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22 November 2021
Davenport Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man, Deontae Montrice Lott, age 39, was sentenced on Thursday, November 18, 2021 by United States District Court Chief Judge John A. Jarvey to 137 months in prison for Conspiracy to Distribute Heroin and Possession of a Firearm in Furtherance of a Drug Trafficking Crime. Lott was ordered to serve four years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
According to court documents, Lott was identified when law enforcement obtained .62 grams of a heroin/fentanyl mixture from Lott at his residence in Davenport in August 2020. On August 13, 2020, a search warrant was conducted at Lott’s residence, and law enforcement found 77.45 grams of heroin/fentanyl mixture, a digital scale, $2,020.00 in drug proceeds/funds, and a loaded Taurus nine-millimeter handgun. In a post-Miranda interview, Lott admitted to selling heroin. Furthermore, Lott admitted to possessing the firearm in furtherance of his drug trafficking crime and possessing the heroin/fentanyl mixture with the intent to distribute. On June 28, 2021, Lott admitted to the facts above and pleaded guilty.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Scott County Sheriff’s Office investigated the case.
Court Enjoins California Company from Manufacturing and Distributing Adulterated Sterile Animal DrugsRead the Press Release
A federal court enjoined a California company from distributing adulterated sterile animal drugs in violation of the Federal Food, Drug and Cosmetic Act (FDCA), the Department of Justice announced.
In a complaint filed on Oct. 27, 2020 in the Central District of California, the United States alleged that multiple inspections by the U.S. Food and Drug Administration (FDA) repeatedly showed that Med-Pharmex Inc. (MPX) manufactured and distributed animal drugs under conditions that fell short of the minimum regulatory requirements to ensure safety and quality, including a failure to maintain sterility. According to the complaint, the FDA issued a warning letter to MPX in 2017 regarding numerous deficiencies found at the company. The complaint further alleged that the company failed to adequately investigate reports regarding the death or illness of animals receiving certain MPX drugs, and failed to properly clean and disinfect areas used to manufacture sterile drugs, as required by the FDCA. MPX and company president Gerald P. Macedo agreed to settle the suit and to be bound by a consent decree of permanent injunction that resolves the case.
“Companies that distribute animal drugs must abide by the FDCA and all applicable regulations to help ensure the safety of these products,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will continue to work closely with the FDA to enforce these important requirements.”
“Ensuring FDA-approved animal medications are safe, effective and manufactured using current good manufacturing practices is a crucial part of the FDA’s mission to protect human and animal health,” said Director Steven M. Solomon DVM, MPH, of the FDA’s Center for Veterinary Medicine. “The FDA will continue to pursue actions against those who put animal patients in harm’s way by manufacturing and distributing adulterated animal drug products.”
The consent decree entered by the court requires, among other things, that the defendants refrain from manufacturing, processing, packing, holding and distributing any sterile drugs manufactured at MPX’s facilities, unless and until the FDA determines that the defendants’ sterile operations are in compliance with the court’s order, the FDCA and related regulations. The consent decree also gives the FDA authority to order the defendants to take corrective actions with respect to both sterile and non-sterile products if additional violations are identified.
The government was represented by Trial Attorney Rachel E. Baron of the Justice Department’s Consumer Protection Branch, with the assistance of Charlotte F. Hinkle and Michael Shane of the FDA’s Office of Chief Counsel. The U.S. Attorney’s Office for the Central District of California provided assistance.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch.
Council Bluffs Man Sentenced to Prison for Prohibited Person in Possession of a FirearmRead the Press Release
COUNCIL BLUFFS, IA – A Council Bluffs man, Domingo Ace Vasquez, III, age 42, was sentenced on November 19, 2021, by United States District Court Senior Judge Robert W. Pratt to forty-two months in prison for Prohibited Person in Possession of a Firearm. His term of imprisonment is to be followed by three years of supervised release.
On February 21, 2021, the Council Bluffs Police Department responded to a call at a casino regarding a man with a gun and methamphetamine. Vasquez was located and was in possession of a SIG Sauer, Model P938, 9mm pistol. A drug dog made a positive indication and alert on Vasquez’s vehicle, and a loaded magazine that fit the gun was found inside the vehicle.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Council Bluffs Police Department investigated the case.
Convicted Sex Offender Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Greenfield man pleaded guilty today in federal court in Springfield to receipt of child pornography.
Charles Fox, 46, pleaded guilty to two counts of receipt of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 22, 2022. Fox was indicted in July 2019 and has remained in federal custody since his arrest in June 2019.
Fox induced a minor in the Philippines to engage in sexually explicit conduct for the purpose of producing images of that conduct. Specifically, Fox used Facebook messenger to communicate with the minor and to receive the pornographic images. In exchange for the images, Fox sent Western Union payments to the Philippines. In 2010, Fox was convicted of indecent assault and battery on a child under 14 years of age.
Due to the defendant’s prior sex offense conviction, the charge of receipt of child pornography provides for a sentence of at least 15 years and up to 40 years in prison, up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
Convicted Felon Sentenced to Federal Prison for Firearms PossessionRead the Press Release
Memphis, TN – Joshua Whitfield, 30, has been sentenced to 103 months in federal prison for being a felon in possession of a firearm. Acting United States Attorney Joseph C. Murphy, Jr., announced the sentence today.
According to information presented in court, on August 10, 2019, officers with the Memphis Police Department responded to a 911 domestic violence call on Ridgestone Drive. The victim's daughter called 911 from her bedroom and told the operator that "Joshua" put his hands on her mother. When police arrived, the victim stated that her live-in boyfriend, Whitfield, became physical after a verbal dispute. The victim said the defendant struck and choked her and threatened to shoot her and her daughter. Officers observed visible bruises on the victim. Whitfield was placed in custody and a loaded Black Glock pistol with a 17-round magazine was recovered from the scene. The gun had one live round in the chamber and 10 live rounds in the magazine. Officers also found a 50 round magazine drum with an unknown number of live rounds in it. Further investigation revealed the gun was stolen.
While out on bond, Whitfield, was again arrested in possession of a firearm. On December 12, 2019, officers with the Memphis Police Department conducted a traffic stop on a White Chevrolet Malibu on Tillman Street and Princeton Avenue. The driver of the Malibu, later identified as Joshua Whitfield, sped off at a high rate of speed. Officers pursued the vehicle for several city blocks until it stopped, and Whitfield jumped out of the car carrying a blue backpack. Officers gave chase and caught Whitfield hiding in a shed. Inside of the blue backpack was a Glock .43 9mm pistol and a large plastic bag with 10 individually wrapped bags of suspected marijuana. Whitfield’s driver’s license had been revoked since 2014. Whitfield also had an active warrant for unlawful possession of a weapon.
On May 18, 2021, Whitfield pled guilty to committing both crimes. Whitfield had previously been convicted for domestic assault with bodily harm in 2014 and aggravated assault in 2015.
On October 19, 2021, U.S. District Judge Sheryl H. Lipman sentenced Whitfield to 103 months in federal prison to be followed by 3 years of supervised release. There is no parole in the federal system.
This case was investigated by the Memphis Police Department Project Safe Neighborhoods (PSN) Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Project Safe Neighborhoods (PSN) initiative is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our communities safer for everyone. In 2017, PSN was reinvigorated 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.
Assistant U.S. Attorney Raney Irwin prosecuted this case on behalf of the government.
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Cedar Rapids Meth Dealer Sent to Federal PrisonRead the Press Release
A Cedar Rapids man who possessed methamphetamine and a revolver was sentenced on November 19, 2021, to more than five years in federal prison.
Donald Devere White III, age 48, from Cedar Rapids, Iowa, received the prison term after an August 2, 2021 guilty plea to one count of possession with intent to distribute a controlled substance.
Information at the sentencing hearing showed that, on October 22, 2018, officers with the Cedar Rapids Police Department conducted a traffic stop on White’s truck. During the traffic stop, officers searched White’s truck and recovered close to 35 grams of methamphetamine and a revolver. White admitted in a plea agreement that he intended to distribute some or all of that methamphetamine to another person.
White was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. White was sentenced to 63 months’ imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
White 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 Dillan Edwards and investigated by the Cedar Rapids Police Department and Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-CR-115.
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Camden Man Sentenced to 63 Months in Prison for Conspiring to Distribute Heroin in CamdenRead the Press Release
CAMDEN, N.J. – A Camden man was sentenced today to 63 months in prison for conspiring to distribute heroin and cocaine in the Camden area, Acting U.S. Attorney Rachael A. Honig announced.
Jameel Byng, 28, of Camden, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with conspiracy to distribute 100 grams or more of heroin. During his sentencing hearing, Byng agreed that the amount of heroin jointly attributable to him, as a member of the conspiracy, was 400-700 grams. He also acknowledged his role, as a member of the conspiracy, with respect to the distribution of cocaine.
According to documents filed in this case and statements made in court:
A total of 19 defendants were arrested in late 2018 on drug-trafficking charges based on the FBI’s investigation of a drug-trafficking organization that ran the open-air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug-trafficking organization. The organization included street-level sellers like Byng who worked various shifts on the “drug set,” selling drugs to customers and collecting drug proceeds. These street-level sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests.
Seventeen of these defendants already have entered guilty pleas on drug conspiracy charges before Judge Bumb in the United States District Court. Taken together, the guilty pleas in this case reflect that the various members of the drug-trafficking organization sold massive amounts of heroin, some of which was mixed with fentanyl, as well as crack cocaine and cocaine in Camden. Two defendants are awaiting trial. The case is currently set for trial before Judge Bumb on May 9, 2022. The charges and allegations against those two defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Byng to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Jacqueline Maguire in Philadelphia; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Acting Chief Larry Robb; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s guilty plea. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
California Man Sentenced to 15 Years in Prison for Selling Methamphetamine in Northeastern OklahomaRead the Press Release
A man who was arrested after a Mannford police officer discovered methamphetamine, fentanyl, and firearms in his vehicle was sentenced in federal court Monday, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell sentenced Eric Steven Bentley, 35, of Bakersfield, California, to 15 years in federal prison followed by five years of supervised release.
“Eric Bentley traveled to northeastern Oklahoma to exchange deadly methamphetamine for guns and cash,” said Acting U.S. Attorney Clint Johnson. “Illicit drug deals and firearms are a recipe for violence and suffering. Because of the work of the Mannford Police Department, DEA, and ATF, this defendant will no longer be able to operate his illegal drug business in our communities.”
Bentley pleaded guilty July 27, 2021, to possession of methamphetamine with intent to distribute and to possession of firearms in furtherance of a drug trafficking crime.
In his plea agreement, Bentley stated that on Oct. 31, 2020, he and two codefendants, Derrick Deeds and Nicole Dileva, possessed more than 500 grams of methamphetamine with intent to distribute the drug. He said the trio traveled from Bakersfield, California, to the Northern District of Oklahoma to sell the methamphetamine and had already distributed quantities of the methamphetamine in exchange for cash and firearms.
He further stated that the three defendants possessed a Hermann Weihrauch (Arminius) .38 Special caliber revolver, a Jimenez Arms, Inc. 9 mm Luger caliber semi-automatic pistol, and a 9 mm privately made firearm. Bentley, Deeds, and Dileva received two of the guns as payment for methamphetamine and used the firearms for protection while selling the drugs.
The three were charged after an October 2020 traffic stop conducted by the Mannford Police Department. During a probable cause search of the vehicle, officers discovered three pounds of methamphetamine, pills later determined to be fentanyl and oxycodone, and the three firearms.
Deeds, 36, and Dileva, 35, both of Bakersfield, also pleaded guilty in July. Deeds was sentenced to 78 months in prison, and Dileva was sentenced to 60 months in prison.
The Mannford Police Department, Drug Enforcement Administration, and Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Jessica L. Wright and Justin G. Bish are prosecuting the case.
California Man Admits Defrauding Victims in Cumberland CountyRead the Press Release
CAMDEN, N.J. – A California man today admitted defrauding victims in Cumberland County, New Jersey, through a bogus investment scheme, Acting U.S. Attorney Rachael A. Honig announced.
Christopher Glynn, 58, of Burbank, California, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to a superseding information charging him with one count of wire fraud and one count of money laundering. Glynn was indicted in August 2019. After evading law enforcement for nearly a year, Glynn was arrested in Medford, Oregon, and transported to New Jersey for prosecution.
According to documents filed in this case and statements made in court:
In 2014, Glynn maintained a variety of corporate entities, including U.S. Grant Distribution Group, PG Philanthropic Initiative, Perrarus Global Philanthropic Initiative, and others. Glynn also claimed affiliation with an international trust that purportedly was funded with billions of dollars.
Relying on the air of legitimacy created by his various entities and the purported international trust, Glynn approached two victims in Vineland, New Jersey, and offered them an opportunity to “invest” hundreds of thousands of dollars in a “business development loan.” Glynn told the victims that this business development loan would be used for authorized business and legal expenses related to his entities and the international trust. The loan also would be used for expenses related to an animal welfare charitable foundation and shelter that Glynn was helping the victims to set up. Glynn assured the victims that the international trust would guarantee their business development loan, the loan would generate specific returns for the victims, and the victims could use the returns to fund their animal welfare charitable foundation and shelter.
As part of his fraudulent scheme, Glynn sent emails and other correspondence and contracts to the victims. Glynn also arranged for conference calls between himself, his associates, and the victims, including one call that Glynn claimed included “a direct representative from the NSA (National Security Agency), and a representative from either DHS (Department of Homeland Security) or the FBI.” Glynn took these steps in order to convince the victims that they were investing in a legitimate business opportunity.
Glynn ultimately directed the victims to wire funds to various bank accounts that Glynn controlled, in order to fund the “business development loan.” The victims did so, relying on Glynn’s representations about how the funds would be used.
Instead of using the loan in the manner he had promised, however, Glynn and his associates misappropriated the victims’ loan money and used it for personal expenses and other expenses that were unrelated to any charitable or business purpose that the victims sought to advance or that Glynn promised to achieve.
The wire fraud count to which Glynn pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The money laundering count to which Glynn pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the value of the property involved in the offense. Sentencing is scheduled for April 5, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Sara A. Aliabadi and Andrew B. Johns of the U.S. Attorney’s Office Criminal Division in Camden.
Burlington Man Sentenced to Federal Prison for Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa – A Burlington man, Jacob Robert Hogberg, age 32, was sentenced on Thursday, November 18, 2021 by United States District Court Chief Judge John A. Jarvey to 148 months in prison for Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm and Ammunition. Hogberg was ordered to serve five years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
According to court documents, Hogberg was identified in December 2019 when law enforcement officers were dispatched to the Super 8 Motel in Burlington. Officers made contact with Hogberg and two other individuals. During a search of a vehicle associated with Hogberg, officers located 205.38 grams of methamphetamine, a loaded Mossberg 20-gauge pump shotgun, and Winchester .20 gauge shotgun shells. Hogberg admitted to possessing the methamphetamine with the intent to distribute some or all of it to another person. Furthermore, as a convicted felon, Hogberg was prohibited from legally possessing firearms and ammunition. On July 14, 2021, Hogberg pleaded guilty to the two charges brought against him.
United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Burlington Police Department investigated the case.
Burlington County Man Admits Role in Conspiracy to Defraud Internet DonorsRead the Press Release
CAMDEN, N.J. – A Burlington County, New Jersey, man today admitted his role in a GoFundMe scheme that collected money from donors on the internet, purportedly to benefit a homeless man, Acting U.S. Attorney Rachael A. Honig announced.
Mark D’Amico, 42, formerly of Bordentown, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman to Count One of an indictment charging him with conspiracy to commit wire fraud.
On March 6, 2019, two conspirators – Katelyn McClure and Johnny Bobbitt Jr. – pleaded guilty to conspiracy to commit wire fraud and conspiracy to commit money laundering, respectively, in connection with the same scheme. They are both awaiting sentencing.
According to documents filed in this case and statements made in court:
In November 2017, D’Amico and McClure created a crowd-source funding page on GoFundMe’s website, titled: “Paying It Forward.” The campaign solicited donations from the public, purportedly for the benefit of homeless veteran Bobbitt. D’Amico and McClure posted a story that McClure was driving home from Philadelphia on Interstate 95 and ran out of gas. Bobbitt acted as a good Samaritan and rescued McClure by using his last $20 to buy gasoline for her. The website stated that funds were being solicited, with a goal of $10,000, to get Bobbitt off the streets and provide living expenses for him.
The story told by D’Amico and McClure was not true. McClure never ran out of gas and Bobbitt never spent his last $20 for her. D’Amico and McClure conspired to create the false story to obtain money from donors based on false information. The false story was quickly picked up by local and national news outlets. The fraudulent campaign raised approximately $400,000 from more than 14,000 donors throughout the country in less than one month.
The donated funds were transferred by D’Amico and McClure from GoFundMe into accounts that they controlled. The majority of the money was quickly spent by D’Amico and McClure on personal expenses over the next three months, including significant amounts by D’Amico for gambling, as well as for vacations, a BMW automobile, clothing, handbags and other personal items and expenses.
In mid-November 2017, when the donations had reached approximately $1,700, D’Amico and McClure told Bobbitt about the campaign and the false story. In December 2017, after D’Amico helped open a bank account for Bobbitt, D’Amico and McClure deposited $25,000 of proceeds of the scheme into Bobbitt’s account.
The charge of wire fraud conspiracy carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Sentencing is set for March 28, 2022.
Acting U.S. Attorney Honig credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the Burlington County Prosecutor’s Office, under the direction of Prosecutor Scott Coffina; and officers of the Florence Township Police Department for their work on the case.
The government is represented by Senior Trial Counsel Jason M. Richardson and Assistant U.S. Attorneys Jeffrey B. Bender and Diana Vondra Carrig of the U.S. Attorney's Office Criminal Division in Camden.
Burley Man Sentenced to 5 Years for Drug TraffickingRead the Press Release
POCATELLO – A Burley man was sentenced to 60 months in federal prison for distributing methamphetamine.
According to court records, on April 20, 2020, detectives with the Minidoka-Cassia Drug Task Force received a tip that suspicious activity was occurring in an industrial business complex in Paul, Idaho. Task force detectives conducted surveillance based on the tip and saw Fernando Najera, 42, of Burley, arrive at the industrial complex. He was seen carrying a bag into one of the buildings. Najera left a short time later in his vehicle. Further investigation led to a search of Najera’s vehicle where detectives located approximately 35.5 grams of methamphetamine, a large amount of U.S currency, and other indicia of drug sales.
Senior U.S. District Judge B. Lynn Winmill ordered Najera to serve four years of supervised release following his prison sentence. Najera was also found in violation of federal supervised release from a prior federal drug trafficking conviction. Najera was sentenced on this violation to 18 months in prison to be served concurrently with his 60-month prison sentence.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Cassia County Sheriff's Office and the Minidoka County Sheriff's Office collaborative task force, which led to 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, 139 have been indicted on drug distribution 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 drug distribution cases serve, on average, approximately 58.9 months (4.9 years) in federal prison.
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Beckley Man Sentenced to 10 Years in Federal Prison for Distribution of HeroinRead the Press Release
BECKLEY, W.Va. – William David Reid, 46, of Beckley, was sentenced today to 10 years in federal prison for distribution of heroin.
According to court documents, Reid sold a quantity of heroin to a confidential informant in Beckley on August 3, 2020. Reid also admitted to possessing approximately 20 grams of methamphetamine on August 12, 2020 that he intended to distribute in and around Raleigh County. Reid further admitted that he had been distributing heroin and methamphetamine in and around the Southern District of West Virginia for over a year prior to his arrest.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Beckley/Raleigh County Drug and Violent Crime Unit, the Raleigh County Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Frank W. Volk imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00156.
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Becker Farmer Sentenced for $1.4 Million USDA Farm Loan FraudRead the Press Release
ST. PAUL, Minn. – A Becker man was sentenced to pay $1,403,578.40 in restitution, serve three years’ probation, and 150 hours of community service for converting collateral that secured loans from the U.S. Department of Agriculture.
According to court documents, in 2017 and 2018, Robert Waldon John Anderson, 67, used false and fraudulent statements to obtain five Commodity Credit Corporation (CCC) loans through a federal farm loan program administered by the Farm Service Agency (FSA) of the U.S. Department of Agriculture (USDA). As part of the loan terms, Anderson pledged to maintain bushels of corn as collateral, agreeing not to move or dispose of them without prior approval of the CCC.
According to court documents, in late 2018, the FSA conducted a spot check and discovered that the bins of corn Anderson pledged as collateral for three of the loans were almost empty. Anderson had sold the corn under a family member’s name to avoid detection by the CCC. The FSA also learned that Anderson orchestrated two fraudulent loans in the names of family members for which collateral grain never actually existed. In total, Anderson defrauded the USDA of $1,425,718.36.
On May 6, 2021, Anderson pleaded guilty to one count of conversion of CCC security.
Acting U.S. Attorney Charles J. Kovats made the announcement after U.S. District Judge Nancy E. Brasel sentenced the defendant.
This case is the result of an investigation conducted by the U.S. Department of Agriculture-Office of Inspector General.
This case was prosecuted by Assistant U.S. Attorney Sarah E. Hudleston.
Armed Career Criminal to Federal Prison for Meth and Firearm ConvictionsRead the Press Release
A man who distributed methamphetamine while illegally possessing firearms was sentenced November 18, 2021, in federal court in Sioux City.
Melvin Cloud, Jr. 44, from Sioux City, Iowa, pled guilty on June 17, 2021, to one count of distribution of methamphetamine and one count of prohibited person in possession of a firearm. Cloud, Jr. had previously been convicted of three prior drug trafficking offenses which designated him an armed career criminal.
At the hearings, evidence showed that on four separate occasions in 2020 in Sioux City, Iowa, Cloud, Jr. distributed a total of over 82 grams of methamphetamine. On February 25, 2021, law enforcement officers executed a search warrant at Cloud, Jr.’s residence and seized four guns, including a 12-gauge shotgun, .357 revolver, .45 caliber ACP, and a stolen .40 caliber pistol. As a drug user and felon, Cloud, Jr. was prohibited from possessing guns.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Cloud, Jr. was sentenced to 141 months’ imprisonment and must serve a 4-year term of supervised release following imprisonment. Cloud, Jr. remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4018.
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Aberdeen Man Pleads Guilty to Coercion and Enticement of Three Minor FemalesRead the Press Release
Baltimore, Maryland – Anthony Gonzalez, age 40, of Aberdeen, Maryland, pleaded guilty today to coercion and enticement.
The guilty plea was announced by United States Attorney for the District of Maryland Erek L. Barron; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Director Darrell R. Reider of the Swatara Township Police Department (Pennsylvania).
According to his guilty plea, between 2017 and 2019, Gonzalez used cell phones and the internet to persuade, entice, and coerce three minor females to engage in sexual activity.
Specially, in June 2018, Gonzalez made contact with an underaged female victim (Victim 1) on a social media application. Although Victim 1’s profile stated that she was 18 years old, Victim 1 informed Gonzalez that her actual age was 16 years old. During their communication, Gonzalez referred to Victim 1 as his girlfriend, discussed getting married to her, and initiated sexual conversations.
In one instance, Gonzalez asked Victim 1 to sneak out of her hotel room that she was sharing with her father to meet Gonzalez. On June 27, 2018, Gonzalez traveled from his Bel Air, Maryland residence to meet Victim 1 at the Harrisburg, Pennsylvania hotel. There, Gonzalez and Victim 1 engaged in sexually explicit activity twice. In one sexual encounter, Gonzalez recorded the sexual acts on his cell phone. Additionally, Gonzalez brought Victim 1 a cell phone with the ability to take pictures and videos as her cell phone could not. Following their meeting, Gonzalez asked Victim 1 “Do you always delete our messages from your phone baby?”.
Between 2017 and 2018, Gonzalez met Victim 2, when she was 13 years old. Gonzalez initiated a romantic online relationship with Victim 2. During their conversations, Gonzalez frequently held sexual conversations with Victim 2 and convinced the victim to send sexual images. Also, Gonzalez discussed meeting with Victim 2 in person. When Victim 2 declined and blocked Gonzalez multiple times, a mutual friend encouraged her to communicate with him.
Gonzalez met Victim 3 in 2018 when she was 15 years old. Gonzalez told Victim 3 that they were “boyfriend and girlfriend” and convinced her to send him sexually explicit images at his request. Victim 3 genuinely believed that she had to do what Gonzalez requested because she was his “girlfriend”. In total, Victim 3 sent explicit images over 500 times at his request.
As detailed in his plea agreement, on January 24, 2019, a federal search warrant was executed at Gonzalez’s Aberdeen, Maryland residence. As a result of the search warrant, law enforcement seized several devices including two tablets, three cell phones, and a SIM card. In an interview with law enforcement, Gonzalez admitted to engaging in sex acts with Victim 1 and saved the recordings to an internet storage system. He also admitted to law enforcement that he knew Victim 2 was a minor during their conversations and had approximately four sexually explicit images of her.
Gonzalez and the government have agreed that, if the Court accepts the plea agreement, Gonzalez will be sentenced to between 10 and 16 years in federal prison. U.S. District Judge Deborah K. Chasanow has scheduled sentencing for February 24, 2022 at 9:30 a.m.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Erek L. Barron commended the Maryland State Police Department and the Swatara Township Police Department (Pennsylvania) for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Paul E. Budlow, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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21 November 2021
Seattle woman sentenced to prison for embezzling from high-end mountain bike companyRead the Press Release
Seattle – A Seattle woman who was employed as a contract bookkeeper and accountant for a high-end mountain bike company was sentenced November 19, 2021, in U.S. District Court in Seattle to 28 months in prison for wire fraud and aggravated identity theft, announced U.S. Attorney Nick Brown. Joan C. Trower, 51, pleaded guilty in August 2021. At the sentencing hearing, Chief U.S. District Judge Ricardo S. Martinez said that it is part of the Court’s “job to protect the community, especially small businesses such as the victim in this case.”
According to records filed in the case, Trower worked as a contract bookkeeper and accountant for the mountain bike company from July 2015 to May 2018. Her contract was terminated when the embezzlement was discovered. Trower used a variety of schemes to steal over $150,000 from company accounts: creating checks using the company software system, forging signatures, claiming expenses and compensation she did not earn, and making transfers from company accounts to accounts she controlled in the names of phony tax accounting businesses. For example, while most employees received at most three checks per month (two for salary and one for expenses), Trower wrote as many as thirteen checks to herself in one month. Trower put false descriptions in the memo line, sometimes falsely claiming the funds were to reimburse her for an outside tax accounting firm she claimed to have hired. Trower also transferred money from company accounts to accounts she controlled—transferring more than $26,000 to her account in the span of just a few months in 2018. Trower and her boyfriend used the money to, among other things, gamble at area casinos.
Trower committed aggravated identity theft when she forged the signature of company executives on fraudulent checks and when she submitted false invoices in the name of a third-party tax accountant to justify reimbursements to Trower.
Writing to the court, prosecutors noted that the scheme was difficult to detect. Trower’s “scheme was elaborate, sophisticated, and longstanding. She created fake business entities and fake bank accounts for those entities in order to conceal the nature of her transfers of funds from the company. Ms. Trower even went so far as to create at least one alter ego email account: a fake email account that she would correspond with, apparently in an attempt to justify certain expenses or accounting maneuvers,” Assistant United States Attorney William Dreher wrote in the sentencing memo.
Trower is obligated to pay $168,597 in restitution to the mountain bike company.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorney William Dreher.
19 November 2021
Zion, Illinois Man Sentenced to 60 Months in PrisonRead the Press Release
SOUTH BEND – Andre Neal, 44 years old, of Zion, Illinois, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to interstate travel in aid of racketeering, announced United States Attorney Clifford D. Johnson.
Neal was sentenced to 60 months in prison followed by 2 years of supervised release.
According to documents in the case, on July 23, 2020, Neal transported cocaine in interstate commerce in addition to over $100,000.00 cash from drug distribution activities. Neal has two prior felony convictions.
This case was investigated by the Drug Enforcement Administration, with the assistance of the High Intensity Drug Trafficking Area (HIDTA) Domestic Highway Enforcement Group (DHE) and the Hobart Police Department. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
Worcester Man Sentenced to Five Years in Prison for Purchasing MBTA Passes Using Others' IdentitiesRead the Press Release
BOSTON – A Worcester man was sentenced today in connection with using stolen identities to fraudulently purchase over $150,000 in MBTA passes.
Kokou Kuakumensah, 31, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. Kuakumensah was also ordered to pay $157,143 in restitution. On July 21, 2021, Kuakumensah pleaded guilty to one count of wire fraud and four counts of aggravated identity theft.
Between approximately January 2019 and March 2020, Kuakumensah used other individuals’ credit card accounts to fraudulently purchase Massachusetts Bay Transportation Authority (MBTA) commuter rail passes. Kuakumensah purchased the passes using stolen credit card numbers at MBTA fare kiosks. Kuakumensah then re-sold these fraudulently-obtained passes for less than their face value in a variety of ways, including advertising them on Craigslist. Kuakumensah sold the passes at MBTA stations, including the station in Grafton. The combined value of the passes Kuakumensah fraudulently obtained was approximately $157,000.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Chief Kenneth Green of the MBTA Transit Police made the announcement today. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Criminal Division prosecuted the case.
Worcester Man Sentenced for Multi-Drug Trafficking ConspiracyRead the Press Release
BOSTON – A Worcester man was sentenced yesterday in connection with a fentanyl, heroin, cocaine and crack cocaine trafficking conspiracy.
Robert Young, 50, was sentenced by U.S. District Court Judge Timothy S. Hillman to five years in prison and three years of supervised release. In October 2018, Young pleaded guilty to one count of conspiracy to distribute heroin, cocaine, cocaine base and fentanyl.
In April 2017, law enforcement began investigating drug sales made by Young and co-conspirator Daniel Donald on Groton Street in Worcester. On Nov. 30, 2017, a search of a “hide” between the exterior and interior walls of a building on the Groton Street property resulted in the seizure of one kilogram of cocaine, 345 grams of heroin, over 80 grams of crack cocaine, approximately 200 pills containing fentanyl and a loaded 9 mm firearm. Donald and Young were arrested and have been in custody since that time.
On Oct. 29, 2021, Donald was convicted by a federal jury of one count of possession with intent to distribute over 100 grams of heroin, over 500 grams of cocaine, over 28 grams of cocaine base (a/k/a crack cocaine), and fentanyl and one count of being a felon in possession of a firearm. Judge Hillman scheduled sentencing for March 1, 2022.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; and Worcester Police Chief Stephen Sargent made the announcement. Valuable assistance was provided by the Norfolk County Sheriff’s Office and the Westborough, Wellesley, Douglas and Southbridge Police Departments. Assistant U.S. Attorney Greg A. Friedholm, Chief of Mendell’s Worcester Branch Office, and John Mulcahy, of Mendell’s Criminal Division, prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Woman Sentenced to One Year Probation for Lying on Passport ApplicationRead the Press Release
NEW ORLEANS – U.S. Attorney Duane Evans announced today that THERESA WOOD (“WOOD”) was sentenced to one (1) year probation today after pleading guilty as charged to count one of an indictment for false statements in a passport application in violation of Title 18, United States Code, Section 1542 before U.S. District Judge Eldon E. Fallon. Judge Eldon Fallon also ordered WOOD to perform twenty-five (25) hours of community service.
According to papers signed by WOOD, she made an application for a U.S. passport for her minor child using information belonging to another individual. It is a crime to lie on a passport application. She convinced a co-worker, who resembled the father of her minor child, to fraudulently claim to be the father at the signing of the application before a notary to be submitted to the State Department.
U.S. Attorney Evans praised the work of the United States Diplomatic Security Service of the State Department in investigating this matter. Assistant U.S. Attorney Carter K. D. Guice, Jr. was in charge of the prosecution.
Weiser Man Sentenced to over 5 Years for Possessing Child PornographyRead the Press Release
BOISE – A Weiser man was sentenced to 63 months in federal prison for possession of child pornography.
According to court records, in March of 2020, the Idaho Internet Crimes Against Children (ICAC) Task Force began investigating two CyberTips from Yahoo. A CyberTip is a report submitted to the National Center for Missing and Exploited Children (NCMEC). NCMEC gathers leads and tips regarding suspected online crimes against children and forwards them to the appropriate law enforcement agencies. According to the CyberTips, between February 13, 2018, and March 11, 2020, child pornography was uploaded to a Yahoo account that was later identified as belonging to Stuart Bardan, 37, of Weiser.
ICAC obtained a search warrant for the contents of the Yahoo account and located several images of child pornography, including files depicting prepubescent children engaged in sexual acts. ICAC also located evidence that Bardan had used his email account to distribute files of child pornography to other individuals. On July 9, 2020, ICAC executed a federal search warrant at Bardan’s residence in Weiser to search for evidence of the possession of child pornography. ICAC seized Bardan’s cellphone and located numerous files of child pornography on the cellphone. Bardan admitted to using his email account to distribute child pornography and to searching for child pornography on the internet.
Chief U.S. District Judge David C. Nye also ordered Bardan to serve ten years of supervised release following his prison sentence and ordered Bardan to forfeit the cellphone that was used to commit the offense. As a result of the conviction, Bardan will be required to register as a sex offender.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Idaho ICAC Task Force, United States Postal Inspection Service, and Washington County Sheriff’s Office, which led to charges.
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. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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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Waterbury Men Charged with Various Drug and Firearm OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford returned indictments yesterday charging ALEX REYES, also known as “A.J.,” 24; JULIAN GOODMAN, 24; DOUGLAS LARA, also known as “Spaz,” 24, and RALPH ERNEST, 19, all of Waterbury, with various drug and firearms offenses. The indictments stem from an ongoing investigation into gangs, drug trafficking and the illegal possession of firearms in Waterbury.
Reyes and Goodman are charged in a three-count indictment alleging that they conspired to possess and distribute heroin and fentanyl. Reyes, who is alleged to have previous convictions for felony drug trafficking and assault offenses, is also charged with illegal possession of a firearm and possession of a firearm in furtherance of drug trafficking. It is alleged that Reyes possessed a loaded 9mm semi-automatic pistol on August 26, 2021. If convicted of these charges, Reyes faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life, and Goodman faces a maximum term of imprisonment of 20 years.
Lara is charged in a two-count indictment with possession of a firearm by a felon, and possession of a firearm with an obliterated serial number. Is it alleged that Lara has multiple previous felony convictions and, on May 6, 2021, possessed a loaded 9mm handgun with an obliterated serial number. If convicted, he faces a maximum term of imprisonment of 10 years on each count.
Ernest is charged in a two-count indictment with possession with intent to distribute heroin, and possession of a firearm in furtherance of a drug trafficking crime. It is alleged that on January 19, 2021, Ernest possessed a distribution quantity of heroin and a loaded 9mm handgun. If convicted, he faces a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of life.
Reyes, Goodman, Lara and Ernest were originally charged with related state offenses and their cases were adopted for federal prosecution. They are currently detained in state custody pending their arraignments on these federal charges.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Gang Task Force; Bureau of Alcohol, Tobacco, Firearms and Explosives; Connecticut State Police; Waterbury Police Department; Wolcott Police Department, and Connecticut Department of Correction. These cases are being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr., Natasha M. Freismuth, and Konstantin Lantsman.
Acting U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Waterbury for its close cooperation in investigating and prosecuting this matter.
These prosecutions are 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.
Wake County Man Convicted of Firearm Offense in Connection with High-Speed Chase and ShootingRead the Press Release
RALEIGH, N.C. – Cedrick Tyler Armstrong, 36, of Zebulon, NC was convicted in federal court yesterday of possession of a firearm by a convicted felon following a two-day jury trial.
On October 12, 2018, an investigator with the Wendell Police Department conducted a traffic stop of a vehicle with two occupants, and Armstrong was the front seat passenger. After a baggie from the glove box field-tested positive for cocaine, police tried to remove the driver and Armstrong from the vehicle. A struggle ensued and the Investigator was able to secure one handcuff to the driver’s left arm before the vehicle fled the stop, dragging the Investigator approximately 25 feet. The Investigator sustained injuries but was able to pursue the vehicle along with other Wendell Police Officers. The vehicle led law enforcement on a high-speed chase through multiple counties reaching speeds in excess of 100 miles. Several minutes into the chase, approximately nine shots were fired from the passenger side of the vehicle at the lead pursuit officer, and the chase was terminated shortly thereafter for public and officer safety. A search of the area where the shots were fired located a spent 9mm shell casing.
Armstrong and the driver avoided law enforcement for several hours but were located later that night at a residence on Beauty Avenue in Raleigh, NC where they were arrested. A subsequent search of the residence found a 9mm handgun with an extended magazine in the reservoir of the toilet. Forensic examination of the gun and a shell casing recovered from the area where the shots were fired confirmed that the gun found at the residence on Beauty Avenue fired that casing. The handcuffs, a handcuff key, drugs, and the vehicle keys were also recovered from the residence on Beauty Avenue where the driver and Armstrong were apprehended. Additionally, Investigators executed a search warrant on the vehicle after it was recovered and found another 9mm round matching the same make and caliber of the ammunition found with the gun at Beauty Avenue and the shell casing recovered from the scene of the shooting. A review of Armstrong’s phone also recovered text messages in which he admitted to shooting at law enforcement. Armstrong faces a sentence of up to ten years in prison. The driver is facing state charges.
Acting United States Attorney, G. Norman Acker, III, made the announcement following the trial held before United States District Judge James C. Dever, III. Wendell Police Department investigated the case with the assistance of the Wake County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), the Raleigh Police Department, the Johnston County Sheriff’s Office, and the Zebulon Police Department. Assistant U.S. Attorneys Dave Fitzgerald and Bryan Stephany prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00450-D.
Vermont Resident Sentenced for Importing More Than 50 Kilograms of MarijuanaRead the Press Release
The United States Attorney’s Office for the District of Vermont announced that Jack M. Cohen, 36, presently of Hyde Park, Vermont, was sentenced today in United States District Court in Burlington following his guilty plea to importation into the United States of more than 50 kilograms of marijuana. United States District Judge Christina Reiss sentenced Cohen to a time-served period of imprisonment (approximately a day), and ordered that Cohen be subject to three years of supervised release.
According to court records, Cohen was arrested on March 24, 2021 in the town of Canaan, Vermont, after he was stopped by a U.S. Border Patrol Agent along Route 114. Agents located and seized approximately 272 pounds of packaged marijuana in large duffle bags in the bed of Cohen’s truck. Cohen had just left an unoccupied camp along Lake Wallace where he had met individuals at the international border with Canada; those individuals used snow machines towing sleds to carry the marijuana across the lake ice to the camp. Based on prior events at the camp, Cohen had previously made at least two trips to that location to import marijuana across the international border, and he’d previously made several additional trips to other locations along the border for the same purpose. The Court found that the enterprise involved at least 400 kilograms (882 pounds) of marijuana.
The case was investigated by the United States Border Patrol, with the lead investigator working from the Beecher Falls Border Patrol Station. Acting United States Attorney Jonathan A. Ophardt commended Border Patrol’s investigative efforts. “Cross-border smuggling by organized criminal enterprises and their clandestine exportation of large quantities of cash compromises our national security and undermines our relations with international partners. The United States Attorney’s Office, working with our federal, state, and local law enforcement partners, will continue to prioritize the investigation and prosecution of traffickers who profit from unregulated black markets.”
Cohen was represented by Assistant Federal Public Defender Steven Barth. The prosecutor was Assistant United States Attorney Matthew Lasher.
Two Men Found Guilty of Waterloo Armed RobberyRead the Press Release
Two men who worked together to rob two people at gun point were convicted by a jury yesterday after a four-day trial in federal court in Cedar Rapids.
Antione Maxwell, age 33, from Mason City, Iowa, and Chavee Harden, age 32, from Waterloo, Iowa, were convicted of one count of conspiracy to interfere with commerce by robbery. Maxwell was also convicted of one count of possession of a firearm by a felon, and one count of using and carrying a firearm during and in relation to a crime of violence. The verdict was returned yesterday following about four hours of jury deliberations.
The evidence at trial showed that, on November 4, 2020, Maxwell and Harden worked together to rob two Waterloo residents at gun point. Testimony at trial showed that Maxwell held a firearm to one of the victim’s head and robbed them of marijuana products, money, and cell phones. The items that were stolen were later found in Harden’s house and in Maxwell’s car parked in front of Harden’s house.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Harden and Maxwell were taken into custody by the United States Marshal’s Service after the verdict was returned and will remain in custody pending sentencing.
For conspiracy to interfere with commerce by robbery, Harden and Maxwell each face a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
For possessing a firearm as a felon, Maxwell faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and 3 years of supervised release following any imprisonment.
For using and carrying a firearm during and in relation to a crime of violence, Maxwell faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of life imprisonment, a $250,000 fine, and 5 years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorneys Dillan Edwards and Patrick Reinert and was investigated by the Waterloo Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives.
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.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-2013.
Follow us on Twitter @USAO_NDIA.
Two Florida Men Indicted in Multimillion-Dollar Health Care Fraud SchemesRead the Press Release
NEWARK, N.J. – Two Florida men have been indicted for their roles in durable medical equipment and compound medication schemes involving kickbacks and fraud, Acting U.S. Attorney Rachael A. Honig announced.
Thomas Farese, 79, of Delray Beach, Florida, and Domenic J. Gatto Jr., 47, of Palm Beach Gardens, Florida, are charged in an 11-count indictment with conspiracy to commit wire fraud, conspiracy to commit health care fraud, health care fraud, conspiracy to transact in criminal proceeds, transacting in criminal proceeds, and conspiracy to violate the federal Anti-Kickback Statute.
According to documents filed in the case and statements made in court:
Farese and Gatto played key roles in a scheme to defraud health care benefit programs by offering, paying, soliciting, and receiving kickbacks and bribes in exchange for doctors’ orders for durable medical equipment (DME) without regard to medical necessity, namely orthotic braces. Farese, Gatto, and their conspirators had financial interests in multiple DME companies that paid kickbacks to suppliers of DME orders, in exchange for DME orders. The suppliers, in turn, used telemedicine companies to obtain DME orders without regard to medical necessity. The DME companies owned by Farese and Gatto subsequently fraudulently billed Medicare, TRICARE, CHAMPVA, and other health care benefit programs for the DME orders. The defendants concealed their ownership of the DME companies by using straw owners who were falsely reported to Medicare as the owners of the companies. Gatto also brokered a kickback relationship whereby he received an illegal kickback each time specific DME suppliers provided DME orders to the DME companies controlled by him and his conspirators. Gatto and his conspirators then laundered the proceeds of the scheme through several layers of bank accounts under their control.
Gatto and his conspirators entered into a related kickback scheme involving prescriptions for compounded medications. They agreed that suppliers of compounded medications would receive kickbacks in exchange for submitting the orders to the pharmacies with whom Gatto and his conspirators had relationships. Gatto also agreed with others that he would receive kickbacks from those pharmacies for the compounded medication orders submitted by those suppliers. The compounding pharmacies then billed Medicare for the compounded medication orders.
The defendants caused losses to Medicare, TRICARE, and CHAMPVA of approximately $25 million.
The charge of conspiracy to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison. The charges of conspiracy to commit health care fraud, health care fraud, conspiracy to transact in criminal proceeds, and transacting in criminal proceeds are each punishable by a maximum potential penalty of 10 years in prison per count. The charge of conspiracy to violate the federal Anti-Kickback Statute is punishable by a maximum potential penalty of five years in prison. he maximum fine for each count is $250,000, or twice the gross profit or loss caused by the offense, whichever is greatest.
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; the Department of Health and Human Services-Office of Inspector General, under the direction of Scott J. Lampert; the U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Patrick J. Hegarty; and the U.S. Department of Veterans Affairs Office of Inspector General, under the direction of Special Agent in Charge Christopher F. Algieri, with the ongoing investigations.
The government is represented by Assistant U.S. Attorneys Sean M. Sherman of the Opioid Abuse Prevention & Enforcement Unit in Newark, Ryan L. O’Neill of the Health Care Fraud Unit in Newark, Senior Trial Counsel Barbara Ward of the Asset Recovery & Money Laundering Unit in Newark, and Trial Attorney Darren Halverson of the Health Care Fraud Unit of the Criminal Division’s Fraud Section.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Twin Falls Woman Sentenced for Benefit FraudRead the Press Release
BOISE – A Twin Falls woman was sentenced to five years of probation for social security fraud.
According to court records, Jenna Nichole Castaneda, 30, of Twin Falls, knowingly and intentionally underreported and misrepresented her husband’s income to the Social Security Administration on multiple occasions from 2013 to 2018. As a result, Castaneda received $42,451.41 in Supplemental Security Income benefits on behalf of herself and her child, to which she was not entitled. Castaneda also applied for and received additional benefits that were administered by the Idaho Department of Health and Welfare. In her applications, she underreported and misrepresented her husband’s income. As a result, she erroneously received Medicaid, Supplemental Nutrition Assistance Program benefits, and Aid to the Aged, Blind, and Disabled benefits totaling $64,842.22. As a result of her intentional misreporting, Castaneda fraudulently received $107,293.73 in benefits for herself and her children.
Chief U.S. District Judge David C. Nye also ordered Castaneda to pay $107,293.73 in restitution to the Social Security Administration and Idaho Department of Health and Welfare. Castaneda pleaded guilty to the charge on January 22, 2021.
“Castaneda’s criminal conduct lasted for five years, undermining SSA’s mission to provide for the vulnerable among us,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr. “I commend the investigators for their steadfast commitment to ensuring justice in this case.”
“Ms. Castaneda repeatedly misrepresented her spouse’s income to continue to receive Supplemental Security Income (SSI) benefits. Her false statements are not only criminal, but also led to her fraudulently receiving $42,451 in SSI benefits for herself and her child,” said Christian Assaad, Acting Special Agent in Charge, Social Security Administration Office of the Inspector General, Seattle Field Division. “The SSI program is a needs-based program, and we will continue to work with other agencies and our law enforcement partners to ensure that only those who are truly eligible for these critical benefits receive them. I thank the U.S. Attorney’s Office for prosecuting this case.”
“For personal gain, Ms. Castaneda exploited programs that are funded by taxpayers and dedicated to public service,” said Special Agent in Charge Steven J. Ryan with the U.S. Department of Health and Human Services Office of Inspector General. “Her attempts to line her pockets betrayed the Medicaid program, other beneficiaries who rely on the program’s financial stability, and the general public.”
Acting U.S. Attorney Gonzalez formally recognized the cooperative efforts of the Social Security Administration Office of Inspector General, U.S. Department of Health and Human Services Office of Inspector General, U.S. Department of Agriculture Office of Inspector General, and Idaho Department of Health and Welfare, which led to charges.
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Taylor County Man Sentenced to Federal Prison for Methamphetamine ChargeRead the Press Release
TALLAHASSEE, FLORIDA – Jason R. Coody, Acting United States Attorney for the Northern District of Florida announced the sentencing of Roger Slaughter, 35, of Perry, Florida. Slaughter was sentenced to five years in federal prison followed by four years of supervised release. Slaughter’s sentence was the result of a guilty plea to one count of possession with intent to distribute 5 grams or more of actual methamphetamine.
“This sentence is a reflection of our commitment to work with our state and local partners in our on-going effort to deal with the sale of narcotics in our community,” said Acting U.S. Attorney Coody. “We will continue to work toward our common goal of protecting our community from this destructive criminal behavior.”
The case was the result of a joint investigation involving the Drug Enforcement Administration, Taylor County Sheriff’s Office, and the Perry Police Department. Taylor County investigators made controlled purchases of methamphetamine from Slaughter which culminated in a search warrant of his residence on February 3, 2021. During the search warrant, investigators discovered approximately 25 grams of methamphetamine, 58 grams of marijuana, firearms, ammunition, and currency.
Assistant United States Attorney Gary Milligan prosecuted the case, which was jointly investigated by the Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Taylor County Sheriff’s Office, and Perry Police Department.
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.
Tacoma woman charged with wire fraud for stealing more than $550,000 from friends and acquaintancesRead the Press Release
Seattle – a 40-year-old Tacoma woman appeared today in U.S. District Court in Seattle on a criminal complaint charging four counts of wire fraud for her scheme to defraud various friends and acquaintances, announced U.S. Attorney Nick Brown. Sabrina Taylor allegedly lied about her health, her employment status, and her education to steal more than $550,000 from people who had offered to help her.
According to records filed in the case, between November 2016, and July 2019, Taylor convinced various people to provide her with large amounts of money by claiming she needed the money to purchase medicine for multiple sclerosis, or to pay her tuition for college. She also claimed to need the funds to bail her brother out of jail. In fact, Taylor was not ill with multiple sclerosis, was not paying tuition to the University of Washington as claimed, and her brother was not in jail. Taylor told other stories about how she planned to repay the loans, lying about her employment, a litigation settlement with a local bank, and funds she expected to receive from her parents.
Some of the people she defrauded she met online through shared interests such as Japanese anime, comic books, or video games.
The charges contained in the complaint are only allegations. A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.
Wire fraud is punishable by up to 20 years in prison.
The case was investigated by the FBI.
The case is being prosecuted by Assistant United States Attorney Natalie Walton-Anderson.
St. Thomas Man Charged After Conspiring to Mail Packages of Fentanyl to St. ThomasRead the Press Release
ST. THOMAS – U.S. Attorney Gretchen C.F. Shappert announced today that a St. Thomas man was arrested September 14, 2021, in Atlanta, Georgia and transported to St. Thomas, USVI on criminal charges related to allegedly conspiring to possess with intent to distribute fentanyl.
According to court documents, pursuant to an arrest warrant the Drug Enforcement Agency (DEA), the United States Postal Inspection Service (USPIS) and Homeland Security Investigations (HSI) special agents arrested Elijah Hakim, 34, after commencing a criminal investigation in April of 2021 into the trafficking of fentanyl from Georgia to St. Thomas using the United States Postal Service (USPS).
Court documents allege that Hakim conspired to mail packages containing a total of over 40 grams of fentanyl from Georgia to St. Thomas. On April 30, 2021 a package was seized by Customs and Border Protection (CBP) officers in San Juan, Puerto Rico, which contained 150 pills weighing approximately 18 grams. The pills tested positive for the presence of fentanyl. The investigation revealed that the package was mailed by Hakim’s girlfriend. USPS records showed that the address to which the package was sent has previously been tracked by Hakim when delivering another package. On May 20, 2021, CBP officers in St. Thomas seized a package containing 200 pills weighing approximately 25 grams, which also tested positive for the presence of fentanyl. Latent fingerprints recovered from the tape used to seal the package matched Hakim’s fingerprints.
An initial appearance was held on November 17, 2021 before U.S. District Court Magistrate Judge Ruth Miller. On November 19, 2021, Judge Miller ordered Hakim detained pending resolution of the matter.
Hakim is charged with conspiring to possess with intent to distribute a controlled substance pursuant to 21 U.S.C §§ 841(b)(1)(B) and 846. If convicted, Hakim faces up to 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
DEA, USPIS, and HSI are investigating the case, and The United States Attorney’s Office for the District of the Virgin Islands is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
St. Albans Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Ronald Pleasant, 26, of St. Albans, was sentenced to five years and 11 months in federal prison for distribution of 50 grams or more of methamphetamine.
According to court documents, Pleasant sold two ounces of methamphetamine to a confidential informant for $1,000 on December 10, 2019 in St. Albans. Pleasant admitted selling methamphetamine to the same confidential informant on two other occasions.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA).
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Monica Coleman handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00197.
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South Windsor Woman Admits Defrauding Immigrant Clients, USCISRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KHATIJA KHAN, 40, of South Windsor, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to offenses related to a scheme through which individuals seeking immigration services were defrauded.
According to court documents and statements made in court, Khan and her husband operated JLLAS CORP. and EIMAAN LLC, which were created to provide services to clients involved in proceedings with U.S. Citizenship and Immigration Services (“USCIS”). Between approximately May 2015 and January 2018, Khan and her husband recruited clients who sought some form of immigration status, relief or benefit. Many of these clients are aliens residing in the U.S. without legal status and had limited education, a limited ability to understand English, and little to no knowledge of the documents that Khan and her husband were filing with USCIS on their behalf.
Khan represented herself as an attorney with a background in immigration matters, even though she was not an attorney. Khan and her husband prepared petitions and applications for their clients that contained information that they knew to be false. They also fabricated false documents to support their clients’ applications with USCIS without their clients’ knowledge. They then mailed, or caused to be mailed, these fraudulent applications and documents to USCIS, where they were received and made part of the official Alien file of each respective client.
Many of Khan’s clients received no relief from USCIS despite paying her and her husband significant amounts of money. To generate fees from clients, Khan filed applications with USCIS even when the submissions lacked merit or a legitimate basis.
Khan and her husband were arrested on December 19, 2019. After her arrest, Khan continued to defraud multiple clients.
Victims identified to date lost a total of $326,212 as a result of this scheme.
Khan pleaded guilty to one count of conspiracy to commit mail fraud and one count of mail fraud, each of which carries a maximum term of imprisonment of 20 years. Judge Underhill scheduled sentencing for February 11, 2022. Khan is released on a $50,000 bond pending sentencing.
As to Khan’s husband, who is awaiting trial, Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. Charges are only allegations and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), and the Internal Revenue Service – Criminal Investigation Division, with assistance from U.S. Citizenship and Immigration Services. This case is being prosecuted by Assistant U.S. Attorney Hal Chen.
Individuals who believe they have been victimized by this scheme contact Ines Cenatiempo, Victim-Witness Coordinator of the U.S. Attorney’s Office, at [email protected] or by phone at 203-821-3757.
South Bend Man Sentenced to 51 Months in PrisonRead the Press Release
SOUTH BEND – Steven Polito, 24 years old, of South Bend, Indiana, was sentenced by United States District Court Judge Damon R. Leichty after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Polito was sentenced to 51 months in prison followed by 1 year of supervised release.
According to documents in the case, in April 2021, Polito possessed several firearms after having been previously convicted of a felony. One of those firearms was a semi-automatic capable of accepting a high-capacity magazine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, with the assistance of the South Bend Police Department. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
This case was prosecuted as part of the South Bend Group Violence Intervention Program, a Project Safe Neighborhoods Initiative (PSN). The PSN Program 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.
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Six defendants indicted for fraud that included targeting elderly citizensRead the Press Release
ATLANTA – Vikas Mehta, Walter Valdivia, Pradip Parikh, Jaime Salas, Alpesh Patel, and Darash Shah have been indicted for wire fraud conspiracy, wire fraud, money laundering conspiracy, and money laundering.
“This case involves an alleged scheme to defraud victims — many of whom are elderly — out of their hard-earned savings,” said U.S. Attorney Kurt R. Erskine. “It is a particularly egregious type of fraud that is becoming an all-too-common occurrence. It involves dishonest individuals around the world, including in the United States, scaring good people with lies and then cheating them out of their money.”
“These indictments send a solid message that my office will continue to pursue perpetrators of these vicious Social Security-related imposter scams designed to target and harm vulnerable people, including the elderly,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I thank the Transnational Elder Fraud Strike Force, Federal Bureau of Investigation, U.S. Secret Service, Department of Homeland Security, and the Treasury Inspector General for Tax Administration criminal investigators for their significant efforts; additionally, I thank the many law enforcement agencies for their substantial contributions to this major investigation and the U.S. Attorney’s Office for prosecuting this case.”
According to U.S. Attorney Erskine, the charges and other information presented in court: The defendants allegedly participated in a conspiracy to defraud victims in the United States, many of whom are elderly. The conspiracy began with either robocall recordings purporting to be from a government agency or with emails purporting to be from legitimate companies. The robocall recordings and email messages provided callback numbers. When individuals called those numbers, they were connected to alleged scammers — some of whom were located in India. During these telephone calls, the scammer pretended either to work for the United States government or to represent a company.
When the scammer pretended to work for a government agency, the scammer would tell the victim that they were in some type of trouble. Oftentimes, they pretended to be a Social Security Administration employee, claiming that the victim’s Social Security Number was compromised in some way. The scammer would then tell the victim that they needed to pay money immediately, or, if they did not, they would be arrested. The scammer sometimes used actual Social Security Administration employees’ names to appear legitimate.
In those instances when the scammer claimed to work for a legitimate company, they reported that the victim was entitled to a company refund. The scammer often convinced the victim to download computer software that, unbeknownst to the victim, allowed the scammer to remotely access the computer. From there, the scammer manipulated the victim’s bank accounts to make it appear that, when attempting to refund the victim his or her money, the scammer “accidentally” refunded too much, and thus, the victim now owed a “debt” to the company. If the victim did not pay back this perceived debt, they would face certain consequences.
Once the scammer on the telephone scared the victims, the scammer would instruct the victim on how to pay money. Sometimes the scammer directed the victim to withdraw cash, package the cash in shipping boxes, and deliver the package as instructed. Other times, the individual on the phone would tell the victim to obtain gift cards and provide the redemption code on the back of the card. Oftentimes, the individual on the phone would tell the victim to wire money to a particular bank account; withdraw their money for cashier’s checks made payable to a specific company; or deposit cash directly into a specific company’s bank account.
To effect the alleged wire fraud and money laundering conspiracy, the named defendants — all of whom reside in the United States — allegedly created companies with various Secretaries of State offices and then opened bank accounts in the company’s names. These companies, however, did little to no legitimate business. Instead, their purpose was to receive and transfer victim funds. And it was into these bank accounts that the scammer on the phone instructed the victim to deposit their money.
Once the defendants had received the victims’ money, they allegedly laundered the fraud proceeds through their various accounts. The defendants and their companies are listed below:
- Vikas Mehta, 48, of Cliffside Park, New Jersey, created two companies: Snoopy Trust LLC and MVJ Holdings LLC.
- Walter Valdivia, 69, of Boca Raton, Florida, created Achieve Capital Group LLC and ACG Accounts Inc.
- Pradip Parikh, 63, of Valley Stream, New York, formed JDM Management Inc.
- Jaime Salas, 27, of Acworth, Georgia, formed Salas Construction LLC.
- Alpesh Patel, 37 of Louisa, Virginia, created Seven Points Agency LLC.
- Darash Shah, 22 of Boston, Massachusetts, formed Turtle Dove Holdings LLC.
Members of the public are reminded that the indictment only contains charges. The defendants are presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
Assistant U.S. Attorney J. Elizabeth McBath is prosecuting this case.
The Social Security Administration Office of Inspector General (SSA OIG) is investigating the case, with the assistance of: Federal Bureau of Investigation agents in Atlanta, New York, New Jersey, Florida and Virginia; U.S. Secret Service agents in Cleveland and Headquarters; Department of Homeland Security agents in Miami; and Treasury Inspector General for Tax Administration agents in Chicago.
The U.S. Attorney’s Office and SSA-OIG would like to thank the following law enforcement agencies for their work in this case:
- Wood-Ridge Police Department (New Jersey);
- Lincoln Police Department (Lincoln, Nebraska);
- Conway Police Department (Conway, New Hampshire);
- Loveland Police Department (Loveland, Colorado);
- Stockton Police Department (Stockton, California);
- Ferndale Police Department (Ferndale, Michigan);
- City of Maplewood Police Department (Maplewood, Minnesota);
- Stafford County Sheriff’s Office (Stafford, Virginia);
- Pennington County Sheriff’s Office (Rapid City, South Dakota);
- New York Police Department (NYPD) (New York City, New York);
- Nassau County Police Department (Garden City, New York);
- Lake County Sheriff’s Office (Tavares, Florida);
- Polk County Sheriff’s Office (Benton, Tennessee);
- Smyrna Police Department (Smyrna, Georgia);
- Conway Police Department (Conway, Arkansas);
- Polk County Sheriff’s Office (Des Moines, Iowa);
- Columbus Police Department (Columbus, Ohio);
- Cobb County Sheriff’s Office (Marietta, Georgia);
- North Richland Hills Police Department (North Richland, Texas); &
- New Jersey Probation Division (Bergen County, New Jersey).
The U.S. Attorney’s Office for the Northern District of Georgia is part of the Department of Justice Transnational Elder Fraud Strike Force. The Strike Force focuses on investigating and prosecuting defendants associated with fraud schemes that disproportionately affect American seniors. These include phone scams and computer-takeover scams.
The public should exercise caution with any caller who claims to be a government employee. Government agencies will never threaten you with immediate arrest or other legal action if you do not send cash, retail gift cards, prepaid debit cards, wire transfers, or Internet currency. They will also never demand secrecy from you in resolving a debt or any other problem. If you need to send a payment to the Social Security Administration, the agency will send a letter with payment options and appeal rights. If you or someone you know is age 65 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311).
The public is reminded that gift cards are for gifts, not for payments. If a stranger purporting to be a legitimate company or government agency demands payment with a gift card, hang up or ignore the message. Anyone who demands payment by gift card is a scammer. Scammers use this method of payment because it is difficult to trace. Once you buy the gift card, scammers typically demand the number on the back of the gift card. That number lets the scammer immediately steal the money loaded onto the card. For more information, visit https://www.consumer.ftc.gov/articles/paying-scammers-gift-cards.
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.
Sioux City Man with Prior Drug and Burglary Convictions Sentenced to More Than Two Years in Federal Prison for Illegally Possessing a GunRead the Press Release
A convicted felon who possessed a gun while also using drugs was sentenced to more than two years in federal prison.
Dexter Howard, age 33, received the prison term after a June 18, 2021, guilty plea to one count of possession of a firearm by a felon and a drug user.
Evidence presented at the detention, change of plea, and sentencing hearings in this case revealed that defendant was a felon and a drug user. The gun he was in possession of had the manufacturer’s serial number removed. His unlawful possession of a firearm was discovered when a video emerged showing him brandishing a firearm inside his car while driving near a crime scene police were actively investigating.
Howard was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Howard was sentenced to 33 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Howard is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.
The case was investigated by the Sioux City Police Department and prosecuted by Assistant United States Attorney Forde Fairchild.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-4011.
Follow us on Twitter @USAO_NDIA.
Sioux City Man Selling Large Quantities of Methamphetamine Pleads Guilty in Federal CourtRead the Press Release
A Sioux City man who sold large quantities of methamphetamine around Sioux City pled guilty on November 17, 2021, in federal court in Sioux City.
Isidro Jaramillo, age 41, from Sioux City, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. Jaramillo sold 6 pounds of methamphetamine to an undercover law enforcement officer for $10,000 in March 2021. During a subsequent search of Jaramillo’s residence, agents located approximately 3 pounds of methamphetamine and approximately $10,000 in cash used to purchase the 6 pounds of methamphetamine. Jaramillo was previously convicted in the United States District Court for the District of Nebraska, Case No. 09-CR-00422, of conspiracy to distribute methamphetamine.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Jaramillo remains in custody of the United States Marshal pending sentencing. Jaramillo faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of up to life imprisonment, a $20,000,000 fine, and 10 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4021.
Follow us on Twitter @USAO_NDIA.
Sharpsburg Man Facing Federal Indictment for Illegal Possession of Firearms, Including a MachinegunRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Jacob Matthew Martz, age 41, of Sharpsburg, Maryland, with possession of a firearm by a prohibited person and with possession of a machinegun, in connection with 16 firearms and multiple machinegun conversion devices found at the defendant’s residence. The indictment was returned on November 4, 2021 and unsealed yesterday upon the arrest of the defendant.
The indictment was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Acting Special Agent in Charge L.C. Cheeks, Jr. of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to the two-count indictment, on October 6, 2021, Martz illegally possessed six pistols, a 12-gauge shotgun, a .410 shotgun, and eight rifles. The indictment alleges that Martz knew that, as a result of previous felony firearms convictions, he was prohibited from possessing firearms. Further, the indictment alleges that Martz possessed machineguns, specifically, machinegun conversion devices for AR-15 style rifles, also known as “drop in auto sears,” parts designed and intended solely and exclusively, for use in converting a weapon into a machinegun. Finally, the indictment seeks the forfeiture of all 16 firearms upon the conviction of the defendant.
If convicted, Martz faces a maximum sentence of 10 years in federal prison for being a felon in possession of firearms and a maximum of 10 years in federal prison for possession of a machinegun. 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. At yesterday’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Mark Coulson ordered that Martz be released under the supervision of U.S. Pretrial Services.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Erek L. Barron commended the FBI and the ATF for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Charles D. Austin, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Seattle Doctor Found Guilty of Fraudulently Obtaining Millions of Dollars from COVID-19 Relief ProgramsRead the Press Release
A federal jury convicted a Seattle doctor yesterday of fraudulently seeking over $3.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
According to court documents and evidence presented at trial, Eric R. Shibley, 41, of Seattle, submitted several fraudulent PPP and EIDL loan applications to federally insured financial institutions, other Small Business Administration (SBA)-approved lenders, and the SBA, in the names of businesses with no actual operations or by otherwise misrepresenting the business’s eligibility. In the applications, Shibley falsified the number of employees and payroll expenses and concealed his own criminal history. To support the fraudulent applications, Shibley submitted fake tax documents and the names of purported employees who did not, in fact, work for the businesses for which Shibley claimed they worked. Shibley received over $2.8 million in COVID-19 relief funds as a result of the fraud.
Shibley was convicted of multiple counts of wire fraud, multiple counts of bank fraud, and money laundering. He is scheduled to be sentenced on Feb. 22, 2022, and faces 20 years for each count of wire fraud, 30 years for each count of bank fraud, and 10 years for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Nicholas W. Brown for the Western District of Washington; Special Agent in Charge Weston King of SBA’s Office of Inspector General (SBA-OIG), Western Region; Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division; Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), San Francisco Regional Office; Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); Special Agent in Charge Bret Kressin of IRS–Criminal Investigation (IRS-CI), Seattle Field Office; Special Agent in Charge Robert Hammer of Homeland Security Investigations (HSI) Seattle; and Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG), San Francisco Regional Office made the announcement.
SBA-OIG, the FBI’s Seattle Field Office, FDIC-OIG, TIGTA, IRS-CI, HSI, and HHS-OIG investigated the case.
Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Seattle Doctor Found Guilty of Fraudulently Obtaining Millions of Dollars from COVID-19 Relief ProgramsRead the Press Release
WASHINGTON – A federal jury convicted a Seattle doctor yesterday of fraudulently seeking over $3.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) COVID-19 relief funds.
According to court documents and evidence presented at trial, Eric R. Shibley, 41, of Seattle, submitted several fraudulent PPP and EIDL loan applications to federally insured financial institutions, other Small Business Administration (SBA)-approved lenders, and the SBA, in the names of businesses with no actual operations or by otherwise misrepresenting the business’s eligibility. In the applications, Shibley falsified the number of employees and payroll expenses and concealed his own criminal history. To support the fraudulent applications, Shibley submitted fake tax documents and the names of purported employees who did not, in fact, work for the businesses for which Shibley claimed they worked. Shibley received over $2.8 million in COVID-19 relief funds as a result of the fraud.
Shibley was convicted of multiple counts of wire fraud, multiple counts of bank fraud, and money laundering. He is scheduled to be sentenced on Feb. 22, 2022, and faces 20 years for each count of wire fraud, 30 years for each count of bank fraud, and 10 years for money laundering. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; U.S. Attorney Nicholas W. Brown for the Western District of Washington; Special Agent in Charge Weston King of SBA’s Office of Inspector General (SBA-OIG), Western Region; Acting Assistant Director Jay Greenberg of the FBI's Criminal Investigative Division; Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), San Francisco Regional Office; Inspector General J. Russell George of the U.S. Treasury Inspector General for Tax Administration (TIGTA); Special Agent in Charge Bret Kressin of IRS–Criminal Investigation (IRS-CI); Special Agent in Charge Robert Hammer of Homeland Securities Investigations (HSI) Seattle; and Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG), San Francisco Regional Office made the announcement.
SBA-OIG, the FBI’s Seattle Field Office, FDIC-OIG, TIGTA, IRS-CI, HSI, and HHS-OIG investigated the case.
Trial Attorney Laura Connelly of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Brian Werner of the Western District of Washington are prosecuting the case.
The Fraud Section leads the Criminal Division’s prosecution of fraud schemes that exploit the PPP. Since the inception of the CARES Act, the Fraud Section has prosecuted over 150 defendants in more than 95 criminal cases and has seized over $75 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at https://www.justice.gov/criminal-fraud/ppp-fraud.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866‑720‑5721 or via the NCDF Web Complaint Form at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Savannah man gets 10-year sentence for illegal firearms possessionRead the Press Release
SAVANNAH, GA: A Chatham County man has been sentenced to 10 years in prison for illegally possessing a firearm and ammunition.
Matthew Kearse, 30, of Savannah, was sentenced to 120 months in federal prison after his conviction for Possession of a Firearm and Ammunition by a Convicted Felon, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. A U.S. District Court jury took just 15 minutes to find Kearse guilty on the charge after a trial in August, and Judge William T. Moore Jr. also ordered Kearse to serve three years of supervised release after completion of his prison term.
There is no parole in the federal system.
“Matthew Kearse knew, as a previously convicted felon, that he was prohibited from carrying a gun, but he did so anyway,” said Acting U.S. Attorney Estes. “He had been out of prison for barely four months when he was caught with a pistol, and squandered his brief time of freedom.”
Kearse was on parole after a previous prison sentence when his aunt confronted him in November 2018 about a pistol she found in her back yard. Her surveillance system captured Kearse in the area where the gun was found.
Investigators from the Savannah Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), took custody of the pistol. DNA testing demonstrated definitively that Kearse had possessed the weapon.
“Mr. Kearse’s story is one that is all too common” said ATF Assistant Special Agent in Charge Beau Kolodka. “Convicted felons have no business possessing firearms and Mr. Kearse’s acquisition of a firearm within four months of his release from prison has resulted in his return to prison for a long time.”
In the past three years, more than 700 defendants have been federally charged in the Southern District of Georgia for illegal firearms offenses – most often for possessing a firearm after conviction on a previous felony.
Under federal law, it is illegal for an individual to possess a firearm if he or she falls into one of nine prohibited categories including being a felon; illegal alien; or unlawful user of a controlled substance. Further, it is unlawful to possess a firearm in furtherance of a drug trafficking offense or violent crime. It is also illegal to purchase – or even to attempt to purchase – firearms if the buyer is a prohibited person or illegally purchasing a firearm on behalf of others. Lying on ATF Form 4473, which is used to lawfully purchase a firearm, also is a federal offense.
For more information on the lawful purchasing of firearms, please see: https://www.atf.gov/qa-category/atf-form-4473.
The case was investigated by the ATF and the Savannah Police Department, and prosecuted for the United States by Assistant U.S. Attorneys Joshua S. Bearden and Marcela C. Mateo.
San Joaquin County Doctor Convicted of Illegally Prescribing Opioids to PatientsRead the Press Release
SACRAMENTO, Calif. — Physician Edmund Kemprud, 78, of Dublin, was convicted today of 14 counts of illegally prescribing opioids and other controlled substances patients, Acting U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, Kemprud was a physician licensed to practice medicine in California and worked in several locations around the East Bay and Central Valley, including one location in a back room of a nail salon and medi-spa in Tracy.
Kemprud prescribed highly addictive, commonly abused prescription drugs, including Hydrocodone, Alprazolam, and Oxycodone – outside the usual course of professional practice and not for legitimate medical purpose. The controlled substances affect the central nervous system and may only be prescribed when medically required.
Evidence introduced at trial showed that Kemprud ignored indications that his patients were addicts or that they were diverting the drugs. Instead, he wrote more prescriptions for highly addictive and dangerous controlled substances, charging $79 a visit. He churned out prescriptions so quickly that he often spent less than five minutes with a patient and would see 30 patients in less than a day.
Evidence at trial showed that Kemprud was aware that he was practicing outside the usual course of professional practice and intended to keep writing prescriptions so the patients would keep coming back. Several pharmacies were so troubled by Kemprud’s prescriptions that they instituted companywide policies to block his prescriptions.
Trial testimony of undercover officers established that on 14 occasions between Sept. 6, 2018, and March 13, 2019, Kemprud prescribed opioids without determining the patients’ medical and prescription histories, without conducting a proper medical examination, without confirming the legitimacy of the patients’ complaints, and without assessing the risk of aberrant drug behavior.
“This defendant displayed a blatant disregard for patient safety and the law,” Acting U.S. Attorney Talbert said. “Although he knew his treatment of patients was unlawful, he continued to pump dangerous drugs into the community. It took the effort of agents, investigators, undercover officers, medical professionals who practiced with the defendant and pharmacists to bring an end to Kemprud’s illicit prescription writing. The U.S. Attorney’s Office will continue our vigorous pursuit of those who fuel the opioid epidemic for their own personal benefit.”
“For nearly two years, we have all faced the impacts of the global pandemic, but before the pandemic began, we were already fighting a deadly opioid epidemic,” said California Attorney General Rob Bonta. “We trust our doctors by putting our health in their hands. When doctors violate their oath to do no harm, we must take action —especially when it comes to illegally prescribing opioids. I’m grateful for our investigative partners at the federal level, and to the U.S. Attorney for successfully putting a stop to this doctor’s harmful practices.”
“Fueled by greed, Edmund Kemprud went from doctor to drug dealer when he began running a prescription pill mill for powerful opioids. Kemprud’s actions not only preyed upon those battling addiction, but also contributed to the ongoing opioid crisis. This verdict underscores our commitment to hold unscrupulous doctors accountable for their actions,” stated DEA Special Agent in Charge Wade R. Shannon. “I applaud the efforts of the DEA Oakland Tactical Diversion Squad, the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse Drug Diversion Team, the Office of Inspector General for the United States Department of Health and Human Services, and the United States Attorney’s Office in the Eastern District of California, who worked diligently on this investigation.”
“The safety of patients can become seriously endangered when medical professionals allow their personal interests to dictate their prescribing decisions,” stated Steven J. Ryan, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “While neglecting his responsibility to deliver appropriate health care services, Kemprud stole funds meant to promote positive health outcomes in our communities. HHS-OIG and our partners are committed to bringing to justice those who harm beneficiaries or cheat the programs that deliver their health care.”
This case is the product of an investigation by the California Department of Justice, Bureau of Medi-Cal Fraud and Elder Abuse Drug Diversion Team, the Drug Enforcement Administration, and the Office of Inspector General for the United States Department of Health and Human Services. Assistant U.S. Attorney Veronica M.A. Alegría and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.
Kemprud is scheduled to be sentenced on Feb. 14, 2022, by U.S. District Judge William B. Shubb. Kemprud faces a maximum statutory penalty of 20 years in prison. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
San Francisco Man Pleads Guilty to Gang ShootingRead the Press Release
SAN FRANCISCO – Aramis Alvarez-Arroyo pleaded guilty in federal court today to attempted murder in aid of racketeering, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
A federal grand jury indicted Alvarez-Arroyo on April 15, 2021. In the plea agreement that Alvarez-Arroyo, 20, of San Francisco, entered today, he admitted that from 2018 through April 2021 he aspired to join the Norteños, a street gang operating in San Francisco’s Mission District (SFMD) whose members enrich themselves and the gang by robbery, drug dealing, firearms trafficking, and other crimes. Violence quickly earns prestige in the gang, Alvarez-Arroyo acknowledged in his plea agreement, and SFMD Norteños members and associates commit acts of violence, including murder and attempted murder, against perceived gang rivals to gain prestige and promotion within the gang.
Alvarez-Arroyo pleaded guilty to an attempted murder charge based on a shooting he committed on April 9, 2020, in order to gain entrance into the SFMD Norteños. Alvarez-Arroyo admitted the details of his crime in his plea agreement, which describes the events in the late afternoon of April 9 near Richland Avenue and Mission Street in San Francisco. Red is the color claimed by Norteños, and Alvarez-Arroyo was walking in the area at that time wearing red pants and a red bandana. Outside of a restaurant, four people were sitting in a parked car, with one person sitting in the driver’s seat (Vicim-1) and another in the front passenger seat (Victim-2). In his plea agreement, Alvarez-Arroyo acknowledged that he recognized Victim-1 as an associate of the Sureño gang. The Sureño gang is a primary rival of the SFMD Norteños gang. According to the plea agreement, Alvarez-Arroyo approached the parked car while carrying a loaded .40 caliber pistol and called out to Victim-1 by name. Victim-1 saw Alvarez-Arroyo, put the car into drive, and fled. Alvarez-Arroyo stated he fired three shots at the car as it drove away, hitting the front, side, and back windows of the car, as well as the front passenger headrest. He missed the car’s occupants. In his plea agreement, Alvarez-Arroyo admitted that he intended to kill Victim-1 and Victim-2.
Alvarez-Arroyo also admitted in his plea agreement that in the days following he bragged about the shooting in posts and messages on Instagram, stating that next time he “won’t miss.” Around the same time, Alvarez-Arroyo sent messages referring to an assault rifle he was assembling and expressed his interest in finding rivals from another gang, Army Street.
The indictment charged one count of attempted murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), to which Alvarez-Arroyo pleaded guilty today. The maximum sentence for a violation of 18 U.S.C. § 1959(a)(5) is 10 years in prison and a fine of $250,000, plus restitution and forfeiture. However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Alvarez-Arroyo’s sentencing hearing is scheduled for March 7, 2022, at 2:30 pm, before United States District Judge Vince Chhabria in San Francisco. Alvarez-Arroyo remains in custody.
The United States Attorney’s Office’s Organized Crime Strike Force is prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation and San Francisco Police Department.
San Diego Man Sentenced to 156 Months’ Custody in Fentanyl Overdose DeathRead the Press Release
NEWS RELEASE SUMMARY – November 19, 2021
SAN DIEGO – Tony Davis was sentenced today in federal court by U.S. District Judge Cathy Ann Bencivengo to 156 months’ custody for supplying the heroin and fentanyl that led to the fatal overdose of a 41-year-old San Diego woman, on October 24, 2018.
According to his plea agreement, Davis agreed to sell more than 100 grams of what he knew to be heroin in the fall of 2018, and on October 24, 2018 he distributed heroin and fentanyl to another street-level drug dealer who in turn distributed the drugs that caused the victim’s death.
DEA Narcotic Task Force Team 10 led the investigation in this case. Team 10 is a specialty unit, with investigators from HSI, FBI, San Diego Police Department, CA Department of Health Care Services and the San Diego District Attorney’s Office, that investigates overdose deaths in San Diego. Team 10 responds to the discovery of overdose victims and aggressively pursues criminal cases, up the distribution chain, against the dealers and their sources of supply.
“As fentanyl continues to cut its devastating path in our community, we are committed to taking action to stop those who peddle this poison,” said Acting U.S. Attorney Randy Grossman. “We will use every available tool to hold traffickers accountable, confiscate their drugs and put an end to these tragic losses.”
“Overdose deaths continue to rise in San Diego County,” said DEA Acting Special Agent in Charge Shelly S. Howe. “The DEA and our law enforcement partners are attacking this problem by aggressively targeting the supply chain. It’s simple: If you provide or sell drugs that cause someone to die, we will come after you and your supplier.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, local police departments, the Drug Enforcement Administration and other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
Acting U.S. Attorney Randy Grossman praised prosecutors Stephen H. Wong and Mikaela L. Weber as well as DEA Team 10 investigators for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 19-CR-0294-CAB
Tony Davis Age: 65
SUMMARY OF CHARGES
Distribution of Heroin and Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Conspiracy to Distribute Heroin – Title 21, U.S.C., Section 841(a)(1) & 846
Penalties: Mandatory minimum five years in prison; maximum 40 years in prison
AGENCY
Drug Enforcement Administration
Reptile Dealer Pleads Guilty to Illegally Trafficking Vipers, Gun ChargesRead the Press Release
VALDOSTA, Ga. – A Florida reptile dealer pleaded guilty to shipping venomous snakes and turtles from his residence in Valdosta as part of “Operation Middleman,” a multi-agency investigation focusing on the trafficking of reptiles from the United States to China.
Ashtyn Michael Rance, 35, of Miami, Florida, pleaded guilty to one count Lacey Act Trafficking and one count possession of a firearm by a convicted felon before U.S. District Judge Hugh Lawson on Thursday, Nov. 18. The maximum sentence under the Lacey Act and illegal possession of a firearm charges are five and 10 years of imprisonment, respectively, and a $250,000 fine for each charge. Sentencing is scheduled for Feb. 23, 2022, in Valdosta.
“Trafficking venomous or endangered wildlife through the mail clearly puts the delivery couriers and the public at risk and can harm the boxed animals. Our office will enforce Lacey Act law put in place to protect the public and our nation’s wildlife,” said Peter D. Leary, the U.S. Attorney for the Middle District of Georgia. “Law enforcement agencies working on Operation Middleman are successfully preventing the illegal smuggling of wildlife out of the United States and protecting our citizens.”
According to court documents, Rance agreed to ship three eastern box turtles and 16 spotted turtles to a customer in Florida from his Valdosta residence, knowing that the ultimate destination was China. Rance received a $3,300 payment for the turtles. On Feb. 22, 2018, Rance shipped the 19 turtles, knowing it was illegal to do so, in a box labeled as “Live Tropical Fish.” Again, on May 10, 2018, Rance agreed to send a package to Florida from Valdosta with a label stating that it contained harmless reptiles and ball pythons when, in reality, Rance shipped 15 Gaboon vipers, which are venomous snakes. The vipers’ ultimate destination was China. On May 11, 2018, law enforcement authorities executed a search warrant at Rance’s Valdosta home, where they recovered a Bushmaster Carbine .223 caliber rifle and a Mossberg 12-gauge shotgun. It is illegal for Rance, a convicted felon, to possess a firearm.
The federal Lacey Act is the nation’s oldest wildlife trafficking statute and prohibits, among other things, transporting wildlife in interstate commerce if the wildlife was illegal under state laws. Rance acknowledged that he possessed and sold the reptiles in violation of Georgia laws. It also is a Lacey Act violation to falsely label a package containing wildlife.
The spotted turtle (Clemmys guttata) is a semi-aquatic turtle native to the eastern United States and Great Lakes region. The eastern box turtle (Terrapene carolina carolina) is endemic to forested regions of the East Coast and Midwest. Collectors prize both species in the domestic and foreign pet trade market. The Gaboon viper (Bitis gabonica) is native to central Sub-Saharan Africa. Its venom can cause shock, loss of consciousness or death in humans.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the U.S. Fish and Wildlife Service (USFWS) as part of Operation Middleman.
Assistant U.S. Attorney Sonja Profit of the Middle District of Georgia and U.S. Department of Justice Trial Attorney Ryan Conners of the Environmental Crimes Section are prosecuting the case.
Real Estate Businessman and Lawyer Arrested in Connection with Campaign Finance SchemeRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Michael J. Driscoll, Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Daniel G. Cort, Acting Commissioner of the New York City Department of Investigation (“DOI”), announced the unsealing of an Indictment charging GERALD MIGDOL with conspiracy to commit wire fraud, wire fraud, and aggravated identity theft in connection with a scheme to misrepresent and conceal the sources of political campaign contributions. MIGDOL was arrested this morning and will be presented before United States Magistrate Judge Ona T. Wang later today. The case is assigned to United States District Judge J. Paul Oetken.
U.S. Attorney Damian Williams said: “Free and fair elections are the foundation of our democracy, and campaign finance regulations are one way communities seek to ensure everyone plays by the same rules. As alleged, Gerald Migdol and others tried to divert taxpayer dollars from New York City’s matching funds program to a particular candidate based on fraudulent campaign contributions. My Office remains vigilant against such attempts to defraud the public.”
FBI Assistant Director Michael J. Driscoll said: “Public programs, such as the one Migdol allegedly defrauded, exist to provide support for New Yorkers who want to represent their city in elections, but find themselves without the means to do so. Illegally subverting the requirements to be eligible for these funds is detrimental to our ability to hold a free and fair election and is a federal offense.”
Acting DOI Commissioner Daniel G. Cort said: “Obtaining fraudulent donations for a political candidate that will ultimately be used to secure matching funds undermines the fair and honest public financing of elections. DOI thanks its partners on this matter, the office of the United States Attorney for the Southern District of New York and the Federal Bureau of Investigation.”
According to the allegations in the Indictment and information in the public record[1]:
From at least in or about October 2019, through at least in or about January 2021, GERALD MIGDOL orchestrated and participated in a scheme to misrepresent and conceal sources of contributions made during the 2021 election cycle to the campaign of a candidate for New York City Comptroller (“Candidate-1”), fraudulently attempting to procure public funds for Candidate-1 from the campaign finance program overseen by the New York City Campaign Finance Board (“CFB”). That campaign finance program included, among other things, a “matching funds program” that provided eligible candidates with public funds based on the number and amount of certain donor contributions. According to the CFB, “[b]y matching their contributions with public funds, the [p]rogram empowers New Yorkers in every neighborhood to make their voices heard in city elections” and “[b]y encouraging candidates to raise small-dollar contributions from average New Yorkers, the program increases engagement between voters and those who seek to represent them.”[2]
Candidates running for the office of New York City Comptroller were eligible to participate in the matching funds program if they met certain criteria, and eligible candidates could receive up to approximately $3.4 million in public matching funds based on qualifying contributions. Candidate-1 filed a certification with the CFB in or about September 2019, becoming a candidate for the office of the New York City Comptroller and opting in to the CFB’s matching funds program. Thereafter, MIGDOL and others conspired to obtain fraudulent contributions for Candidate-1 that would be used, among other things, to seek public matching funds from the CFB. A number of those contributions were “nominee contributions,” in which money was given to Candidate-1’s campaign under one contributor’s name, but in reality the money for the contribution came from, or was reimbursed by, another person. Other contributions obtained at MIGDOL’s direction were fraudulently made in the names of individuals who, in fact, had never authorized those contributions.
Through these and other efforts, MIGDOL and others involved in the scheme procured nominee and other fraudulent contributions for Candidate-1’s campaign, which in turn were submitted to the CFB by Candidate-1’s campaign in connection with requests for at least tens of thousands of dollars in additional public matching funds.
* * *
MIGDOL, 71, of New York, New York, is charged with one count of conspiracy to commit wire fraud and one count of wire fraud, each of which carries a maximum sentence of 20 years in prison, and one count of aggravated identity theft, which carries a mandatory consecutive sentence of two years in prison. The statutory maximum penalties are prescribed by Congress, and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and DOI. This case is being handled by the Office’s Public Corruption Unit. Assistant United States Attorneys Jarrod L. Schaeffer, David Abramowitz, Tara La Morte, and Alison Moe are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
[2] https://www.nyccfb.info/program/benefits.
Readout of Meeting between U.S. Deputy Attorney General Lisa O. Monaco and United Kingdom Home Secretary Priti PatelRead the Press Release
Deputy Attorney General Lisa Monaco of the U.S. Department of Justice, together with colleagues from the National Security Division and the Criminal Division, met yesterday with UK Home Secretary Priti Patel in Washington, DC, to further strengthen law enforcement and national security cooperation.
In their meeting, both governments discussed their close cooperation against numerous threats to their countries’ collective security, including with respect to combating terrorism, cybercrime, and illicit finance.
Both the Deputy Attorney General and the Home Secretary committed and agreed to heighten the focus on illicit use of cryptocurrency and ransomware, as well as to continue the dialogue about emerging threats to national security.
Post Falls Doctor Pays $110,000 to Settle Allegations that He Overprescribed OpioidsRead the Press Release
COEURD'ALENE – Dr. Eric Benson, an internist practicing medicine in Post Falls, Idaho, agreed to pay $110,000 to resolve allegations that he unlawfully prescribed opioids and other controlled substances to patients between 2014-2021. The settlement, which was based in part on Dr. Benson’s ability to pay, also restricts the doctor’s capacity to take on new patients already being prescribed opioids.
According to the settlement agreement, the government alleged that Dr. Benson wrote prescriptions that lacked a legitimate medical purpose and were issued outside the usual course of professional practice in violation of the Controlled Substances Act. The government also alleged that Dr. Benson’s unlawful prescriptions caused the presentation of false claims for prescription drug benefits to Medicare and Medicaid in violation of the False Claims Act.
“Opioid addiction and dependence often begin with doctors prescribing excessive amounts of pain killers to patients who want them, but who do not need them,” said Acting U.S. Attorney Rafael M. Gonzalez, Jr., who announced the settlement. “Medical professionals must know that they are civilly accountable under the Controlled Substances Act when they write prescriptions that lack a legitimate medical purpose. This settlement demonstrates our commitment to an all-of-community approach to addressing the opioid crisis.”
“The allegations in this matter describe an egregious affront to patient safety and a blatant disregard for the intended purpose of Medicare and Medicaid funds,” stated Steven J. Ryan, Special Agent in Charge with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “In coordination with our law enforcement partners, HHS-OIG ardently pursues medical providers who shirk their duties to provide appropriate patient care and to support HHS program integrity.”
“Doctor Benson’s irresponsible prescribing habits violate federal law, breach his medical license, and present a clear danger to our nation’s health and security,” said Frank A. Tarentino III, Special Agent-in-Charge of DEA’s Seattle Field Division. “Dr. Benson’s behavior is also a violation of public trust, and contributes to the many complexities fueling the opioid epidemic and endangering the citizens of Idaho. We continue to work with our law enforcement partners in opioid overdose prevention and awareness, while relentlessly pursuing those that overprescribe opioids.”
This matter was investigated jointly by the U.S. Attorney’s Office and the U.S. Department of Health and Human Services Office of the Inspector General, with additional assistance provided by the Drug Enforcement Administration and the Idaho Board of Pharmacy.
The claims resolved by this settlement are allegations only and there has been no admission or determination of liability.
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Pittsfield Man Sentenced for Distributing HeroinRead the Press Release
BOSTON – A Pittsfield man was sentenced today in federal court in Springfield for heroin distribution charges.
Eulises Rosado, 51, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 33 months in prison and five years of supervised release. On July 22, 2021, Rosado pleaded guilty to six counts of distribution of and possession with intent to distribute heroin.
On six occasions between March 2017 and August 2017, Rosado distributed heroin to a cooperating witness. On five of those occasions, Rosado sold the heroin from his home.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Office; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police, made the announcement today. Special assistance was provided by the Pittsfield, Springfield, West Springfield, Holyoke and Easthampton Police Departments. Assistant U.S. Attorney Neil L. Desroches of Mendell’s Springfield Branch Office prosecuted the case.
Pittsburgh Tax Preparer Sentenced for Filing False ReturnsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced by Chief District Judge Mark R. Hornak in Pittsburgh on charges of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, Acting United States Attorney Stephen R. Kaufman announced today.
Jamar White had earlier entered a plea of guilty to tax charges covering the years 2010 through 2014 during which time he created false tax returns for a number of clients while acting as a paid tax return preparer. Mr. White created false deductions which did not in fact represent the actual income and eligible deductions of many of his various clients. By fictionalizing various deductions for things such as gifts to charity and business expenses, which did not in fact exist, Mr. White was able to secure refunds for clients to which they were not in fact entitled.
Judge Hornak sentenced Mr. White to serve four months in prison, pay restitution to the Internal Revenue Service of $67,000, pay a special assessment of $500 and undergo 12 months of Supervised Release once he is released from prison.
The Internal Revenue Service, Criminal Investigation conducted the investigation leading to the indictment in this case.