abuse patients to self-administer intranasally. Fallon filled many of these ketamine prescriptions. In 2019, the DEA arrested McMahon for crimes associated with his prescribing practices. Fallon personnel knew of McMahon’s arrest, and were aware that approximately one-third of McMahon’s ketamine patients promptly migrated to Bruni after McMahon’s arrest. These same patients were also suffering from a substance abuse disorder, which would have been apparent to Fallon personnel, had they checked the PMP data. Fallon continued filling the ketamine prescriptions written by Bruni until December 2020, when the United States Attorney’s Office made an inquiry.
This settlement resolves allegations that by continuing to fill the ketamine prescriptions after McMahon’s arrest, and not checking the PMP, Fallon ignored “red flags” and failed to comply with its corresponding duty under 21 C.F.R. § 1306.04, to fill only prescriptions that are written for a legitimate medical purpose within the usual course of a professional practice.
Both McMahon and Bruni admitted to writing intranasal ketamine prescriptions that lacked a legitimate medical purpose and were outside the usual course of professional medical practice. McMahon was also sentenced to 38 months in prison for unlawful drug distribution and aggravated identity theft.
This case was investigated by the DEA Albany District Office Diversion Group. Assistant United States Attorney Christopher R. Moran represented the United States in this matter.
Las Vegas Woman Sentenced for Distribution of MethamphetamineRead the Press Release
LAS VEGAS – On Friday, a Las Vegas woman was sentenced to 84 months in prison — to be followed by four years of supervised release — for distributing methamphetamine on multiple occasions.
According to court documents, from January 30, 2020 to March 26, 2020, Alexis Catalan (41) sold a total of 391.9 grams of methamphetamine, a Schedule II controlled substance. Additionally, she possessed 271.8 grams of methamphetamine.
Catalan pleaded guilty in August 2021 to one count of possession of a controlled substance with intent to distribute. U.S. District Judge James C. Mahan presided over the sentencing hearing.
Co-defendants Justin Wright (36) and Daniel Leath (29) each pleaded guilty to one count of felon in possession of a firearm. In September 2021, Wright was sentenced to 24 months in prison. In November 2021, Leath was sentenced to 30 months in prison.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Francisco Burrola for Homeland Security Investigations (HSI) made the announcement.
This case was investigated by the Las Vegas Metropolitan Police Department and HSI. Assistant U.S. Attorney Dan Cowhig prosecuted the case.
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Las Vegas Man Sentenced to Prison for Using Skimming Devices at Gas Pumps to Steal Credit and Debit Card InformationRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced today to 61 months in prison for his role in a fraud scheme to steal thousands of credit and debit card numbers from victims at gas pumps in Nevada and California.
According to court documents, between November 2018 and June 2019, Danyer Manuel Alarcon Rodriguez (23) was a key member in a conspiracy to install skimmer devices at numerous gas pumps. Alarcon Rodriguez installed at least 27 skimmer devices that obtained at least 481 stolen card numbers.
After obtaining the stolen credit and debit card account information, Alarcon Rodriguez and his co-conspirators would re-encode that account information onto the magnetic strips of counterfeit cards, and then use the counterfeit cards to fraudulently make purchases and ATM cash withdrawals. Collectively, Alarcon Rodriguez and his co-conspirators obtained at least 3,120 stolen credit and debit card account numbers and caused a loss of at least $157,695.51.
Alarcon Rodriguez pleaded guilty in June 2021 to one count of conspiracy, one count of use of unauthorized access device, and one count of aggravated identity theft. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced Alarcon Rodriguez to three years of supervised release and ordered restitution.
Co-defendant Francisco Rodriguez Gonzalez (35) pleaded guilty in July 2021 and is scheduled to be sentenced in December 2021. Co-defendants Juan Luis Sosa Tamayo (32) and Adrian Leyva Tamayo (32) are scheduled for a jury trial to begin in July 2022.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent in Charge Brian Spellacy of the U.S. Secret Service made the announcement.
This case was investigated by the U.S. Secret Service. Assistant U.S. Attorney Eric Schmale is prosecuting the case.
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Lakewood Man Arrested on Federal Complaint Alleging He Threatened to Bomb SBA Offices and Assault Agency EmployeesRead the Press Release
LOS ANGELES – A Lakewood man was arrested on a federal criminal complaint filed today alleging he threatened to bomb Small Business Administration (SBA) offices and then, the following year, assault SBA employees in response to his inability to obtain COVID-19 emergency business loans.
Christopher Joseph Antoun, 29, was arrested Saturday on a complaint charging him with one count of making threats by interstate communication. He made his initial appearance this afternoon in United States District Court in downtown Los Angeles, where he was ordered jailed without bond. His arraignment is scheduled for December 10.
According to an affidavit filed with the complaint, Antoun owns Federal Student Loan Consulting LLC, a company he runs out of his Lakewood residence. In early 2020, Antoun attempted to obtain a COVID-19 Emergency Injury Disaster Loan (EIDL). These loans provide accessible and borrower-friendly capital to small businesses impacted by the COVID-19 pandemic.
On May 3, 2020, after he failed to receive approval for an EIDL loan or an advance from the SBA, Antoun allegedly sent an email to an SBA-monitored email account and wrote, in part, “IT GOES INTO MY BANK ACCOUNT TONIGHT OR I START BOMBING EVERY LOCATION OWNED BY THE SBA.” An SBA loan officer in Texas received Antoun’s email and contacted law enforcement, according to the affidavit.
Law enforcement visited Antoun at his residence, where he said he was high on marijuana and drunk on alcohol when he sent the threatening email and had no intent of carrying out the threat, and law enforcement later gave him a warning, according to the affidavit.
During the summer and fall of 2021, Antoun again attempted to obtain SBA-backed loans and loan advances. Following difficulty in obtaining the loans and advances, Antoun on November 19 allegedly sent an email to several SBA employees. In that email, Antoun threatened to walk into the SBA’s Los Angeles district office “with my nice shiny bat” and “start beating the skulls of SBA staff in. Once the police or whoever it is eventually stops me im [sic] going to go to jail,” the affidavit states.
If convicted, Antoun would face a statutory maximum sentence of five years in federal prison.
A complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The United States Department of Homeland Security’s Federal Protective Service investigated this matter.
Assistant United States Attorney Jason C. Pang of the International Narcotics, Money Laundering, and Racketeering Section is prosecuting this case.
Jury finds local man guilty of distributing fentanyl that resulted in the death of anotherRead the Press Release
ST. LOUIS –Gerald E. Cardwell, Jr. of O’Fallon, Missouri was found guilty by a jury after deliberations yesterday at the conclusion of a four-day trial held at the Thomas Eagleton Federal Courthouse.
Cardwell was charged in 2019 for knowingly and intentionally distributing a controlled substance, that led to the death of an individual from the use of the controlled substance distributed by Cardwell.
Evidence presented at trial revealed that the victim had picked Cardwell up from the Hollywood Casino Hotel on the night of July 25, 2019. In the early morning hours of July 26, 2019, Cardwell gave the victim a “special mix” of fentanyl and Adderall, sending text messages to a third-party witness that the victim was “TKO” in the car. Surveillance video obtained from Hollywood Casino Hotel depicted Cardwell, the victim, and the third-party witness enter the hotel shortly before 2 a.m. The third party left approximately ten minutes later, leaving Cardwell and the victim in the hotel room. Cardwell departed at 10:00 the following morning. Housekeeping staff found the victim deceased in the room at approximately 3:15 that afternoon. Evidence at trial suggested that he had been deceased for 8-10 hours. The St. Louis County Medical Examiner’s Office determined that the victim died of fentanyl and ethanol intoxication. However, two toxicologists testified that the victim’s blood alcohol content at the time of his death was .03. According to the Medical Examiner, that small amount of alcohol could not have caused the victim’s death.
Cardwell is facing a sentence of life imprisonment without the possibility of parole on March 3, 2022 at his next appearance in front of United States District Judge John A. Ross.
The case was investigated by the Maryland Heights Police Department.
Judge sentences former St. Louis Metropolitan Police officer for civil rights violationRead the Press Release
ST. LOUIS – Dustin Boone, 37, of St. Louis, Missouri appeared before United States District Court Judge E. Richard Webber on today’s date. Boone was sentenced to twelve months and one day in prison for aiding and abetting the deprivation of civil rights under color of law of undercover police officer Luther Hall during the 2017 Jason Stockley protests. Boone was found guilty in June after a nine-day trial.
The evidence during the trial proved that Dustin Boone assisted former police officer Randy Hays in the assault of undercover police officer Luther Hall. Det. Hall was undercover during the protests following the acquittal of former police officer Jason Stockley.
Bailey Colletta previously pleaded guilty to making false statements to a federal grand jury and was sentenced to probation. Randy Hays, who had earlier pleaded guilty to his role in the matter, was sentenced to a 52-month term of imprisonment. Christopher Myers case is still pending.
The case was investigated by the Federal Bureau of Investigation.
Judge sentences former St. Ann Police Officer to six years in prisonRead the Press Release
ST. LOUIS – Ellis C. Brown, III, 32, of High Ridge, Missouri, appeared before United States District Court Judge Audrey G. Fleissig on today’s date. Brown was sentenced to six years in prison for deprivation of civil rights under color of law. Brown was previously found guilty after a three-day jury trial in June.
The evidence during the trial proved that Brown used unreasonable force during an encounter with a victim. In his capacity as a St. Ann police officer, Brown repeatedly kicked the victim who lay prone on the parking lot of a US Bank at the corner of Natural Bridge and Kingshighway in the city of St. Louis. The April 2019 incident was captured on video and followed a lengthy high-speed chase during which Brown and other St. Ann Police Department Officers pursued the victim through rush hour traffic for more than twenty minutes, at times reaching speeds exceeding 115 mph. Two St. Louis Metropolitan Police Officers intervened to stop Brown’s assault.
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Derek Wiseman handled the case.
Jefferson Parish Man Indicted for Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – TRAVIS CARTER, age 42, a resident of Metairie, Louisiana, was charged on November 19, 2021, in a one-count indictment by a Federal Grand Jury with possession with intent to distribute cocaine in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C), announced U.S. Attorney Duane A. Evans.
If convicted, CARTER faces up to twenty (20) years imprisonment, a fine of up to $1,000,000, at least three (3) years of supervised release following any term of imprisonment, and a $100 mandatory special assessment fee.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, Jefferson Parish Sherriff’s Office, and St. John Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney Ben Myers.
Israeli Securities Trader Sentenced to 30 Months in Prison for Role in International Insider Trading SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced that DOV MALNIK, an Israeli securities trader and finance professional, was sentenced to 30 months in prison for his role in an international insider trading scheme. MALNIK was extradited from Switzerland and pled guilty on June 25, 2021, to insider trading for his role in trading based on confidential inside information stolen by an insider at a global investment bank and shared with MALNIK in exchange for profits. The sentence was imposed on November 19, 2021, by United States District Judge Victor Marrero.
U.S. Attorney Damian Williams said: “This prosecution shows that we will vigorously protect the integrity of our nation’s capital markets by holding insider traders accountable for their use of inside information, regardless of where in the world the inside information is stolen and where tips are illegally passed.”
According to the Superseding Indictment, statements made in open court, and court filings:
DOV MALNIK and his business partner and codefendant Tomer Feingold, both Israeli citizens, were securities traders who traded in their own names and managed various companies and investment funds. From at least 2013 through 2017, MALNIK participated in a large-scale, international insider trading ring. Through the scheme, MALNIK received material, nonpublic information (“MNPI”) concerning acquisitions and potential acquisitions of publicly traded companies from a securities trader who resided in Switzerland (“CC-1”). MALNIK knew that this MNPI was obtained by CC-1 directly and indirectly from individuals who were insiders at publicly traded companies and investment banks. These insiders breached their fiduciary duties and shared MNPI with others, including CC-1, in exchange for compensation, who in turn shared that information with MALNIK. MALNIK used that information to place timely, profitable securities trades resulting in millions of dollars of profits.
Throughout the conspiracy, MALNIK, Feingold, the investment bank insiders, CC-1, and others involved in this scheme, took numerous steps to conceal their unlawful enterprise, including through the use of encrypted messaging applications and multiple unregistered “burner” cellphones to communicate with each other. MALNIK also attempted to avoid detection by engaging in securities trading through numerous offshore corporate entities. For example, in 2011, MALNIK incorporated a British Virgin Islands entity based in Geneva, Switzerland, and subsequently opened trading and/or bank accounts in that shell company’s name. During the insider trading scheme, MALNIK’s offshore companies traded in the stocks of companies about which MALNIK had received MNPI – often with multiple of those companies trading in the same stock and on the same days.
MALNIK also used these entities to transfer a portion of the profits of his and Feingold’s illegal insider trading to CC-1, as per MALNIK’s agreement with CC-1. At first, MALNIK instructed his bank to send the funds to an account at a financial institution in Switzerland that agreed to hold the funds for the benefit of CC-1. After a short time, however, MALNIK’s bank questioned the purpose of the transactions and requested justification for the transfer of funds. Accordingly, in order to deceive the banks, MALNIK, Feingold, and CC-1 agreed that CC-1 would issue fake invoices for consulting services to MALNIK and Feingold’s various offshore entities. The offshore entities would then send the funds to CC-1’s account pursuant to the fake invoices.
To date, this investigation has also resulted in the conviction of other individuals who were involved in this global insider trading scheme, including investment banker Bryan Cohen, who pled guilty on January 7, 2020, to illegally passing MNPI related to his bank’s corporate clients, and entrepreneur and pharmaceutical company executive Telemaque Lavidas, who was convicted on January 15, 2020, of illegally passing MNPI related to Ariad Pharmaceuticals, Inc.
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In addition to the prison term, MALNIK, 43, was ordered to pay a fine of $50,000 and forfeiture of $1,594,779.
Mr. Williams praised the work of the Federal Bureau of Investigation and also thanked the Securities and Exchange Commission. The Justice Department’s Office of International Affairs and the Swiss Federal Office of Justice provided substantial assistance in securing Malnik’s arrest and extradition.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Richard Cooper and Daniel Tracer are in charge of the prosecution.
Iowa City Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm pled guilty today in federal court in Cedar Rapids, Iowa.
Joshua Brown, age 49, from Iowa City was convicted of one count of being a felon in possession of a firearm. At the plea hearing, Brown admitted that, on July 18, 2020, he knowingly possessed a pistol after having been convicted of two crimes punishable by more than one year of imprisonment. Brown admitted he had prior convictions for unauthorized possession of an offensive weapon in Johnson County in 1995 and possession of a firearm by a felon in Cedar County in 1996.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Brown remains free on bond previously set pending sentencing. Brown faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Linn County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 21-14.
Follow us on Twitter @USAO_NDIA.
Indiana Man Sentenced for Armed Pharmacy RobberyRead the Press Release
JEFFERSON CITY, Mo. – An Indianapolis, Indiana, man was sentenced in federal court today for his role in the armed robbery of a Walgreens pharmacy in Jefferson City, Missouri.
Daijahn Antwan Reed, 22, was sentenced by U.S. District Judge Roseann Ketchmark to 11 years and three months in federal prison without parole.
On Aug. 17, 2021, Reed pleaded guilty to one count of armed robbery and one count of brandishing a firearm during a crime of violence.
According to court documents, the armed robbery was part of a larger scheme of violence perpetuated by the Indianapolis-based organization called The Mob for which Reed and his co-conspirators worked. This group and others committed similar offenses across the United States during the spring and summer of 2018.
Reed is the third and final defendant to be sentenced in this case. Co-defendant Jerome Scott King, 22, of Speedway, Indiana, was sentenced to 14 years in federal prison without parole. Co-defendant Raymond Allen Craig, 23, of Indianapolis, was sentenced to 11 years and three months in federal prison without parole. Although Reed and his co-defendants are aware of the identity of a fourth participant in this crime, according to court documents, none of them have identified that individual.
Reed admitted that he and three other men robbed the Walgreens at 2002 Missouri Boulevard at gunpoint shortly after midnight on July 25, 2018. Police officers arrived as the robbers were running from the business. They fled in a vehicle driven by King. As officers followed in pursuit, occupants of the vehicle began throwing items from the vehicle, including more than 4,000 tablets of various controlled substances taken during the robbery with an aggregate value of $9,264.
Multiple officers pursued the vehicle eastbound on U.S. Highway 54 into Callaway County. The Missouri State Highway Patrol deployed spike strips at the U.S. 54-AA/OO interchange. King’s vehicle began to slow, left the highway, crossed the outer road and crashed near Jazel Lane in Holts Summit, Missouri. King and Craig were apprehended; an unidentified man escaped. Officers recovered the loaded Smith & Wesson 9mm handgun used in the pharmacy robbery. The firearm had been stolen from Indianapolis.
A witness called the Jefferson City Police Department at about 4:15 a.m. the same day. The witness reported that Reed, who had not made it to the getaway car after the robbery, knocked on his door and asked to use the phone. Reed spoke with the witness for several hours and admitted that he robbed the Walgreens store. The witness told officers that Reed was on the roof of the O’Reilly Auto Parts store, 1010 Missouri Blvd., in Jefferson City. Officers arrested Reed at that location.
Reed later threatened the life of the witness, according to court documents. After being arrested, Reed conspired with Craig to murder the occupant of the home that Reed ran to for sanctuary following the armed robbery.
King admitted he entered the Walgreens to conduct surveillance and then reported the number of persons inside to Craig. Craig, Reed, and the fourth individual entered the pharmacy wearing medical masks over their faces and medical style gloves on their hands. The unidentified man displayed a firearm and confronted the store clerk. One of the thieves, whose identity could not be determined from the surveillance video, zip-tied the clerk’s hands behind his back while a firearm was pointed at his head, led him to the rear of the business near the pharmacy area, and forced him down on the floor. Craig and Reed jumped over the counter and confronted the pharmacist, brandishing a firearm in a threatening manner, and removed controlled substances from the pharmacy. Both Reed and Craig handled the firearm and brandished it in a threatening manner in the direction of the pharmacist.
This case was prosecuted by Special Assistant U.S. Attorney Heather D. Richenberger and Assistant U.S. Attorney Jim Lynn. It was investigated by the Jefferson City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Illegal alien admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA –Lucio Javier Escobedo Fernandez, a Mexican national, has admitted to a drug charge, United States Attorney William J. Ihlenfeld, II announced.
Fernandez, 28, pleaded guilty today to one count of “Conspiracy to Distribute Methamphetamine.” Fernandez admitted to working with others to distribute methamphetamine from March 2018 to August 2020 in Monongalia County and elsewhere.
Fernandez faces up to 20 years of incarceration and a fine of up to $1 million. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; the Mon Metro Drug Task Force, a HIDTA-funded initiative investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Idaho Falls Man Pleads Guilty to Felon in Possession of a FirearmRead the Press Release
POCATELLO – An Idaho Falls man pled guilty to felon in possession of a firearm.
According to court records, on October 13, 2020, the Idaho State Police stopped a vehicle, which had been reported stolen, on I-15 in Bonneville County. During the traffic stop, law enforcement contacted Jonathan Manuel Martinez, 31, of Idaho Falls, who was the driver and sole occupant. Martinez informed law enforcement that there was a shotgun in the front seat of the vehicle. Law enforcement recovered a short-barreled shotgun. Martinez had previously been convicted of a felony offense and was prohibited from possessing firearms.
Martinez faces up to ten years in federal prison, a fine of $250,000, and three years of supervised release. His sentencing is set for February 8, 2022 in front of Chief U.S. District Judge David C. Nye.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the collaborative efforts of the Idaho State Police and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, which led to the charges.
This case was handled by the U.S. Attorney Office’s specially deputized Special Assistant U.S. Attorney (SAUSA), funded by the Eastern Idaho Partnership (EIP) and the State of Idaho. The EIP is a coalition of local city and county officials in eastern Idaho as well as the Idaho Department of Correction.
The EIP SAUSA program allows law enforcement to utilize the federal criminal justice system – through the EIP SAUSA – to prosecute, convict, and sentence violent, armed criminals and drug traffickers. These criminals often receive stiffer penalties than they might in state courts.
This program was created in January 2016. Since that time, approximately 186 defendants have been indicted by the EIP SAUSA. Of these defendants, 40 have been indicted for prohibited person in possession of firearm charges. The defendants indicted under the program have been sentenced to 7,646 months (approximately 637 years) in federal prison, representing an average prison sentence of 53.4 months (4.45 years). Defendants indicted for prohibited person in possession of a firearm cases serve, on average, approximately 41 months (3.42 years) in federal prison.
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Ida Grove Man Sentenced to over 12 Years in Federal PrisonRead the Press Release
A man who conspired to distribute over 5 kilograms of methamphetamine was sentenced on November 22, 2021, in federal court in Sioux City.
Cory Mackey, 34, from Ida Grove, Iowa, pled guilty on June 17, 2021, to conspiring to distribute methamphetamine.
At the hearings, evidence showed that from February 2019 through July 9, 2020, Mackey conspired to distribute over 5 kilograms of methamphetamine in the Ida County, Iowa area. On January 16, 2020, law enforcement executed a search warrant on Mackey’s home and discovered methamphetamine and drug paraphernalia. In July 2020, law enforcement discovered a vehicle, in which Mackey was a passenger, parked in the wrong lane on a rural road in Holstein, Iowa. A search of the vehicle revealed approximately 2.75 pounds of pure methamphetamine and over $18,000 in cash.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Mackey remains in custody of the United States Marshal until he can be transported to a federal prison. Mackey was sentenced to 145 months’ imprisonment and must also serve a 5-year term of supervised release following any imprisonment.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Iowa Division of Narcotics Enforcement, DCI Laboratory, and Ida County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4004. Follow us on Twitter @USAO_NDIA.
Huntington Man Sentenced to More than Seven Years in Prison for Federal Fentanyl OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to seven years and six months in prison for his involvement in distributing fentanyl in 2019.
According to court documents, Rodney Bulley, 33, admitted that on November 20, 2019, law enforcement officers executed a search warrant at his residence on Wilson Court in Huntington. Bulley was located in the residence during the search and officers seized a number of items including approximately 278 grams of fentanyl. Bulley was arrested and admitted that he possessed and intended to distribute the fentanyl and that he had been involved in distributing fentanyl in the Huntington area.
United States Attorney William S. Thompson made the announcement and commended the investigative efforts of the Federal Bureau of Investigation (FBI) and the Cabell County Sheriff’s Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant U.S. Attorney Joseph F. Adams prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00105.
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Huntington Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man pleaded guilty today to a federal drug crime.
According to court documents, on January 14, 2021, Aaron Scott Midkiff, 36, was the passenger in a vehicle that was stopped by deputies with the Cabell County Sheriff’s Department. Midkiff had approximately 166 grams of methamphetamine in his possession at the time the deputies initiated the traffic stop. The methamphetamine was thrown out of the vehicle just prior to the vehicle stopping and was recovered by deputies. Midkiff also had digital scales and plastic bags in his possession.
Midkiff pleaded guilty to possession with intent to distribute 50 grams or more of a mixture and substance containing methamphetamine and faces a mandatory minimum of five years in prison when he is sentenced on February 22, 2022.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI) and the Southern West Virginia TOC-West Task Force, which is comprised of officers with the Cabell County Sheriff’s Department, the Hurricane Police Department, and the Marshall University Police Department. The West Virginia State Police, the Drug Enforcement Administration (DEA) and the Violent Crime and Drug Task Force West provide investigative support to the task force. The Ohio Highway Patrol, the Kentucky State Police, and the FBI and DEA in Columbus, Ohio, also assisted in the investigation.
United States District Judge Robert C. Chambers presided over the hearing. Assistant U.S. Attorneys Courtney L. Cremeans and Joseph F. Adams are prosecuting the case.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00109.
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Human smuggling, forced labor among allegations in south Georgia federal indictmentRead the Press Release
Photo courtesy of U.S. Attorney's Office, Southern District of Georgia David H. Estes, Acting U.S. Attorney for the Southern District of Georgia, speaks during a news conference Nov. 22, 2021, to announce indictments in USA v. Patricio et al, Operation Blooming Onion, a human trafficking investigation naming 24 defendants on felony charges including human smuggling and document fraud. With Estes are (from left) Katrina Berger, Special Agent in Charge of the Atlanta Office of Homeland Security Investigations; Michael Imperatrice, Resident Agent in Charge, Savannah HSI Office; Jessica Moore, Chief of the Criminal Investigation Division for the U.S. Department of State's Diplomatic Security Service; Rafiq Ahmad, Special Agent in Charge of the Atlanta Regional Office of the U.S. Department of Labor Office of Inspector General; Henry Deblock, Savannah Area Port Director for U.S. Customs and Border Protection; George "Will" Clarke, Supervisory Senior Resident Agent, FBI Savannah; John Britt, Savannah/Jacksonville Team Leader, U.S. Postal Inspection Service; David Lyons, U.S. Marshal for the Southern District of Georgia; Maj. Fred Cole, Chief Deputy of the Coffee County Sheriff's Office; and Capt. Marcus Dunlap, Coffee County Sheriff's Office.INDICTMENT: USA v. Patricio et al, Operation Blooming Onion: 521cr9.pdf
WAYCROSS, GA: Two dozen defendants have been indicted on federal conspiracy charges after a transnational, multi-year investigation into a human smuggling and labor trafficking operation that illegally imported Mexican and Central American workers into brutal conditions on South Georgia farms.
The newly unsealed, 54-count indictment in USA v. Patricio et al. details felony charges resulting from Operation Blooming Onion, an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. The multi-agency investigation, led by Homeland Security Investigations and other federal agencies, spans at least three years, and the 53-page indictment documents dozens of victims of modern-day slavery while spelling out the illegal acts that brought these exploited workers into the United States and imprisoned them under inhumane conditions as contract agricultural laborers, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia.
“The American dream is a powerful attraction for destitute and desperate people across the globe, and where there is need, there is greed from those who will attempt to exploit these willing workers for their own obscene profits,” said Acting U.S. Attorney Estes. “Thanks to outstanding work from our law enforcement partners, Operation Blooming Onion frees more than 100 individuals from the shackles of modern-day slavery and will hold accountable those who put them in chains.”
“OCDETF Operation Blooming Onion maximized the expertise of multiple law enforcement agencies and leveraged analytical and coordination support from OCDETF’s International Organized Crime Intelligence and Operations Center (IOC-2) to target an international criminal organization engaged in human trafficking and visa fraud,” said OCDETF Director Adam W. Cohen. “The U.S. Attorney’s Office’s leadership of this multi-agency law enforcement effort positions us to disrupt and dismantle the operations of transnational criminal networks that pose the greatest threat to our communities and to the Nation.”
As described in the indictment, investigators from Homeland Security Investigations, the U.S. Department of Labor, U.S. Department of State’s Diplomatic Security Service, the U.S. Postal Inspection Service, and the FBI began investigating the Patricio transnational criminal organization in November 2018. The indictment alleges that in or before 2015, the conspirators and their associates “engaged in mail fraud, international forced labor trafficking, and money laundering, among other crimes,” fraudulently using the H-2A work visa program to smuggle foreign nationals from Mexico, Guatemala, and Honduras into the United States under the pretext of serving as agricultural workers.
The activities took place within the Southern, Middle, and Northern Districts of Georgia; the Middle District of Florida; the Southern District of Texas; and Mexico, Guatemala, Honduras, and elsewhere. The conspirators required the workers to pay unlawful fees for transportation, food, and housing while illegally withholding their travel and identification documents, and subjected the workers “to perform physically demanding work for little or no pay, housing them in crowded, unsanitary, and degrading living conditions, and by threatening them with deportation and violence.”
Exploitation of the workers included being required to dig onions with their bare hands, paid 20 cents for each bucket harvested, and threatened with guns and violence to keep them in line. The workers were held in cramped, unsanitary quarters and fenced work camps with little or no food, limited plumbing and without safe water. The conspirators are accused of raping, kidnapping and threatening or attempting to kill some of the workers or their families, and in many cases sold or traded the workers to other conspirators. At least two of the workers died as a result of workplace conditions. In the Southern District of Georgia, these activities were alleged to have taken place in the counties of Atkinson, Bacon, Coffee, Tattnall, Toombs and Ware as farmers paid the conspirators to provide contract laborers.
The conspirators are alleged to have reaped more than $200 million from the illegal scheme, laundering the funds through cash purchases of land, homes, vehicles, and businesses; through cash purchases of cashier’s checks; and by funneling millions of dollars through a casino.
Then, as the continuing investigation into the conspiracy moved forward in late 2019, the indictment alleges that three of the conspirators attempted to intimidate and persuade a witness to lie to a federal grand jury and deny any knowledge of the illegal activities of the Patricio organization.
More than 200 law enforcement officers and federal agents from around the United States convened in the Southern District of Georgia to execute more than 20 federal search warrants at target locations.
Those indicted in USA v. Patricio et al. and their charges include:
- Maria Leticia Patricio, 70, of Nichols, Ga., charged with Conspiracy to Commit Mail Fraud; two counts of Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Daniel Mendoza, 40, of Ruskin, Fla., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Nery Rene Carrillo-Najarro, 56, Douglas, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; 14 counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Antonio Chavez Ramos, a/k/a “Tony Chavez,” 38, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; four counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- JC Longoria Castro, 46, Vidalia, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; four counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Victoria Chavez Hernandez, 38, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Enrique Duque Tovar, 36, of Axon, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; nine counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Jose Carmen Duque Tovar, 58, of Axon, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; nine counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Charles Michael King, 31, of Waycross, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Stanley Neal McGauley, 38, of Waycross, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Luis Alberto Martinez, a/k/a “Chino Martinez,” 41, of Tifton, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Delia Ibarra Rojas, 33, of Lyons, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Juana Ibarra Carrillo, 46, of Alma, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Donna Michelle Rojas, a/k/a “Donna Lucio,” 33, of Collins, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Margarita Rojas Cardenas, a/k/a “Maggie Cardenas,” 43, of Reidsville, Ga., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; Conspiracy to Commit Money Laundering; and Tampering with a Witness;
- Juan Fransisco Alvarez Campos, 42, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Rosalvo Garcia Martinez, a/k/a “Chava Garcia,” 33, of Haines City, Fla., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering; and Tampering with a Witness;
- Esther Ibarra Garcia, 63, of Dade City, Fla., charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Rodolfo Martinez Maciel, 26, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; three counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Brett Donavan Bussey, 39, of Tifton, Ga., charged with Conspiracy to Commit Mail Fraud; four counts of Mail Fraud; Conspiracy to Engage in Forced Labor; Conspiracy to Commit Money Laundering; and Tampering with a Witness;
- Linda Jean Facundo, 36, of Tifton, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering;
- Gumara Canela, 34, of Alma, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; 14 counts of Forced Labor; and Conspiracy to Commit Money Laundering;
- Daniel Merari Canela Diaz, 24, a citizen of Mexico illegally present in the United States, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering; and,
- Carla Yvonne Salinas, 28, of Laredo, Texas, charged with Conspiracy to Commit Mail Fraud; Conspiracy to Engage in Forced Labor; and Conspiracy to Commit Money Laundering.
The charges of Conspiracy to Engage in Forced Labor, and Forced Labor, each carry statutory penalties of up to life in prison, while the charges of Conspiracy to Commit Mail Fraud, Mail Fraud, Money Laundering Conspiracy, and Tampering with a Witness each carry statutory penalties of up to 20 years in prison. Each of the charges also include substantial financial penalties and periods of supervised release after completion of any prison term. There is no parole in the federal system.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
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. Operation Blooming Onion also is designated as a Priority Transnational Organized Crime Cases.
Agencies investigating Operation Blooming Onion include Homeland Security Investigations; U.S. Citizenship and Immigration Services, Fraud Detection and National Security; the U.S. Department of Labor Office of Inspector General, and Wage and Hour Division; U.S. Department of State’s Diplomatic Security Service; the FBI; the U.S. Postal Inspection Service; U.S. Customs and Border Protection; and the U.S. Marshals Service, with assistance from the Georgia National Guard; the Georgia Bureau of Investigation; the Georgia State Patrol; the Coffee County Sheriff’s Office; the Chatham County Sheriff’s Office; the Tattnall County Sheriff’s Office; the Bacon County Sheriff’s Office; and the Tift County Sheriff’s Office. The case is being prosecuted for the United States by Assistant U.S. Attorney and Human Trafficking Coordinator Tania D. Groover, and Assistant U.S. Attorney and Criminal Division Deputy Chief E. Greg Gilluly Jr., and Assistant U.S. Attorney Xavier A. Cunningham, Section Chief of the Asset Recovery Unit.
If you believe you have information about a potential trafficking situation call the National Human Trafficking Hotline at 1-888-373-7888. Anti-Trafficking Hotline Advocates are available 24/7 to take reports of potential human trafficking. All reports are confidential and you may remain anonymous. Interpreters are available. The information you provide will be reviewed by the National Hotline and forwarded to specialized law enforcement and/or service providers where appropriate.
Hudson County Man Sentenced to 27 Months in Prison for Using Fake Passports to Obtain $450,000 in Fraudulent Bank WithdrawalsRead the Press Release
NEWARK, N.J. – A Hudson County, New Jersey, man was sentenced today to 27 months in prison for conspiring to use fake passports to open accounts at banks into which he and others deposited phony IRS refund checks, causing the banks to lose approximately $450,000, Acting U.S. Attorney Rachael A. Honig announced.
Mamadou Diallo, 44, of Jersey City, New Jersey, previously pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with one count of bank fraud conspiracy and one count of false use of a passport. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From June 2012 through December 2018, Diallo and others conspired to fraudulently obtain money from the victim banks. They created false passports by affixing their own pictures onto passports bearing others’ names. The conspirators opened fraudulent bank accounts at the banks using the doctored passports as photo identification. Then they deposited fraudulent IRS refund checks and withdrew the funds from ATM and teller terminals. The banks lost over $450,000.
In addition to the prison term, Judge Hayden sentenced Diallo to three years of supervised release, and ordered him to pay $150,052 in restitution.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the U.S. Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina; the U.S. Department of Treasury-Office of Inspector General, under the direction of Inspector General Richard K. Delmar; and the New York State Department of Taxation and Finance, under the direction of Acting Commissioner Amanda Hiller and Director of Internal Affairs Brian Hickey, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the Special Prosecutions Division in Newark.
Honduran National Indicted for Illegal Re-EntryRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that on November 18, 2021 MARIO RENE REYES-CARDONA, age 51, was charged in a one-count indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
According to the indictment, MARIO RENE REYES-CARDONA (“REYES-CARDONA”), reentered the United States after he was previously deported in December 2013. If convicted, REYES-CARDONA faces a maximum term of imprisonment of up to two years, a maximum fine of up to $250,000, a maximum term of supervised release of up to one (1) year, and a mandatory $100 special assessment fee.
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 the United States Immigration and Customs Enforcement in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. is in charge of the prosecution.
Home health agency to pay $4.2 million to settle False Claims Act allegationsRead the Press Release
ATLANTA – PruittHealth, Inc. and affiliated entities (“Pruitt”) have agreed to pay $4.2 million to resolve allegations that they submitted claims for home health services that were not covered by the Medicare and Medicaid programs, and that they failed to refund overpayments that they had received from Medicare and Medicaid in a timely manner.
“The Medicare and Medicaid programs depend on providers to submit only those claims that are eligible for reimbursement and to promptly notify the programs if they receive payments to which they are not entitled,” said U.S. Attorney Kurt R. Erskine. “Healthcare providers must not place their own financial well-being ahead of their duties under the Medicare and Medicaid programs.”
“When health care entities seek to boost their profits through improper billing, they undermine the trust taxpayers extend to the health care industry,” said Special Agent in Charge Derrick L. Jackson. “This settlement demonstrates the commitment that our agency and its law enforcement partners have to pursuing those who seek to improperly enrich themselves at the expense of federal health care programs.”
“When funds from programs like Medicare and Medicaid are not used as intended, taxpayers and people who are entitled to those funds suffer,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This settlement is the result of the FBI’s commitment to work with our federal and state partners to ensure that federally funded healthcare programs are not abused by providers.”
Home health services consist of skilled care provided to homebound beneficiaries for the treatment of acute illnesses and injuries. As a result of widespread fraud in the submission of home health claims, Medicare and Medicaid began requiring referring physicians to certify in writing, after a face-to-face visit with the beneficiary, that the beneficiary was homebound and needed the skilled care. Medicare and Medicaid also require the physician to devise and sign a plan of care for the beneficiary.
The Government alleges that from January 1, 2011 through June 30, 2012, Pruitt knowingly submitted claims to Medicare and Medicaid for home health services that were not eligible for reimbursement because, among other things, they did not have the required face-to-face certifications or plans of care, and they did not document the beneficiary’s homebound status or need for the home health services. The Government further alleges that Pruitt learned that it had received payments for home health services to which it was not entitled, but failed to disclose its receipt of the overpayments, or refund the overpayments to Medicare and Medicaid in a timely manner.
In reaching its settlement with Pruitt, the Government took into account documents produced by Pruitt indicating that Pruitt subsequently took steps to improve its compliance with the home health requirements of the Medicare and Medicaid programs, including the retention of an outside consultant in January 2013 to conduct an audit of its home health claims, the implementation of a pre-bill review of home health claims between February 2013 and August of 2013, and the implementation of quarterly audits of its home health claims (with more frequent audits as needed) beginning in September 2013 through the present. Pruitt voluntarily produced the results of its 2013 audit to the Government during the investigation. Although the Government has taken these steps into consideration, this is not an indication or concession as to the sufficiency of these compliance measures.
This settlement resolves a lawsuit originally filed in the U.S. District Court for the Northern District of Georgia by Tina Peery (the Relator) under the qui tam or whistleblower provisions of the False Claims Act: United States ex rel. Tina Peery v. UHS-Pruitt Holdings, Inc., et al., No. 1:14-cv-01016-AT. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government. The Relator will receive over $700,000.00 from the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services Office of Inspector General, The Federal Bureau of Investigation, and the Georgia Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorneys Neeli Ben-David and Anthony DeCinque, as well as Georgia Assistant Attorney General Sara Vann.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hanover Man Pleads Guilty to Distribution of Fentanyl, Cocaine, and Marijuana Shipped Through the Mail from California to MarylandRead the Press Release
Baltimore, Maryland – Dwight Antonio Pitts, age 47, of Hanover, Maryland, pleaded guilty on November 19, 2021, to charges related to his participation in a drug distribution conspiracy involving large amounts of fentanyl, cocaine, and marijuana, shipped through the U.S. Mail from California to Maryland.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Superintendent Colonel Woodrow W. Jones III of the Maryland State Police; Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division; and Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office.
According to his guilty plea, since November 2019, the Maryland State Police (“MSP”), Drug Enforcement Administration (“DEA”), United States Postal Inspection Service (“USPIS”) were investigating a drug trafficking conspiracy involving Pitts, Michael Fisher (a.k.a. Mark Wilson), and others, who were distributing fentanyl, cocaine, and marijuana in the Baltimore/Washington Metropolitan areas. Investigators used court-authorized wiretaps to intercept calls and other communications between Pitts, Fisher, and other conspirators in which they discussed drug distribution with each other and with other individuals. Investigators also conducted surveillance of drug transactions conducted by both Pitts and Fisher.
During the conspiracy, Pitts and Fisher traveled to California multiple times to obtain kilograms of cocaine and fentanyl. Once in possession of the narcotics, Pitts or Fisher used the U.S. Mail to ship the narcotics back to Maryland for distribution.
Between May and August 2020, U.S. Postal Inspectors interdicted several parcels from the mail, including two parcels bound for an address in Hyattsville, Maryland that was identified as a location leased by Pitts. On August 13, 2020, a search warrant was authorized for the two parcels. Law enforcement recovered more than two kilograms of cocaine from one parcel and more than two kilograms of fentanyl from the other parcel. Investigators obtained video surveillance from the El Segundo Branch Post Office, from which the parcels had been mailed. The video showed Pitts at the post office at the time the parcels were mailed.
On August 13, 2020, investigators obtained consent to search Co-Conspirator 2’s residence in Los Angeles after watching Fisher transfer a box containing approximately $190,020 in cash to Co-Conspirator 2’s car. Law enforcement recovered from the residence two duffle bags containing approximately 30 kilograms of cocaine, along with two additional duffle bags that contained more than $193,980 in narcotics proceeds, not including the approximately $190,020 Fisher provided to Co-Conspirator 2 earlier that day.
On August 17, 2020, law enforcement executed search warrants at the six locations in Maryland associated with Pitts and Fisher and at a residence in Las Vegas, Nevada. Investigators seized 15 firearms—6 firearms from locations associated with Pitts and 9 firearms from locations associated with Fisher—along with kilogram quantities of cocaine, fentanyl, and marijuana. In total, during the investigation law enforcement seized approximately 35 kilograms of cocaine, approximately 6.5 kilograms of fentanyl, and approximately 50 kilograms of marijuana. In addition, investigators seized approximately $1,501,308, which Pitts admitted was proceeds from the sale of narcotics.
As detailed in the plea agreement, additional evidence, including evidence seized from searches on cellular phones of conspirators and CCTV footage, showed that between July 2019 and August 2020, the conspiracy was responsible for mailing approximately 121 parcels from Los Angeles area Post Offices to locations in Maryland.
Pitts admitted in his plea agreement that the amount involved in the conspiracy attributable to him as a result of his own conduct and the conduct of other conspirators reasonably foreseeable to him is approximately 8.5 kilograms of fentanyl; approximately 150 kilograms of cocaine; and approximately 50 kilograms of marijuana.
Pitts and the Government have agreed that, if the court accepts the guilty plea, Pitts will be sentenced to between 12 and 15 years in federal prison. U.S. District Judge Stephanie A. Gallagher scheduled sentencing for March 1, 2022, at 11:00 a.m.
Co-defendant Michael Fisher, a.k.a. Mark Wilson, age 47, of Laurel, Maryland, pleaded guilty to the same charges and is scheduled to be sentenced on February 22, 2022, at 2:00 p.m.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The overdose crisis continues to devastate our state and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the website for United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness here.
United States Attorney Erek L. Barron commended the MSP, USPIS, and DEA for their work in the investigation and recognized the Los Angeles Police Department, the Los Angeles and Las Vegas DEA, and the USPIS Phoenix Division-Las Vegas, Nevada for their assistance. Mr. Barron thanked Assistant U.S. Attorney Anatoly Smolkin, and Special Assistant U.S. Attorney Christopher J. Romano, who are prosecuting the case.
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Hanford Man Sentenced to 3 Years in Prison for Manufacturing and Distributing Machine GunsRead the Press Release
FRESNO, Calif. — Jose Moreno, 26, of Hanford, was sentenced today by U.S. District Judge Dale A. Drozd to three years and one month in prison for illegally distributing a machine gun, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on May 22, 2019, Moreno sold a machine gun to an individual in a parking lot in Hanford. Shortly after the meeting, the individual departed in his car and law enforcement officers conducted a traffic stop. During a search of the car, officers found a fully automatic handgun with two 16-round magazines. Moreno’s involvement in this machine gun sale and several others was uncovered during a months-long wiretap investigation into the Nuestra Familia Prison Gang operating in Kings and Tulare Counties. The investigation revealed that Moreno was manufacturing and selling machine guns to street gang members.
Moreno pleaded guilty on Aug. 30, 2021. He and co‑defendant Eric Lopez Mercado, 27, of Lemoore, were indicted by a federal grand jury on Nov. 14, 2019. Charges are pending against Mercado. The charges against Mercado are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is the product of an investigation by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the Kings County Gang Task Force; the California Department of Justice’s Special Operations Unit; the California Department of Corrections and Rehabilitation; and the Kings County District Attorney's Office. Assistant U.S. Attorneys Justin J. Gilio, Katherine E. Schuh, and Kimberly A. Sanchez are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Government Contractor Agrees to Pay Nearly $3.5 Million to Resolve Allegations it Overcharged U.S. NavyRead the Press Release
BOSTON – Charles Stark Draper Laboratory, Inc. (Draper), a Cambridge-based non-profit research company and defense contractor, has agreed to pay nearly $3.5 million to resolve allegations that it improperly overcharged U.S. Navy contracts. Draper, among other things, helps develop weapons systems for the U.S. Navy.
The settlement resolves allegations that Draper improperly overcharged the government under federal acquisition regulations for certain overhead costs. According to the settlement agreement, an audit of Draper’s 2016 fiscal year costs charged to the government found, among other things, that Draper improperly billed the government for costs associated with internal projects that Draper called “Opportunity Investments.” Many Opportunity Investment projects were not of interest to the government, or Draper lacked sufficient documentation to justify the costs. The audit also found that Draper lacked sufficient internal accounting controls concerning Opportunity Investments. When the Department of Defense requested additional information about the costs flagged by the audit, Draper, for months, did not reveal that it lacked documentation to support charging some of the Opportunity Investments to the government.
“Contractors responsible for supplying and supporting our armed forces are required to follow many rules designed to protect both our military and the taxpayers,” said Acting United States Attorney Nathaniel R. Mendell. “Our office monitors government contractors and – where appropriate – we will hold accountable those who fail to operate within the rules. This is our way of making sure taxpayers can trust that their money is going toward legitimate government-supported purposes and not overcharges.”
“Draper Lab’s overcharging on Navy contracts wasted valuable taxpayer money and undermined the integrity of the Department of the Navy’s procurement process,” said Michael Wiest, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS), Northeast Field Office. “NCIS and our law enforcement partners remain committed to investigating contracting irregularities that diminish the operational readiness and warfighter superiority of the Navy and Marine Corps.”
“Protecting the integrity of the procurement process is a top priority for the Department of Defense (DOD) Office of Inspector General Defense Criminal Investigative Service (DCIS),” said Patrick J. Hegarty, Special Agent in Charge of DCIS, Northeast Field Office. “The settlement agreement announced today is the result of a joint investigative effort and demonstrates the DCIS’ ongoing commitment to work with our law enforcement partners and the U.S. Attorney’s Office to investigate allegations of cost mischarging on DOD contracts.”
Acting U.S. Attorney Mendell, NCIS SAC Wiest and DCIS SAC Hegarty made the announcement today. Assistant U.S. Attorneys Brian M. LaMacchia and Evan Panich of Mendell’s Affirmative Civil Enforcement Unit handled the matter.
Georgia man sentenced to more than eight years in prison for filing false liens against federal government officialsRead the Press Release
ATLANTA - Hakim Amal Archible has been sentenced for filing false liens against federal government officials, including former IRS Commissioner John Koskinen and former U.S. Treasury Secretary Jacob Lew.
“Harassing federal officials through the filing of false liens is serious criminal conduct,” said U.S. Attorney Kurt R. Erskine. “Congress enacted the retaliatory lien statute to address the problem of frivolous retaliatory liens, too often used by tax defiers and sovereign citizens to obstruct the tax laws and harass government employees.”
“TIGTA’s statutory mission includes investigating individuals who interfere with the lawful collection of taxes by filing frivolous liens against public officials,” said J. Russell George, the Treasury Inspector General for Tax Administration. “Attempts to interfere with IRS employees engaged in the performance of their official duties will be aggressively pursued. We appreciate the efforts of the U.S. Attorney’s Office in working with TIGTA to protect the integrity of Federal tax administration.”
According to U.S. Attorney Erskine, the charges and other information presented in court: In 2014 and 2015, while imprisoned in Henry County, Georgia, for unrelated crimes, Archible filed or attempted to file false liens against the real and personal property of government officials. Specifically, the testimony showed that on October 22, 2014, the IRS issued a letter to Archible informing him that he would be subject to a $5,000 penalty for taking a frivolous position in his 2013 tax return. Archible, aided and abetted by others, filed false UCC lien documents in the Fayette County Clerk’s Office that named IRS Commissioner John Koskinen as debtor and listed himself as the secured party creditor. In the documents, Archible indicated that Koskinen was responsible for the $5,000 tax penalty. He also had the UCC filing, and other IRS forms, mailed directly to the IRS.
On December 9, 2014, Archible, aided and abetted by others, filed UCC lien documents naming former U.S. Treasury Secretary Jacob Lew as the debtor and himself as the secured party creditor. While the collateral identified for the lien is nonsensical, the description of the subject real estate included, among other things, a $100 billion chargeback order. On August 5, 2015, Archible, aided and abetted by others, filed another false UCC lien against Jacob Lew, which named Secretary Lew as the debtor and Archible as the secured party. The collateral for the lien included, among other things, a $10 billion registered security.
In addition to the false liens filed against the federal governmental officials, Archible also filed false liens against local officials in Georgia, including the Chief Judge of Henry County Superior Court, and the former Clerk of Henry County Superior Court.
Witnesses testified that the lien filings are publicly available and can be accessed through an internet search. A court order is required to remove the liens from the public portal. The victims testified that they were concerned that these liens could affect their credit or their property and that they felt threatened and harassed by the conduct.
On July 2, 2021, a jury found Archible guilty of three counts of filing and attempting to file false and retaliatory liens against the real and personal property of certain employees of the federal government, in violation of 18 U.S.C. § 1521, and one count of obstructing the due administration of the IRS, in violation of 26 U.S.C. § 7212.
Hakim Amal Archible, 38, of Hampton, Georgia, was sentenced November 16, 2021, by U.S. District Judge Thomas W. Thrash, Jr., to eight years, nine months in prison to be followed by three years of supervised release.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration.
Assistant U.S. Attorneys Angela Adams and Erin N. Spritzer prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Fort Walton Beach Man Pleads Guilty to A Scheme to DefraudRead the Press Release
PENSACOLA, FLORIDA – Stephen M. Alford, 62, of Fort Walton Beach, Florida, pled guilty today to one count of wire fraud related to his attempt to illegally obtain $25 million, purportedly in exchange for securing a Presidential Pardon. The plea was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
At his guilty plea, Alford admitted that, between March 16, and April 7, 2021, he engaged in a scheme to defraud the victim out of $25 million based upon Alford’s false promises and guarantees to secure a Presidential Pardon for a family member of the victim. The scheme involved a series of meetings and text message exchanges between Alford and the victim, as well as undercover recordings arranged by the Federal Bureau of Investigation. During the exchanges, Alford repeatedly promised the victim that Alford had access to the current President of the United States.
Sentencing in this case is currently set for February 16, 2022, at 9:00 a.m., at the United States Courthouse in Pensacola before the Honorable United States District Judge M. Casey Rodgers. Alford faces up to 20 years’ imprisonment to be followed by a term of supervised release.
This case resulted from an investigation by the Federal Bureau of Investigation. Assistant United States Attorneys David L. Goldberg and Lazaro P. Fields are prosecuting this case.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fort Myers Armed Career Criminal Sentenced to 18 Years in Prison for Illegally Possessing FirearmRead the Press Release
Fort Myers, Florida – U.S. District Judge Thomas P. Barber has sentenced Richard James Bassett, Jr. (47, Fort Myers) to 18 years in federal prison for possessing a firearm as a convicted felon and for violating the conditions of supervised release from a prior federal drug conviction. Bassett had pleaded guilty on July 16, 2021.
According to court documents, on November 14, 2019, law enforcement officers observed Bassett entering an apartment in Fort Myers, Florida, shortly before the officers executed a search warrant on that apartment. Inside the apartment, officers observed Bassett standing in the kitchen area near a black and grey speckled backpack that he was seen carrying when he entered the apartment. Officers discovered quantities of different narcotics, including cocaine, in the kitchen area and found a loaded firearm in the backpack. Subsequent forensic analysis of the firearm linked it to Bassett.
As a previously convicted felon, Bassett is prohibited from possessing firearms or ammunition under federal law.
This case was jointly investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Myers Police Department. It was prosecuted by Assistant United States Attorney Trent Reichling.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Dodge Man Pleads Guilty to Meth DealingRead the Press Release
A man who conspired to distribute methamphetamine pled guilty on November 18, 2021, in federal court in Sioux City.
Demarcus Foy, 31, from Fort Dodge, Iowa, was convicted of one count of conspiracy to distribute methamphetamine and one count of distribution of methamphetamine.
At the plea hearing, Foy admitted that between April 2015 and continuing to on or about June 2020, he and others distributed more than 45 kilograms of methamphetamine. Also, on four separate occasions during 2019, Foy distributed a total of over 100 grams of pure methamphetamine to individuals cooperating and under the supervision of law enforcement in Fort Dodge, Iowa. Foy often received from six to ten pounds of methamphetamine at a time from his source which he further distributed.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Foy remains in custody of the United States Marshal pending sentencing. Foy faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Department of Narcotics Enforcement, Fort Dodge Police Department, Webster County Sheriff’s Office, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3021. Follow us on Twitter @USAO_NDIA.
Former off-duty federal law enforcement officer sentenced for threatening three Blackfeet tribal employees with assault rifleRead the Press Release
GREAT FALLS — A former off-duty federal law enforcement officer who admitted to misdemeanor assault for pointing an assault rifle at three Blackfeet tribal employees who were testing water on his property was sentenced today to five years of probation and ordered to pay $10,626 restitution, U.S. Attorney Leif M. Johnson said.
Harrison Garrett Alvarez, 30, of Cut Bank, who was a Customs and Border Protection officer at the time of the offense, pleaded guilty in July to three counts of simple assault.
Chief U.S. District Judge Brian M. Morris presided.
In court documents filed in the case, the government alleged that on July 24, 2019, three employees of the Blackfeet Tribe’s Environmental Office went to Alvarez’s property near Cut Bank and within the Blackfeet Indian Reservation to test water in Cut Bank Creek. The victims, who are tribal members, traveled by truck past Alvarez’s house to the creek. The trip was the victims’ fourth time that season to the testing site, having sought, and they believed received, permission for the testing from Alvarez’s wife.
While the victims were collecting water samples, a rifle shot rang out. The victims saw Alvarez approaching, pointing an assault rifle at them and yelling profanities. Alvarez demanded to know what they were doing and who had given them permission to be there. When the victims explained that his wife had given them permission, Alvarez disputed that fact. Even after the victims told him they would leave, Alvarez, while still leveling the rifle at them, ordered them closer and demanded they drop their equipment. When Alvarez finally allowed the victims to leave, he told them that now they knew he “shoots first, asks questions later.”
All three victims believed Alvarez was going to shoot them and that they were going to die. All three victims addressed the Court at sentencing and talked about the lasting effect this assault has had on them. “He has taken my outdoor lifestyle away from me,” one of the victims told the Court. “I don’t fish. I don’t go get wood. No more hiking. No more bow-hunting. No more four-wheeling.”
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case, which was investigated by the Glacier County Sheriff’s Office, FBI and Blackfeet Law Enforcement Services.
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Former Springfield Man Sentenced for Charges Related to Sham MarriageRead the Press Release
BOSTON – A former Springfield man was sentenced today in connection with entering into a sham marriage in order to obtain immigration benefits for another individual.
Phu Thanh Huynh, 33, was sentenced by U.S. District Court Judge Mark G. Mastroianni to one year of probation. Huynh was also ordered to pay forfeiture of $20,000. On Aug. 4, 2021, Huynh pleaded guilty to one count each of conspiracy, immigration fraud and making false statements.
On or about Sept. 28, 2013, Huynh married a Vietnamese national, referred to as Jane Doe, solely for the purpose of obtaining immigration benefits for Doe. Huynh and Doe never lived together after getting married. In or about late 2013 or early 2014, a co-conspirator paid Huynh $20,000 in cash for engaging in the sham marriage. On approximately Nov. 7, 2013, Huynh filed a false petition with the U.S. Citizenship and Immigration Services (USCIS) to classify Doe as his spouse for immigration purposes. On approximately May 3, 2017, Huynh made various false statements to a USCIS officer concerning his marriage to Doe, including that they spoke to each other almost every day.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office made the announcement. Assistant U.S. Attorneys Steven H. Breslow and Julian Canzoneri of Mendell’s Springfield Branch Office prosecuted the case.
Former Richmond Attorney Sentenced for Obstructing Investigation of Bankruptcy EmbezzlementRead the Press Release
RICHMOND, Va. – A former Richmond attorney was sentenced today to 44 months in prison and ordered to pay a $10,000 fine for obstructing an official proceeding in connection with his attempts to thwart an investigation into his own fraudulent conduct as a bankruptcy trustee.
According to court documents, Bruce H. Matson, 64, misled the U.S. Trustee’s Office in 2019 when he made false statements in response to allegations that he misappropriated funds as a court-appointed trustee in the bankruptcy of LandAmerica Financial Group (LFG). A federal investigation into those allegations uncovered multiple instances of Matson’s embezzlement from the LFG Trust between 2015 and 2018, totaling approximately $800,000 in misappropriated funds.
Additionally, Matson manipulated the budget for LFG’s post-bankruptcy wind-down period so that he could divert residual funds to himself and others after the close of the LFG bankruptcy, when he would no longer be subject to scrutiny by LFG creditors and the Bankruptcy Court. In particular, Matson misrepresented the amount of money needed for the wind-down process and obscured the amount of money actually retained in Trust accounts. In order to access these residual funds, Matson also inserted language into the budget the night before it was filed with the Bankruptcy Court. This language seemingly gave Matson the authority to pay discretionary bonuses using residual funds. Matson knew the last-minute language included in the budget contradicted other court filings, but he instructed other trust professionals not to amend the filings, including the proposed Final Decree ultimately endorsed by the Bankruptcy Court in December 2015. As a result of this conduct, Matson was able to siphon away more than $3.2 million for personal payments to himself and others, depleting the Trust account more than two years before the end of the wind-down period.
The federal investigation also uncovered an unrelated instance of Matson embezzling approximately $23,000 in 2016 from the estate of Forefront Capital, a defunct futures broker for which Matson served as receiver and debtor-designee. In total, between 2015 and 2019, Matson wrongfully obtained more than $4 million in bankruptcy-related assets.
Jessica D. Aber, U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge John A. Gibney, Jr.
The U.S. Trustee Program provided significant assistance in this case.
Assistant U.S. Attorney Thomas A. Garnett and former Assistant U.S. Attorneys Katherine Lee Martin and Kevin S. Elliker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-79.
Former President of Philadelphia Wholesale Produce Market Sentenced to over 10 Years in Prison for Stealing $7.8 Million from the CompanyRead the Press Release
PHILADELPHIA – United States Attorney Jennifer Arbittier Williams announced that Caesar DiCrecchio, 60, of Voorhees, NJ, was sentenced to ten years and one month in prison, three years of supervised release and ordered to pay more than $8 million in restitution by United States District Court Judge Cynthia M. Rufe for defrauding the Philadelphia Wholesale Produce Market of over $7.8 million.
In April 2021, the defendant pleaded guilty to two counts of wire fraud, one count of conspiracy to commit wire fraud, one count of money laundering conspiracy, one count of aggravated identity theft, and four counts of tax evasion, all of which allegedly caused more than $7.8 million in losses to the wholesale produce business in South Philadelphia.
DiCrecchio, the former President and CEO of the Produce Market, defrauded the Market by using company funds to pay $1.9 million in rent on his Stone Harbor, New Jersey shore house; converting into cash $1.1 million in checks drawn on the Market’s bank account and using the cash for his own benefit; causing $1.7 million in checks to be issued from the Market operating account payable to his friends or relatives; causing the Market to pay for the defendant’s personal credit card expenditures; converting $320,000 in checks that were payable to the Market and cashing them for his own benefit; skimming $2.6 million in cash from the pay gate at the Market’s parking lot, which he used to pay Market employees ‘under the table’ while keeping a substantial portion for his own use; and using Market funds to provide a $180,000 loan to a Market vendor, which the vendor repaid directly to DiCrecchio. The defendant concealed these expenditures in the Market’s books and records by directing that these payments be reflected as legitimate business expenditures, for example: notated as maintenance, snow removal, insurance, legal fees and other false expenditure entries.
DiCrecchio committed aggravated identity theft by cashing checks at a currency exchange using the name of an unwitting victim as the payee. Further, DiCrecchio conspired to engage in money laundering by agreeing with two unnamed individuals to conduct repeated money laundering transactions using money orders drawn on Market accounts and cashed at a currency exchange so that he could pay the rent at his shore house. In total, DiCrecchio laundered approximately $319,736 by purchasing money orders at the currency exchange using Market funds.
DiCrecchio also willfully evaded federal income tax over several years, by failing to report more than $2.1 million in income for tax years 2014 through 2017. DiCrecchio failed to report as income the proceeds of his fraud on the Market, as well as a car allowance, a pension allowance, and consulting income that he received from the Market.
“As the President and CEO, DiCrecchio had a fiduciary duty to steward the Philadelphia Wholesale Produce Market honestly,” said U.S. Attorney Williams. “Instead, he stole small amounts here and there from various sources over many years in an attempt to hide the enormous scale and severity of his fraud: a more than $7.8 million loss. Our Office is committed to prosecuting this type of complicated financial fraud so that justice can be served for all victims.”
“For years, Caesar DiCrecchio used the Philadelphia Wholesale Produce Market like his own ATM, to the tune of almost $8 million,” said Jacqueline Maguire, Special Agent in Charge of the FBI’s Philadelphia Division. “I’d call that wholesale fraud. Holding DiCrecchio responsible for his crimes is imperative, to send the message that stealing business funds for personal use isn’t such easy money after all.”
“Instead of accurately filing and paying his fair share of taxes, Mr. DiCrecchio chose to hide his income and use his business as his personal ATM,” said IRS Criminal Investigation Special Agent in Charge Yury Kruty. “Justice has been served today, as Mr. DiCrecchio is sentenced to federal prison.”
The case was investigated by the Federal Bureau of Investigation’s Organized Crime Task Force, the Internal Revenue Service – Criminal Investigation, and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney Michael T. Donovan.
Former Memphis Attorney Sentenced in Scheme to Defraud ClientsRead the Press Release
Memphis, TN – Former Memphis Attorney George E. Skouteris, Jr. 59, was sentenced to 30 months imprisonment in a scheme to defraud clients. Acting U.S. Attorney Joseph C. Murphy, Jr., announced the sentence today.
According to information presented in court, in April of this year, a jury found Skouteris guilty of seven counts of bank fraud following a four-day trial. Between 2007 and March 2013, Skouteris engaged in a scheme to defraud his clients by settling cases without notifying them and forging their endorsements on settlement checks made jointly payable to him and the client. Skouteris then deposited the checks to bank accounts he maintained at TrustOne Bank.
On November 18, 2021, United States District Judge John T. Fowlkes, Jr. sentenced Skouteris to 30 months imprisonment to be followed by three years supervised release. Judge Fowlkes also ordered the parties to appear in court on November 30, 2021, to provide further information about the amount of restitution to be awarded to the victims. There is no parole in the federal system.
This case was investigated by the Tennessee Bureau of Investigation and the Federal Bureau of Investigation.
Assistant U.S. Attorneys Carroll L. André III and David N. Pritchard prosecuted the case on behalf of the government.
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Former Falmouth Resident Sentenced for Accessing Child PornographyRead the Press Release
PORTLAND, Maine—A former Falmouth resident was sentenced today in U.S. District Court in Portland for accessing child pornography with intent to view, U.S. Attorney Darcie N. McElwee announced.
U.S. District Judge George Z. Singal sentenced Aaron Cassidy, 49, to two years in prison and five years of supervised release. He was also ordered to pay a $5,000 assessment applicable to non-indigent defendants in child sexual exploitation cases. He pleaded guilty on July 20, 2021.
According to court records, in March 2015, agents with Homeland Security Investigations were investigating the sharing of child pornography using Ares, a peer-to-peer file-sharing program. They downloaded a child pornography video from an internet protocol address that was determined to be assigned to a residence in Falmouth. Agents obtained a search warrant for the residence and executed it in May 2015. They found a laptop computer in Cassidy’s bedroom that was later found to contain evidence of the Ares file-sharing program, as well as images and videos of minors engaged in sexually explicit conduct.
In imposing sentence, Judge Singal noted that the children depicted in child pornography images often suffer emotional and physical effects for the rest of their lives, as a record of their sexual abuse is permanently available online.
Homeland Security Investigations investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
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Former Corrections Officer at the Iowa Medical Classification Center Sentenced to Federal Prison for False Declarations Before a Grand JuryRead the Press Release
DAVENPORT, Iowa – An Iowa City man, Lashaun Calvin Lacy, age 44, was sentenced on Wednesday, November 17, 2021, by United States District Court Chief Judge John A. Jarvey to three months in federal prison for providing false declarations before a grand jury. Lacy was ordered to serve one year of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
According to court documents, on or about July 8, 2020, Lacy was subpoenaed to testify before the grand jury in the Southern District of Iowa about another individual regarding a health care fraud and false statements investigation. The subject of Lacy’s testimony was where he was living from 2010-2019. During his testimony he provided false information to the grand jury.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Department of House and Urban Development, Office of the Inspector General investigated the case along with the Iowa Department of Inspection and Appeals.
Felon Sentenced to Federal Prison for Possessing a FirearmRead the Press Release
HUNTINGTON, W.Va. - Jonathan Baker, 37, of Huntington, was sentenced today to four years and nine months in federal prison for being a felon in possession of a firearm.
According to court documents and statements made in court, Baker previously admitted that on March 2, 2021, officers with the Huntington Police Department executed a search warrant at an apartment on 26th Street in Huntington. During a search of the residence, officers found a firearm on top of a nightstand. Baker admitted that he had possessed the firearm and that he knew he was prohibited from possessing the firearm because of a 2011 felony drug conviction in Bibb County, Georgia.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00056.
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Felon Sentenced to 12 Years in Federal Prison for Armed Carjacking’sRead the Press Release
Memphis, TN – Cowan Hill, 44, has been sentenced to 151 months in federal prison for carjacking’s and for brandishing a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on December 8, 2019, the Memphis Police Department responded to a carjacking on Cherry Road. The victim advised that while warming his 2004 Lincoln Aviator a male approached and pointed a gun at him and told him to get out of the car. The suspect struck the victim several times in the head and neck. The victim blew the horn to alert his wife who called 911. As the victim ran into the house, the suspect fled the scene in the car.
On December 15, 2019, officers with the Memphis Police Department responded to a carjacking at Shell gas station on Winchester Road. The victim reported as he was pumping gas, an older male pulled him from the driver’s seat of his 2011 Kia Sorento and threatened to kill him. The victim attempted to fight off the suspect who repeatedly struck him and yelled, "I’ll kill you. I'll kill you." The suspect eventually gained control of the car and sped off, dragging the victim twenty-five to thirty feet across the lot. The victim had visible injuries to his head, neck, arms, and legs and had to be treated by paramedics. The violent assault and theft were caught on the store's surveillance video.
During the investigation, both victims identified Cowan Hill as the male who assaulted them.
On July 13, 2021, Hill pled guilty to committing both crimes. As a result of his criminal history, including a 2016 conviction for carjacking, Hill is prohibited by federal law from possessing firearms or ammunition. He was on parole at the time of these offenses.
On November 18, 2021, U.S. District Judge Thomas L. Parker sentenced Hill to 151 months incarceration to be followed by 5 years of supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Memphis Police Department.
Assistant U.S. Attorneys Raney Irwin and Wendy Cornejo prosecuted this case on behalf of the government.
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Federal Jury Convicts Norman Car Dealership Executives of Wire Fraud Conspiracy, Forgery, and Identity TheftRead the Press Release
OKLAHOMA CITY – On Friday, November 19, 2021, a federal jury convicted BOBBY CHRIS MAYES, 49, CHARLES GOOCH, 63, and COURTNEY WELLS, 36, all residents of Norman, of multiple counts of wire fraud, conspiracy, issuing forged securities, and aggravated identity theft, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On September 16, 2020, a federal grand jury returned an indictment alleging that from January 2014 to March 2019, Mayes, Gooch, and Wells used their positions as co-owners of the Big Red Dealerships (Big Red Sports/Imports, Big Red Kia, Norman Yamaha, Norman Mitsubishi, and Mayes Kia) to engage in a conspiracy to commit wire fraud in which they sought to obtain millions of dollars of loan proceeds. The indictment further alleged that the defendants made materially false statements and omissions to lenders about the type, source, and amount of borrowers’ down payments or vehicle trade-ins, and bribed at least one loan officer.
The trial began on November 2, 2021, before Senior United States District Judge Stephen P. Friot, and the federal jury returned its verdict on Friday, November 19, 2021. At trial, the jury heard testimony that the Big Red Dealerships used advertisements to target potential customers with poor credit and that Mayes, Gooch, and Wells then fraudulently induced lenders to approve loans for such customers by documenting that the customers provided cash down payments and/or trade-in vehicles when that was untrue. Twelve different Big Red Dealership customers testified about their experiences buying cars at the Big Red Dealerships, along with several former employees and representatives of several lenders. In some circumstances, the purported cash down payment was simply fictitious, and the Big Red Dealerships referred to those cash down payments as “King Cash” on internal documents. The jury also heard testimony that in late 2014, one lender discovered these fake cash down payments, and Mayes emailed threats to the CEO of that lender in an effort to stop the lender from further investigating the Big Red Dealerships.
Evidence at trial also showed that from February 2015 until late 2017, the Big Red Dealerships continued to document fictitious cash down payments for lenders. During that time period, for at least 519 customers, the down payment was purportedly based on a pawned item provided to Norman Pawn & Gun, a pawn shop owned by Gooch and located in a building owned by Mayes, although it was never open for business and never had any employees. After loan proceeds were received from lenders, Big Red Dealership employees generated checks to the customers, forged the customers’ signatures on the backs, deposited the checks in Big Red Dealership accounts, and fully reimbursed Norman Pawn & Gun for the purported down payments. The jury also heard that the Big Red Dealerships falsely documented vehicle trade-ins for lenders to approve loans. On at least 542 occasions, the vehicle was never provided to the Big Red Dealerships and a separate transaction was documented—unbeknownst to the lender—in which the trade-in vehicle was resold to the customer for a dollar. Finally, the jury heard testimony that at least one lender approved questionable loans—for up to two to three times’ the value of vehicles being purchased—after a Big Red Dealership manager gave cash bribes to a loan officer and the Big Red Dealerships provided fake invoices to justify the inflated prices.
The jury convicted all three defendants of conspiring to commit wire fraud, alleged as Count 1 of the indictment. The jury convicted Mayes and Gooch with 12 counts of wire fraud based on false information sent to lenders for 12 specific customers, as alleged in Counts 2-13. The jury convicted Wells of six of those counts of wire fraud. For each conviction charged as Counts 1-13, each defendant faces up to 20 years in prison and a $250,000.00 fine.
The jury convicted all three defendants of six counts of uttering forged securities based on Norman Pawn & Gun checks forged by Big Red Dealership employees, as alleged in Counts 14-19 of the indictment. For Counts 14-19, each defendant faces up to 10 years in prison and a $250,000 fine.
The jury convicted all three defendants of six counts of aggravated identity theft, as alleged in Counts 20-25 of the indictment, for using the signatures of six customers without lawful authority. For Counts 20-25, each defendant faces a mandatory term of imprisonment of two years to run consecutive to any other term of imprisonment and a $250,000 fine. Sentencing will take place in approximately 90 days.
This case is the result of an investigation by FBI’s Oklahoma City Field Office. Assistant U.S. Attorneys K. McKenzie Anderson and Thomas Snyder are prosecuting the case.
Reference is made to court filings for further information.
Federal Grand Jury Indicts Woman for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – A federal grand jury in New Orleans, Louisiana returned a four-count indictment on November 19, 2021 charging a woman for violations of the Federal Gun Control Act and the Federal Controlled Substances Act.
According to court documents, MAGALI CASTILLO-PADRON, age 30, is charged in Count 1 with possession with intent to distribute a quantity of a mixture of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A). In Count 2, CASTILLO-PADRON is charged with possession of a firearm by an illegal alien, in violation of Title 18, United States Code, Sections 922(g)(5)(A) and 924(a)(2). In Count 3, CASTILLO-PADRON is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924(c)(1)(A). In Count 4, CASTILLO-PADRON is charged with reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a).
If convicted of Count 1, CASTILLO-PADRON faces a mandatory minimum sentence of 10 years and up to life imprisonment, up to a $5,000,000 fine, at least 5 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 2, CASTILLO-PADRON faces a maximum sentence of 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 3, CASTILLO-PADRON faces a mandatory minimum consecutive 5 years imprisonment, up to life imprisonment, up to a $250,000 fine, up to 5 years of supervised release, and a mandatory special assessment fee of $100. If convicted of Count 4, CASTILLO-PADRON faces up to 2 years of imprisonment, up to a $250,000 fine, up to 1 year supervised release, and a $100 mandatory special assessment fee.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Attorney Evans reiterated that the indictment is merely a charging document and that the guilt of the defendants must be proven beyond a reasonable doubt.
This case was investigated by the Drug Enforcement Administration, the Kenner Police Department and the Jefferson Parish Sheriff’s Office. The prosecution of this case is being handled by Assistant United States Attorney Christopher Usher.
Federal Grand Jury Indicts New Orleans Man for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced today that STEPHONE BRIDGES, age 32, a resident of New Orleans, Louisiana, was charged on November 19, 2021 in a one-count indictment for being a convicted felon in possession of a firearm. BRIDGES was charged with having a Glock semi-automatic pistol on or about August 15, 2021.
If convicted, BRIDGES faces up to ten (10) years imprisonment, followed by up to three (3) years of supervised release, up to a $250,000.00 fine, and a mandatory special assessment fee of $100.00.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department, the Orleans Parish District Attorney’s Office, and the United States Federal Bureau of Investigation. Assistant United States Attorney Rachal Cassagne is in charge of the prosecution.
Fairbanks Man Sentenced to 12 Years in Federal Prison for Stalking and Murder for Hire PlotRead the Press Release
FAIRBANKS – A Fairbanks man was sentenced to 12 years in federal prison and three years of supervised release by Senior U.S. District Court Judge Ralph R. Beistline for stalking and attempting to arrange a murder for hire.
According to court documents and evidence presented at his sentencing, Roger Keeling, 55, devised and solicited a murder for hire plot targeting his former girlfriend while he was in custody on stalking charges. He was indicted in January 2021 and found guilty by a federal jury in August 2021.
At sentencing, the United States underscored the physical, emotional and mental abuse suffered by Keeling’s former girlfriend. In both her testimony and her victim impact statement, she described the terrifying and traumatic ordeal. As she became increasingly frightened by Keeling’s actions and mental state, she left him. He tried winning her back but when that didn’t work, his anger began to consume him as he stalked her and found someone to murder her.
In October 2020 Keeling placed his hands around his girlfriend’s neck, told her he should rip her heart out and threatened to burn her house down. Keeling pleaded guilty to a misdemeanor assault charge in state court. The victim applied for and was granted a Domestic Violence Protective Order (DVPO) and it was served on Keeling before his release on the assault charges. Over the next six weeks, Keeling was arrested – and released by the state court – for violating this DVPO multiple times in an escalating pattern that included following the victim, slashing her tires, sending dozens of threatening emails from various “disguised” email accounts and planting disturbing handwritten notes along her usual running route.
Keeling was arrested for stalking the victim in December 2020. While in custody, Keeling told his cellmate he wanted to find someone to harm his girlfriend. During the next few days, Keeling agreed to pay his cellmate $1,500 to arrange for a hitman to kill her, and after being released by a state court judge, he made an initial payment of $500. During a search of Keeling’s home, Alaska State Troopers and the Federal Bureau of Investigation found numerous notes and documents confirming the existence of the plot, as well as multiple documents and drawings created by Mr. Keeling that showed his desire to see her harmed, including a hand-drawn picture of her home in flames.
“While no sentence can atone for the sense of security his victim lost, she no longer has to live in fear always looking over her back and worried about her personal safety,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “Every citizen has the right to feel safe as they go about their daily life and we will continue to seek justice for victims of such appalling acts.”
"This investigation and disruption of Mr. Keeling's deadly plot should serve as a reminder that the FBI and our partners will vigorously hold those accountable who plan such actions," said Antony Jung, Special Agent in Charge of the FBI Anchorage Field Office. "Soliciting a murder for hire is a federal crime, and the defendant will now spend the next 12 years in federal prison."
The Alaska State Troopers, the Federal Bureau of Investigation and the Fairbanks Police Department conducted the investigated the case.
Assistant U.S. Attorneys Daniel Doty and Ryan Tansey prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Domestic violence is a crime. If you are a victim of domestic violence or know someone who is, it is normal to feel scared, helpless and vulnerable. You are not alone. Help is available through local and state police departments as well as through national entities such as the Domestic Violence Hotline at 1-800-799-SAFE (7233).
During a search of Roger Keeling’s home, Alaska State Troopers and the Federal Bureau of Investigation found numerous notes and documents confirming the existence of the murder for hire plot, as well as multiple documents and drawings created by Mr. Keeling that showed his desire to see his former girlfriend harmed, including a hand-drawn picture of her home in flames.Essex County Man Sentenced to 32 Months in Prison for Unlawfully Possessing FirearmRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 32 months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Rachael A. Honig announced.
Joseph Triplett, 32, of East Orange, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with one count of being a felon in possession of a firearm. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On Sept. 6, 2019, Newark Police Department officers were patrolling the area of South 8th Street when they observed Triplett, a previously convicted felon, riding a bicycle on the sidewalk and maneuvering around pedestrians, in violation of local ordinances. One of the officers then identified himself as a police officer, showed his badge, and ordered Triplett to stop. Triplett refused to stop and rode off in the opposite direction on the sidewalk. Shortly after, Triplett discarded a black fanny pack which he had been wearing across his chest. After the officers pursued and arrested Triplett, they retrieved the fanny pack from the street and found inside a .38 caliber Smith & Wesson revolver, which was loaded with five rounds of ammunition. As a previously convicted felon, Triplett is not permitted to possess a firearm.
In addition to the prison term, Judge Vazquez sentenced Triplett to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Dong Joo Lee and Shontae Gray of the U.S. Attorney’s Office in Newark.
Edgerton Doctor Sentenced to 54 Months for $13 Million Scheme to Defraud MedicareRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Dr. Ravi Murali, 39, formerly of Edgerton, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 54 months in federal prison for Dr. Murali’s role in a scheme to defraud Medicare. Dr. Murali pleaded guilty to this charge on March 31, 2021.
Dr. Murali wrote thousands of fraudulent orders for Durable Medical Equipment (DME). Other participants in the scheme used Dr. Murali’s fraudulent orders to bill Medicare $26,000,000 of which Medicare paid $13,000,000.
At sentencing, Chief Judge Peterson emphasized that a severe sentence was necessary to deter other providers who were considering whether to defraud Medicare and other federal programs. Further, Chief Judge Peterson noted that Dr. Murali’s history of dishonesty—he was previously disciplined by the Wisconsin Medical Examining Board for creating a fraudulent diploma to falsely claim that he completed residency—cut in favor of a longer sentence.
The charge against Dr. Murali was the result of an investigation conducted by the U.S. Department of Health & Human Services, Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorney Zachary J. Corey handled the prosecution.
Department of Justice announces $139 Million for Law Enforcement Hiring to Advance Community PolicingRead the Press Release
$375,000 Awarded to Norwalk Police Department
WASHINGTON – The Department of Justice 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 Southern District of Iowa, the City of Norwalk was awarded funding totaling $375,000.“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.”
United States Attorney for the Southern District of Iowa Richard D. Westphal stated, “Our highest priority is keeping the people of the Southern District of Iowa safe, and our local and state law enforcement partners are on the front line of community safety. Attorney General Garland’s announcement of this grant to the City of Norwalk supports that mission. Additional law enforcement officers will allow for increased engagement with the community and much needed resources to effectively target law enforcement priorities.”
“We are excited and thankful to the Department of Justice for considering our application and awarding our police department,” stated Norwalk Police Chief Greg Staples. “This grant will fund the hiring of additional officers in Norwalk, allowing our department to grow, along with the growth in population and diversity in Norwalk. Our department is deeply committed to engaging our citizens in community policing activities and this grant will allow us to further that commitment to the people of Norwalk.”
The COPS Hiring Program 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 police-based response to persons in crisis.
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 $537.0 million for CHP, an increase of $300 million.To learn more about CHP, please visit https://cops.usdoj.gov/chp. For additional information about the COPS Office, please visit www.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.