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16 November 2021
Pittsburgh Man Arranged Purchases and Sales of Heroin and Fentanyl, Illegally Possessed a GunRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of violating federal narcotics laws in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, Acting United States Attorney Stephen R. Kaufman announced today.
Trevon McCrary, age 27, of Pittsburgh, Pennsylvania, pleaded guilty to one count of conspiring to distribute and possess with intent to distribute a quantity of a mixture of heroin and fentanyl before United States District Judge William S. Stickman, IV. Mr. McCrary is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
In connection with the guilty plea, the court was advised that from in and around January 2018 through in and around June 2019, McCrary participated in a conspiracy with Ronald Williams, Christopher Highsmith, and others to distribute heroin and fentanyl. McCrary was intercepted on a court-authorized wiretap arranging purchases and sales of heroin/fentanyl and was the subject of physical surveillance while engaging in drug-trafficking activity. McCrary took responsibility for distributing between 32 and 40 grams of a heroin/fentanyl mixture as well as possession of a firearm.
Judge Stickman scheduled sentencing for March 21, 2022, at 1:30 p.m. The law provides for a total sentence of not more than twenty (20) years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court ordered the defendant remain in custody.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Penn Hills Man Charged with Attempted Cocaine PossessionRead the Press Release
PITTSBURGH, PA - One resident of Penn Hills, Pennsylvania, was indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Jose Antonio Santiago Hernandez, age 30, as the sole defendant.
According to the Indictment, on or about June 28, 2021, Hernandez attempted to possess with intent to distribute 5 kilograms or more of mixture and substance containing a detectable amount of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of life, a fine not to exceed $10,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Nicole Ann Stockey is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pass Christian Man Sentenced to Almost 6 Years in Prison for Possession of a Firearm by a Convicted FelonRead the Press Release
Gulfport, Miss. – A Pass Christian man was sentenced to 70 months in federal prison for being a previously convicted felon in possession of a firearm, announced U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court records, on November 10, 2020, Martin Stephen Brown, 48, possessed a loaded Pietro Beretta .380 caliber firearm. Brown was previously convicted in Hancock County Circuit Court on multiple drug charges and is prohibited from possessing a firearm.
Brown pled guilty on May 25, 2021 to possession of a firearm by a convicted felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrea Jones prosecuted the case.
Owners of Imaging Product Companies Pay $220,000 to Resolve Allegations of Fraud Against Federal Government AgenciesRead the Press Release
SACRAMENTO, Calif. — Jimmy A. Meron, owner of WOW Imaging Products LLC (WOW) and part owner of Time Enterprises LLC (Time), has paid $100,000 to resolve allegations of knowingly overcharging federal agencies for imaging products; Michael J. Lowe, Meron’s co-owner of Time, has paid an additional $120,000, Acting U.S. Attorney Phillip A. Talbert announced.
These payments are in addition to over $1.7 million dollars forfeited by Meron and Lowe in connection with a criminal investigation that resulted in Meron’s criminal plea to felony wire fraud. Lowe was not charged in the criminal proceeding.
Through their companies WOW and Time, Meron and Lowe contracted to sell office supplies to federal agencies on two web-based government sales portals, GSA Advantage, operated by the General Services Administration, and DoD EMall, operated by the Department of Defense. WOW and Time routinely substituted less expensive printer cartridges for brand-name cartridges ordered by federal-agency customers and retained the difference in cost. In order to evade detection, WOW and Time flagged customers who complained to receive the appropriate product in future orders.
“Those who do business with the government must do so fairly and honestly,” said Acting U.S. Attorney Talbert. “This office will seek appropriate remedies against government contractors who knowingly overcharge United States agencies for products.”
“This settlement reflects the GSA OIG’s commitment to work with our law enforcement partners to investigate and hold accountable those who seek personal financial gain from fraudulently selling inferior products to the federal government,” said Special Agent in Charge Theresa Quellhorst, General Services Administration, Office of Inspector General.
“The Department of Defense (DoD) maintains a high standard for the quality of the products and supplies utilized to accomplish its important mission,” said Bryan D. Denny, Special Agent in Charge for the DoD Office of Inspector General, Defense Criminal Investigative Service (DCIS), Western Field Office. “Today’s settlement demonstrates DCIS’s commitment to working with our law enforcement partners to root out fraud in government procurement and protect the American taxpayer dollars entrusted to the DoD.”
This settlement is the result of work by the U.S. Attorney’s Office for the Eastern District of California with help from the General Services Administration, Office of Inspector General, and the Defense Criminal Investigative Services, Office of Inspector General. Assistant U.S. Attorney Catherine J. Swann handled the matter for the United States. The claims settled by this agreement are allegations only, and there has been no determination of liability.
Oregon Man Charged with Federal Hate Crime After Attacking Gay ManRead the Press Release
An Oregon man has been charged with a federal hate crime after using the internet to target and brutally assault a gay man because of his sexual orientation.
Daniel Andrew McGee, of Springfield, has been charged by criminal complaint with a hate crime. The complaint alleges that McGee attempted to kill the victim.
According to court documents, McGee and his victim met using Grindr, a social media and networking application designed for, and used primarily by, gay men. On July 5, after agreeing to meet, McGee entered his victim’s apartment and proceeded to assault the man with a wooden club over a period of several minutes. Despite the victim’s pleas for McGee to stop, McGee continued striking the man repeatedly in the head with the club. The victim sustained life-threatening injuries and was transported to a local hospital.
Further investigation revealed that, in the weeks leading up to the attack, McGee used the internet to search for and view graphically violent anti-gay material, including videos of anti-gay attacks. McGee also used the internet to plan the assault, purchasing the weapon and other materials online. In addition, McGee searched online for suggestions about how to get away with murder and how murderers avoid getting caught.
On Nov. 15, McGee was arrested by the FBI and made his initial appearance in federal court before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Eugene Police Department. It is being prosecuted by Assistant U.S. Attorney Gavin W. Bruce for the District of Oregon and Trial Attorney Cameron A. Bell of the Civil Rights Division.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Oregon Man Charged with Federal Hate Crime After Attacking Gay ManRead the Press Release
EUGENE, Ore.—A Springfield, Oregon man has been charged with a federal hate crime after using the internet to target and brutally assault a gay man, because of his sexual orientation.
Daniel Andrew McGee, 22, has been charged by criminal complaint with a hate crime. The complaint alleges that McGee attempted to kill the victim.
According to court documents, McGee and his victim met using Grindr, a social media and networking application designed for, and used primarily by, gay men. On July 5, 2021, after agreeing to meet, McGee entered his victim’s apartment and proceeded to assault the man with a wooden club over a period of several minutes. Despite the victim’s pleas for McGee to stop, McGee continued striking the man repeatedly in the head with the club. The victim sustained life-threatening injuries and was transported to a local hospital.
Further investigation revealed that, in the weeks leading up to the attack, McGee used the internet to search for and view graphically violent anti-gay material, including videos of anti-gay attacks. McGee also used the internet to plan the assault, purchasing the weapon and other materials online. In addition, McGee searched online for suggestions about how to get away with murder and how murderers avoid getting caught.
On November 15, 2021, McGee was arrested by the FBI and made his initial appearance in federal court before a U.S. Magistrate Judge. He was ordered detained pending further court proceedings.
Assistant Attorney General Kristen M. Clarke of the Civil Rights Division and Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the FBI with assistance from the Eugene Police Department. It is being prosecuted by Gavin W. Bruce, Assistant U.S. Attorney for the District of Oregon, and Cameron A. Bell, Trial Attorney for the U.S. Department of Justice’s Civil Rights Division.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Okreek Man Indicted for Second Degree Murder and Using a Firearm During Crime of ViolenceRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Okreek, South Dakota, man has been indicted by a federal grand jury for Second Degree Murder and Using and Carrying a Firearm During and in Relation to a Crime of Violence.
Leon Good Buffalo, age 23, was indicted on November 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on November 15, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on October 28, 2021, in Todd County, South Dakota, Good Buffalo killed a man by shooting him with a shotgun.
The charges are merely accusations and Good Buffalo is presumed innocent until and unless proven guilty.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Federal Bureau of Investigation, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Good Buffalo was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Ocean County Man Charged with Illegally Possessing Loaded Semi-Automatic RifleRead the Press Release
TRENTON, N.J. – An Ocean County, New Jersey, man was charged with illegally possessing a loaded semi-automatic rifle as a previously convicted felon, Acting U.S. Attorney Rachael A. Honig announced today.
Jeremy W. Barringer, 46, of Toms River, New Jersey, is charged by criminal complaint with one count of possession of a firearm by a convicted felon. Barringer was taken into federal custody this morning, appeared today by videoconference before U.S. Magistrate Judge Tonianne J. Bongiovanni in Trenton federal court, and was detained.
According to documents filed in this case and statements made in court:
On Oct. 24, 2021, at 3:05 a.m., Mantoloking and Bay Head police officers responded to the area of Herbert Street and Highway 35 in Mantoloking in response to a report of a motor vehicle crash involving a single vehicle. Officers found Barringer, a previously convicted felon, behind the wheel of his vehicle and observed a 5.56-millimeter semi-automatic rifle on the floorboard of the back seat of Barringer’s vehicle. The rifle was later found to be loaded with approximately 21 rounds of 5.56-millimeter full metal jacket ammunition. When officers ordered Barringer to step out of the vehicle, they observed that Barringer was wearing a tactical, bullet-proof vest and an empty handgun holster on his hip. After taking Barringer into custody, officers conducted a further search of Barringer’s vehicle and discovered a black 9-millimeter semi-automatic pistol with no serial number (commonly referred to as a “ghost gun”), loaded with 14 rounds of hollow-point ammunition, three 9-millimeter pistol magazines loaded with hollow-point ammunition, and three 30-round rifle magazines loaded with 5.56-millimeter ammunition.
The count of possession of a firearm by a convicted felon carries a maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, under the direction of Special Agent in Charge George M. Crouch Jr.; officers of the Mantoloking Police Department, under the direction of Chief of Police Stacy S. Ferris; and officers of the Bay Head Police Department, under the direction of Chief of Police William A. Hoffman, with the investigation leading to the charges. She also thanked detectives from the Ocean County Prosecutor’s Office, under the direction of Prosecutor Bradley D. Billhimer, officers from the Ocean County Sheriff’s Office, under the direction of Sheriff Michael G. Mastronardy, and officers from the Toms River Police Department, under the direction of Chief of Police Mitchell A. Little, for their assistance in the investigation.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charge and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
New Orleans Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
NEW ORLEANS, LA – United States District Judge Jay C. Zainey sentenced BRADLEY BRIGHT, 32, of New Orleans, Louisiana, today to ten (10) years in federal prison for being a felon in possession of a firearm, announced U.S. Attorney Duane A. Evans.
In February 2020, BRIGHT was indicted for various counts of distribution of heroin and cocaine base, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking.
Court documents show that as part of his plea, BRIGHT admitted that he was distributing crack cocaine near a store on Basin Street outside the French Quarter. New Orleans Police Department Officers observed the sale and stopped the buyer, who had a crack pipe in her pocket and crack in her purse. After confirming the transaction had in fact been a hand-to-hand drug sale, the officers then moved in to arrest BRIGHT, who attempted to flee. After a brief chase, the officers subdued BRIGHT and found a .40 caliber handgun that had been reported stolen and that was fully loaded with 15 rounds near where BRIGHT was arrested.
District Judge Zainey sentenced BRIGHT to the statutory maximum sentence of ten (10) years imprisonment, followed by three (3) years of supervised release. BRIGHT was also ordered to pay a $100 mandatory special assessment fee.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U. S. Attorney Evans praised the work of the New Orleans Police Department and the Drug Enforcement Administration in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
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New Orleans East Resident Sentenced for Heroin and Cocaine Conspiracy, Firearm Possession, and StructuringRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans announced that, earlier today, U.S. District Court Judge Greg G. Guidry sentenced New Orleans East resident DWIGHT ALEXANDER, age 50, to 136 months in prison, five (5) years of supervised release, and payment of $500 mandatory special assessment fees. The judge had previously ordered the defendant to forfeit approximately $425,000 in proceeds from his illegal drug operation.
According to the evidence introduced at his August 2019 trial, between 2012 and 2016, ALEXANDER sold a premium “cutting agent” used by drug dealers to expand and strengthen their heroin and cocaine. ALEXANDER’s product was called “Bonita,” and evidence showed that ALEXANDER acquired hundreds of kilograms of various powders like mannitol, lidocaine, quinine, and acetaminophen, that he then mixed and sold as Bonita to the highest-level drug dealers in New Orleans. During the timeframe of the conspiracy, ALEXANDER made frequent cash deposits from the proceeds of his sale of Bonita into various bank accounts. In total, the government seized approximately $425,000, which will be forfeited as the proceeds of his unlawful drug operation. ALEXANDER, who was a convicted felon, was arrested shortly after leaving his New Orleans East residence in October 2016. Agents conducted a search warrant at his residence and recovered a loaded Taurus revolver, as well as over 100 kilograms of various cutting agents that ALEXANDER intended to mix, market, and distribute to drug dealers.
At the conclusion of a five-day trial, the jury found ALEXANDER guilty of five counts: the lead charge of conspiring to distribute 1 kilogram or more of heroin and 5 kilograms or more of cocaine, two counts of distributing heroin, one count of being a felon in possession of a firearm, and one count of structuring cash deposits to avoid financial reporting requirements.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration, which led this investigation and was assisted by the Kenner Police Department, Customs and Border Protection Agency, New Orleans Police Department, Louisiana State Police, and Jefferson Parish Sheriff’s Office. Assistant United States Attorneys Brandon Long, Theodore Carter, and Alexandra Giavotella are in charge of the prosecution.
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New Jersey Man Sentenced to One Year and One Day in Prison for Conspiring with White Supremacists to Vandalize Synagogues Across the CountryRead the Press Release
A New Jersey man was sentenced today to one year and one day in prison for his role in conspiring with members of a white supremacist hate group to threaten and intimidate African-Americans and Jewish Americans by vandalizing minority-owned properties throughout the country in September 2019.
Richard Tobin, 20, of Brooklawn, New Jersey, previously pleaded guilty before U.S. District Judge Robert B. Kugler to an information charging him with conspiracy against rights. Judge Kugler imposed the sentence today in Camden federal court.
“The defendant conspired with a white supremacist hate group to vandalize and destroy property owned by Jewish and Black Americans, intending to instill fear into those communities across the country,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This sentence makes clear that targeting persons owning and using property simply based on their race or religion will not be tolerated. The Department of Justice will continue to prosecute civil rights conspiracies and vindicate the rights of victims of bias motivated crimes.”
“Richard Tobin encouraged hateful acts of violence against individuals and their houses of worship, based on their religion or the color of their skin,” said Acting U.S. Attorney Rachael A. Honig of the District of New Jersey. “Justice demanded that he be held accountable for these racist and anti-Semitic actions, and we are proud to have joined with our colleagues in the Civil Rights Division and the Joint Terrorism Task Force in doing so in this case. Our commitment to protecting the civil rights of all in New Jersey is steadfast.”
“Richard Tobin’s white supremacist beliefs are abhorrent, but his beliefs aren’t why he’s going to prison,” said Special Agent in Charge Jacqueline Maguire of the FBI’s Philadelphia Division. “He actively conspired with others to commit a crime of violence, to victimize innocent people because of who they are or how they worship. That’s what crossed a line and made it the FBI’s business. We’re always going to pursue individuals inciting violent, hateful acts meant to intimidate and isolate members of our community.”
According to documents filed in this case and statements made in court, Tobin admitted that from Sept. 15 to Sept. 23, 2019, he was a member of a white supremacist group, “The Base,” and during that time, he communicated online with other members and directed them to destroy and vandalize properties affiliated with African Americans and Jewish Americans. Tobin dubbed this coordinated attack “Kristallnacht,” or “Night of Broken Glass,” after an attack in Germany on Nov. 9 and 10, 1938, in which Nazis murdered Jewish people and burned and destroyed Jewish homes, synagogues, stores and schools. Tobin implored members of The Base to post propaganda flyers and to break windows and slash tires belonging to African Americans and Jewish Americans. On Sept. 21, 2019, members of The Base vandalized synagogues in Racine, Wisconsin, and Hancock, Michigan, by spray painting them with hate symbols.
A conspirator, Yousef Omar Barasneh, previously pleaded guilty to conspiracy against rights in federal court in the Eastern District of Wisconsin, for his role in vandalizing the synagogue in Racine, Wisconsin.
In addition to the prison term, Judge Kugler sentenced Tobin to three years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division’s South Jersey Resident Agency, under the direction of Special Agent in Charge Maguire, and the Joint Terrorism Task Force and its member agencies, including the Department of Homeland Security – Homeland Security Investigations, the New Jersey Office of Homeland Security and Preparedness, the New Jersey State Police and the Camden County Police Department, with the investigation leading to today’s sentencing. She also thanked the Brooklawn and Cherry Hill Police Departments for their assistance.
The government is represented by Assistant U.S. Attorney Kristen M. Harberg of the District of New Jersey and Trial Attorney Eric Peffley of the Civil Rights Division, Criminal Section.
New Jersey Individuals Sentenced to Prison Terms for Roles in Mortgage-Fraud SchemeRead the Press Release
NEWARK, N.J. – Two New Jersey individuals have been sentenced to prison terms for their roles in a mortgage-fraud scheme, Acting U.S. Attorney Rachael A. Honig announced today.
Shonda Coleman, 49, of Toms River, New Jersey, was sentenced today by U.S. District Judge Susan D. Wigenton to 36 months in prison for her role in the scheme. Coleman previously pleaded guilty before Judge Wigenton to two counts of an indictment charging her and Robert Goodrich, 62, of Sayreville, New Jersey, with bank fraud. Goodrich had previously pleaded guilty before Judge Wigenton to the same two counts of the indictment to which Coleman pleaded guilty and was sentenced on April 7, 2021, sentenced to 27 months in prison. Judge Wigenton imposed Coleman’s sentence today by videoconference.
According to documents filed in the case and statements made in court:
From 2009 to 2011 Coleman worked at Westinghouse Redevelopment Act Inc., a New Jersey business entity. In November 2009, Coleman submitted a fraudulent mortgage loan application to the lender to finance her own purchase of a home from Westinghouse. That application falsely represented, among other things, that Coleman owned $165,000 in cash, a representation intended to make Coleman appear more creditworthy than she actually was. In March 2011, Coleman again participated in the mortgage fraud scheme by helping to prepare and submit a mortgage application for a prospective buyer of a Westinghouse real estate property that she knew contained false information regarding the buyer’s finances.
Goodrich appeared at the closings for both the November 2009 and March 2011 transactions and signed settlement statements that he knew contained false information regarding the buyers’ creditworthiness.
Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency, Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak, and the U.S. Department of Housing & Urban Development, Office of Inspector General, Mid-Atlantic Region, under the direction of Special Agent in Charge Shawn Rice, with the investigation leading to the sentencings.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit and Special Assistant U.S. Attorneys Kevin V. Di Gregory and Charlie L. Divine of the Federal Housing Finance Agency, Office of Inspector General.
Montz Woman Sentenced for Theft of Government FundsRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that IGEL CASANOVA GIBBINS (“GIBBINS”), age 44, of Montz, Louisiana, was sentenced today for Theft of Government Funds, in violation of Title 18, United States Code, Section 641.
According to documents filed in federal court, the case against IGEL CASANOVA GIBBINS (“GIBBINS”) began after the State of Louisiana complied with a request from the Social Security Administration (“SSA”) to provide the SSA with death data of approximately 1.6 million Social Security number holders who had died in Louisiana from January 1, 1979, through December 31, 2019. As part of that data, the State of Louisiana disclosed that D.C., a participant in the SSA’s Retirement Survivor Insurance program (“RSI Program”), died on or about August 16, 2012.
Unaware of D.C.’s death, the SSA erroneously released approximately $202,417.00 in RSI Program funds from August 2012 through December 2020, via automatic wire transfers (i.e., direct deposit) to D.C.’s jointly held Capital One Bank (“Capital One”) account. GIBBINS, D.C.’s daughter, was a joint account holder of the Capital One account. D.C.’s RSI Program benefits were not transferrable to GIBBINS. Following the automatic deposit of RSI Program benefits, GIBBINS accessed the funds and wrongfully converted the funds to her own personal use, depleting nearly all account funds. The funds were used on purchase transactions or transfers out of the account to pay bills, for example, such as for mortgage payments and vehicle loan payments. GIBBINS never advised the SSA of D.C.’s death.
The SSA determined that GIBBINS fraudulently obtained $200,396.00 in SSA disability benefits from her father’s Capital One Bank account.
United States District Judge Jay C. Zainey sentenced GIBBINS to five (5) years probation, 100 hours of community service, full restitution to the Social Security Administration, and a $100 mandatory special assessment fee.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Social Security Administration, Office of the Inspector General with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit and Assistant U.S. Attorney Paige O’Hale.
Mobridge Man Sentenced for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mobridge, South Dakota, man convicted of Conspiracy to Distribute Methamphetamine was sentenced on November 15, 2021, by Judge Charles B. Kornmann, U.S. District Court.
Stanley Gene Schily, Sr., age 66, was sentenced to 120 months in federal prison, followed by eight years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Schily was indicted by a federal grand jury on September 9, 2020. A Superseding Indictment alleging Schily had been previously convicted of a serious drug felony offense was filed on July 13, 2021. He was found guilty by a federal jury on August 10, 2021.
The evidence at trial showed Schily knowingly and intentionally conspired with several individuals to distribute approximately 140 grams of methamphetamine in and around Mobridge from 2019 through March of 2020. On March 5, 2020, law enforcement executed a warrant to search Schily’s residence. Law enforcement recovered approximately .64 grams of methamphetamine, 150 plastic baggies, and several records indicating drug transactions.
This case was investigated by the Mobridge Police Department, the Walworth County Sheriff’s Office, the Corson County Sheriff’s Office, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Schily was immediately remanded to the custody of the U.S. Marshals Service following sentencing.
Mobridge Man Sentenced for AssaultRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mobridge, South Dakota, man convicted of Assault by Striking, Beating, or Wounding following a two-day jury trial was sentenced on November 15, 2021, by Judge Charles B. Kornmann, U.S. District Court.
Luke Newton Mowrer, age 31, was sentenced to seven months in federal prison, followed by one year of supervised release, a $20,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $25.
Mowrer was indicted by a federal grand jury on March 9, 2021, and was found guilty by a federal jury on August 25, 2021.
The evidence at trial showed that on October 6, 2019, in McLaughlin, South Dakota, Mowrer voluntarily and intentionally assaulted an individual with a knife. Mowrer was sitting in the back seat of a pickup truck when he assaulted the driver. He then fled the scene while the victim and others reported the crime and sought medical treatment. The victim suffered a cut to the neck. Mowrer had been drinking with the victim and some other acquaintances before the assault and unexpectedly lashed out in violence.
This case was investigated by the Federal Bureau of Investigation, the Bureau of Indian Affairs, Office of Justice Services, and the Mobridge Police Department. Assistant U.S. Attorney Cameron J. Cook prosecuted the case.
Mowrer was immediately remanded to the custody of the U.S. Marshals Service following sentencing.
Mexican Man Indicted for Identity Theft and Violating the Federal Gun Control ActRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MARTIN CORTEZ-BALDERAS (“CORTEZ”), age 39, a citizen of Mexico, was charged on November 12, 2021 in a two-count indictment for Identity Theft and Violations of the Federal Gun Control Act.
According to the indictment, in Count 1, on or about April 3, 2018, CORTEZ, knowingly possessed and used in or affecting interstate commerce, without lawful authority, a means of identification of another person, that is, the name and date of birth of another, with the intent to commit an unlawful activity that constitutes a violation of state law, Forgery, to renew a Louisiana state identification card, in violation of Louisiana Revised Statute 14:72. In Count 2, CORTEZ was charged with being a felon in possession of a firearm and ammunition, after having been previously convicted of a crime punishable by imprisonment for a term exceeding one year, to wit: a felony marijuana conviction.
United States Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted of these charges, CORTEZ faces up to a maximum term of imprisonment of ten years on the felon in possession of a firearm and ammunition count. He also faces up to three years on the identity theft count. Also, CORTEZ faces a fine of up to $250,000, up to three years supervised release after imprisonment, and a $100 mandatory special assessment fee, as to both counts.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of Homeland Security Investigations of the U.S. Department of Homeland Security in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.
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Massachusetts Man Sentenced to over One Year in Prison for Bank FraudRead the Press Release
CONCORD - Kazi Pervez, 42, of Methuen, Massachusetts was sentenced to 12 months and 1 day in federal prison for bank fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, Pervez was a branch manager for a bank in Salem, New Hampshire. From at least April of 2016 until September of 2017, Pervez used his position as branch manager to steal or attempt to steal more than $560,000 from the bank. For example, Pervez opened or instructed bank employees to open accounts in the name of deceased bank customers. Pervez then withdrew funds from the accounts that exceeded the balance of the accounts and used his authority as branch manager to authorize the overdrafts from the account. Pervez also identified inactive bank accounts of deceased bank customers and transferred money out of those accounts to other accounts that he controlled.
Pervez sometimes transferred the stolen or overdrawn funds directly to accounts at other banks that he controlled or to pay his bills. Other times, Pervez transferred the funds he stole or overdrew between several accounts in the bank that he controlled before transferring the money to accounts at other banks or to pay his bills. In total, Pervez stole or fraudulently overdrew about $564,590.02 from other peoples’ bank accounts. Of that amount, Pervez successfully transferred more than $450,000 to other accounts outside the bank for his personal use.
Pervez previously pleaded guilty on March 29, 2021. In addition to his sentence, Pervez was ordered to forfeit $454,730.26, which will be used for restitution.
“This defendant took advantage of his position at a bank to steal money from the bank accounts of deceased individuals,” said Acting U.S. Attorney Farley. “This significant breach of trust is also a serious federal crime. As this case demonstrates, we work closely with the Secret Service to identify and prosecute white collar criminals and to seek justice for the victims of financial crimes.”
“The US Secret Service is committed to investigating complex fraud schemes especially those that involve the exploitation of elderly and deceased victims.” stated Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service’s New Hampshire Office.
This matter was investigated by the United States Secret Service. The case was prosecuted by Assistant U.S. Attorneys Matthew T. Hunter and John Kennedy and former Assistant U.S. Attorney Arnold Huftalen. Assistant U.S. Attorney Robert Rabuck assisted with the forfeiture aspects of the case.
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Marionville Man Sentenced to Prison for Threatening Two CongressmenRead the Press Release
SPRINGFIELD, Mo. – A Marionville, Missouri, man was sentenced in federal court today for threatening two members of the U.S. House of Representatives.
Kenneth R. Hubert, 63, was sentenced by U.S. District Judge M. Douglas Harpool to two years and six months in federal prison without parole.
On June 17, 2021, Hubert pleaded guilty to two counts of threatening to injure federal officials.
Hubert admitted that he threatened to assault U.S. Representative Emanuel Cleaver II on Jan. 7, 2021, with the intent to impede, intimidate, and interfere with Cleaver while he was engaged in the performance of his official duties, and retaliate against Cleaver on account of the performance of his official duties. Cleaver represents the Fifth Congressional District in Missouri.
Hubert left a voicemail with Cleaver’s Independence, Mo., office. In this voicemail, which was received by a staff member, Hubert stated, “Cleaver’s got to be the dumbest n***** I’ve ever heard and that don’t speak much for the Black people in Kansas City and Independence and anyone else who voted for this clown. He’s as dumb as a rock. Amen, a-woman? How about a noose around his neck? He’s a dumb mother *****. He’s stupid as a idiot.”
Hubert also admitted that he threatened to assault U.S. Representative Steve Cohen on May 6, 2019, with the intent to impede, intimidate, and interfere with Cohen while he was engaged in the performance of his official duties, and retaliate against Cohen on account of the performance of his official duties. Hubert called Cohen’s office in Washington, D.C. Cohen represents the Ninth Congressional District in Tennessee.
During this phone call, Hubert told a staff member of Cohen that “he has a noose with the Congressman’s name on it” and planned to “put a noose around his neck and drag him behind his pickup truck.” Hubert later told investigators that he made the call because he was offended by a comment Representative Cohen previously made about then-President Donald Trump.
According to court documents, Hubert made several other threats from 2014 to Jan. 6, 2021, including threats on Jan. 6, 2021, to the Missouri Democratic Party, which related to the fatal riot at the U.S. Capitol and were made just a day before he made the charged threat to Cleaver. Hubert also threatened President Barack Obama and the Council of American-Islamic Relations as part of a pattern of threats to minorities, groups advocating for minorities and certain religious beliefs, and members of a specific political party. Despite law enforcement directing him on several occasions to cease these types of communications, Hubert continued to make threats.
This case was prosecuted by Assistant U.S. Attorney Casey Clark. It was investigated by the FBI, the U.S. Capitol Police, the Independence, Mo., Police Department and the Marionville-Aurora, Mo., Police Department.
MS-13 Leaders Convicted of Racketeering Offenses and MurderRead the Press Release
NEWARK, N.J. – A federal jury convicted three El Salvadoran nationals of Racketeer Influenced and Corrupt Organizations Act (RICO) charges, including murder in aid of racketeering, stemming from their participation in Mara Salvatrucha, a violent international criminal racketeering enterprise commonly known as MS-13, Acting U.S. Attorney Rachael A. Honig announced today.
“MS-13 is a violent multinational criminal organization that engages in drug trafficking, intimidation, and the murder of witnesses, rival gang members, and – as happened here – innocent victims,” Acting U.S. Attorney Honig said. “The jury’s guilty verdicts in this case cannot bring back the life of José Urias Hernandez, but they do ensure that these defendants will be held accountable for their actions. We thank the jury for its service, and we reiterate our commitment to investigating and prosecuting MS-13 members, and others like them, who bring bloodshed to our communities.”
“Today’s convictions are the result of a multi-agency investigation,” George M. Crouch Jr., FBI Special Agent in Charge in Newark, said. “Dedicated personnel from our federal, state and local partners worked in unison to combat this dangerous and violent criminal enterprise. This cooperation is, and will continue to be, a critical factor for successfully defending threats that endanger our communities and bring defendants to justice wherever they are based.”
“The convictions secured were years in the making, from the original arrests on immigration charges to convictions that include the murder of an innocent man,” John Tsoukaris, Field Office Director, ICE-ERO Newark, said. “The cooperation between various law enforcement agencies cannot be overstated here, as it led to these vicious criminals being taken off the streets. The brave officers of ICE Enforcement and Removal Operations will continue our work to make our communities safer by pursuing dangerous gang members and their criminal enterprises.”
“These individuals planned and executed the murder of an innocent person, ending a life through senseless violence due to mistaken identity,” Jason Molina, Special Agent in Charge for the Homeland Security Investigations (HSI) Newark field office, said. “HSI remains committed to working with our federal, state, and local partners to disrupt and dismantle criminal gangs like MS-13.”
“The ongoing collaboration with our law enforcement partners is essential for protecting our Hudson County residents against violent crime and criminals,” Hudson County Prosecutor Esther Suarez said. “This conviction is a major win and I commend all of the investigators and Assistant U.S. Attorneys who worked on this case and helped to make our communities safer.”
According to court documents and evidence presented at trial:
Between September 2014 and October 2015, Juan Pablo Escalante-Melgar, aka Humilde, 31, Elmer Cruz-Diaz, aka Locote, 33, and Oscar Sanchez-Aguilar, 25, aka Snappy 25, participated in the affairs of MS-13 by committing multiple racketeering offenses, including murder, extortion, witness tampering, and drug trafficking. Evidence presented at trial showed that in June or July 2015, Escalante-Melgar and Sanchez-Aguilar instructed an MS-13 member and an MS-13 recruit to kill a suspected rival gang member so that the MS-13 recruit could become a full member of MS-13.
On July 1, 2015, Jose Urias-Hernandez, then 19 years old, was shot and killed execution-style with a single shot to the back of his head as he entered his apartment building.
MS-13 is a violent criminal gang founded in Los Angeles, California, and now active in El Salvador, Central America, and Mexico, and numerous states across the United States, including New Jersey. MS-13 is governed by a core set of rules, including a standing order to kill rival gang members and a strict rule against cooperating with law enforcement. MS-13 is organized into a series of sub-units, or “cliques,” that operate in specific geographic locations, and each clique is typically controlled by a single leader, sometimes known as the “First Word.” Two cliques are active in and around Hudson County, New Jersey. Escalante-Melgar was the First Word of the Pinos Locos Salvatrucha clique, and Cruz-Diaz was the First Word of the Hudson Locos Salvatrucha clique.
Additionally, Escalante-Melgar and Cruz-Diaz conspired to murder a fellow MS-13 member, whom Salvadoran MS-13 leaders had “green-lighted” – or ordered to be killed – because he was suspected of cooperating with law enforcement.
In addition to murder, MS-13 members trafficked drugs, extorted a restaurant operating in the gang’s turf, and intimidated witnesses to prevent cooperation with law enforcement.
Escalante-Melgar, Cruz-Diaz, and Sanchez-Aguilar were among ten defendants charged in this investigation against MS-13 in New Jersey. One defendant, Christian Linares-Rodriguez, aka Donkey, 42, is a high-ranking MS-13 member who is currently incarcerated in El Salvador.
Escalante-Melgar, Cruz-Diaz, and Sanchez-Aguilar were convicted of RICO conspiracy, conspiracy to commit murder in aid of racketeering, murder in aid of racketeering, using and carrying a firearm during and in relation to a crime of violence, and causing death through the use of a firearm.
At sentencing, Escalante-Melgar, Cruz-Diaz, and Sanchez-Aguilar each face a mandatory minimum sentence of life in prison for murder in aid of racketeering, a maximum sentence of life in prison for the offenses of racketeering conspiracy and causing death through the use of a firearm; a maximum sentence of 10 years in prison for conspiracy to commit murder in aid of racketeering; and a mandatory minimum consecutive sentence of 10 years’ imprisonment for the offense of using and carrying a firearm during and in relation to a crime of violence.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge Crouch in Newark; officers of the Immigration and Customs Enforcement - Enforcement and Removal Operations Newark Field Office, under the direction of Field Office Director Tsoukaris; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Molina in Newark: investigators of the Hudson County Prosecutor’s Office, under the direction of Prosecutor Suarez, and investigators of the West New York Police Department under the direction of Deputy Chiefs Santiago Cabrera and Alejandro De Rojas.
The government is represented by Desiree Grace, Deputy Chief of the Criminal Division for the U.S. Attorney’s Office for the District of New Jersey, and Trial Attorney Matthew K. Hoff of the Justice Department’s Organized Crime and Gang Section.
Local non-profit CEO sentenced to 4 years in prison for tax fraudRead the Press Release
CINCINNATI – The founder, owner, CEO and president of a Cincinnati nonprofit was sentenced today in federal court to 48 months in prison for using thousands of dollars for personal expenses instead of paying over payroll taxes to the IRS.
Hope 4 Change, a non-profit organization that provided housing and care for adults with developmental disabilities, drug addiction problems and mental disorders, employed between 120 and 180 individuals in 2013 and 2014.
Barry Rene Isaacs, the founder, owner, CEO and president of the non-profit, allegedly caused Hope 4 Change to spend thousands of dollars for clothing, massages, beauty care, travel and personal vehicles for Isaacs and his family.
According to court documents, Hope 4 Change withheld FICA taxes from its employees’ paychecks but did not pay over the employment taxes to the IRS for five quarters in late 2013 and 2014. Isaacs, 35, of Cincinnati, also fraudulently applied for an auto loan and credit card using someone else’s social security account number.
Isaacs was charged in April 2019. After fleeing the jurisdiction, Isaacs was apprehended by the United States Marshals Service in Texas in January 2020. He appeared for arraignment in federal court in Cincinnati in February 2020. On April 21, 2021, Isaacs pleaded guilty to willfully failing to pay over employment taxes and aggravated identity theft.
Teela Gilbert, 35, of Cincinnati, Hope 4 Change’s vice president, “student affairs” director and office manager has also been charged and has pleaded guilty to wire fraud and aggravated identity theft.
As part of his sentence, Isaacs was also ordered to pay approximately $246,000 in restitution to a company from which the co-defendants induced payments for false invoices.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Bryant Jackson, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Cincinnati Field Office; and the Social Security Administration Office of Inspector General announced the sentence imposed today by U.S District Judge Matthew W. McFarland. Assistant United States Attorney Ebunoluwa A. Taiwo is representing the United States in this case.
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Local Man, 22, Sentenced to 14 Years for Armed Robberies in Pittsburgh and Its Eastern SuburbsRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 14 years of incarceration on his conviction of several counts of robbery, brandishing a firearm during a crime of violence, and conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge William S. Stickman, IV imposed the sentence on True Kinnon, age 22, of Pittsburgh, Pennsylvania.
According to information presented to the court, True Kinnon and his coconspirators committed several armed robberies from November 2018 through February 2019. These robberies targeted local businesses in the City of Pittsburgh and several of the eastern suburbs of the city, including Penn Hills, Monroeville, Turtle Creek, and Oakmont. During these robberies, Kinnon and his coconspirators brandished a variety of weapons, including an assault-style rifle and a revolver, and robbed both store employees and customers who were in the store at the time of the robberies. Kinnon had pleaded guilty for his involvement in seven separate robberies.
Prior to imposing sentence, Judge Stickman noted the severity of the defendant’s conduct, and found that the sentence of 14 years of incarceration, which was agreed upon by the parties, was a significant one that reflected the seriousness of the defendant’s crimes.
Assistant United States Attorney Douglas C. Maloney prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Monroeville Police Department, the Pittsburgh Bureau of Police, the Penn Hills Police Department, the Wilkins Township Police Department, and the Oakmont Police Department for the investigation leading to the successful prosecution of Kinnon.
Las Vegas Man Sentenced for Attempting to Sexually Exploit A Child and Receiving Child PornographyRead the Press Release
LAS VEGAS – A Las Vegas man was sentenced Monday to 27 years in prison for attempting to sexually exploit a child and for receiving child pornography using a file sharing network.
“Child pornography and sexual exploitation of children are appalling crimes that have been on the rise as predators use technology to gain easier access to communication with children,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Working with our law enforcement partners, our office will continue to prioritize protecting children from sexual abuse.”
“The FBI is committed to stopping and holding accountable anyone who engages in the sexual exploitation of children,” said Aaron C. Rouse, FBI Las Vegas Special Agent in Charge. “Every time child pornography is viewed on the internet it re-victimizes a child. Together with our partners, we are dedicated to investigating and bringing federal charges against those who commit these heinous crimes.”
According to court documents, in June 2016, Richard Fred Dittmer III (25) utilized the BitTorrent file sharing network to download child pornography. During the execution of a search warrant at Dittmer’s residence, he admitted to receiving images and videos of child pornography, as well as to uploading child pornography to YouTube. A forensic examination of electronic devices belonging to Dittmer revealed over 365 images and 18 videos of child pornography, including sadistic and masochistic images. He was charged in federal court and released on pretrial supervision.
While on pretrial supervision, between December 2018 and February 2019, Dittmer III coerced a 13-year-old girl on Snapchat into creating sexually explicit images and videos of herself. He then threatened to send those images to students at the victim’s school unless she sent him additional images.
Dittmer III pleaded guilty in January 2021 to one count of receipt of child pornography and one count of attempted sexual exploitation of a child. In addition to the prison term, U.S. District Judge Jennifer A. Dorsey sentenced him to a lifetime term of supervised release and ordered him to pay restitution to the victims.
This case was investigated by the Internet Crimes Against Children Task Force, the Las Vegas Metropolitan Police Department, and the FBI. Assistant U.S. Attorneys Bianca Pucci and Christopher Burton prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals, federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood and for information about internet safety education, visit www.usdoj.gov/psc.
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Kent County Tax Preparer Sentenced to PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN – Gonzalo Ramon Rodriguez, 59, of Grand Rapids, Michigan, was sentenced to 18 months in federal prison, U.S. Attorney Andrew Birge announced today. Rodriguez pleaded guilty to aiding and assisting in the preparation of false and fraudulent tax returns. In his plea agreement, Rodriguez admitted to improperly using the electronic filing credentials of two other providers, selecting the wrong filing status for his taxpayer clients, reporting business expenses and losses that his taxpayer clients did not incur, and claiming the Earned Income Tax Credit for taxpayer clients who did not otherwise qualify. Rodriguez stole approximately $111,504 from the United States Treasury by filing 41 false tax returns for tax years 2014 through 2018.
United States District Judge Paul L. Maloney directed that Rodriguez pay $111,504 in restitution to the United States and ordered one year of supervised release following the 18-month prison term. In imposing the sentence, Judge Maloney remarked on the need for specific deterrence focused on Rodriguez and general deterrence in preventing similar fraud schemes in the U.S. tax system.
“My office will continue to work closely with IRS criminal investigators to detect and prosecute those who steal from taxpayers by filing fraudulent federal tax returns,” said U.S. Attorney Birge. “I strongly encourage taxpayers to obtain a copy of all tax returns prepared on their behalf to ensure that all of the return information, including income and any dependents that are listed, is correct.”
“This sentencing is a reminder that IRS-Criminal Investigation continues to be relentless in our mission to protect the American tax system and bring criminals who try to abuse our system for personal gain to justice,” said Special Agent in Charge Sarah Kull, Internal Revenue Service – Criminal Investigation, Detroit Field Office.
The case was investigated by IRS-Criminal Investigation. Assistant U.S. Attorney Clay M. West handled the prosecution.
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Justice Department Seeks to Shut Down Chicago Tax Return PreparerRead the Press Release
The United States filed a complaint in the U.S. District Court for the Northern District of Illinois today seeking to bar a Chicago area tax return preparer from preparing federal income tax returns for others.
The complaint alleges that Melissa Gasca, individually and doing business as Su Familia Income Tax, and a related tax preparation business, FinancialPlus Services Inc., prepared nearly 5,000 federal income tax returns during 2017-2020, including over 900 returns in 2020. According to the complaint, in a substantial number of these tax returns, the defendants significantly overstated the customers’ tax refunds by falsely reporting inflated Form W-2 federal income tax withholdings.
By repeatedly understating her customers’ tax liabilities, the complaint alleges, Gasca and her tax preparation businesses caused the United States to lose over $5 million in tax revenue from 2017 to 2020.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. The IRS has information on its website for choosing a tax return preparer and has launched a free directory of federal tax preparers.
In the past decade, the Department of Justice Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
International Wholesale Currency Dealer Sentenced for Criminal Operations; Forfeits $1.1 MillionRead the Press Release
Assistant U. S. Attorneys Michael A. Deshong, Daniel C. Silva, and Carl Brooker (619) 546-9290
NEWS RELEASE SUMMARY—November 16, 2021
SAN DIEGO — GPOMCT Grupo Empresarial S.A. de C.V., an international, Mexico-based wholesale currency dealer and currency exchange business, was sentenced in federal court yesterday to three years’ probation and ordered to forfeit $1.1 million for operating an unlicensed money transmitting business.
According to the government’s sentencing memorandum, GPOMCT used the U.S. financial system to process large amounts of currency that were at high risk for including criminal proceeds without registering as a financial institution in the United States or complying with U.S. anti-money laundering regulations or reporting requirements in order to gain a competitive advantage over its competitors.
Mexico’s anti-money laundering restrictions limit the amount of U.S. dollar deposits in Mexico, creating a need for individuals and businesses in Mexico with large amounts of U.S. currency—whether acquired legitimately or otherwise—to convert their U.S. dollars into Mexican pesos. This is a need that GPOMCT attempted to meet, the sentencing memo said.
Special Agents from Homeland Security Investigations (HSI) led the investigation into hundreds of transactions that involved GPOMCT importing large volumes of U.S. dollars into the United States between 2019 and 2021. Agents from Federal Deposit Insurance Corporation Office of Inspector General, U.S. Customs and Border Protection, and San Diego County Sheriff's Department assisted HSI in the investigation.
According to the sentencing memorandum, GPOMCT gained an unfair competitive advantage by accepting large amounts of U.S. dollars from its customers in Mexico in exchange for pesos, then importing its U.S. dollars into the United States. Through its subsidiaries, GPOMCT controls more than 40 locations in Mexico that handle an average of over $1 million in U.S. currency daily. Between September 2019 and September 2020, GPOMCT imported approximately 195 shipments of currency—each worth between $90,000 and $100,000 in U.S. dollars. GPOMCT further employed the services of an armored car company to collect currency for delivery to a third-party intermediary in Miami, Florida—all part of its money transmitting services to Mexican and U.S. customers seeking to convert U.S. dollars to pesos.
These services as a wholesale currency dealer meant GPOMCT operated as an unlicensed money transmitting business in the United States. By failing to register as a money transmitting business, GPOMCT did not file currency transaction reports with the Department of the Treasury, as required by the Bank Secrecy Act, nor did it subject itself to inspection by the Department of Treasury for compliance with these financial laws and regulations.
Acting U.S. Attorney Randy S. Grossman said, “Violating financial laws and regulations not only impairs the fight against international money laundering, tax evasion, and other crimes—these violations can be crimes themselves. This office expects the highest level of compliance from financial institutions in the Southern District of California.” Grossman praised the prosecution team at the U.S. Attorney’s Office and the agents from Homeland Security Investigations, Federal Deposit Insurance Corporation, U.S. Customs and Border Protection and San Diego County Sheriff’s Department for their excellent work on this case.
“When money services businesses fail to comply with federal statutes and regulations, they create an unacceptable risk for illicit funds to be laundered through our financial infrastructure,” said Chad Plantz, Acting Special Agent in Charge for Homeland Security Investigations in San Diego. “HSI is committed to investigating these violations to uphold the integrity of the U.S. financial system and protect our communities, as well as sending a resounding message to all currency exchange businesses, money services businesses, and financial institutions to comply and embrace robust anti-money laundering practices and regulations.”
“Financial crimes, such as those in this case, threaten the integrity of the U.S. financial system and allow money laundering, tax evasion, and other illicit transactions to spread across international borders, undermining the public’s faith in financial institutions. We appreciate the cooperation of our law enforcement partners in investigating this and other financial crimes,” said Special Agent in Charge Jeffrey D. Pittano of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG).
DEFENDANT Case Number 21cr2120-JLS
GPOMCT Grupo Empresarial S.A. de C.V.
SUMMARY OF CHARGES
Operating an Unlicensed Money Transmitting Business—Title 18, U.S.C., Section 1960
Criminal Forfeiture—Title 18, U.S.C., Section 982
Maximum penalty: $500,000 fine or twice the gross gain or loss from the offense, whichever is greater; criminal forfeiture
AGENCY
Homeland Security Investigations
Federal Deposit Insurance Corporation Office of Inspector General (OIG)
U.S. Customs and Border Protection
San Diego County Sheriff’s Department
Hyattsville Man Sentenced to Seven and a Half Years in Federal Prison for a Scheme to Defraud Banks Using Stolen and Altered ChecksRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chaung sentenced Rodney Jerrod Jefferson, age 29, of Hyattsville, Maryland to seven and a half years in federal prison, followed by three years of supervised release, for conspiracy to commit bank fraud. Judge Chaung has also ordered Jefferson to pay a total of $35,100.17 in restitution.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron and Postal Inspector in Charge Daniel A. Adame of the U.S. Postal Inspection Service - Washington Division.
According to his plea agreement, from May 2018 to August 2019, Jefferson conspired with Michael Deandre Packer, age 38, of Washington, D.C. and others to rob postal workers, steal at least 1,000 checks from postal collection boxes worth more than $1.5 million, and deposit the stolen checks into fraudulent bank accounts.
For example, on October 14, 2018, Packer robbed a postal worker in Upper Marlboro, Maryland. Prior to the robbery, the postal carrier saw Packer in a black Infiniti vehicle. Investigators later determined Packer had purchased the Infiniti G37 the day before the robbery using an altered or fictitious check and a fraudulent driver’s license bearing Packer’s photograph.
On December 14, 2018, officers stopped Packer while driving a Audi A7. Investigators later determined that Packer purchased the Audi using a counterfeit $25,000 check. Inside the vehicle, officers located a key used to open postal collection boxes, 119 stolen checks worth $102,260, stolen mail, 130 grams of marijuana, and Packer’s cell phone. A review of the cell phone communications revealed conversations between Packer and Jefferson about negotiating stolen checks, the purchase of firearms, and photographs of firearms. During a subsequent search warrant executed at Packer’s residence, investigators found another key used to open postal collections boxes, more than 1,000 stolen checks worth in excess of $1.5 million, as well as fraudulent driver’s licenses and credit cards.
On February 27, 2019, investigators executed a search warrant at Jefferson’s residence and found several keys used to open postal collection boxes, stolen checks from different states, deposit receipts and credit cards in other individuals’ names, and a magnetic stripe reader used for encoding credit cards. The issuers of the stolen checks reported to investigators that they deposited the checks into the U.S. Postal Service collection boxes, but the checks were never delivered.
As stated in his plea agreement, four months later on June 18, 2019, investigators arrested Jefferson near Seabrook, Maryland where Jefferson was driving a stolen Cadillac CTS. During a search of Jefferson’s vehicle, investigators found 160 stolen personal checks in various stages of alteration, multiple credit cards in different names, a credit card embosser, and a loaded handgun.
Less than two months later, on August 5, 2019, Jefferson used a rented truck to steal mail from postal collection boxes in Alexandria, Virginia. Three days later, law enforcement stopped Jefferson while he was driving the same rental truck and inside the truck located debit and electronic payment cards in other individuals’ names, additional stolen and altered checks, an ATM deposit receipt matching the information one of the fraudulently obtained debit cards, and a fraudulent driver’s license displaying Jefferson’s photograph.
Over the course of the conspiracy, Packer and Jefferson were recorded on bank surveillance video cashing and negotiating several fraudulent checks and withdrawing the fraud proceeds. Jefferson also admitted to using fraud proceeds to purchase U.S. Postal money orders. In total, Jefferson obtained at least $24,244 proceeds as a result of the conspiracy. Jefferson, Packer and their co-conspirators caused victims an actual loss of at least $35,100.17.
Co-defendant, Michael Packer previously pleaded guilty and was sentenced to more than four years in federal prison to be followed by three years of supervised release and ordered to pay restitution in the amount of $35,100.17.
United States Attorney Erek L. Barron praised the USPIS for their work in the investigation. U.S. Attorney Barron thanked Assistant U.S. Attorney Jennifer L. Wine and Special Assistant U.S. Attorney Jessica C. Harvey, who prosecuted the case.
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Husband and Wife Sentenced for Sexually Exploiting Five ChildrenRead the Press Release
INDIANAPOLIS – A Monroe County, Indiana couple have been sentenced for their roles in a scheme to sexually abuse five children and keep that scheme hidden from authorities. Matthew Cole, 31, was sentenced to over 41 years in prison and his wife, Dolores Cole, 41, was sentenced to 15 years imprisonment. All of the children were rescued as a result of the investigation.
Beginning in 2014, the Coles were living in Arizona and had custody, care, or supervisory control of six children. A child protection agency received a report that one or both Coles were sexually abusing the children. Over the next few years, multiple allegations of abuse were made. To avoid having the children permanently removed from their care and to prevent police or child protection agencies from discovering the sexual abuse, the Coles moved the children to residences in different states. The Coles moved through Arizona, Iowa, Texas, Oklahoma, and ultimately to Indiana, where their scheme ended when search warrants were executed at their residence in August of 2018.
The investigation by authorities in Indiana uncovered evidence that five of the six children had been sexually abused. And investigators found evidence that Matthew Cole produced and distributed sexually explicit images of one of the children. Investigators also learned that both Coles threatened the children, telling them that they should not tell law enforcement officers what was happening to them, which led to prolonged abuse of the children.
Mathew Cole pleaded guilty to conspiracy to transport minors across state lines with the intent to engage in a criminal sexual activity, sexual exploitation of a child, and witness tampering. Dolores Cole pled guilty to being an accessory after the fact to sexual exploitation of a child, witness tampering, and obstruction of justice.
“The pain and damage inflicted on these children at the hands of adults they trusted is unimaginable,” said U.S. Attorney Zachary A. Myers. “No sentence of imprisonment will undo what these victims have suffered, but the serious consequences imposed for these heinous offenses demonstrate that those who sexually exploit vulnerable children will be held accountable for their reprehensible actions.”
“To prey on children in your care and harm them in such a heinous way is reprehensible and beyond comprehension,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “Their sentences should serve as a strong reminder that the FBI and our law enforcement partners are committed to identifying and holding accountable those who victimize innocent children to ensure they can never again inflict such abuse.”
This case was the result of an investigation by the Federal Bureau of Investigation, the Monroe County Sheriff’s Office, and the Indiana Department of Children’s Services.
According to Assistant United States Attorneys Bradley P. Shepard and Kristina M. Korobov, who prosecuted the case, Matthew Cole must pay restitution of $50,000 to the victims and will be supervised for the remainder of his life following release from prison. Dolores Cole must pay restitution of $18,000 to the victims and will be supervised for 3 years following her prison term.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
Harrison County man admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Randy McKinley, of Bridgeport, West Virginia, has admitted to a child pornography charge, United States Attorney William J. Ihlenfeld, II announced.
McKinley, 57, pleaded guilty today to one count of “Possession of Child Pornography.” McKinley admitted to having child pornography with children under the age of 12 in October 2020 in Harrison County.
McKinley faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Danae DeMasi-Lemon is prosecuting the case on behalf of the government. The Bridgeport Police Department, the West Virginia State Police, and the Harrison County Sheriff’s Office investigated
U.S. Magistrate Judge Michael John Aloi presided.
Hamtramck Man Sentenced to 12 years’ Imprisonment on Methamphetamine Distribution ChargesRead the Press Release
DETROIT – Don Valentino Zdybel, 61, formerly of Hamtramck, Michigan was sentenced yesterday to 12 years’ imprisonment on charges of possession methamphetamine with the intent to distribute it in the Detroit area, announced Acting United States Attorney Saima Mohsin.
Moshin was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division, Special Agent in Charge Rodney Hopkins, United States Postal Inspection Service and Peter Lucido, the Macomb County Prosecuting Attorney.
According to court records, from April of 2019 until May 27, 2020, when he was arrested, Zdybel was receiving methamphetamine sent from California to the Detroit area via the United States Mail and also personally transporting the drugs from California to Michigan himself. Arrested in Macomb County in February 2020 on methamphetamine and heroin possession charges, Zdybel was held without bond. He later convinced a Macomb County Circuit Judge in May of 2020 to release him on bond due to his fear of catching Covid-19. Zdybel then travelled from Michigan to California to pick up another load of methamphetamine. The Macomb County prosecution was later merged with the federal charges and Zdybel was prosecuted for the full extent of his criminal conduct in United States District Court.
“Zdybel is a man who was content to sell poison, in the form of methamphetamine, to generate an income for himself,” said Acting US Attorney Mohsin. “Zdybel has an extensive prior criminal record but his prior convictions and jail sentences have failed to deter him from committing crimes. He was given a chance to live a law abiding life when a judge released him from jail where he was being held without bond on a pending drug trafficking charge because Zdybel expressed fear of contracting COVID-19 in jail. He was released and Zdybel didn’t miss a beat. He went right back to drug trafficking while on bond. Those who cannot be deterred from committing crimes belong in prison. Zdybel’s sentence of 12 years will protect the public from this recidivist criminal.”
Lucido praised the work of the Warren and Sterling Heights Police Departments whose early efforts in the case served to build substantial and important evidence of the breadth of Zdybel’s conduct. “The excellent work of these officers and the ability to partner with DEA and the United States Attorney’s Office resulted in removing a dangerous drug dealer who was effectively destroying lives in Macomb County” said Lucido.
This case was investigated by special agents with the DEA, Officers from the Warren and Sterling Heights Police Departments and was prosecuted by Assistant United States Attorney John O’Brien.
Guilford Man Charged with Child Exploitation OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging CHRISTOPHER MICHAELSON, 37, of Guilford, with receipt of child pornography.
The indictment was returned on November 3. Michaelson appeared today via videoconference before U.S. Magistrate Judge S. Dave Vatti and pleaded not guilty to the charge.
As alleged in court documents and statements made in court, on January 9, 2019, the Guilford Police Department assisted Burrillville (R.I.) Police with the arrest of Michaelson at his residence in Guilford on Rhode Island state charges for child molestation, solicitation and enticement. During the arrest, officers seized Michaelson’s cellphone. A court-authorized search of the seized phone revealed hundreds of images and videos depicting the sexual abuse of children, primarily boys between the ages of five and 15.
Michaelson has been detained since his arrest.
The charge of receipt of child pornography carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by Homeland Security Investigations (HSI), the Rhode Island Attorney General’s Office, the Guilford Police Department and the Burrillville Police Department. The case is being prosecuted by Assistant U.S. Attorneys Stephanie T. Levick and Maria del Pilar Gonzalez.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Grand Jury indicts St. Louis man and 19 others for their roles in a nation-wide drug ringRead the Press Release
ST. LOUIS – A federal grand jury indicted Steven Bell for charges that include conspiracy to distribute heroin, fentanyl, cocaine and methamphetamine in a large-scale nation-wide drug ring. The group transported and distributed illegal narcotics in numerous states to include California, Michigan, Missouri, Kentucky and Texas.
The indictment alleges that Bell knowingly and intentionally possessed 500 grams or more of methamphetamine and knowingly possessed a firearm in furtherance of a drug trafficking crime. The indictment further alleges that Bell knowingly possessed a firearm, having previously been convicted of crimes that prohibited possession of said firearm.
Beginning at a time unknown but including February 2021, in the Eastern District of Missouri, Bell and others were involved in the distribution of controlled substances. The indictment alleges Darius M. McCullum was the primary source of supply for the organization in California. The drug trafficking organization used various means to transport illegal narcotics and or bulk cash, to include the mail and the use of several “mules” or couriers. Agents identified several “stash” houses in numerous cities, to include Detroit, Michigan, Lexington, Kentucky and St. Louis, Missouri.
This effort is part of an Organized Crime Drug Enforcement Task Force (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.
Charges set forth in the indictment are merely accusations and do not constitute proof of guilt. Every defendant is presumed to be innocent unless and until proven guilty.
The case was investigated by the Drug Enforcement Administration, United States Marshals Service and the United States Postal Inspection Service.
Georgia Man Sentenced for Distributing Child PornographyRead the Press Release
PROVIDENCE – An Atlanta, GA, man who admitted to exchanging child pornography with individuals across the country, including sending images of child pornography to an undercover member of the Rhode Island States Police Internet Crimes Against Children (ICAC) Task Force, was sentenced today to nine years in federal prison, announced Acting United States Attorney Richard B. Myrus.
According to court documents and information presented to the Court, in January 2019, during a series of online chatroom conversations with a Rhode Island State Police detective who was working in an undercover capacity, Joseph Grossman, 43, sent approximately 40 images of child pornography. Investigators determined that the IP address used to send the images was associated with Grossman.
On February 27, 2019, the Rhode Island State Police detective and a Homeland Security Investigations (HSI) Providence agent, assisted by HSI agents in Atlanta, executed a court-authorized search of Grossman’s Atlanta residence, seized several electronic devices, and arrested Grossman. Investigators identified numerous people across the country with whom Grossman communicated and exchanged child pornography.
Grossman pleaded guilty in July 2019 to distribution of child pornography. He was sentenced today by U.S. District Court Chief Judge John J. McConnell, Jr., to 108 months of incarceration to be followed by 10 years of federal supervised release.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
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Gaston Man Sentenced to More Than Twelve Years in Federal Prison on Drug ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Johnny Ray Kinsey, Jr., 46, of Gaston, was sentenced to more than twelve years in federal prison after pleading guilty to possession with intent to distribute methamphetamine.
Evidence presented to the court showed that on June 15, 2018, a Trooper with South Carolina Highway Patrol responded to a vehicle hit and run call. After responding to the initial hit and run call, the Trooper then met with a Greenwood County Sheriff’s Office Deputy. The Deputy had stopped a vehicle, driven by Kinsey, that matched the description of the vehicle that failed to stop during the hit and run. Before leaving the hit and run scene, the Trooper picked up two pieces of plastic from a side mirror that he believed were from the suspect’s vehicle. After arriving on scene, the Trooper observed fresh damage to the side mirror of Kinsey’s vehicle. When the Trooper placed the pieces of plastic to the damage, it fit perfectly. Kinsey was arrested for driving under the influence and hit and run. An inventory search located over 400 grams of methamphetamine in a backpack under the driver’s seat of the vehicle.
Kinsey’s prior record includes a 1996 criminal domestic violence, a 2003 criminal domestic violence, a 2008 criminal domestic violence second offense, a 2011 damage to property, a 2013 shoplifting, a 2014 manufacturing methamphetamine, and several probation violations.
Senior United States District Judge Henry M. Herlong sentenced Kinsey to 151 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Drug Enforcement Administration (DEA), South Carolina Highway Patrol, and the Greenwood County Sheriff’s Office.
The case was prosecuted as part of the as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Special Assistant United States Attorney Casey Rankin Smith prosecuted the case.
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Gary Man Sentenced to 36 Months in PrisonRead the Press Release
HAMMOND- Austin Williams, 28, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Clifford D. Johnson.
Williams was sentenced to 36 months in prison followed by 2 years of supervised release.
According to documents in the case, on November 18, 2020, in Hobart, Indiana, law enforcement executed a search warrant on a residence and recovered a firearm possessed by Williams at that residence. Williams has prior felony convictions for intimidation, dealing in a controlled substance, and attempted theft. His criminal history reveals he also has six prior misdemeanor convictions, to include domestic battery, possession of a controlled substance, and visiting a common nuisance.
This case was the result of the investigative efforts of the Federal Bureau of Investigation’s Gang Response Investigative Team and the Hobart Police Department. This case was prosecuted by Assistant U.S. Attorney Caitlin M. Padula.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fresno Man Pleads Guilty to Receipt and Distribution of Child PornographyRead the Press Release
FRESNO, Calif. — Tanner Joel Hernandez-Fields, 21, of Fresno, pleaded guilty Monday to receipt and distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between March 19, 2019, and April 12, 2019, Hernandez-Fields did knowingly receive or distribute one or more matters containing any visual depiction of a minor engaged in sexually explicit conduct using an Apple iPhone. Hernandez-Fields received between 150 and 300 images, including video files. These images included depictions of pre‑pubescent minors including material that meets the definition of sadistic or masochistic conduct.
This case is the product of an investigation by Homeland Security Investigations and the Fresno County Sheriff’s Office. Assistant U.S. Attorney Laura D. Withers is prosecuting the case.
Hernandez-Fields is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb.22, 2022. Hernandez-Fields faces a minimum statutory penalty of five years in prison and a maximum 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Fort Worth Jury Convicts Whitt Drug TraffickerRead the Press Release
A longtime drug dealer has been convicted of drug and gun crimes, announced Acting U.S. Attorney for the Northern District of Texas Chad E. Meacham.
Following a two-day trial, a federal jury convicted Jerome Thomas Watkins, 44, of conspiracy to possess with intent to distribute cocaine, fentanyl, methamphetamine, and heroin; possession with intent to distribute fentanyl; and possession of a firearm by a felon.
According to evidence presented at trial, officers executed a search warrant at Mr. Watkins’ residence on April 26. Inside, they found more than 4,000 pills laced with fentanyl, methamphetamine, and heroin, along with seven firearms and approximately $17,000 in cash.
They also seized roughly 20 phones, 11 of which were linked to the defendant and contained evidence of his extensive drug trafficking activities.
Mr. Watkins had previously been convicted of two drug crimes: in 1996, he pleaded guilty to possession of intent to distribute crack cocaine and was sentenced to 72 months in federal prison, and in 2002, he pleaded guilty of possession with intent to distribute cocaine and was sentenced to 135 months in federal prison.
While the jury convicted Mr. Watkins of three crimes on Tuesday, they acquitted him of a fourth crime, possession of a firearm in furtherance of a drug trafficking crime.
Mr. Watkins now faces 25 years to life in federal prison. His sentencing has been set for March 18.
The Drug Enforcement Administration’s Dallas Field Division, the Federal Bureau of Investigation’s Dallas Field Office, Fort Worth Resident Agency, and the Parker County Sheriff’s Office conducted the investigation with the assistance of the and the Bureau of Alcohol, Tobacco, Firearms & Explosives’ Dallas Field Division and the Benbrook Police Department. Assistant U.S. Attorneys Laura Montes and Shawn Smith prosecuted the case. U.S. District Judge Reed C. O’Connor presided over the trial.
Fort Lauderdale Jury Convicts Two Defendants for Stealing Veteran and Social Security Benefits: Three Others Plead GuiltyRead the Press Release
Miami, Florida – After an eight-day trial at the Federal Courthouse in Fort Lauderdale, and following three days of deliberations, a jury found Omar Shaquille Bailey and Ronaldo Garfield Green guilty for their roles in a scheme to defraud the U.S. Department of Veterans Affairs and the Social Security Administration of over $1.8 million. Senior District Court Judge James I. Cohn read the jury’s verdict and ordered the defendants imprisoned while they await sentencing in January.
A third co-defendant, Jamare Mason, pled guilty to his role in the conspiracy on the second day of trial. Two other co-defendants, Kadeem Gordon and Mario Ricketts, had pled guilty prior to trial. Two remaining co-defendants have yet to be apprehended.
The jury heard testimony from several witnesses that members of the conspiracy obtained the personal information (including names, dates of birth and Social Security numbers) of disabled veterans and Social Security beneficiaries. The conspirators used this information to fraudulently open bank accounts and prepaid debit cards in the victims’ names. They also forged documents in the victims’ names which directed the U.S. Department of Veterans Affairs and the Social Security Administration to deposit benefit payments into those fraudulent accounts, instead of the victims’ legitimate bank accounts.
The trial evidence showed that the defendants, together with other co-conspirators, withdrew these funds from ATMs and banks throughout South Florida and Georgia for their own personal use. Much of the funds were ultimately funneled to the architects of the scheme in Jamaica.
According to evidence presented at trial, over the course of five years, from 2012 to 2017, members of the conspiracy attempted to redirect over $1.8 million in benefits from more than a hundred disabled veterans and Social Security beneficiaries. Although several of these attempts were blocked, the defendants’ scheme resulted in the actual loss of nearly $1 million, money that was diverted from disabled veterans and Social Security beneficiaries. In each instance, the federal government reimbursed these victims for the full amounts of their stolen benefits.
“We remain vigilant in our efforts to defend and protect our disabled veterans and our elderly,” said U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez. “This successful prosecution demonstrates that, despite recent challenges, our Office continues to prosecute anyone who targets vulnerable members of the community.”
“Yesterday, a jury held these defendants accountable for their roles in a large-scale, transnational fraud scheme that preyed upon veterans—many of whom were elderly and at risk—by redirecting VA compensation and pension benefits to other bank accounts or by taking over veterans’ bank accounts,” said Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of the Inspector General’s Southeast Field Office. “The VA OIG, along with our law enforcement partners, is steadfast in our commitment to ensure that veterans are protected from schemes designed to steal the benefits that they earned while defending our country.”
“The jury’s verdict holds Omar Bailey and Ronaldo Green accountable for their greedy and unscrupulous actions that deprived Social Security beneficiaries and disabled veterans of their benefits,” said Rodregas W. Owens, Special Agent in Charge, Social Security Administration Office of the Inspector General, Atlanta Field Division. “I appreciate the investigative efforts of the Transnational Elder Fraud Strike Task Force and our law enforcement partners in dismantling this conspiracy and U.S. Attorney’s Office for prosecuting this case.”
U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez, Special Agent in Charge David Spilker of the Department of Veterans Affairs Office of the Inspector General’s Southeast Field, and Special Agent in Charge Rodregas W. Owens, Social Security Administration Office of the Inspector General, made the announcement.
U.S. Attorney Juan Antonio Gonzalez commended the investigative efforts of the Transnational Elder Fraud Strike Force, including our partners at the Department of Veterans Affairs’ Office of the Inspector General, United States Postal Inspection Service, Homeland Security Investigations, and the Social Security Administration’s Office of the Inspector General.
The case was prosecuted by Assistant U.S. Attorneys Lois Foster-Steers and Sajjad Matin.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report their victimization and suspected fraud schemes. To find the right reporting agency visit https://www.justice.gov/elderjustice/roadmap or call the victim connect hotline at 1-855-484-2846.
Criminal complaints, informations, and indictments contain mere allegations and defendants are innocent unless and until found guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 19-cr-60313.
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Former University of Michigan Professor Pleads Guilty to Charges of Child Exploitation of a MinorRead the Press Release
DETROIT – Former University of Michigan professor pleaded guilty one count of transporting a minor girl across state lines with the intent to engage in sexual conduct, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Acting Special Agent in Charge James C. Harris, Homeland Security Investigations (HSI).
Pleading guilty was Stephen Shipps, 68, of Ann Arbor, Michigan.
From 1989 to 2019, Shipps was employed by the University of Michigan School of Music, Theatre, and Dance as a violin professor. Shipps was also the director of the Strings Preparatory Program, which offered instruction to young musicians ranging from elementary school through high school-age. Shipps retired from the University of Michigan in February 2019. In addition, Shipps served on the faculties of Indiana University, the North Carolina School of the Arts, the University of Nebraska – Omaha, and the Banff Centre in Canada. He also taught students at summer music programs in the Czech Republic, Germany, and the United Kingdom.
According to court records, from February and March of 2002, as well as in June and July of 2002, Shipps knowingly transported a minor girl, who was under 18 years old, across state lines, and Shipps intended to engage in sexual activity with her.
“Shipps used his position of trust to sexually exploit a child. Well regarded music professors at prestigious universities with competitive music programs like the University of Michigan enjoy tremendous influence within the music community. These professors often have the ability to make or break careers. Stephen Shipps was an influential and highly sought after violin professor who had successfully launched many careers. I commend the brave young woman who stepped forward and exposed Shipps’s abuse,” said Acting U.S. Attorney Mohsin. “This case proves that the passage of time, no matter how long, will not deter us from bringing to justice those who prey on our most vulnerable.”
“Thanks to the remarkable bravery of Shipps’ victims and painstaking investigative work by HSI, this disgraced professor is being held accountable for coercing vulnerable young women into sex acts,” said James C. Harris, acting Special Agent in Charge of Homeland Security Investigations field offices in Michigan and Ohio. “This case underscores HSI’s commitment to give due credibility to all allegations of sexual exploitation of minors and to bring some measure of justice to the victims.”
Shipps faces a statutory maximum penalty of 15 years in federal prison when he is scheduled to be sentenced on February 17, 2021 at 11 am.
This case was investigated by agents of HSI with the assistance of the University of Michigan Police Department. Assistant U.S. Attorney Sara Woodward is prosecuting this case.
Former Realtor Sentenced to 4 Years in Federal Prison for Running Nearly $4 Million Fraud that Scammed Distressed HomeownersRead the Press Release
LOS ANGELES – A former realtor and longtime fugitive was sentenced today to 48 months in federal prison for scheming to defraud distressed homeowners out of nearly $4 million by falsely promising them help with their mortgages, but instead pocketing their money, causing many victims to lose their homes.
Ernesto Diaz, 66, a former realtor and former El Monte resident, was sentenced by United States District Judge Stephen V. Wilson, who also ordered Diaz to pay $3,061,159 in restitution to his victims.
At the conclusion of a three-day trial, a federal jury on September 13 found Diaz guilty of one count of conspiracy, two counts of mail fraud affecting a financial institution, and one count of mail fraud. The jury acquitted him on one mail fraud count.
Diaz, who fled to Mexico after entering into a plea agreement in this case in 2012, pleaded guilty on September 9 to a separate count of failure to appear in court while released on bond. He was a fugitive for seven years until the FBI arrested him in October 2019. A federal grand jury in February 2020 returned a superseding indictment against him, which led to this year’s trial.
According to evidence presented at his trial, from March 2010 to March 2011, Diaz and co-defendant Maria Marcella Gonzalez, 51, of Whittier, ran a fraudulent mortgage-elimination program that operated in Montebello under the names “Crown Point Education Inc.” and “Crown Point Inc.” Diaz and Gonzalez advertised to distressed homeowners that the Crown Point program could eliminate whatever balance existed on their mortgages.
Several homeowners testified at trial that they had fallen behind on their mortgage payments during the financial crisis of 2007-08 because of workplace injuries, medical bills and other personal circumstances. In exchange, the homeowners paid Crown Point thousands of dollars for its services, typically with a partial payment demanded at the program’s inception, followed by monthly fees.
Diaz and Gonzalez offered seminars describing the Crown Point program to prospective customers but refused to specify – citing the need to protect the company’s proprietary information – how they purportedly eliminated existing mortgages.
At the seminars, Diaz and Gonzalez guaranteed that the Crown Point program would be successful and had cleared the mortgage problems of past customers. Diaz and Gonzalez also met personally with customers and prospective customers to make similar promises of success, assuage concerns of customers who had seen no signs of success, and demand additional payments. Diaz and Gonzalez often counseled customers to cease mortgage payments to their lenders altogether and to pay Crown Point instead.
After clients signed up for the program and paid a fee – usually $15,000 per property – Diaz and Gonzalez directed others to mail packets of information to the clients’ lenders that falsely asserted that the client’s mortgages were invalid and that mortgages would be extinguished if the lenders did not respond. Many of the mailed documents were notarized to create the appearance of legitimacy, at times using the notary stamp of Diaz’s own sister without her knowledge or consent.
In fact, Crown Point had no success in eliminating customer mortgage debt and many customers – including Diaz’s brother – lost their homes.
One integral part of the scheme involved the filing of unauthorized bankruptcy petitions to delay the foreclosure process, leaving victims with the impression that the Crown Point program was working and inducing them to continue making payments, but damaging clients’ credit ratings in the process.
“Many, though not all, of [Diaz’s] victims could have qualified for loan modifications or legitimate foreclosure forbearance programs to save their homes but, in reliance on [Diaz’s] lies, were never able to avail themselves of these options,” prosecutors wrote in a sentencing memorandum.
Gonzalez pleaded guilty in July 2015 to a two-count superseding information charging her with making a false statement in a bankruptcy declaration. Judge Wilson sentenced her to 70 months in federal prison.
The FBI investigated this matter.
Assistant United States Attorneys Alexander B. Schwab of the Major Frauds Section and Julia Hu of the General Crimes Section prosecuted this case.
Former Piatt County Resident Sentenced to Five Years in Prison for Child Pornography OffensesRead the Press Release
URBANA, Ill. –Neal A. Evans, 51, previously of Piatt County and now of rural Ogden, Illinois, was sentenced on November 16, 2021, to 60 months’ imprisonment for receipt and possession of child pornography.
At Evans’s sentencing hearing, Senior U.S. District Court Judge Michael M. Mihm noted the significant and long-lasting impact to the child victims depicted in the images Evans possessed.
In July 2021, Evans had entered a plea of guilty to both counts of the indictment: attempted receipt of child pornography and possession of child pornography, with both offenses alleged to have occurred in January 2018. Evans was released on bond following arraignment on the indictment but was remanded to the custody of the U.S. Marshals after his guilty plea.
The statutory penalty for receipt of child pornography is five to 20 years in prison and a fine of up to $250,000; possession of child pornography carries a penalty of up to 20 years in prison, and a fine of up to $250,000.
Following Evans’s release from the Bureau of Prisons, he will be on federal supervised release for eight years and will be required to register as a sex offender.
The charges are the result of an investigation by the Macon County, Illinois, Sheriff’s office, with the assistance of the Decatur Police Department. Evans was previously employed in Macon County. Assistant U. S. Attorney Elly M. Peirson represented the government in the prosecution
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former KC Man, Linked to Homicide and Pawn Shop Burglary, Sentenced to 16 Years for Drug Trafficking, 52 Illegal FirearmsRead the Press Release
KANSAS CITY, Mo. – A former Kansas City-area man, who claimed self-defense after fatally shooting another man during a drug deal, was sentenced in federal court today for drug trafficking and for illegally possessing 52 firearms he stole from a local pawn shop.
Kameron M. Bynum, 26, of Wilson, North Carolina, was sentenced by U.S. District Judge Brian C. Wimes to 16 years and three months in federal prison without parole.
On Dec. 3, 2019, Bynum pleaded guilty to conspiracy to distribute Xanax and marijuana, possessing a firearm in furtherance of a drug-trafficking crime, stealing firearms from a licensed firearm dealer, and being a felon in possession of firearms.
Smart Pawn, 6301 Troost Ave., Kansas City, reported a burglary on May 13, 2017. Bynum broke in through the roof of the business and stole 52 handguns valued at $19,725. Investigators used video surveillance and found clothing in an alley that was used during the burglary. A bloodstain was found on a glove used in the burglary and DNA analysis linked the bloodstain to Bynum.
Investigators also determined the vehicle used during the burglary was the same vehicle Bynum was in when he was arrested on Aug. 2, 2016. During that arrest, Bynum was in possession of 151 Xanax pills. The vehicle was also linked to the crime scene of a homicide that occurred on Aug. 6, 2016, in the 2900 block of East 35th Street. A phone that belonged to Bynum was found at the scene.
After his arrest, Bynum admitted to being involved in the homicide. Bynum told investigators he was attempting to buy Xanax pills from the victim, who drew a large firearm and attempted to rob him. Bynum was armed with a firearm and stated that he shot the victim one time in self-defense. A witness who was with Bynum on that date, interviewed separately, gave a statement consistent with Bynum’s account.
On May 26, 2017, officers with the Wilson, North Carolina, Police Department arrested Bynum for an outstanding state warrant. At the time of his arrest, Bynum was in possession of approximately 13 grams of marijuana, an electronic digital scale, clear plastic baggies, $921, and a cell phone. Investigators obtained a search warrant for the cell phone and recovered several messages and photos related to this investigation.
Bynum was charged in federal court on June 30, 2017, and a federal warrant was issued for his arrest. Officers searched his North Carolina apartment and found 407 Xanax tablets, a loaded Glock 9mm handgun with an extended magazine that had been stolen from Smart Pawn, glass jars and individually wrapped bags of marijuana, and $550.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Bynum has a prior felony conviction for robbery.
This case was prosecuted by Assistant U.S. Attorney Emily A. Morgan. It was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Kansas City, Mo., Police Department, and the Wilson, N.C., Police Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone. Project Safe Neighborhoods is an evidence-based program that identifies the most pressing violent crime problems in the community and develops comprehensive solutions to address them. As part of this strategy, Project Safe Neighborhoods focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Former Government Employee Sentenced to 17-Month Prison Term for Concealing Information During Application ProcessRead the Press Release
WASHINGTON – Chance Barrow, 32, of Lusby, Md., was sentenced today to 17 months in prison for concealing material information when he successfully applied to become a federal law enforcement officer, U.S. Attorney Matthew M. Graves announced.
Barrow was found guilty by a jury in June 2021 of two counts of wire fraud and one count of engaging in a scheme to conceal material facts. The verdict followed a trial in the U.S. District Court for the District of Columbia. In addition to the prison term, the Honorable Colleen Kollar-Kotelly ordered Barrow to pay $77,000 in restitution. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence at trial, beginning in May 2018, Barrow perpetrated schemes to conceal and to defraud when he initiated and progressed through the application process for a law enforcement position with the U.S. Treasury Department’s Inspector General for Tax Administration. (TIGTA). In particular, at every point at which he was required to disclose the circumstances of his departure from his previous law enforcement position with the U.S. Army Criminal Investigative Command, he failed to state that he resigned before he was fired. He also hid the fact that, at the time of the application, he was under criminal investigation; no charges ultimately were filed in that investigation.
As a result of Barrow’s actions, according to the evidence at trial, he was hired by TIGTA and drew a federal salary. Several months after he started work, in July 2019, investigating other people for crimes of fraud, his misrepresentations came to light.
The case was investigated by the Treasury Inspector General for Tax Administration (TIGTA). The case was prosecuted by Assistant U.S. Attorneys Elizabeth A. Aloi and Amanda R. Vaughn, and assistance was provided by Paralegal Specialist Quiana Dunn-Gordon.
Former Freight Company Executive Admits Embezzlement SchemeRead the Press Release
NEWARK, N.J. – A former program manager of an international freight forwarding company today admitted his role in a scheme to embezzle over $550,000 from the company, Acting U.S. Attorney Rachael A. Honig announced today.
Morten Nielsen, 37, a Danish national residing in New Jersey, pleaded guilty before U.S. District Judge Susan D. Wigenton to an information charging him with one count of wire fraud.
According to documents filed in this case and statements made in court:
As program manager for the freight forwarding company, Nielsen was responsible for the company’s contract relating to the Egyptian Foreign Military Sales program (EFMP), a program between the government of Egypt and the U.S. Department of Defense (DoD) that facilitated the sale and repair of military equipment from the DoD to Egypt. Nielsen was responsible for ensuring all logistics for the transportation of certain material between the United States and Egypt and for submitting all paperwork and billing invoices on behalf of the company to the Egyptian government. Once approved, those invoices were forwarded to the DoD for payment to the company.
From July 2017 through July 2019, Nielsen submitted fraudulent invoices from a sham company that he controlled to the freight forwarding company for work that the sham company never performed. Nielsen then sent the fraudulent invoices on behalf of his employer to the Egyptian government. The fraudulent invoices were approved by Egypt and, in turn, the DoD reimbursed the freight forwarding company. Nielsen caused his employer to pay the sham company he created approximately $559,000 over the course of two years, and then transferred those funds into his personal account.
The charge of wire fraud carries a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or loss, whichever is greatest. Sentencing is scheduled for March 23, 2022.
Acting U.S. Attorney Rachael Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office Government Fraud Unit in Newark.
Former Employees at State Administrator of Medicaid Transportation and Business Owner Charged with Submitting Fraudulent ClaimsRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), and Ricky J. Patel, Acting Special Agent in Charge of the New York Field Office of the Homeland Security Investigations (“HSI”), announced the unsealing of an Indictment charging PATRICK NDUKWE, DAVID TRAVERS, and MICHELLE MARTIN with participating in a fraudulent scheme in which TRAVERS and MARTIN improperly routed trips for Medicaid-funded transportation to NDUKWE’s company, Quality Service Medical Transportation (“Quality”) and facilitated fraudulent Medicaid claims by Quality. The case is assigned to U.S. District Judge Denise L. Cote.
U.S. Attorney Damian Williams said: “Every day, thousands of government employees and private contractors around New York are entrusted with handling, disbursing, and guarding public funds. As alleged, David Travers and Michelle Martin, who were employees at the state manager for Medicaid-funded transportation, abused their roles and the public’s trust when they took payments to steer business to a private company and helped that company submit fraudulent Medicaid claims. This Office and our law enforcement partners will always investigate and prosecute the illegal abuse of public programs for unjust enrichment.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The defendants in this case allegedly engaged in a greed-fueled fraud scheme that undermined the Medicaid program and diverted taxpayer funds from their intended purpose of providing health care benefits to low-income individuals and families. Together with our law enforcement partners, HHS-OIG will continue to vigorously pursue those who steal from government health programs for personal gain.”
HSI Acting Special Agent in Charge Ricky J. Patel said: “As alleged, these defendants lined their pockets by abusing a program created to provide assistance to the sick and injured in our communities. Working with our partners, HSI will seek out and bring to justice those that attempt to undermine any federal or state program, explicitly those designed to help millions of our most vulnerable in New York.”
As alleged in the Indictment, which was unsealed today, public filings, and statements in court:[1]
In New York, individuals who are enrolled in the state’s Medicaid program are eligible to have Medicaid pay for their transportation to and from medical appointments if they are not able to safely take public transportation. To obtain Medicaid-funded transportation, the enrollee or their health care professional must schedule transportation by contacting the private company that is contracted to manage Medicaid-funded transportation in the New York City area (the “Transportation Manager”).
NDUKWE, 56, was the owner and operator of Quality. From in or about May 2017 to March 2020, Quality was paid more than $7.3 million for more than 120,000 trips the company purportedly provided for Medicaid-enrolled customers in the New York City area. However, many of these trip claims were fraudulent and never actually performed. In some instances, the Medicaid-enrollee who purportedly used Quality to travel to a medical appointment had, in fact, never heard of or used the company for any transportation services. In other instances, the driver who Quality said performed the trip had never actually worked for the company. In yet other instances, Quality paid a periodic “kickback” to a Medicaid enrollee to use that enrollee’s personal identifying information to submit a trip claim.
TRAVERS and MARTIN were customer service representatives at the Transportation Manager. Both were responsible for, among other things, receiving calls from Medicaid enrollees who needed transportation and then randomly assigning those trips among the dozens of eligible transportation companies in the New York City area. However, both TRAVERS and MARTIN steered a disproportionately high volume of their trips to Quality. In addition, when certain enrollees requested to be moved from Quality to another transportation company, TRAVERS and MARTIN ensured that the customers were eventually reassigned back to Quality. TRAVERS and MARTIN also scheduled trips for Quality that they knew would not be performed and would allow Quality to submit fraudulent claims for payment. For their fraud, both TRAVERS and MARTIN received payments from NDUKWE.
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NDUKWE was arrested this morning in the Bronx and will be presented later today before U.S. Magistrate Judge Ona T. Wang in Manhattan federal court. TRAVERS was arrested this morning in Syracuse, New York, and Martin was arrested this morning in East Syracuse, New York. Both TRAVERS and MARTIN will be presented later today before U.S. Magistrate Judge Therese Wiley Dancks.
NDUKWE, TRAVERS, and MARTIN are each charged with one count of theft of government funds, in violation of 18 U.S.C. § 641; one count of health care fraud, in violation of 18 U.S.C. § 1347; one count of conspiracy to commit health care fraud, in violation of 18 U.S.C. § 1349; and one count of violating the Anti-Kickback statute, in violation of 42 U.S.C. § 1320a-7b. In addition, NDUKWE is charged with one count of aggravated identity theft, in violation 18 U.S.C. § 1028A. In February 2020, as part of the same investigation, the Government charged 13 defendants involved in a different transportation company.
The crimes of theft of government funds, health care fraud, conspiracy to commit health care fraud, and violating the Anti-Kickback Statute each carry a maximum sentence of 10 years in prison. The crime of aggravated identity theft carries a mandatory two years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by a judge.
Mr. Williams praised the outstanding work of DHHS-OIG and HSI. He also thanked the Office of the New York State Medicaid Inspector General, New York Attorney General’s Medicaid Fraud Control Unit, United States Customs and Border Protection, the Syracuse Police Department, the Onondaga County Sheriff’s Office, the Internal Revenue Service, the New York City Police Department, and the U.S. Probation Office for the Northern District of New York for their assistance in the case.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Brandon D. Harper and Kedar S. Bhatia are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment are herein are only allegations, and every fact described herein should be treated as an allegation.
Former Detroit Police Department Officer Pleads Guilty to Taking BribesRead the Press Release
DETROIT - A former Detroit Police Department officer pleaded guilty today in federal court in Detroit to accepting bribes, Acting United States Attorney Saima S. Mohsin announced.
Mohsin was joined in the announcement by Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
Pleading guilty before U.S. District Court Judge George Caram Steeh was Alonzo Jones, 55, of Detroit, Michigan.
According to the court documents, from in or about July 2019, and continuing through in or about May 2021, Alonzo Jones corruptly accepted approximately $3,200 in bribes with the intent to be influenced and rewarded in connection with his duties overseeing and running the Detroit Police Vehicle Auction.
Jones faces up to 10 years imprisonment and a fine of $250,000. Sentencing has been set for March 15, 2022.
“Investigating and prosecuting bad cops is a top priority for our office because bad cops erode the public’s trust in law enforcement,” said Acting US Attorney Mohsin. “The vast majority of police officers are honest, dedicated, and hard-working individuals. But police officers who line their pockets with bribes, no matter how big or small will be held accountable for their actions. Today’s plea highlights our office’s commitment to prosecuting those small minority of bad cops who put their own greed before their duties as police officers.”
“A law enforcement officer accepting bribes undermines the rule of law and will always be vigorously investigated. Today, Mr. Jones pled guilty to conduct that is not representative of the men and women of the Detroit Police Department who serve with honor day in and day out,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “Thank you to Chief James White whose cooperation during this investigation made it possible to hold Jones accountable for his actions.”
This is the fourth individual charged as part of the government’s investigation known as “Operation Northern Hook.” Northern Hook is an investigation of corruption within the government and the Police Department of the City of Detroit relating to the towing industry and other matters.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Frances Lee Carlson.
Former Cedar Rapids Pharmacist Pleads Guilty to Diverting Controlled SubstancesRead the Press Release
A former Cedar Rapids pharmacist who diverted controlled substances for his own use pled guilty today in federal court in Cedar Rapids. Brandon Lee Iacobo, age 35, from La Crosse, Wisconsin, was convicted of one count of acquiring a controlled substance by means of misrepresentation, fraud, deception, and subterfuge.
In a plea agreement, Iacobo admitted that, from January 2020 through November 2020, he was the pharmacist-in-charge or pharmacy manager at a Cedar Rapids pharmacy and diverted hundreds of controlled substances from the pharmacy to his own personal use. To cover up his thefts, Iacobo falsified controlled substance “cycle counts” in the pharmacy’s inventory and shorted customers’ tablets from their prescriptions when filling them. In December 2016, a California administrative law judge determined Iacobo lacked the “continued ability to perform the duties of a licensed pharmacist, in a manner consistent with public health, safety, and welfare, even on a probationary basis,” and found his pharmacy license should be revoked.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Iacobo remains free on bond pending sentencing. Iacobo faces a possible maximum sentence of four years’ imprisonment, a $250,000 fine, and one year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Drug Enforcement Administration and the Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-CR-71.
Follow us on Twitter @USAO_NDIA.
Federal Jury Finds Inmate Guilty of Brutal Prison AssaultRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that federal inmate George Hall was convicted following a jury trial in federal court for charges stemming from a violent prison attack. Hall’s trial marks the first federal criminal jury trial in Charleston since the start of the COVID-19 pandemic in the United States in March of 2020.
Evidence presented by the Government during the trial established that Hall attacked another inmate from behind with a homemade prison weapon constructed from a prison belt and a metal combination lock. Hall repeatedly struck the victim in the head and face with this weapon and stood over him beating him after he fell to the ground. The victim was ultimately able to flee, but not before suffering numerous lacerations, a fractured skull, and a subarachnoid hemorrhage. Prison officials found the victim bleeding in his cell after following a trail of blood from the scene of the attack. The victim survived but was hospitalized for multiple nights and suffered temporary hearing loss and permanent scarring from the assault.
Video footage of the attack showed that the victim never struck Hall or fought back, and he testified that he had never even spoken to Hall prior to being assaulted. At the time of the attack, Hall was serving a 25-year prison sentence for the attempted murder of a U.S. Postal carrier in Florida in 1993. The jury took less than an hour to find Hall guilty on all charges, including assault with a dangerous weapon with intent to cause injury and assault resulting in serious injuries.
United States District Judge Richard M. Gergel presided over the trial and will sentence Hall after receiving and reviewing a pre-sentence report prepared by the United States Probation Office. Hall faces up to ten years in federal prison.
Citing the advice of medical professionals, the court implemented special procedures to minimize the risk of COVID-19 transmission. Masked jurors were seated in the gallery to allow for social distancing, while the prosecution and defense attorneys sat facing one another in the center of the courtroom between the jury and the judge.
This case was investigated by the Federal Bureau of Investigation.
Acting United States Attorney M. Rhett DeHart and Assistant United States Attorney Chris Schoen tried the case.
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Federal Judge Sentences Methamphetamine Trafficker to over 17 Years in PrisonRead the Press Release
CHARLOTTE, N.C. – James Kristoffer Cantley, 39, formerly of Newton, N.C., was sentenced today by U.S. District Judge Kenneth D. Bell to 210 months in prison and five years of supervised release for trafficking methamphetamine, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. In July 2021, Cantley pleaded guilty to drug trafficking conspiracy, possession with intent to distribute methamphetamine, and possession of a firearm in furtherance of drug trafficking.
Cantley is one of 14 defendants indicted by a federal grand jury in June 2020, for trafficking methamphetamine from Georgia into Western North Carolina. According to filed court documents and court proceedings, from 2018 through April 2019, the defendants were involved in a drug network that trafficked and distributed methamphetamine in Catawba, Lincoln, Caldwell, and Alexander Counties and elsewhere. Over the course of the investigation, law enforcement seized narcotics, at least 23 firearms, and more than $250,000 in drug proceeds.
The other 12 other defendants sentenced to date are:
- Michael James Notheisen, 35, of Vale, N.C., was sentenced to 240 months in prison and five years of supervised release.
- Tiffany Christmas Hirani, 34, of Monroe, Georgia, was sentenced to 210 months in prison and five years of supervised release.
- Aaron Douglas Goodson, 31, of Lincolnton, N.C., was sentenced to 210 months in prison and five years of supervised release.
- Brian Duane Martz, 42, was sentenced to 191 months in prison and five years of supervised release.
- Priscilla Chapman Lambert, 34, of Hickory, N.C., was sentenced to 151 months in prison and five years of supervised release.
- Thomas Dewayne Simmons, Jr., 35, of Monroe, Georgia, was sentenced to 150 months in prison and five years of supervised release.
- Ruth Marie Duggar, 38, of Claremont, N.C., was sentenced to 132 months in prison and five years of supervised release.
- Lowell Thomas Messer, 44, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
- Samantha Jean Taylor, 26, of Newton, N.C., was sentenced to 120 months in prison and five years of supervised release.
- Kimberly Deann Bumgarner, 57, of Granite Falls, N.C., was sentenced to 60 months in prison and two years of supervised release.
- Cynthia Roxanne Shook, 36, of Conover, N.C., was sentenced to 60 months in prison and two years of supervised release.
- Jason Keith Reichard, 39, of Ridgecrest, N.C., was sentenced to 36 months in prison and three years of supervised release.
The remaining defendant, Jonathan Corey Daniel, has pleaded guilty to drug trafficking conspiracy and possession with intent to distribute methamphetamine, and is currently awaiting sentencing.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the following agencies for their investigative efforts which led to federal charges: the DEA in Charlotte, Asheville, and Atlanta; the North Carolina State Bureau of Investigation; the North Carolina State Highway Patrol; the Catawba County Sheriff’s Office; the Newton Police Department; the Conover Police Department; the Maiden Police Department; the Hickory Police Department; the Longview Police Department; the Caldwell County Sheriff’s Office; the Granite Falls Police Department; the Lincoln County Sheriff’s Office; the Cleveland County Sheriff’s Office; the Huntersville Police Department; the Cornelius Police Department; the Mint Hill Police Department; the Pineville Police Department; the Charlotte Mecklenburg Police Department; the Monroe Police Department; the Taylorsville Police Department; the Gaston County Police Department; the Georgia Highway Patrol; the Franklin County Sheriff’s Office in Georgia; the Georgia Bureau of Investigation; the Georgia Department of Corrections; the Clayton County Sheriff’s Office in Georgia; and the Commerce Police Department in Georgia.
Assistant U.S. Attorney Christopher Hess, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
Featherston Appointed United States Attorney for the Eastern District of TexasRead the Press Release
BEAUMONT, Texas – Brit Featherston has taken the oath of office to become the United States Attorney for the Eastern District of Texas. Featherston was appointed to the position by Attorney General Merrick Garland and took the oath of office from Chief U.S. District Judge Rodney Gilstrap.
“This is my home; serving and protecting the great citizens of East Texas has been my priority for a long time and it will continue into the future,” said U.S. Attorney Featherston. “I am blessed to work with a dedicated team of professionals who make it their daily mission to protect the citizens of this great country. I also look forward to jointly working with our law enforcement partners who bravely protect our communities every day.”
Featherston, 61, of Lumberton, is the chief federal law enforcement official in the Eastern District of Texas, which includes 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 120 employees, including 60 prosecutors. Featherston is responsible for the prosecution of federal criminal offenses in the district and will represent the United States in all civil litigation in the district.
Since joining the office in 1996, Featherston has served in the capacity of First Assistant U.S. Attorney, Executive Assistant U.S. Attorney, and supervisory U.S. Attorney. He was also appointed Acting United States Attorney in September 2016 and served in that capacity for 17 months. In January 2018, Featherston became the Justice Attaché for the U.S. Embassy in Kabul, Afghanistan. In addition to prosecuting high-profile cases such as the dragging death of James Byrd, Jr., in Jasper County, Featherston has been instrumental in crisis management operations during numerous Southeast Texas hurricanes, as well as assisting in the establishment of a command post and the investigation and prosecution of crimes related to the space shuttle crash in 2003 in Lufkin.
Featherston was honored to have former United States Attorney Malcolm Bales, his brother Tom Featherston, and Criminal Chief Frank Coan by his side as he took his oath of office from Judge Gilstrap this afternoon. Wife, Amy, and son, Ben, joined the ceremony by video from Texas Children’s Hospital in Houston where Ben has been in ICU since Sep. 30th recovering from a sudden illness. Ben is a freshman at the University of Texas at Austin and daughter, Anna, is a senior at Texas A&M University in College Station.
For more information about the U.S. Attorney’s Office for the Eastern District of Texas, please visit https://www.justice.gov/usao-edtx.
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Duquesne Man Sentenced to More than 5 Years in Prison for Drug and Gun Law OffensesRead the Press Release
PITTSBURGH - A resident of Duquesne, Pennsylvania, has been sentenced in federal court to 66 months’ imprisonment, followed by three years of supervised release on his conviction for narcotics trafficking and possession of a firearm in furtherance of a drug-trafficking crime, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Marquis Brown, age 33.
According to previous information presented to the court, in October 2017, Brown possessed with intent to distribute quantities of heroin and fentanyl analogues. He also possessed a .40 caliber Taurus pistol in furtherance of his drug-trafficking.
Assistant United States Attorney Jeffrey R. Bengel prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation – Western District of Pennsylvania Opioid Task Force for the investigation of this case. This Task Force is comprised of FBI Special Agents and state and local Task Force Officers, including officers from the Pittsburgh Bureau of Police, Allegheny County Sherriff’s Department, Allegheny County Police, Port Authority Police, Munhall Police Department, West Mifflin Police Department, and Pennsylvania Attorney General’s Office.