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Monday 27 September 2021
Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Antonio Junior Guerrero, of Ranson, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Guerrero, also known as “Mula,” 29, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Twenty-Eight Grams or More of Cocaine Base.” Guerrero admitted to working with others to distribute 28 grams or more of cocaine base from July 2018 to June 2021 in Jefferson County and elsewhere.
Guerrero faces at least five years and up to 40 years of incarceration and fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Illinois woman admits to counterfeit chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Asante James, of Freeport, Illinois, has admitted to a counterfeit charge, Acting United States Attorney Randolph J. Bernard announced.
James, 21, pleaded guilty to one count of “Possession of Counterfeit Obligations.” James admitted to having 69 $100 counterfeit bills in December 2020 in Ritchie County.
James faces up to 20 years of incarceration and a fine of up to $250,000 fine. 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The United States Secret Service, the Ritchie County Sheriff’s Office, and the South Charleston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Illinois Man Charged with Stealing Unemployment Insurance Benefits While IncarceratedRead the Press Release
NEWARK, N.J. – An Illinois man was arrested today for allegedly using other individuals’ personal identification information to obtain unemployment insurance benefits while he was incarcerated, Acting U.S. Attorney Rachael A. Honig announced.
Devontae Stokes, 27, of Country Club Hills, Illinois, is charged by complaint with conspiracy to commit wire fraud. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Jeffrey Cole in the Northern District of Illinois.
According to documents filed in this case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new, temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional weekly benefit to those eligible for PUA and regular UIBs.
Between August 2020 and November 2020, Stokes was incarcerated at FCI Fort Dix, a federal correctional institutional with an adjacent satellite camp located in Fort Dix, New Jersey. While incarcerated, Stokes and his associates caused UIB applications to be made to numerous states in the names of three victims. In response, the states provided more than $70,000 in UIB.
The charge of conspiring to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Stokes or twice the gross loss suffered to the victims of his offense.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in Manhattan, New York; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest. She also thanked Federal Bureau of Prisons personnel at Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 70 months in prison for possession with the intent to distribute heroin.
According to court documents and statements made in court, Cecil Monroe Bowman, 66, was pulled over by the West Virginia State Police on October 14, 2020. After giving Troopers consent to search his vehicle, Troopers found 23 grams of heroin under the driver’s seat. Bowman admitted he intended to sell the heroin.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00081.
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Huntington Felon Pleads Guilty to Possessing FirearmRead the Press Release
HUNTINGTON, W.Va. – Kevan Curry, 49, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to the plea agreement and statements made in court, officers with the Huntington Police Department executed a search warrant on November 18, 2020, at Curry’s residence on 20th Street in Huntington. Law enforcement officers seized a Comanche III .357 magnum revolver, a Browning .40 caliber handgun, and an American Tactical AR-15 rifle. Curry was prohibited from possessing firearms under federal law because of a 2009 felony conviction for conspiracy in Cabell County Circuit Court.
Curry faces up to 10 years in prison when he is sentenced on January 10, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00114.
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Hillsboro Man Sentenced to Federal Prison for Mail and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon man was sentenced to federal prison today for stealing hundreds of pieces of residential mail throughout the Portland Metropolitan Area and using the personal identity of one local resident to purchase a luxury car.
Dwayne Leroy Daan, 42, was sentenced to 90 months in federal prison and three years’ supervised release.
According to court documents, between February and May 2020, Daan stole more than 800 pieces of mail from residences in Portland, Beaverton, West Linn, Milwaukee, and Hillsboro, Oregon. Some of the mail was stolen using a counterfeit U.S. Postal Service arrow key. On April 20, 2020, Daan used the stolen identity of a local resident to obtain a line of credit and purchase a 2018 Audi for $51,031 from a car dealership in Milwaukee.
On July 16, 2020, a federal grand jury in Portland returned a four-count indictment charging Daan with possessing stolen mail and a counterfeit U.S. Postal Service arrow key. Later, on June 29, 2021, a superseding criminal information added felony charges for bank fraud and aggravated identity theft.
On July 1, 2021, Daan pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.
A restitution hearing has been scheduled for December 20, 2021.
As part of a global resolution, Daan's federal prison sentence will run concurrently with a sentence previously imposed in Washington County Circuit Court and a sentence to be imposed in Multnomah County Circuit Court for similar conduct. The Clackamas County District Attorney’s Office will dismiss charges pending against Daan as part of this resolution. Daan will serve his entire sentence in federal prison.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations, the Portland Police Bureau, West Linn Police Department, and Hillsboro Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon with assistance from the Multnomah, Clackamas, and Washington County District Attorney’s Offices.
Hartford Man Sentenced to More Than 3 Years in Federal Prison for Possessing Sawed-Off ShotgunRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KEVIN BARCO, 37, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 39 months of imprisonment, followed by three years of supervised release, for illegally possessing a sawed-off shotgun.
According to court documents and statements made in court, on October 6, 2018, Hartford Police encountered Barco sitting in a car that was parked on Albany Avenue. A subsequent search of the car revealed a Harrington and Richardson, Model 176, 10 gauge shotgun with a sawed-off barrel. Eight shotgun shells were also found in the car.
Barco’s criminal history includes state convictions for felony weapon, robbery, larceny and escape offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On July 17, 2020, Barco pleaded guilty to one count of possession of a firearm by a felon.
Barco, who is released on $50,000 bond, is required to surrender to the U.S. Marshals Service on October 1 to begin serving his sentence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
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.
Fresno County Man Sentenced to over 5 Years in Prison for Illegal Possession of AmmunitionRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Alejandro Chavarria, 34, of Mendota, on Friday, Sept. 24, to five years and four months in prison for being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 10, 2020, Chavarria was arrested in Oakhurst in possession of a handgun with a loaded extended magazine, two disassembled AR-style rifles, and numerous rounds of ammunition. Chavarria attempted to flee from police at the scene. Chavarria has been convicted of attempted carjacking, drug possession and robbery, and is prohibited from possessing firearms and ammunition. He was on parole for robbery at the time of his arrest.
This case was the product of an investigation by Homeland Security Investigations, the Fresno Police Department, the Madera County Sheriff’s Office, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case was brought as 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.
Four Skilled Nursing Facility Entities Agree to Resolve Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – Four health care entities that operate and manage skilled nursing facilities have agreed to resolve allegations that their Massachusetts-based skilled nursing facilities denied admission to prospective residents because they were prescribed an FDA-approved medication for Opioid Use Disorder (OUD).
“Compliance with the ADA is mandatory, and the ADA protects people with recognized disabilities, such as Opioid Use Disorder,” said Acting United States Attorney Nathaniel R. Mendell. “Vindicating the right to treatment afforded by the ADA is important to my office – it is an effective way to prevent discrimination against disabled people and ensure fair access to treatment for those in recovery.”
The United States allege that CareOne Realty, LLC; Hebrew Senior Life, Inc.; Sheehan Health Group, LLC (which manages Laurel Ridge and Presentation Rehabilitation Centers); and Wingate Healthcare violated the Americans with Disabilities Act (ADA), the Rehabilitation Act and the Patient Protection and Affordable Care Act by denying admission to individuals because they were being treated with buprenorphine or methadone, medications used to treat OUD. Individuals receiving medication to treat OUD are generally considered disabled under federal civil rights laws. The individuals who were the subject of the complaints in these cases were seeking admission for health issues unrelated to their dependency, but also needed treatment for OUD.
Under the terms of the settlement agreement, these entities will, among other things, adopt a non-discrimination policy and provide training on the ADA and OUD to admissions personnel. The entities will also pay civil penalties totaling $55,000, of which $35,000 will be suspended and forgiven if the facilities comply with the terms of the agreement.
Since May 2018, the U.S. Attorney’s Office has settled with eight healthcare providers to resolve ADA violations arising from OUD treatment.
Acting U.S. Attorney Mendell of the District of Massachusetts made the announcement today. Assistant U.S. Attorney Sara Miron Bloom handled the matters.
Former Treasurer of the Detroit Fire Department Union Charged with Stealing over $220,000 in Union FundsRead the Press Release
DETROIT - The former Treasurer of the Detroit Fire Department Union (DFFA) has been charged in a federal criminal complaint with embezzling over $220,000 in union funds, announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Verdine Day, age 62, is scheduled to appear in federal court this afternoon in connection with a federal criminal complaint charging her with bank fraud and wire fraud. The affidavit supporting the complaint states that Day was hired by the Detroit Fire Department in 1986. She worked as a firefighter, engineer, and held other positions in the union before she was elected by her peers to Treasurer of the DFFA in November 2015. She was Treasurer from December 2015 until her retirement from the DFFA and the City of Detroit in September 2019.
The affidavit further states that during the four years Day was Treasurer of the DFFA, she fraudulently obtained approximately $167,900.00 of union funds by (1) issuing checks in her name and then changing the name of the payee in the Union’s Quickbooks software (2) cashing checks which were voided by her in Quickbooks and (3) writing checks made payable to cash.
Day also used DFFA credit cards as her own personal credit cards while she was Treasurer and after she retired. In total, she charged approximately $52,143.65 in personal expenses using DFFA credit cards. Her purchases on DFFA credit cards included flights, hotel rooms, cruises, car insurance premiums, satellite and cable TV service, national and state parks fees, and furniture. For example, Day used a DFFA union credit card to charge $9,553 for a cruise with Royal Caribbean cruise lines in 2017. Day also used a union credit card to pay for another Royal Caribbean cruise costing $8,975 on the Liberty of the Seas in 2019. She used the union’s credit card to pay her bar bill at a casino in Ohio in May 2019 and for a meal at a Bubba Gump Shrimp Co. restaurant in Cozumel, Mexico in 2019.
Acting U.S. Attorney Saima Mohsin commended the work of the FBI and the Department of Labor in conducting this criminal investigation of a corrupt union officer and said, “This prosecution demonstrates that we will not tolerate union officers who abuse their authority and line their own pockets at the expense of the union’s membership. We will continue to work with our law enforcement partners to root out corruption and fraud involving unions.”
“Union officials are expected to serve with integrity, particularly when they are sworn to represent men and women who put their lives on the line every day to protect our communities,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “When a union official violates their position of trust, the FBI will continue to aggressively investigate these matters to ensure individuals are held accountable for their actions.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud involving labor unions. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen. The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Labor.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. Day is facing a maximum of 30 years in prison on the bank fraud charge and up to 20 years in prison on the wire fraud charge.
Final Defendants Sentenced in Federal Dog Fighting CaseRead the Press Release
The last four of 12 defendants convicted on federal dog fighting charges were sentenced today in Albany, Georgia, by the U.S. District Court for the Middle District of Georgia. Collectively, the court sentenced the defendants to a total of 272 months in prison.
On June 22, a federal jury convicted defendant Kizzy Solomon, 44, of Camilla, Georgia, of 15 counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture. Eleven other defendants previously pleaded guilty to various offenses related to their participation in a dog fighting ring.
“The injuries that dogs suffer in fights are horrible enough, but this case shows how the cruelty of the dog fighting industry goes far beyond the fighting pit,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to vigorously prosecute those who engage in these crimes.”
“Dog-fighting is vicious and illegal; it is also a breeding ground for other dangerous criminal activity that undermines the safety of our communities,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will not tolerate dog-fighting; we will continue to work with our law enforcement partners to hold offenders accountable with federal prosecution.”
“The cruelty exhibited by these individuals has left a stain on the human psyche of our civilization” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “This collaborative effort with our local and federal partners demonstrates that wherever you are, you will be held accountable to the fullest extent of the law.”
The individual prison sentences imposed by the court are:
- Germany Brockington, 34, of Ambrose, Georgia – 7 months
- Kevin Charles, also known as “Trinidad,” 45, of Jackson, Georgia – 18 months in prison to be followed by two years of supervised release
- Terry Driggers, 71, of Hoboken, Georgia – time served (a period of approximately 17 months)
- Kentre Gibson, 40, of Douglas, Georgia – 21 months
- Maurice Glover, 48, of Douglas, Georgia – 12 months
- Orlando Johnson, 35, of Americus, Georgia –30 months in prison to be followed by two years of supervised release
- Shadon Johnson, 37, of Fitzgerald, Georgia – 2 years of probation
- Alonza Jordan, 48, of Americus, Georgia – 7 months
- Leslie Meyers, also known as Les Meyers, 44, of Tallahassee, Florida – 123 months in prison to be followed by two years of supervised release (upward departure to statutory maximum of 60 months on each of 4 dog fighting charges, to run concurrent to one another and consecutive to 63 months sentence on firearm)
- Starlin Morgan, 39, of Plains, Georgia – 11 months
- Kizzy Solomon, also known as Kizzy Andrews, 44, of Tallahassee, Florida – 30 months
- Timothy White, 51, of Patterson, Georgia – 11 months
Defendants Brockington, Shadon Johnson and Jordan had been convicted of knowingly spectating at a dog fight, a misdemeanor offense. The other defendants were convicted of felony violations of the Animal Welfare Act and/or felony conspiracy to commit the same. Defendant Meyers had also pleaded guilty to the unlawful possession of a handgun by a person with a prior felony conviction. Meyers had brought a pistol to a dog fight.
This case was based largely on a “two-card” dog fight in Sumter County, Georgia, that was disrupted by law enforcement while in progress on Jan. 21, 2017. According to court documents, Defendant Meyers traveled to the event from Florida with a dog, whom he pitted in a fight against a dog handled by Defendant White.
Meyers’s dog was declared the winner of the dog fight, but refused to complete a “courtesy scratch” – a macabre dog fighting ritual in which a dog who has already won is taken back to a corner of the ring and released one final time to attack the losing dog (or its dead body). The dog’s continuing willingness to attack garners extra prestige for the handler. After Meyers’s dog refused to complete the courtesy scratch, Meyers suffocated the dog to death by hanging him from a tree branch. Law enforcement found this dog’s body under the bumper of Meyers’s car. Authorities also came upon two other live dogs in the middle of a fight, one of which had extensive injuries and had to be euthanized. After most participants fled the scene, agents recovered several firearms and approximately $18,000 in U.S. currency.
Search warrants executed later at the residences of some of the defendants revealed dozens of pit bull-type dogs housed in conditions consistent with dog fighting. Many of these dogs were emaciated and/or had scarring or injuries. Authorities also seized dog fighting equipment, including injectable veterinary steroids and a dog treadmill on which various dogs’ fighting histories, including whether they had perished during dog fights, was printed.
The case was investigated by the USDA-OIG, the Sumter County Sheriff’s Office and Decatur County Animal Control. Assistant U.S. Attorney Jim Crane for the Middle District of Georgia and Trial Attorney Ethan Eddy of the Justice Department’s Environment and Natural Resources Division prosecuted the case.
Edmonds, Washington business owner pleads guilty to wire fraud in connection with her arson for insurance schemeRead the Press Release
Seattle —An Edmonds, Washington, business owner pleaded guilty today to wire fraud related to the April 30, 2018, fire at her business, CJN Miniatures & More, a dollhouse, miniatures, collectibles, and antiques shop, announced Acting U.S. Attorney Tessa M. Gorman. Connie L. Bigelow, 53, is scheduled for sentencing by U.S. District Judge Robert S. Lasnik on December 17, 2021 at 10am.
In the plea agreement, Bigelow admits she set fire to her business to collect insurance money as the store was struggling to make enough money to pay the rent. Bigelow moved her business, CJN Miniatures LLC, into the building at 23030 Highway 99, in Edmonds in September 2017. The store maintained an inventory of miniatures and collectables for sale, consigned items on behalf of other individuals, and rented out space to other vendors. Between October 2017 and April 2018, the business fell behind in rental payments and payments to consigners.
Bigelow carried an insurance policy with State Farm Fire and Casualty Company that covered up to $100,000 in loss of business personal property, as well as loss of income. The policy did not cover loss arising from arson.
Bigelow set the fire underneath three Thomas Kinkade paintings worth thousands of dollars. In May 2018, Bigelow initiated a claim to State Farm for the losses arising from the fire. On May 3, 2018, Bigelow communicated with the insurance agent via email as part of the wire fraud scheme. Bigelow made false statements to law enforcement, as well as representatives of State Farm as part of the scheme to defraud.
As part of the plea agreement, Bigelow agrees to make full restitution. Currently the restitution is over $195,000 but may grow as further losses are calculated in advance of sentencing.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Judge Lasnik will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), along with the Snohomish County Fire Marshals’ Office. The case is being prosecuted by Assistant United States Attorney Amy Jaquette.
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations for Underpaying Royalties on Gas from Federal LandsRead the Press Release
DENVER - Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its affiliates, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company, LP (collectively, “Devon”), have agreed to pay $6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.
The United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that, in calculating royalties, Devon improperly deducted payments to third-parties for gas transportation and processing that included costs to place the gas in marketable condition, and thereby knowingly underreported and underpaid royalties to the Department of the Interior (DOI).
“The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
“We hold our public lands very dear in Colorado,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will not allow companies extracting natural resources from those lands to avoid paying what they rightfully owe.”
“The OIG is committed to working with our partners at the Department of Justice, Office of Natural Resources Revenue, and the Office of the Solicitor to ensure that companies producing minerals from areas under Federal jurisdiction fulfill their legal and professional responsibilities,” said Special Agent in Charge Ron Gonzales for the DOI Office of Inspector General’s Energy Investigations Unit.
The resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of Colorado, with the assistance of DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor, and DOI’s Office of Natural Resources Revenue.
The matter was investigated by Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Amanda Rocque of the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations for Underpaying Royalties on Gas from Federal LandsRead the Press Release
Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its affiliates, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company LP (collectively, “Devon”), have agreed to pay $6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.
The United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that, in calculating royalties, Devon improperly deducted payments to third-parties for gas transportation and processing that included costs to place the gas in marketable condition, and thereby knowingly underreported and underpaid royalties to the Department of the Interior (DOI).
“The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
“We hold our public lands very dear in Colorado,” said Acting U.S. Attorney Matthew T. Kirsch for the District of Colorado. “We will not allow companies extracting natural resources from those lands to avoid paying what they rightfully owe.”
“The Office of the Inspector General is committed to working with our partners at the Department of Justice, Office of Natural Resources Revenue and the Office of the Solicitor to ensure that companies producing minerals from areas under Federal jurisdiction fulfill their legal and professional responsibilities,” said Special Agent in Charge Ron Gonzales for the DOI Office of Inspector General’s Energy Investigations Unit.
The resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the District of Colorado, with the assistance of DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor, and DOI’s Office of Natural Resources Revenue.
The matter was investigated by Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Amanda Rocque of the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Delray Beach Man Convicted of Bank Fraud, False Statements, and Aggravated Identity Theft Involving COVID-19 Relief ProgramsRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville has convicted Jeremie Saintvil, 46, of Delray Beach, Florida, of bank fraud, making false statements to a federally insured financial institution, aggravated identity theft, and making false statements to a federal agency. The guilty verdict, returned late Friday, at the conclusion of an eight-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The theft of vital taxpayer relief funds and victimization of our elderly is reprehensible,” stated Acting U.S. Attorney Coody. “The deceptive and sophisticated acts of this defendant not only diverted emergency financial assistance from small businesses necessary for job retention, but also victimized our elderly citizens, many of whom due to advanced age or illness, were more vulnerable and unable to readily discern their identities had been stolen and used for illegal acts. With the assistance of our dedicated law enforcement partners, we are committed to investigating and prosecuting those who engage in acts of elder abuse and covid-related fraud.”
Evidence introduced at trial revealed that between February 2018 and June 2020, Saintvil submitted fraudulent applications seeking more than $1.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster (EIDL) loans offered by the United States Small Business Administration (SBA). As part of his scheme, Saintvil fraudulently obtained the identities of elderly individuals who were residents of senior living facilities, whom he then represented were principles in the fictitious businesses seeking the forgivable loans. The fraudulent applications, which were directed to nine different federally insured credit unions, banks, and the SBA, misrepresented the number of employees and payroll expenses of the alleged companies, and made numerous other inaccurate statements in support of the PPP and EIDL loan applications, including submitting falsified tax documents and bank account information.
"Any attempt to defraud the PPP loan program, which is designed to support struggling businesses during the COVID 19 pandemic, is in and of itself a deplorable act. But Saintvil's crimes are made worse by the fact that he used the identities of the elderly to carry out the scams,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “We work very closely with our federal agency partners to help seek justice for those impacted by these heinous crimes."
The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The Small Business Administration (SBA) guarantees PPP loans which are funded by participating financial institutions. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP then allows the interest and principal to be forgiven if businesses spent the loan proceeds on qualifying expenses within a set time-period and used at least a certain percentage of the loan proceeds for payroll expenses.
“In a time of national turmoil and uncertainty, this defendant flagrantly defrauded programs intended to assist Americans and their businesses,” said FBI Jacksonville Special Agent in Charge Rachel L. Rojas. “His total disregard for his fellow citizens during the pandemic – especially vulnerable elders – revealed his true colors as a fraudster. The FBI will continue to allocate resources to investigate COVID-19 and elder fraud, and work alongside our partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
Saintvil’s sentencing hearing is scheduled on December 20, 2021, at 2:00 pm at the United States Courthouse in Gainesville before the Honorable United States District Judge Allen Winsor. Saintvil faces a maximum penalty of 30 years in federal prison for the charges of bank fraud and making false statements to a federally insured institution, and a maximum penalty of 5 years in prison for making a false statement to a federal agency. Saintvil also faces an additional 2-year mandatory minimum prison sentence for the aggravated identity theft charge, which must be served consecutively to the other sentences imposed.
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
This conviction was the result of a joint investigation by Internal Revenue Service - Criminal Investigations, the Federal Bureau of Investigation, and the Small Business Administration -Office of Inspector General. Assistant United States Attorneys Justin M. Keen and David Byron prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Learn more about the Justice Department’s Elder Justice and National Nursing Home Initiatives at http://www.justice.gov/elderjustice/.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Danville Restaurant Owner Sentenced for Wire Fraud, Food Stamp FraudRead the Press Release
ROANOKE, Va. – The owner of Seaford and More in Danville, Virginia, was sentenced today to 12 months and one-day in prison for defrauding the Supplemental Nutrition Assistance Program (SNAP) by exchanging cash for SNAP benefits.
According to court documents, Bobby Lee James, 69, and others who worked at Seafood and More, redeemed SNAP benefits in exchange for cash between 2010 and 2018. James also admitted that he directed his employees to redeem SNAP benefits for cash during the same time and that he knew what he was doing was wrong.
James pleaded guilty in January 2021 to one count of wire fraud and one count of food stamp fraud.
According to court documents, from October 2010 to July 2018, SNAP redemptions for Seafood and More exceeded the state average of all other seafood specialty class stores in Virginia by more than $2,465,555. In total, Seafood and More caused approximately $1,835,767 in losses to the SNAP program.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement today.
The investigation of the case was conducted by the United States Department of Agriculture Office of Inspector General, the United States Secret Service, and the Danville Police Department.
Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Convicted Felon Who Unlawfully Possessed a Gun Sentenced to over Two Years in Federal PrisonRead the Press Release
A man who possessed a gun despite being legally prohibited was sentenced September 20, 2021, to more than two years in federal prison.
John Michael Dockery, age 37, from Cedar Rapids, Iowa, received the prison term after an April 1, 2021 guilty plea to possession of a gun by a prohibited person.
At the guilty plea, Dockery admitted possessing a firearm following two felony convictions from California and while he was an unlawful user of methamphetamine. Dockery was a passenger in a vehicle that was stopped in Cedar Rapids and a gun was found in the back of vehicle behind Dockery’s seat.
Dockery was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dockery was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dockery is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-80.
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Convicted Dog-Fighter, Co-Defendants, Sentenced to Federal Prison for Violations of the Animal Welfare ActRead the Press Release
ALBANY, Ga. – The last four of 12 defendants convicted on federal dog fighting charges were sentenced to federal prison on Friday.
Leslie Meyers aka Les, 45, of Tallahassee, Florida, was sentenced to serve a total of 123 months in prison to be followed by two years of supervised release after he pleaded guilty to conspiracy to violate the Animal Welfare Act and unlawful possession of a handgun by a person with a prior felony conviction. Kizzy Solomon aka Kizzy Andrews, 44, of Camilla, Georgia, was sentenced to serve 30 months in prison after a federal jury convicted her on Tuesday, June 22, of 15-counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture. Orlando Johnson aka OJ and Juiceman, 35, of Americus, Georgia, was sentenced to serve 30 months in prison to be followed by two years of supervised release after he pleaded guilty to conspiracy to violate the Animal Welfare Act. Kevin Charles aka Trinidad, 45, of Jackson, Georgia, was sentenced to serve 18 months in prison to be followed by two years of supervised release after he pleaded guilty to conspiracy to violate the Animal Welfare Act.
The following co-defendants were sentenced to prison after previously pleading guilty to conspiracy to violate the Animal Welfare Act:
Kentre Gibson aka Gipp, 40, of Douglas, Georgia, was sentenced to serve 21 months in prison to be followed by two years of supervised release on July 21;
Terry Driggers, 71, of Hoboken, Georgia, was sentenced to serve 17 months in prison to be followed by two years of probation on July 22;
Maurice Glover, 48, of Douglas, Georgia, was sentenced to serve 12 months in prison to be followed by two years of supervised release on July 22;
Starlin Morgan, 39, of Plains, Georgia, was sentenced to serve 11 months in prison to be followed by two years of supervised release on July 21; and,
Timothy White, 51, of Patterson, Georgia, was sentenced to serve 11 months in prison to be followed by two years of supervised release on July 21.
The following co-defendants were sentenced after pleading guilty to attending an animal fighting venture (misdemeanor):
Germany Brockington aka Rat and Gator, 34, of Ambrose, Georgia, was sentenced to serve seven months in prison consecutive to his current prison sentence on Aug. 17;
Alonza Jordan, 48, of Americus, Georgia was sentenced to serve three months in prison to be followed by one year of supervised release on July 21; and,
Shadon Johnson, 37, of Fitzgerald, Georgia, was sentenced to serve two years of probation on July 21.
U.S. District Judge Leslie Gardner presided over the sentencing hearings. There is no parole in the federal system.
According to court documents, this case was based largely on a “two-card” dog fight in Sumter County, Georgia, that was disrupted by law enforcement while in progress on Jan. 21, 2017. According to court documents, Defendant Meyers traveled to the event from Florida with a dog, which he pitted in a fight against a dog handled by Defendant White. Meyers was in illegal possession of a pistol at the time of the fight.
Meyers’s dog was declared the winner of the dog fight but refused to complete a “courtesy scratch” – a macabre dog fighting ritual in which a dog who has already won is taken back to a corner of the ring and released one final time to attack the losing dog (or its dead body). The dog’s continuing “gameness” or willingness to attack garners extra prestige for the handler. After Meyers’s dog refused to complete the courtesy scratch, Meyers suffocated the dog to death by hanging him from a tree branch. Law enforcement found this dog’s body under the bumper of Meyers’s car. Authorities also came upon two other live dogs in the middle of a fight, one of which had extensive injuries and had to be euthanized. After most participants fled the scene, agents recovered several firearms and approximately $18,000 in U.S. currency.
Search warrants executed later at the residences of some of the defendants revealed dozens of pit bull-type dogs housed in conditions consistent with dog fighting. Many of these dogs were emaciated and/or had scarring or injuries. Authorities also seized dog fighting equipment, including injectable veterinary steroids and a dog treadmill on which various dogs’ fighting histories, including whether they had perished during dog fights, was printed.
“Dog-fighting is vicious and illegal; it is also a breeding ground for other dangerous criminal activity that undermines the safety of our communities. Our office will not tolerate dog-fighting; we will continue to work with our law enforcement partners to hold offenders accountable with federal prosecution,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
“The injuries that dogs suffer in fights are horrible enough, but this case shows how the cruelty of the dog fighting industry goes far beyond the fighting pit,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to vigorously prosecute those who engage in these crimes.”
“The cruelty exhibited by these individuals has left a stain on the human psyche of our civilization,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “This collaborative effort with our local and federal partners demonstrates that wherever you are, you will be held accountable to the fullest extent of the law.”
The case was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Sumter County Sheriff’s Office and Decatur County Animal Control.
Assistant U.S. Attorney Jim Crane and Department of Justice Trial Attorney Ethan Eddy prosecuted the case.
Columbus man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Sihrahn Major, II, of Columbus, Ohio, was sentenced today to 84 months of incarceration for his role in a drug trafficking conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Major, also known as “Black,” age 25, pled guilty in June 2021 to one count of “Distribution of 5 Grams or More of Methamphetamine within 1000 feet of a Protected Location.” Major admitted to selling five grams or more of methamphetamine near Riverview Towers on in Wheeling in January 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Columbus man admits to methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Devante Crutez Taylor, of Columbus, Ohio, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Taylor, 28, pleaded guilty today to one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Taylor admitted to having 50 grams or more of methamphetamine in August 2019 in Ohio County.
The government is also seeking the forfeiture of $3,638 in cash found with Taylor that is believed to be proceeds from drug sales.
Taylor is facing at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Chicago Drug Dealer Who Flipped Car While Attempting to Flee from Police Pleads GuiltyRead the Press Release
A man who led Dubuque, Iowa, police on a high‑speed chase that ended with his car on its hood and his gun, heroin, fentanyl, and cocaine in the snow, pled guilty today in federal court in Cedar Rapids.
Richard Allen Roberts, age 39, from Chicago, Illinois, was convicted of one count of distributing crack near a playground and one count of being a felon in possession of a firearm.
In a plea agreement, Roberts admitted that he sold about a half gram of crack cocaine to a confidential informant near Jefferson Park in Dubuque on January 26, 2021. About a week later, police tracked Roberts’s car from Dubuque to Chicago. When he returned to Iowa on February 5, 2021, officers stopped the car after it crossed the bridge into Dubuque from Wisconsin. A narcotics K9 alerted to the odor of narcotics coming from Roberts’s vehicle. After an officer asked Roberts to get out of his car, Roberts put the car in gear and fled. During the subsequent chase, Roberts’s vehicle reached speeds over 80 miles per hour and collided with a snowplow but kept going. Roberts eventually lost control of his car approximately three-and-half miles away in Illinois, flipping the car over onto a snow‑filled median. When the car was turned back over, officers found a plastic bag containing about 32 grams of powder cocaine, 44 grams of crack cocaine, over 9 grams of heroin, and 1.5 grams of heroin and fentanyl. Next to the bag was a Smith & Wesson 9mm pistol. Roberts had previously been convicted of 11 felony crimes in Illinois.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Roberts remains in custody of the United States Marshal. On the drug charge, Roberts faces a mandatory minimum sentence of one year imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, and a lifetime of supervised release following any imprisonment. On the gun charge, Roberts faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years’ supervised release.
The case was investigated by the Dubuque Drug Task Force is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑1017‑CJW‑MAR.
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Chester County Man Sentenced to 28 Years for Secretly Recording Multiple Children in the BathroomRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Israel Faber, 34, of Nottingham, PA, was sentenced to 28 years in prison, and lifetime of supervised release, by United States District Court Judge Mark A. Kearney for multiple child exploitation charges including producing, possessing and distributing child pornography.
In April 2021, the defendant pleaded guilty to three counts of manufacturing child pornography, one count of distribution of child pornography and one count of possession of child pornography. The charges stem from an investigation into an online forum known for being a place where users trade child pornography. For almost a year, the defendant hid his cell phone in a bathroom and secretly recorded child victims while they used the bathroom facilities. Law enforcement agents caught onto the defendant’s crimes in April 2020 during an undercover investigation into an online chat group in which users shared ‘homemade’ child pornography. Faber distributed his own ‘homemade’ child pornography showing a young child using the bathroom. The defendant even highlighted the child’s face to the undercover officer, saying, “that’s [the child’s] face.”
The defendant hid these recordings on his phone and in secret online accounts that federal agents were able to identify using numerous search warrants. These accounts contained thousands of additional child pornography videos and images depicting children as young as infants being sexually abused and raped. Hundreds of child victims have been identified.
“This is an incredibly disturbing case – sexually exploiting children by secretly recording them in the bathroom is horrific,” said Acting U.S. Attorney Williams. “Strong law enforcement collaboration between our Office, the FBI, the Pennsylvania State Police and local police forces, has ensured that this dangerous defendant will be behind bars and unable to hurt children anymore.”
“Israel Faber repeatedly violated children’s privacy, exploiting them for his own sexual gratification,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He further victimized them by sharing the material with other predators. The FBI and our law enforcement partners are working every day to find and bring to justice anyone actively harming children like this.”
"Producing, possessing, and distributing child pornography is an exploitive crime that should never occur," said Major Jeremy Richard, director of the Pennsylvania State Police Bureau of Criminal Investigation. “I would like to extend my gratitude to the partner law enforcement agencies involved in investigating Mr. Faber's heinous online behavior. This sentence serves as a lesson to others who wish to secretly record children in private locations: Your actions are criminal and carry consequences."
The case was investigated by the Federal Bureau of Investigation, York Area Regional Police, Lancaster City Bureau of Police and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.
Champaign County Woman Sentenced to Prison for 52 Months for Embezzlement and Federal Tax EvasionRead the Press Release
URBANA, Ill. – Joan Chenoweth, of Tolono, Illinois, was sentenced to 52 months’ imprisonment, to be followed by three years of supervised release, on September 27, 2021, for embezzlement of over $600,000 from her former employer, Illini Contractor Supply, and her failure to pay federal income tax.
United States District Judge Colin S. Bruce imposed the fifty-two month sentence, citing Chenoweth’s lack of concern for others and residual harm to a viable community business. Judge Bruce ordered Chenoweth to pay restitution in the amount of $599,152.72 to Illini Contractor Supply, and an additional $159,384 to the Internal Revenue Service. The prosecution had recommended a fifty-seven-month sentence of imprisonment, reflecting the U.S. Sentencing Guidelines.
During the sentencing hearing, the government presented testimony from the owner of Illini Contractor Supply who testified to the hardship Chenoweth’s theft placed on the company in the wake of the crime.
Court documents show that from 2014 to 2018, Chenoweth, who had control of the business’s financial records as well as control of and access to the business’s credit cards and bank account, wrote unauthorized vendor checks to herself or to cash payable from Illini Contractor Supply’s bank account; wrote unauthorized payroll checks to herself that exceeded her salary; and used the business’s credit cards to make payments to her personal credit cards. She used her position as office manager to avoid detection by making false entries in the business’s financial records.
Chenoweth pleaded guilty on May 17, 2021, but had remained free on conditions of bond until her sentencing. Judge Bruce ordered her to report to begin serving her sentence on October 5, 2021.
The Champaign Police Department and the Internal Revenue Service, Criminal Investigation Division investigated the case. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
Brooklyn-Based “Rival Impact” Gang Member Sentenced to Two Life Sentences Plus 20 Years’ Imprisonment for Racketeering, Gang War-Related Double Murder and Narcotics OffensesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, United States District Judge Frederic Block sentenced Frank Smith, also known as “Fresh,” a leader of the Coney Island-based gang Rival Impact, to two mandatory life sentences plus an additional 20 years’ imprisonment for racketeering, including predicate acts of murder conspiracy and narcotics offenses, as well as two counts of murder-in-aid-of racketeering for the murder of rival gang members Terrance Serrano and Rashawn Washington. These sentences also include two counts of causing a death through the use of a firearm. Smith was convicted by a jury in June 2018 following a three-week trial.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence brings a measure of justice to the families of the victims of these calculated murders and holds Frank Smith accountable not only for the lives he snuffed out, but also for the devastation he and the other members of his street gang caused for years in Coney Island and elsewhere with their drug trafficking and senseless violence,” stated Acting United States Attorney Kasulis. “This Office, together with our federal and local law enforcement partners, will continue to use all available tools to disrupt and dismantle violent street gangs that wreak havoc on our communities.” Ms. Kasulis expressed her appreciation to the Manhattan District Attorney’s Office for its assistance in the case.
Between January 2000 and January 2014, Smith was a member—ultimately rising to become one of the leaders—of the Rival Impact street gang, a criminal enterprise based in the Mermaid Houses in Coney Island. For more than a decade, Smith and other members of Rival Impact distributed heroin, crack and other narcotics in Brooklyn, New York, and several other states. Smith and other Rival Impact members also engaged in multiple acts of violence in connection with their drug trafficking, including murders, attempted murders, armed robberies and assaults. By the late 2000s, Rival Impact was engaged in a war with members of Thirty-O, a rival street gang based around the Coney Island Houses. After a high-ranking Rival Impact member was slain, purportedly by Thirty-O crew members, Smith and other members of Rival Impact plotted retaliatory murders of Thirty-O members, including Serrano and Washington, who Smith and his gang believed were responsible for the killing of their Rival Impact member. On October 4, 2010, after learning that Serrano and Washington were at a nightclub near Union Square in Manhattan, Smith and another Rival Impact member drove from Coney Island to Manhattan, where they laid in wait to ambush Serrano and Washington. Once Serrano and Washington entered their car, Smith and his co-conspirator opened fire, killing both men.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Maria Cruz Melendez, Jennifer M. Sasso and Josh Hafetz are in charge of the prosecution.
The Defendant:
FRANK SMITH (also known as “Fresh”)
Age: 36
Brooklyn, New YorkEDNY Docket No. 16-CR-346 (S-1)
Brooklyn Man Admits Role in Scheme to Defraud New Jersey Banks by Depositing $1 Million in Stolen ChecksRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a scheme to defraud banks of more than $1 million using stolen and counterfeited checks and stolen identities, Acting U.S. Attorney Rachael A. Honig announced.
Frank Ambrosio, 36, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to the documents filed in this case and statements made in court:
Ambrosio and his conspirators, including Benjamin Rich and Felix Alamo, agreed to defraud banks across New Jersey by using the stolen personal identification information of other individuals to open fraudulent bank accounts and deposit stolen and counterfeited checks. Rich used stolen identities, which included Social Security numbers belonging to minors, to create sham businesses. Ambrosio, Rich, Alamo and others opened bank accounts for the sham businesses and deposited stolen or counterfeited checks into the accounts and attempted to withdraw or transfer the funds before the banks could detect the fraud. Over the course of the scheme, Ambrosio and his conspirators deposited approximately $1 million in fraudulently obtained checks into the fraudulent business bank accounts, resulting in at least $250,000 in losses to the various banks.
The charge of bank fraud carries a maximum of 30 years in prison and a statutory maximum fine of $1 million, or twice the gain derived from the offense or loss caused by the offense, whichever is greatest.The charge of aggravated identity theft carries a statutory minimum prison term of two years in prison, to run consecutively to any term of imprisonment imposed on the bank fraud charge. Sentencing is scheduled for February 9, 2022.
Alamo previously pleaded guilty and is scheduled to be sentenced on Oct. 4, 2021.
Rich was indicted on these charges on June 25, 2021, and his trial date has not been scheduled.
Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the Treasury Inspector General for Tax Administration under the direction of Special Agent in Charge Andrew McKay; and the New York Police Department’s Special Fraud Squad under the direction of Assistant Police Chief Jason Wilcox.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against Rich and are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: William Strazza Esq., Chester, New Jersey
Brazilian National Sentenced to 4 Years in Prison for $15 Million Advance Fee Scheme; Additional Charges Unsealed Against 4 Co-ConspiratorsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that JOAO DJALMA PRESTES JUNIOR, a/k/a “Joao Pereira,” a Brazilian national, was sentenced today to 48 months in prison after pleading guilty to defrauding Brazilian businesses of approximately $15 million through an international advance fee scheme. PRESTES JUNIOR was arrested in June 2020 and pled guilty in April 2021 before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.
In addition, Superseding Indictments were unsealed today charging co-conspirators HERMINIO RIBEIRO DIAS CRUZ, JUAN CARLOS VILLALBA, ROSE MARTINS DE OLIVEIRA, and ALEX PEREIRA DE SOUTO with wire fraud and conspiracy to commit wire fraud in connection with the same international advance fee scheme. CRUZ, VILLALBA, DE OLIVEIRA, and DE SOUTO remain at large.
Manhattan U.S. Attorney Audrey Strauss said: “Partly through face-to-face meetings with victims in a Manhattan skyscraper, Joao Djalma Prestes Junior stole millions of dollars from companies seeking loans. Prestes Junior will now spend four years in U.S. prison for those crimes. As alleged, Prestes Junior did not work alone. His four fugitive alleged co-conspirators in this multimillion-dollar international advance fee scheme have now been charged.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Postal Inspectors usually see advance fee scams tied to lottery fraud. However, in this case the victims were allegedly duped into paying fees in advance to secure business loans. The defendants allegedly used victim money to fund their opulent lifestyles. Postal Inspectors remind those seeking loans to exercise due diligence when you have to pay money to get money.”
According to public filings and court proceedings in the case against PRESTES JUNIOR, CRUZ, VILLALBA, DE OLIVEIRA, and DE SOUTO, including the allegations in the Superseding Indictments[1]:
Since at least July 2018 up to and including February 2020, PRESTES JUNIOR participated in a scheme to defraud Brazilian-based businesses of millions of dollars through an advance fee scheme.
As part of the scheme PRESTES JUNIOR and his co-conspirators falsely represented that the victims would receive a large loan after making advance payment of various fees to entities that, unbeknownst to the victims, were controlled by the conspirators. To effect the scheme, PRESTES JUNIOR and his co-conspirators created several shell companies (and accompanying websites) in the United States: a purported financial entity, a purported escrow company, and a purported insurance entity. The defendant and his co-conspirators directed victims to pay advance fees to the escrow company and the insurance entity. After the initial payments were made, the defendant and his co-conspirators falsely represented that there was some obstacle to transferring the loan money to the victim – such as a tax payment – and that the obstacle could be overcome if the victim made yet another advance payment. Ultimately, despite paying one or more such fees up front, the victims never received the promised loans, and the money paid in advance was never returned.
PRESTES JUNIOR also had executives of the victim companies travel to New York, New York, for in-person meetings in a suite in a skyscraper in downtown Manhattan that was purportedly the financial entity’s New York office. When interacting with victim companies, however, PRESTES JUNIOR used an alias, “Joao Pereira,” due to the defendant’s notoriety in Brazil, where the defendant was previously the subject of widely publicized criminal proceedings.
Money stolen from victims was used in part to fund PRESTES JUNIOR’s lavish lifestyle. For example, although PRESTES JUNIOR did not even live in the United States full time, he owned a Maserati in this country.
* * *
In addition to the prison term, JOAO DJALMA PRESTES JUNIOR, a/k/a “Joao Pereira,” 48, a Brazilian national, was ordered to forfeit $15,266,679.10 and to make restitution in the amount of $15,266,679.10.
HERMINIO RIBEIRO DIAS CRUZ, 76, a Portuguese national, JUAN CARLOS VILLALBA, 56, a Paraguayan national, ROSE MARTINS DE OLIVEIRA, 61, a Brazilian national, and ALEX PEREIRA DE SOUTO, 40, a Brazilian national, are each charged with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the USPIS.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Micah F. Fergenson is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictments and the description of the Superseding Indictments set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Biddeford Man Pleads Guilty to Child Sexual Exploitation OffensesRead the Press Release
PORTLAND, Maine: A Biddeford man pleaded guilty today in federal court to sexually exploiting a minor and transporting child pornography, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in 2016 or 2017, Jason Proulx, 43, recorded sexually explicit videos of a girl who was seven or eight years old at the time. In July 2019, Proulx uploaded the videos to a French website. Investigators with Homeland Security Investigations executed a search warrant at a residence in Biddeford in June 2020. Proulx was present and agreed to speak with investigators. After initially denying any involvement with pornography, he eventually admitted that he had recorded sexually explicit videos of the girl in a room in the residence.
Proulx faces a minimum of 15 years and a maximum of 30 years in prison and a $250,000 fine for sexually exploiting a minor. He faces a minimum of five years and a maximum of 20 years in prison and a $250,000 fine for transporting child pornography. He also faces a term of supervised release of at least five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations investigated the case with assistance from the Biddeford Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Berkeley County man sentenced to 13 years for child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Eugene Wright, IV, of Martinsburg, West Virginia, was sentenced today to 156 months of incarceration for a child pornography charge, Acting U.S. Attorney Randolph J. Bernard announced.
Wright, 40, pleaded guilty to one count of “Distribution of Child Pornography” in June 2021. Wright admitted to having and distributing child pornography from July to September 2017 in Berkeley County.
Wright was also ordered to pay a $10,000 fine.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Thomas E. Johnston presided.
Bergen County Woman Pleads Guilty to Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Lyndhurst, New Jersey woman admitted to her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced today.
Ruby Baroni, 54, of Lyndhurst, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Julien Xavier Neals to a two-count information charging her with one count of wire fraud and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company. In that capacity, Baroni had authority to cut checks against the company’s bank accounts. During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company. Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use. In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company. Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return. Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on September 20, 2021.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of subscribing to a false tax return carries a maximum penalty of 3 years in prison and a $250,000 fine. Sentencing is scheduled before Judge Neals for January 25, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raiumundo Marrero, and the Internal Revenue Service—Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Defense counsel: Amie E. DiCola, Esq., Passaic, New Jersey
Belgrade Man Pleads Guilty to Bank RobberyRead the Press Release
BANGOR, Maine : A Belgrade man pleaded guilty today in U.S. District Court in Bangor to bank robbery, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on September 30, 2016, Clinton Damboise, 45, entered the Camden National Bank in Manchester, Maine. He approached a female teller and told her, “this is a robbery, not a joke.” He gestured to the waistband of his jacket and said he had a gun. The teller gave him $3,179 and he fled. He was subsequently identified by the teller and by the bank’s security camera footage.
Damboise faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, the Maine State Police, the Kennebec County Sheriff’s Office and the Southington (Connecticut) Police Department investigated the case.
Bath Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Clark, 35, of, Bath NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to two counts of distributing child pornography. The charges carry a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $500,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant was observed by an undercover FBI agent distributing child pornography online. A search warrant was executed at Clark’s residence during which investigators seized thousands of files containing images and videos of child pornography. The images included violence against young children.
The defendant also admitted to the FBI that he had physically molested a minor victim on several occasions, which resulted in separate state charges.
The plea is the result of an investigation by the Federal Bureau of Investigation, acting under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for January 7, 2022, at 11:00 am before Judge Siragusa.
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Bank Robbers Who Tracked and Kidnapped Bank Employees Sentenced in Federal CourtRead the Press Release
Memphis, TN – After a four-day federal jury trial in June 2021, Antonio Johnson 44, Travis Jackson 37, and Shalundra Johnson, 39 were found guilty of kidnapping and multiple bank robberies. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentencing today.
According to information presented in court, on September 14, 2018, at approximately 2:15 a.m., an employee of Trustmark Bank on Elvis Presley Blvd., got off work from her second job and arrived home. As the victim walked into her home, a male with a firearm grabbed her and pushed her inside of the residence. The victim was zip-tied and taken to the bank to complete the robbery where approximately, $73,400 was taken. Travis Jackson’s DNA was recovered from the zip-ties used to restrain the victim.
On December 7, 2018, at approximately 7:18 p.m., an employee of the First Tennessee Bank on Elvis Presley Blvd arrived home from work. While in her driveway, an unknown male wearing a mask approached her vehicle. The unknown male forced the victim at gunpoint to the passenger seat of her vehicle and drove her to a location near the bank. The victim was then zip-tied and taken to the bank to complete the robbery; approximately, $110,435 was taken. Again, Travis Jackson’s DNA was recovered from the zip-ties used to restrain the victim and from other zip-ties recovered from the scene. Travis Jackson’s cell phone records placed him at the bank at the time of the robbery. Cell phone records also placed Antonio Johnson at the scene of the victim’s house and at the bank at the time of the kidnapping and the robbery. A tracking device was placed on the victim's vehicle for the gunman to determine where she lived.
On April 4, 2019, at approximately 6:15 p.m., an employee of First South Financial Credit Union on East Shelby Drive, arrived at her home in Horn Lake, Mississippi. Armed men entered the victim’s home, zip-tied the victim’s hands, and demanded keys to the bank.
The victim, along with her three-year-old child, were then forced into her personal car and driven away. Eventually, the victim was taken to the bank for the robbery.
Approximately, $425,000 was taken in the robbery. Shalundra Johnson placed a tracking device on the victim's vehicle for the gunmen to determine where the victim lived. Cell phone records, tracking device information, and evidence recovered from the respective defendant’s residences proved the involvement of the defendants in the robbery.
United States District Court Judge Sheryl H. Lipman sentenced each defendant. Travis Jackson was sentenced on September 3, 2021, to a total of 544 months (45.3 years) in federal prison to be followed by three years’ supervised release. Antonio Johnson was sentenced on September 24, 2021, to 432 months (36 years) to be followed by three years supervised release. Shalundra Johnson was sentenced on September 1, 2021 to 140 months (11.6 years) imprisonment to be followed by three years supervised release. There is no parole in the federal system.
"These sentences should send a clear message that the FBI and our law enforcement partners make it a priority to bring to justice those who resort to bank robbery and kidnapping for ill-gotten financial gains," said Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, Douglas M. Korneski. "Violent crimes will not be tolerated, and law enforcement will not rest, until offenders are caught, prosecuted and held accountable for their actions."
This case was investigated by the FBI’s Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Memphis Police Department, Desoto County (MS) Sheriff’s Department and Horn Lake, MS Police Department.
Assistant U.S. Attorneys Marques Young and Kevin Whitmore prosecuted this case on behalf of the government.
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Baltimore Businessman Charles Nabit Sentenced to 18 Months in Federal Prison for Transportation of Women to Engage in ProstitutionRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Charles “Chuck” Nabit, age 66, of Baltimore, Maryland, today to 18 months in federal prison, followed by three years of supervised release, for transportation of an individual to engage in prostitution. Judge Russell also ordered Nabit to pay a fine of $55,000 and a special assessment of $5,100. Nabit, who owns residences and resides in Bethany Beach, Delaware and Deerfield Beach, Florida, is the owner of Westport Group, LLC. and previously owned Mountain Manor Treatment Center, a comprehensive drug treatment center. As agreed to in the plea agreement, Nabit regularly paid money for commercial sex with women that he knew regularly used narcotics or were severely addicted to narcotics, including one victim who died from a drug overdose, and another victim that Nabit supplied with cocaine.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Chief Lisa Myers of the Howard County Police Department.
“Charles Nabit paid thousands of dollars for commercial sex with victims that he knew were addicted to narcotics, including one woman that he personally supplied with cocaine and another who died from an overdose. Rather than use his abundant resources to help these victims, Nabit perpetuated their victimization for his own gratification,” said Acting U.S. Attorney Jonathan Lenzner. “One would hope that a businessman with means who previously owned a drug treatment center would help these victims rather than further their drug addiction and reliance on commercial sex. Charles Nabit not only violated federal law, he also used his wealth and stature to gratify himself while perpetuating the victimization of these women.”
“The sentencing today serves as a bittersweet moment for the victims of Charles Nabit’s reprehensible actions,” said HSI Special Agent in Charge James R. Mancuso. “HSI is proud to have partnered with the Howard County Police Department and the U.S. Attorney’s office to hold Mr. Nabit accountable for his crimes.”
According to his guilty plea, beginning in 2017 until his arrest on June 10, 2020, Nabit regularly paid for commercial sex, including in at least 52 payments via Cash App to an adult man who has been charged with sex trafficking. The seven women whom Nabit admitted he paid for commercial sex (Victims 1 through 7) either regularly used narcotics or suffered from serious substance abuse disorders during the time periods in which Nabit engaged in commercial sex with them.
Nabit admitted that from August 2018 to May 2020, he paid at least $90,000, as well as an additional unknown amount of cash, to women with whom he had commercial sex. This includes 52 Cash App transactions to an individual who he knew to be someone other than the victim he was seeing for commercial sex. For example, on April 11, 2019, Nabit received a message from the Cash App account registered to De’Angelo Johnson requesting $140 for “coming thru on a good girl and a hot girl.” The victim, Victim 1, had requested that Nabit pay her directly, sending a message to Nabit’s CashApp account, but Nabit refused to pay her and sent $145 payment to the Cash App account registered to Johnson with a message indicating the payment was “for (the first name of Victim 1).” De’Angelo Johnson has been charged in federal court with sex trafficking in a separate indictment and is scheduled for trial beginning in March 2022.
As detailed in his plea agreement, Nabit regularly transported victims to and from his Baltimore office for commercial sex, either in his vehicle or by using a rideshare car service. In separate encounters with Victim 1, Victim 3, and Victim 5, Nabit also recorded their sex acts with a Go Pro camera despite their objections to being filmed. Nabit was aware of Victim 5’s substance abuse as she discussed her struggles with addiction and depression. Nabit knew that, more than likely, some of the money provided to Victim 5 was being used to fund her drug use.
According to the plea agreement, beginning no later than February 2019, Nabit began seeing Victim 6 for commercial sex and travel dates. She discussed her addiction struggles with Nabit on several occasions. During their sexual encounters, Nabit provided Victim 6 with monetary payment and cocaine. For example, Nabit paid $5,000 to Victim 6 for her to accompany him to Fort Lauderdale, Florida and engage in commercial sex. During that trip, Nabit also provided Victim 6 with cocaine. Nabit also traveled with Victim 6 to a hotel in Richmond, Virginia on at least three separate occasions to engage in commercial sex. Victim 6 was paid at least $1,000 in cash for one of these trips. Hotel records revealed multiple overnight stays by Nabit between August 2019 and March 2020.
Until her death in May 2019, Nabit admitted that he also regularly engaged in commercial sex with Victim 7. Victim 7 repeatedly discussed her drug addiction in text messages with Nabit and expressed to Nabit her desire to obtain treatment for her substance abuse. Specifically, on August 13, 2018, Victim 7 told Nabit she completed an application for Mountain Manor Treatment Center and Nabit replied, “As you recall, I used to own MM and my ex-partner still does.” Nabit and Victim 7’s mother spoke on several occasions about Victim 7’s drug use. For example, on August 18, 2018, Nabit texted Victim 7’s mother about Victim 7 going to drug rehabilitation. Nabit stated that Victim 7 began using opiates again but that “she seemed to handle crack ok for weeks.” On May 23, 2019, Victim 7’s mother informed Nabit that Victim 7 had overdosed on drugs and died.
On December 9, 2019, Nabit and his attorney met with investigators for an interview in relation to a sex trafficking investigation involving alleged sex trafficker De’Angelo Johnson and Victims, 1, 2, 3, and 4. During this interview Nabit was asked whether he was aware that the sex trafficking victims were drug users. He was shown pictures of four victims and claimed to have only been aware of one victim’s drug use. He also claimed he had never seen signs of drug use in the remaining victims, as he had owned a drug treatment facility for 10 years and he would have recognized signs of drug use.
Nabit was arrested on June 10, 2020, and law enforcement executed federal search warrants for his person, his electronics, his Baltimore office, and his vehicle. Law enforcement recovered numerous sex toys and filming equipment, including five Go Pro cameras, from Nabit’s office. Nabit’s office also had a large sectional sofa that converted to a bed which had a sheet on it. A forensic analysis of Nabit’s cell phone and Go Pro cameras recovered numerous messages related to commercial sex as well as images and videos of victims engaging in commercial sex with Nabit.
Acting United States Attorney Jonathan F. Lenzner commended HSI and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Mary W. Setzer and P. Michael Cunningham, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Allegheny County Man Sentenced for Conspiring to Distribute Synthetic CannabinoidsRead the Press Release
PITTSBURGH, PA – Diassandai Serrano was sentenced to 35 months in prison for conspiring to distribute Schedule I synthetic cannabinoid controlled substances while on federal supervised release, Acting United States Attorney Stephen R. Kaufman announced today.
Serrano, age 26, formerly of North Versailles, Pennsylvania. was sentenced by United States District Judge J. Nicholas Ranjan. Judge Ranjan sentenced Serrano to 27 months in prison for the drug trafficking conspiracy conviction and to 8 months in prison for the supervised release violation. Judge Ranjan ordered that the prison sentences be served consecutively to each other. Judge Ranjan also ordered Serrano to pay a $500 fine and to serve three years of supervised release following his prison sentence.
Serrano was previously convicted in 2015 and sentenced to serve 60 months in federal prison for possession of a firearm in furtherance of a drug trafficking crime. He was released to supervised release following the prior prison sentence. He then conspired to distribute the Schedule I synthetic cannabinoid controlled substances while on supervised release for the prior conviction. As part of the conspiracy, he supplied the controlled substances to other dealers, including to a co-defendant who was incarcerated at FCI-Hazelton at the time.
Assistant United States Attorney Craig W. Haller prosecuted this case on behalf of the United States.
The Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Prisons, and the Pennsylvania Office of Attorney General led the multi-agency investigation that also included the United States Postal Inspection Service, the Beaver County District Attorney’s Office, the Department of Homeland Security/Homeland Security Investigations, the Pittsburgh Police Department, the United States Marshals Service, the Pennsylvania State Police, the Munhall Police Department, the Robinson Township Police Department, the McKees Rocks Police Department, the Stowe Township Police Department, the Etna Police Department, and the Erie County District Attorney’s Office.
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.
Akron Man Sentenced to 10 Years in Federal Prison for Role in Methamphetamine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – An Akron man was sentenced to 10 years in federal prison today for his role in a methamphetamine conspiracy.
According to court documents, Tionte Lavon Blanchard, 25, previously pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine and admitted that he and others participated in a conspiracy from the fall of 2018 to June 2019 to distribute methamphetamine that was frequently shipped from Akron, Ohio to various locations in West Virginia. Blanchard utilized a residence on 25th Street in Huntington to store methamphetamine after it arrived from Akron. On June 6, 2019, investigators executed a search warrant at the residence and seized over 1.7 kilograms of 100% pure methamphetamine. Blanchard admitted that he possessed the methamphetamine and intended to distribute it in the Huntington area.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:19-cr-000245.
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Akron Career Criminal Sentenced to 15 Years After Convictions of Felon in Possession of Firearm and Possession of an Unregistered ShotgunRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Jackie Mitchell Jr., 29, of Akron, was sentenced on September 22, 2021, by Judge Benita Y. Pearson to a term of 15 years imprisonment after Mitchell pleaded guilty in June of 2021 to felon in possession of firearm and possession of an unregistered short-barrel shotgun.
According to court records, on October 21, 2020, Akron Police responded to a call for a domestic violence incident involving shots fired at a residence. Upon arrival, police determined that Mitchell had fired multiple shots from a firearm during the incident. Mitchell fought with the responding police officers at the scene and was subsequently arrested. Police then recovered several firearms from the residence that belonged to Mitchell, including an unregistered short-barrel shotgun, two pistols, two rifles and miscellaneous ammunition.
Mitchell is prohibited from possessing a firearm due to prior convictions of domestic violence, assault and drug trafficking. Mitchell has four prior domestic violence convictions in the Summit County Common Pleas Court. These previous convictions qualified Mitchell to be sentenced as an Armed Career Criminal.
This investigation was conducted by the ATF and the Akron Police Department. This case was prosecuted by Assistant U.S. Attorney Aaron P. Howell.
20-Year-Old Sentenced to Federal Prison for Armed Carjacking CrimeRead the Press Release
Memphis, TN – Carlos Jones, 20, has been sentenced to 90 months in federal prison for his role in a carjacking, committing the carjacking and brandishing a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentenced today.
According to information presented in court, on July 13, 2018, at approximately 9 p.m., the victim J.M. was washing his 2013 Volkswagen Passat at a local carwash on Holmes Road when approached by two suspects, both of whom pointed firearms and demanded his vehicle. The victim said one of the suspects pointed a gun at him from behind and said, "Get the hell away from the car and go."
Surveillance video showed the suspects entered the carwash in a white vehicle, exited the vehicle and approached the victim. Footage captured the victim's vehicle leaving the carwash, followed by the suspect's vehicle. The victim's vehicle was tracked by GPS and later recovered from an apartment complex in Southaven, Mississippi.
Fingerprints belonging to co-defendant Angelo Bunting, 22, were recovered from the interior of the vehicle. The victim positively identified both co-defendants as the suspects responsible for the carjacking. Bunting was previously sentenced to 20 years for this carjacking, as well as others.
On September 23, 2020, Jones entered a guilty plea to the charges of carjacking and brandishing a firearm during a crime of violence.
On September 23, 2021, U.S. District Court Judge Mark Norris sentenced Jones to 90 months in federal prison to be followed by five years’ supervised release. There is no parole in the federal system.
The Memphis Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated this case.
Special Assistant U.S. Attorney Samuel D. Winnig and Assistant U.S. Attorney Elizabeth Rogers prosecuted this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for prosecuting violent crimes and firearms offenses in federal court.
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Friday 24 September 2021
Willamette Valley Grass Seed Company Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—A Willamette Valley wholesale grass seed distributor pleaded guilty today in federal court for knowingly concealing a scheme to defraud the Jacklin Seed Company, then a subsidiary of the J.R. Simplot Company.
ProSeeds Marketing, Inc., a company based in Jefferson, Oregon, pleaded guilty to one count of misprision of felony.
According to court documents, ProSeeds had a longstanding commercial relationship with the Jacklin Seed Company and routinely contracted with Jacklin for the purchase and sale of grass seed. These contracts were typically negotiated with a Jacklin employee acting under the supervision of Christopher Claypool, Jacklin’s general manager. In March 2021, Claypool, 53, of Spokane, Washington, was convicted of wire fraud and money laundering for perpetrating multiple schemes to defraud Jacklin. Claypool was later sentenced to three years in federal prison.
Beginning in December 2018, Claypool and the Jacklin employee conspired to divert a portion of the overseas sales Claypool negotiated on behalf of Jacklin so that Claypool and the employee could collect commissions on those sales. As part of this scheme, Claypool incorporated Green Pyramid, LLC to pose as an independent grass seed broker and accept payment of the fraudulent commissions.
In furtherance of the scheme, the Jacklin employee whom Claypool supervised arranged for ProSeeds to book sales diverted from Jacklin with mark-ups dictated by Claypool. The bulk of these mark-ups were then kicked back to Claypool. ProSeeds participated in the scheme with the aim of creating an overseas customer base. Nevertheless, the company intended to and did conceal Claypool’s scheme.
From December 2018 to August 2019, ProSeeds booked twelve diverted and bogus sales, generating more than $474,000 in mark-ups on Jacklin seed. Although the bulk of the mark-ups went to Claypool and his subordinate, ProSeeds retained more than $78,000 in revenue from the transactions.
On September 14, 2021, ProSeeds was charged by criminal information with misprision of felony. The company faces a maximum sentence of five years’ probation and a $500,000 fine. ProSeeds will be sentenced on November 29, 2021, before U.S. District Court Judge Karin J. Immergut.
As part of the plea agreement, ProSeeds has agreed to pay $78,775 in restitution to Simplot.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS-Criminal Investigation and the U.S. Department of Agriculture Office of Inspector General. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Whitley County Man Pleads Guilty to KidnappingRead the Press Release
LONDON, Ky. — A Corbin, Kentucky, man, Douglas M. Edmonson, 38, pleaded guilty on Thursday, before U.S. District Judge Robert E. Wier, to kidnapping.
According to the investigation and his guilty plea, Edmonson and his three co-defendants lured a victim to a location in Tennessee, using an unrelated party’s Facebook account. Edmonson and his co-defendants then forced the victim into a vehicle and transported her to Corbin. The victim was bound, blindfolded, and repeatedly assaulted during the 2-day kidnapping. The investigation revealed that Edmonson and his co-defendants employed firearms, as well as explosive devices during the kidnapping. On August 11, 2018, ATF agents were called to the kidnapping scene in Corbin, and assisted in locating and detonating several homemade pipe bombs.
Edmonson was indicted in September 2019. Edmonson’s co-defendants, Dallas Chain Perkins, Bryanna Soper , and Erik Peace, previously entered guilty pleas to kidnapping and are also awaiting sentencing.
“After being lured, restrained, and held for drugs or ransom, the victim in this case was threatened with firearms and homemade explosives, then brutally beaten, burned, and repeatedly assaulted,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “While nothing can make up for the unspeakable suffering the victim endured here, she knows that those who did this to her will now face the consequences of their appalling conduct. I want to commend the work of our law enforcements partners. Without their efforts, this result would not have been possible.”
“This defendant was an armed drug trafficker and part of a group that reigned terror and committed heinous acts of violence in our rural communities,” said ATF Special Agent In Charge R. Shawn Morrow of the Louisville Field Division. “I commend the efforts of the ATF agents and our Kentucky State Police partners who worked diligently on this year-long investigation to help bring a sense of justice to the victim. I hope this case sends the message that ATF and our law enforcement partners will not standby and allow these acts of violence.”
The investigation was conducted by the ATF and KSP, with assistance provided by the Williamsburg Police Department. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
Edmonson is scheduled to be sentenced on January 17, 2022. All 4 defendants face a maximum of Life in prison and a $250,000 fine. However, any sentence will be imposed by the Court, after its consideration of the U.S. Sentencing Guidelines and the federal sentencing statutes.
This case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program (PSN), which is a nationwide, crime reduction strategy aimed at decreasing violent crime in communities. The PSN program involves a comprehensive approach to public safety — one that includes investigating and prosecuting crimes, along with prevention and reentry efforts. In the Eastern District of Kentucky, Acting U.S. Attorney Shier coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
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West Virginia Man Convicted After Two Day Jury TrialRead the Press Release
FORT WAYNE- Kevin Hartleroad, 64, of Parkersburg, West Virginia, was convicted on the sole count of an Indictment charging him with attempted production of child pornography following a two day jury trial announced Acting United States Attorney Tina L. Nommay.
According to documents in this case, in February 2020, Hartleroad attempted to coerce a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of such conduct.
Sentencing is scheduled for January 5, 2022.
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Lesley J. Miller Lowery.
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West Branch Resident Sentenced to 30 Months in Federal Prison on Tax ChargesRead the Press Release
BAY CITY – A West Branch resident was sentenced yesterday to 30 months in federal prison on charges of filing false tax returns and aiding and abetting the filing of false tax returns and ordered to pay $844,945 in restitution to the IRS, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Acting Special Agent in Charge Brian Thomas, Internal Revenue Service, Criminal Investigation, Detroit Field Office.
Sentenced was Christopher Fratine, 53. Fratine pleaded guilty in July 2019 to five counts of making a false tax return and four counts of aiding and abetting the filing of false tax returns before United States District Judge Thomas Ludington. Sentencing was delayed due to the COVID-19 pandemic.
According to court documents, Fratine owned and operated a home health care business named Unity Home Care Services (UHCS). He also operated a separate home health care business named Unity Home Health Care (UHHC), which was owned by his wife. UHCS and UHHC provided in-home skilled nursing care, physical therapy, speech therapy and occupational therapy services in the general vicinities of Houghton Lake, Traverse City and Bay City, Michigan. From 2013 until 2016, Fratine willfully made and subscribed false and fraudulent Individual Income Tax Returns, for calendar years 2012 through 2015, and Form 1120, U.S. Corporation Income Tax Return for UHCS, for calendar year 2013. Fratine also reviewed the tax returns prepared by the CPA based on the information he provided to her and willfully aided and assisted in, procured, counseled and advised the preparation and presentation to the IRS of false and fraudulent tax Forms 1120, U.S. Corporation Income Tax Returns for UHHC, for calendar years 2012 through 2015. IRS records showed that between 2012 and 2015, UHCS earned approximately $3 million in gross receipts, all of which came from Medicare, and UHHC earned approximately $6.4 million in gross receipts, of which approximately $5 million came from Medicare and the rest from private insurers. Fratine deposited all of the revenue from private insurers and a portion of the Medicare revenue into business bank accounts. He provided bank statements from these bank accounts to a CPA, who prepared the Forms 1120 for UHCS and UHHC and individual income tax returns for the Fratine based on this information. Fratine deposited the rest of the Medicare revenue in accounts with other financial institutions, but failed to disclose this and failed to provide statements to his CPA, concealing the existence of this income and of these accounts from the CPA. Between 2012 and 2015, FRATINE diverted over $2,147,537 of business gross receipts into bank accounts hidden from his CPA. In addition, Fratine wrote several business checks in 2012 through 2015, with a total of approximately $114,000, payable to Medicare and Humana, from the business bank accounts known to the CPA, claiming they were overpayments by the insurance companies, and, as such, deductible from gross receipts as returns and allowances; he then deposited those checks into the concealed business accounts. The CPA received carbon copies of all of these business checks causing her to incorrectly report the checks payable to Medicare and Humana as returns’ and deduct the checks from the businesses’ gross receipts on the Forms 1120. Fratine transferred the funds from these undisclosed bank accounts into his personal bank accounts and used the funds for gambling and other personal purposes.
“Individuals like Mr. Fratine, who created elaborate schemes to purposefully mislead others and defraud the IRS should expect to be prosecuted,” said IRS – Criminal Investigation, Detroit Field Office, Acting Special Agent in Charge Brian Thomas. “The sentencing of Mr. Fratine demonstrates he intentionally falsified tax returns to hide millions of dollars of taxable income from the IRS. These types of crimes will always be investigated and prosecuted to the full extent of the law.”
This case was investigated by agents of the Internal Revenue Service, Criminal Investigation and was prosecuted by Assistant United States Attorney Anca Pop.
Virginia Doctor Pleads Guilty to $1.8 Million Health Care Fraud SchemeRead the Press Release
ALEXANDRIA, Va. – A Virginia doctor pleaded guilty today to his role in a $1.8 million health care fraud scheme to prescribe medically unnecessary compounded pain and scar creams and other expensive medications.
“Through his deceit and greed, Rosen exploited the trust placed in him as a medical professional to engage in an extensive scheme that defrauded health insurance programs out of $1.8 million,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Instead of prescribing medications in an honest and lawful manner to help those in need, the defendant sold out his medical license and training, and will now become a convicted felon.”
According to court documents, Leonard Rosen, 72, of Fairfax Station, was an obstetrician-gynecologist (OB-GYN) who practiced in Northern Virginia since 1980. Rosen was also the owner of an OB-GYN medical practice. In 2014, Rosen met Mohamed Abdalla, 48, of Allendale, New Jersey, who was a licensed pharmacist and owned and operated several pharmacies. Shortly thereafter, Rosen entered into an agreement with Abdalla to prescribe expensive compounded pain and scar creams, which Rosen then ensured were sent to Abdalla’s pharmacies. In return, Abdalla agreed to pay Rosen a percentage of the profits. Prior to this scheme, Rosen had not prescribed expensive compounded medications. However, during the scheme, Rosen prescribed countless medically unnecessary compounded medications. In total, Rosen’s illegal actions resulted in $1,880,575.70 in losses to private health care benefit programs.
“Leonard Rosen exploited health care programs and his patients for personal gain by participating in a scheme to prescribe medically unnecessary prescriptions in return for money, and those criminal actions have consequences,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “Today’s plea is an example of the dedicated work of the FBI and our partners to root out fraud, ensure the safety of our communities, and hold criminals accountable for their actions.”
For his role in this and other schemes, Abdalla was sentenced on March 19 to four years in prison. Rosen is scheduled to be sentenced on December 10. He faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division; Chris Dillard, Special Agent in Charge for the Defense Criminal Investigative Service’s (DCIS) Mid-Atlantic Field Office; and Maureen R. Dixon, Special Agent in Charge of the Office of Inspector General for the U.S. Department of Health and Human Services (HHS), made the announcement after Senior U.S. District Judge Claude M. Hilton accepted the plea.
Assistant U.S. Attorneys Monika Moore and Carina A. Cuellar are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:21-cr-205.
Vicksburg Man Sentenced to Four Years in Prison for Bank RobberyRead the Press Release
Jackson, Miss – A Vicksburg man was sentenced to 48 months in federal prison for bank robbery, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Jermicha Fomby of the Federal Bureau of Investigation in Mississippi.
According to court records, on August 1, 2018, David Michael Gammill, 45, of Vicksburg, entered Trustmark National Bank located on North Frontage Road in Vicksburg, approached a teller, and said the bank was being robbed. Gammill passed a plastic bag to the teller and demanded money. Gammill told the teller that he possessed a firearm in his coat pocket and, according to bank employees, it appeared as if he did. Gammill’s intimidating behavior caused the teller to hand over money out of fear of bodily injury. Gammill then fled the bank.
Gammill was captured later that day by the Vicksburg Police Department and the Federal Bureau of Investigation. Gammill was charged with bank robbery and pled guilty on February 24, 2020.
The case was investigated by the Vicksburg Police Department and the Federal Bureau of Investigation.
The case was prosecuted by Assistant United States Attorney Bert Carraway.
United States Files Suit Against Tampa Doctor for Allegedly Taking Kickback Payments in Return for Fraudulent Fentanyl Spray PrescriptionsRead the Press Release
Tampa, Florida – The United States has filed a civil lawsuit against Dr. Edward Lubin, a pain management doctor practicing in Tampa, alleging that he issued patients medically unnecessary prescriptions for Subsys, a fentanyl-based spray manufactured by Insys Therapeutics, Inc., and used to treat breakthrough cancer pain. Dr. Lubin allegedly participated in Insys’ sham speaker program, through which it paid doctors in exchange for them writing such unnecessary prescriptions for Subsys.
In its complaint, the government alleges Dr. Lubin violated the federal Anti-Kickback Statute and the False Claims Act by repeatedly accepting payments of up to $3,700 from Insys for attending sham speaking events and, in exchange for these payments, prescribed Subsys to patients for whom the drug was either not medically necessary or otherwise inappropriate. These prescriptions were submitted to and paid through the Medicare and TRICARE federal healthcare programs. As further alleged in the complaint, between 2014 and 2016, Dr. Lubin prescribed Subsys to 61 patients, only nine of whom actually had cancer. In total, the United States alleges Dr. Lubin received more than $159,000 in payments from Insys and, in return, wrote Subsys prescriptions for which Medicare paid more than $2.8 million in claims.
The United States previously prosecuted Insys under a criminal information filed in the District of Massachusetts, and Insys agreed to a global resolution of the government’s separate civil and criminal investigations. As part of the civil resolution, Insys agreed to pay $195 million to settle allegations it violated the False Claims Act and, as part of the criminal resolution, it entered into a deferred prosecution agreement with the government, its operating subsidiary pleaded guilty to five counts of mail fraud, and the company was subject to a $2 million fine and $28 million in forfeiture.
Additionally, the United States criminally prosecuted the founder and four former executives of Insys. A federal jury in Boston previously found those defendants guilty of, among other things, using Insys’ speaker program to bribe medical practitioners to prescribe Subsys.
The claims asserted against Dr. Lubin are allegations only, and there has been no determination of liability.
This case was investigated by the Department of Justice, the U.S. Department of Health and Human Services – Office of Inspector General, and Department of Defense Office of Inspector General – Defense Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Jeremy Bloor.
Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477) and the Department of Defense Office of Inspector General at 1-800-424-9098.
Two Officers Indicted on Charges in Death of 20-Year-Old Karon Hylton-BrownRead the Press Release
WASHINGTON – An indictment was unsealed today charging two members of the Metropolitan Police Department (MPD) with offenses stemming from the Oct. 23, 2020, police vehicular pursuit in Northwest Washington that caused the death of Karon Hylton-Brown.
Terence Sutton, 37, an officer, was indicted on a District of Columbia charge of second-degree murder and federal charges of conspiracy and obstruction of justice. Andrew Zabavsky, 53, a lieutenant, was indicted on federal charges of conspiracy and obstruction of justice.
“Police officers are sworn to uphold the law and ensure the safety of the community. The vast majority of officers execute their duties in an exemplary manner, and we are grateful for their dedicated service,” said Acting U.S. Attorney Channing D. Phillips. “But when a select few violate their oath by engaging in criminal conduct, they cannot do so with impunity and must be held accountable. This indictment seeks to do just that.”
“As alleged in the indictment, these sworn law enforcement officers showed a careless disregard for Mr. Hylton-Brown’s life and then conspired to obstruct the investigation of their actions,” said Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division. “The FBI has an obligation to ensure that law enforcement officers do not abuse their positions of trust and authority to the detriment of the communities they serve.”
The indictment was returned by a grand jury yesterday and unsealed today. Sutton and Zabavsky made their first appearances this afternoon before the Honorable Magistrate Judge Zia M. Faruqui in the U.S. District Court for the District of Columbia. They were released under certain conditions set by the Court, with the next hearing set for Oct. 4, 2021.
According to the indictment, at the time of the police pursuit, Sutton was assigned to the Crime Suppression Team in MPD’s Fourth Police District. Zabavsky supervised the Fourth Police District’s Crime Suppression Team officers, including Sutton. The pursuit began at approximately 10 p.m. on Friday, Oct. 23, 2020, after officers observed Mr. Hylton-Brown, 20, driving a moped on a sidewalk in the Brightwood Park area of Northwest Washington. The pursuit continued on neighborhood streets for more than 10 blocks and into an alley off the 700 block of Kennedy Street NW. Immediately upon exiting the alley and entering Kennedy Street, Mr. Hylton-Brown was struck by an oncoming civilian vehicle. He suffered severe head trauma and died on Oct. 25, 2020.
The indictment alleges that Sutton caused Mr. Hylton-Brown’s death by driving a police vehicle in conscious disregard for an extreme risk of death or serious bodily injury to Mr. Hylton-Brown. It also alleges that Sutton and Zabavsky conspired and combined to hide from MPD officials the circumstances of the traffic crash leading to Mr. Hylton-Brown’s death.
The charge of second-degree murder carries a statutory maximum of 40 years in prison. The conspiracy charge carries a statutory maximum of five years and the obstruction of justice charge carries a maximum of 20 years. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Criminal Investigation and Intelligence Unit of the U.S. Attorney’s Office for the District of Columbia and the FBI’s Washington Field Office. The case is being prosecuted by the Public Corruption and Civil Rights Section of the U.S. Attorney’s Office for the District of Columbia.
Two Former Employees at New York Branch of Major Bank and an Accountant Charged with Cares Act Loan FraudRead the Press Release
Earlier today, in federal court in Brooklyn, a criminal complaint was unsealed and two criminal informations were filed yesterday charging Anuli Okeke, Charlene Wint and Hashim Campbell, respectively, for their participation in a conspiracy to commit bank and wire fraud in connection with a scheme to fraudulently obtain more than $3 million from the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) program, both of which were created by Congress as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Wint and Campbell pleaded guilty on Thursday to conspiracy to commit bank and wire fraud before United States Magistrate Judge Roanne L. Mann. Okeke was arrested this morning and made her initial appearance this afternoon before United States Magistrate Judge Robert M. Levy who released the defendant on a $100,000 bond.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York; Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department’s Criminal Division; Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); John Grasso, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG); Jay N. Lerner, Inspector General, Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Stephen Donnelly, Acting Special Agent-in-Charge, Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection, Eastern Region (FRS-OIG); and Amaleka McCall-Brathwaite, Special Agent-in-Charge, Office of the Inspector General of the U.S. Small Business Administration, Eastern Region Office (SBA-OIG) announced the charges.
“As alleged, the defendants plotted to steal millions in funds that were specifically earmarked by Congress to provide emergency assistance to small businesses and vulnerable workers during a global pandemic and time of great economic hardship,” stated Acting U.S. Attorney Kasulis. “Together with our law enforcement partners, this Office will vigorously prosecute defendants who shamelessly seek to enrich themselves by taking advantage of government programs that are designed to help those in need during the COVID crisis.”
“Fraudulent schemes exploiting the Paycheck Protection Program are unfortunately all too commonplace. Okeke, Wint, and Campbell, as charged today, join the ranks of others before them who took it upon themselves to personally and illegally benefit from the protections offered to small businesses during a global pandemic. They are likely not the last, however, and the FBI and our partners will continue to uncover more schemes of this nature and being their perpetrators to justice,” stated FBI Assistant Director-in-Charge Driscoll.
“Our office will relentlessly investigate fraud schemes and pull them out by the roots,” stated SBA-OIG Special Agent-in-Charge McCall-Brathwaite. “SBA’s PPP and EIDL programs are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
“The defendants in this case – two bank officials at a major financial institution and an accountant – are charged with misusing the bank’s operations for their personal benefit, in order to fraudulently obtain Government-guaranteed loans [which were intended to help small businesses during the current pandemic]. We remain committed to working with our law enforcement partners in investigating such cases where individuals seek to exploit Federal relief programs and threaten to undermine the integrity of our nation's banks,” stated FDIC Inspector General Lerner.
“We are fully committed to holding accountable any wrongdoers whose fraudulent actions impact the Federal Reserve Board’s ability to assist small businesses under the Paycheck Protection Program Liquidity Facility,” stated FRS-OIG Special Agent-in-Charge Donnelly.
The CARES Act is a federal law enacted on March 29, 2020 to provide emergency financial assistance in connection with economic effects of the COVID-19 pandemic. One source of relief provided by the CARES Act was the allocation of funds for the issuance of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The PPP allowed qualifying small businesses to receive unsecured loans on favorable terms, which they were required to use for specified expenses, including payroll costs, interest on mortgages, rent and utilities. The PPP provided for forgiveness of the loan if recipient businesses spent the proceeds on these specified expenses within a limited time period and used a certain percentage for payroll costs.
Another source of relief provided by the CARES Act was the EIDL program, which provided low-interest financing to small businesses, renters and homeowners in regions affected by declared disasters. Under the program, EIDL recipients were eligible to receive advances of up to $10,000 for small businesses within three days of applying for an EIDL (EIDL Advance). The amount of an EIDL Advance was determined based on the number of employees working for the applicant. The EIDL Advance did not have to be repaid.
As alleged in the charging documents, Okeke, a branch manager at a large financial institution, Wint, a supervisor at the same branch, and Campbell, a tax preparer, along with their co-conspirators, provided false tax documents and helped borrowers to complete and submit PPP applications that contained fraudulent information. Despite knowing that the PPP applications contained false statements, Okeke signed each PPP loan application on behalf of the bank and submitted them for approval. Once the loan proceeds were disbursed to the borrowers, Okeke, Wint, Campbell and their co-conspirators received kickbacks from the loan proceeds. Moreover, Okeke, Wint, Campbell and their co-conspirators were involved in preparing fraudulent EIDL applications that fabricated borrower’s financials, and at times sought loans for individuals who were not legitimate business owners.
The charges in the complaint are allegations, and Okeke is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Business and Securities Fraud Section and the Criminal Division’s Fraud Section. Assistant United States Attorneys Julia Nestor, Chand Edwards-Balfour, and Lindsay Gerdes of the Eastern District of New York, and Trial Attorney Michael McCarthy of the Fraud Section are in charge of the prosecution, with assistance from Assistant United States Attorney Brian D. Morris of the Office’s Asset Forfeiture Section.
The Defendants:
ANULI OKEKE
Age: 49
Bronx, New YorkCHARLENE WINT
Age: 54
Bronx, New YorkHASHIM CAMPBELL
Age: 41
New York, New YorkE.D.N.Y. Docket Nos. 21-CR-477 (FB), 21-CR-478 (FB), and 21-CR-477 (FB)
Two Charged in Airline Baggage Scam Involving over $550,000 in False ClaimsRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that on September 23, 2021, two Bills of Information charging PERNELL ANTHONY JONES, JR., age 31, of Kenner, Louisiana, and DONMONICK MARTIN, age 29, of Chalmette, Louisiana, for their roles in a conspiracy to defraud airlines through false claims for lost baggage.
JONES was charged in a two-count Bill of Information with Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 1349 and Mail Fraud, in violation of Title 18, United States Code, Section 1341. If convicted, JONES faces a maximum term of twenty (20) years imprisonment as to each count and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss caused by the offense. In addition, JONES faces a term of supervised release of up to three (3) years as to each count and a $200 mandatory special assessment fee. MARTIN was charged with one count of Conspiracy to Commit Mail Fraud, in violation of Title 18, United States Code, Section 371. If convicted, MARTIN faces a maximum term of five years of imprisonment and/or a fine of $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss caused by the offense. MARTIN also faces up to three years of supervised release and a $100 mandatory special assessment fee.
According to court documents, beginning in or around 2015, JONES and his co-conspirators submitted over 180 claims to commercial airlines, including American, Alaska, Southwest, United, and JetBlue, requesting over $550,000 in reimbursement for luggage that JONES falsely alleged had been lost. In total, the airlines paid over $300,000 in fraudulent claims. The Bill of Information alleges that JONES would take flights with commercial airlines under false or fictitious identities using fraudulent identification cards. When he arrived at the destination airport, JONES would falsely claim that his baggage had been lost and would request reimbursement to compensate him for his lost luggage. Through this scheme, JONES and others caused airlines to mail reimbursement checks through the United States Postal Service.
MARTIN was charged for his role in this scam, which included going into Louis Armstrong International Airport in January 2020 under a fictitious identity and falsely telling American Airlines that his bag had been lost on a flight. MARTIN’s Bill of Information also alleges that, on four occasions, MARTIN agreed to accept reimbursement funds from airlines for false claims for lost baggage.
U.S. Attorney Evans reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Evans would like to acknowledge the investigation by the Federal Bureau of Investigation, the U.S. Department of Homeland Security, Jefferson Parish Sheriff’s Office, and the City of Dallas Police Department. The prosecution of this case is being handled by Assistant U.S. Attorney Maria Carboni.
Three Pike County Men Charged with Sexual Exploitation of a ChildRead the Press Release
SPRINGFIELD, Ill. – A federal grand jury indicted three men – Anthony M. Westemeyer, Bobby J. Warner, and Michael Wallace – all of Nebo, Illinois – on September 9, 2021 for sexual exploitation of a child. The indictment was unsealed today when the last of the three men, Westemeyer, was arraigned in federal court.
The indictment alleges that in May 2021 the three men caused a minor victim to engage in sexually explicit conduct, which was recorded and stored on a computer.
If convicted, the men face a maximum statutory penalty of 30 years’ imprisonment, followed by a life term of supervised release. Each charge also carries a mandatory minimum sentence of 15 years’ imprisonment.
Wallace was arrested in Nebo on September 10, 2021. Warner was arrested in Pittsfield, Illinois, on September 13, 2021. United States Magistrate Judge Tom Schanzle-Haskins ordered that both men be detained pending trial at a related hearing on September 16, 2021. The U.S. Marshals Service lodged a detainer for Westemeyer, who is presently in the custody of the Pike County, Illinois, Sheriff. Judge Schanzle-Haskins also ordered that Westermeyer be detained pending trial at today’s hearing.
Agencies participating in the investigation include U.S. Immigration and Customs Enforcement, Homeland Security Investigations; the Illinois Attorney General’s Office; the Pike County Sheriff’s Office; and the Pike County State’s Attorney’s Office. Assistant U.S. Attorneys Sarah E. Seberger and Tanner K. Jacobs are representing the government in the prosecution.
Anyone with information connected with this investigation is urged to call the Department of Homeland Security Investigations at (217) 547-2100.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
This case is being prosecuted as part of Project Safe Childhood, a nationwide Department of Justice initiative to combat child sexual exploitation and abuse. 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.
Three Individuals Sentenced in Southeast Idaho Methamphetamine Distribution CaseRead the Press Release
POCATELLO – Jesse Kirby, 45, Trevor Van Horn, 31, and Debra Trujillo, 63, all of Idaho Falls, were sentenced to federal prison for possession with the intent to distribute methamphetamine, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Senior U.S. District Judge B. Lynn Winmill sentenced Kirby to 110 months imprisonment, Van Horn to 100 months imprisonment, and Trujillo to 96 months imprisonment. Kirby, Van Horn, and Trujillo were ordered to serve an additional five years of supervised release upon completion of their sentences.
According to court records, from October 2019 through January 2020, law enforcement investigated multiple individuals for distributing methamphetamine in southeast Idaho. Through the use of surveillance, undercover officers, controlled purchases, and search warrants, law enforcement found evidence that Robert Winterholler, 36, Trujillo, Van Horn, and Kirby were actively engaged in the distribution of methamphetamine in southeast Idaho, and each was in possession of large quantities of methamphetamine. During the investigation, law enforcement recovered more than seven pounds of methamphetamine. In addition, law enforcement recovered drug ledgers, heroin, fentanyl, marijuana, and multiple firearms.
Winterholler, the remaining defendant, pleaded guilty on May 12, 2021, and is currently scheduled to be sentenced on October 20, 2021 before Judge Winmill at the federal courthouse in Pocatello.
Acting U.S. Attorney Gonzalez praised the collective work of the Drug Enforcement Administration, Idaho State Police, Bonneville County Sheriff’s Office, Idaho Falls Police Department, Pocatello Police Department, Bannock County Sheriff’s Office, and Fremont County Sheriff’s Office, which led to charges. Mr. Gonzalez added, “these talented investigators working under the Organized Crime Drug Enforcement Task Forces (OCDETF) banner made this case possible and our streets safer. OCDETF is an independent component of the U.S. Department of Justice. Established in 1982, OCDETF is the centerpiece of Attorney General Merrick Garland’s strategy to combat transnational organized crime and to reduce the availability of illicit narcotics in the nation by using a prosecutor-led, multi-agency approach to enforcement. OCDETF leverages the resources and expertise of its partners in concentrated, coordinated, long-term enterprise investigations of transnational organized crime, money laundering, and major drug trafficking networks. This case proves that multi-jurisdictional, cooperative law enforcement works, and works well in Idaho.”
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Taunton Man Indicted for Child Pornography OffenseRead the Press Release
BOSTON – A Taunton man was indicted yesterday by a federal grand jury in Boston for allegedly possessing hundreds of images depicting child pornography.
Rudy Frabizio, 59, was indicted on one count of possession of child pornography. An arraignment date has not yet been scheduled by the court. Frabizio was arrested and charged by criminal complaint in May 2021 and has been in custody since.
According to the charging documents, during a search of Frabizio’s residence on May 19, 2021, agents found at least 465 images and videos depicting child pornography. It is also alleged that Frabizio uploaded images depicting child pornography via his Google account. Frabizio is a registered Level 2 sex offender due to an April 2009 conviction for possession of child pornography.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, five years and up to a lifetime of supervised release and a fine of $250,000. Due to his prior conviction, Frabizio faces a minimum mandatory sentence of 10 years in prison. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The Taunton Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.