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21 October 2021
Drug Traffickers Sentenced to Federal PrisonRead the Press Release
SHREVEPORT, La. –Two drug traffickers have been sentenced by Chief United States District Judge S. Maurice Hicks, Jr. to federal prison for their role in conspiring to possess and distribute illegal narcotics, Acting United States Attorney Alexander C. Van Hook announced.
Eduardo Lozano, a/k/a Isaiah Lozano, 20, of Dallas, Texas, was sentenced to 121 months in prison, followed by 3 years of supervised release. On January 4, 2021, Louisiana State Police stopped a vehicle on Interstate 20 for speeding. Lozano was a passenger in that vehicle and his co-defendant, Omar Guerra, 22, of Dallas, was driving. Mia Duarte, 21, also of Dallas, the sister of Lozano and girlfriend of Guerra, was a passenger in the vehicle. After being interviewed by troopers, Guerra gave permission for law enforcement to search the vehicle. Troopers found approximately 3 kilograms of methamphetamine and 31.7 grams of marijuana in a backpack on the floorboard. Guerra and Duarte admitted to law enforcement officers that they were being paid to pick up and deliver the drugs. Lozano admitted at the guilty plea hearing on June 16, 2021 that he also participated in the conspiracy to possess with intent to distribute methamphetamine. His co-defendants, Guerra, and Duarte, each also pleaded guilty to the drug conspiracy charge.
Guerra was sentenced on October 8, 2021 to 108 months in prison, followed by 3 years of supervised release. Duarte was sentenced on October 12, 2021 to 46 months in prison, followed by 2 years of supervised release.
The DEA and Louisiana State Police conducted this investigation and Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
Casey Head, 39, of Bossier City, Louisiana, was sentenced to 60 months in prison, followed by 5 years of supervised release. Following a lengthy investigation into the drug trafficking activities of Head and his five co-defendants, a federal grand jury returned an indictment in October 2020 charging him with conspiracy to distribute and possession with intent to distribute methamphetamine. During their investigation, agents with the FBI’s Northwest Louisiana Violent Crime Task Force were granted an order to wiretap the phone of one of Head’s co-conspirators. Calls were intercepted revealing that Head helped distribute methamphetamine to many different buyers in the Shreveport/Bossier City area. Head was intercepted on several phone calls and text messages speaking about amounts of methamphetamine and prices and discussing the distribution of the narcotics. He was arrested on October 21, 2020 and admitted his involvement in the drug conspiracy.
The FBI and Caddo Parish Sheriff’s Office conducted this investigation and Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
This effort is part of an ongoing Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Department of Justice Files Suit to Recover Forfeiture Penalty for Nearly 5,000 Illegally Spoofed RobocallsRead the Press Release
Wednesday, the Department of Justice served a complaint filed against a Montana man to recover a $9.9 million penalty imposed by the Federal Communications Commission (FCC) for nearly 5,000 unlawful and malicious “spoofed” robocalls.
In a complaint filed in U.S. District Court for the District of Montana, the government alleged that Scott Rhodes, 52, of Libby, Montana, made 4,959 illegal robocalls with falsified caller ID information, with the intent to cause harm. The targets of the alleged robocall campaigns included individuals across the United States, many of whom complained to law enforcement regarding unwanted and harassing calls. An investigation by the FCC culminated in the imposition by the agency of over $9.9 million forfeiture penalty against Rhodes. The lawsuit, filed today, seeks to recover that penalty and obtain an injunction that would prevent Rhodes from committing any further violations of the Truth in Caller ID Act.
According to the FCC’s investigation, Rhodes’ unlawful spoofed robocalls allegedly included highly inflammatory messages indicative of Rhodes’ intent to cause harm. For example, hundreds of Rhodes’ spoofed robocalls targeted residents of Brooklyn, Iowa, in the aftermath of a local woman’s murder. Those spoofed robocalls allegedly included a message that the local woman had been murdered by a “biological hybrid of white and savage Aztec ancestors” and that if she “could be brought back to life for just one moment,” she would ask the listener to “kill them all.” Over two thousand of the spoofed robocalls allegedly targeted residents of Charlottesville, Virginia, during the investigation and prosecution of James Alex Fields Jr., who was responsible for killing one woman and injuring dozens during the “Unite the Right" rally in August 2017. The spoofed robocalls included a message that Charlottesville’s “Jew Mayor” and “his pet Negro Police Chief” were responsible for the death of the “unhealthy, morbidly obese” victim. The message also stated, “We’re no longer going to tolerate a Jewish lying press, and Jew corruption of an American legal system.”
“It is unlawful to spoof caller ID numbers to trick consumers into answering unwanted phone calls with the intent to defraud, cause harm or wrongfully obtain anything of value,” said Acting Assistant Attorney General Brian Boynton for the Justice Department’s Civil Division. “The department will work with its agency partners to vigorously enforce the telemarketing laws that prohibit these practices.”
“Combatting illegal robocalls is a top consumer protection priority of the FCC,” said Acting Chairwoman Jessica Rosenworcel of the FCC. “In this case, the FCC’s investigation found an ugly pattern of spoofing used to bombard and target communities with malicious robocalls. Working with the Department of Justice, the FCC will stand by this fine and demand payment. I also welcome the department’s decision to seek an injunction to put a stop to this unlawful behavior.”
Senior Litigation Counsel Patrick Runkle and Trial Attorney Michael Wadden of the Justice Department’s Consumer Protection Branch are prosecuting the case with the assistance of Assistant U.S. Attorney Shannon Clarke for the District of Montana.
A complaint is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dentist in South Korea to Pay $100,000 to Resolve Civil Liability for Violations of the False Claims ActRead the Press Release
HARRISBURG, PA —The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dr. Gina Sohn, a dentist practicing in South Korea, has agreed to pay the United States $100,000 to resolve civil liability for alleged violations of the False Claims Act.
According to Acting United States Attorney, Bruce D. Brandler, Dr. Sohn is a licensed dentist who practices in South Korea, serving U.S. military service members and their families. Between January 1, 2017 and January 1, 2021, Dr. Sohn allegedly submitted false or fraudulent claims for payment to the TRICARE Program for services not rendered to her patients, specifically for fillings not provided to patients. TRICARE is the healthcare program for uniformed service members, retirees, and their families around the world. The amount of the settlement represents the reimbursements received for the billings for unrendered services and penalties.
“Healthcare providers must be held accountable when they falsely represent the services they are providing in order to increase their profits,” said Acting U.S. Attorney Brandler. “Health care fraud is a high priority of the Department of Justice and overpayments by the government issued through programs like TRICARE contribute to the ever escalating costs of health care in the United States.”
“The special agents of the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service (DCIS) are dedicated to ensuring that our military members and their dependents receive the high quality care that the TRICARE program provides for” said Stanley A. Newell, Special Agent-in-Charge of the DCIS Transnational Operations Field Office. “This settlement demonstrates that no matter where they are on the globe, those who defraud the American military and taxpayers will be brought to justice.”
This Settlement Agreement is neither an admission of liability by Dr. Sohn nor a concession by the United States that its claims are not well founded.
This matter was investigated by the Defense Criminal Investigative Service and was handled by Assistant United States Attorney, Tamara J. Haken and the Affirmative Civil Enforcement (ACE) Unit within the U.S. Attorney’s Office.
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Debarred Former Defense Contractor Pleads Guilty to Making False Statements Involving Government ContractsRead the Press Release
Jacksonville, Florida – Billy Micah Sermons (44, Jacksonville) has pleaded guilty to making a false statement to the U.S. General Services Administration (GSA), a federal agency. Sermons faces a maximum penalty of five years in federal prison and payment of restitution to the federal government. A sentencing date has not yet been set.
According to the plea agreement, in May 2015, the Defense Contract Management Agency (DCMA) began investigating the business practices of Excel Components, LLC, a business involving Sermons and others. Excel conducted business with the federal government by contracting with the Defense Logistics Agency (DLA). These contracts involved supplying various items to be used by members of the United States military throughout the Department of Defense. As a result of their investigation, in September 2015, DLA debarred Sermons from contracting with the federal government due to his involvement with Excel and another business contracting with DLA, East Coast Machine and Tool LLC. DLA debarred Sermons until August 19, 2018.
Also, in May 2015, Sermons, using the identity of another individual, (Person #1), submitted or caused to be submitted a registration for Franklin Southern Manufacturing LLC (FSM) in SAM.GOV, a U.S. government-wide, online portal operated by the GSA. Entities register in SAM.GOV in order to do business with the federal government, to include contracting. Sermons successfully registered FSM in SAM.GOV to do business with the federal government. Thereafter, during the timeframe of his debarment and knowing that he was ineligible for the award of contracts by any federal agency, Sermons used the identity of Person #1 and FSM to circumvent the terms of his debarment. He did this in order to continue bidding on and obtaining federal government contracts involving the DLA. As part of the contracting process, on multiple occasions during his debarment, Sermons falsely certified or caused to be falsely certified within SAM.GOV that none of the principals at FSM were debarred, suspended, proposed for debarment, or declared ineligible for the award of contracts by any federal agency.
This case was investigated by the U.S. General Services Administration - Office of Inspector General and the Defense Criminal Investigative Service, with assistance from the Defense Logistics Agency. It is being prosecuted by Assistant United States Attorney Kevin C. Frein.
DOJ awards more than $6 million in grants to state and tribal partners to provide victim servicesRead the Press Release
Seattle – Twelve tribal communities and various sexual assault and domestic violence treatment providers have been awarded DOJ grants totaling more than $6 million to support services to victims. The funding is from DOJ Office of Victims of Crime (OVC) and the Office of Violence against Women (OVW).
“As we observe Domestic Violence Awareness Month, it is important to highlight the good work being done to assist victims of violence, sexual assault, and child abuse,” said U.S. Attorney Nick Brown. “These funds are targeted at culturally appropriate services for communities that for too long have been ignored and marginalized.”
The Washington State Native American Coalition against Domestic Violence and Sexual Assault was awarded $341,347 to increase awareness and enhance response to sexual assault and domestic violence in tribal communities. Individual tribes also received funding aimed at victim services including:
Jamestown S’Klallam Tribe - $354,375
Confederated Tribes of the Chehalis Reservation - $372,817
Shoalwater Bay Indian Tribe - $354,375
Hoh Tribe - $354,375
Muckleshoot Indian Tribe -$422,695
Stillaguamish Tribe of Indians - $354,375
Puyallup Tribe of Indians -$693,278
Lummi Nation - $422,695
Suquamish Tribe - $422,695
Nisqually Indian Tribe - $412,733
The Tulalip Tribes received a $421,267 grant specifically for services to child victims of sexual assault and abuse.
Harborview Medical Center received $499,999 in funding under the Rural Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program to develop services in rural areas. The Rural Program funds projects that implement, expand, and establish cooperative efforts among law enforcement officers, prosecutors, victim service providers, and other related parties to investigate and prosecute incidents of sexual assault, domestic violence, dating violence, and stalking; provide treatment, advocacy, counseling, legal assistance, or other victim services to victims in rural communities; or develop or strengthen programs addressing sexual assault, such as Sexual Assault Response Teams.
API CHAYA received $300,000 in funding under the Culturally Specific Services for Victims of Sexual Assault, Domestic Violence, Dating Violence, and Stalking Program. The funding is to support culturally specific community-based organizations in addressing the critical needs of sexual assault, domestic violence, dating violence, and stalking victims in a manner that affirms a victim’s culture.
Detailed information on use of the grant money is available from the recipient or via web resources here: https://www.justice.gov/grants
DEA Announces 21st National Prescription Take Back DayRead the Press Release
United States Attorney SHAWN N. ANDERSON, for the Districts of Guam and the Northern Mariana Islands (NMI), will join the Drug Enforcement Administration (DEA) on Saturday, October 23rd for its 21st National Prescription Drug Take Back Day. The biannual event will be held from 10:00 a.m. to 2:00 p.m., at thousands of collection sites around the country, including here in Guam and the NMI. This event offers free and anonymous disposal of unneeded medications at more than 4,000 local drop-off locations nationwide.
The United States is in the midst of an opioid epidemic—drug overdoses are up thirty percent over the last year alone and taking more than 250 lives every day. The majority of opioid addictions in America start with prescription pills found in medicine cabinets at home.
In April 2021, citizens of Guam and the NMI turned in over 1,565 pounds collectively. According to the Centers for Disease Control and Prevention reported that last year, more than 93,000 people died of drug overdoses in the United States, marking the largest number of drug-related deaths ever recorded in a year. Opioid-related deaths accounted for 75 percent of all overdose deaths in 2020.
The following sites in Guam and the NMI are designated to receive unused prescription drugs and vaping device products on Saturday, October 23, 2021, between 10:00 a.m. and 2:00 p.m.:
- Agana Shopping Center (Center Court)
- Andersen Air Force Base Exchange (Entrance to Store)
- Dededo Mayor’s Office
- Malesso’ Mayor’s Office
- Naval Base Guam - Navy Exchange (Food Court)
- Saipan Commonwealth Health Center (Outpatient Pharmacy)
- Rota Health Center
- Tinian Health Center
Contact DEA Resident Agent in Charge Kenneth Bowman at 671-472-7384 regarding any questions about prescription drug abuse and any concerns regarding drug-related activity on Guam or in the NMI.
For more information, go to www.dea.gov, www.DEATakeBack.com
Cuban National Sentenced to Federal Prison in Gas Pump Skimmer SchemeRead the Press Release
BEAUMONT, Texas - A Cuban national has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Victor Entenza, 30, pleaded guilty on May 10, 2021 to conspiracy to commit access device fraud and aiding and abetting aggravated identity theft. Entenza was sentenced to 30 months in federal prison today by U.S. District Judge Thad Heartfield.
“Typically, a skimmer, such as the one found in this case, is placed inside a gas pump and used by criminals to collect credit card information from victims using the pump,” said Acting U.S. Attorney Nicholas Ganjei. “The crime is difficult to detect because intended gas purchase will proceed without interruption or notification,” Ganjei added. “A single gas station skimmer is capable of storing credit card information for hundreds of victims.”
According to information presented in court, on Jan. 27, 2017, an officer with the Nacogdoches Police Department conducted a traffic stop on a vehicle driven by Entenza and occupied by Cuban nationals, Orlando Enrique Quesada-Oliva, 25, and Ricardo Chavez-Travieso, 29. During the traffic stop, the officer discovered a credit card bearing the name of third party, leading to a more exhaustive search of the car. During this search, the officer found a notepad that listed various gas stations in Texas, Tennessee, and Alabama, numerous cell phones, a laptop computer and tape used as a security seal/tamper indicator for gas station fuel pumps. The officer also located a card skimmer, an encoder, a key used to open gas pumps, and additional credit cards located in hidden compartments within the vehicle. Credit card information for nine individuals, none of whom were occupants the vehicle, was additionally found.
Entenza, Oliva, and Travieso were indicted by a federal grand jury on Oct. 8, 2020 and charged with federal violations. On July 12, 2021, Travieso pleaded guilty to conspiracy to commit access device fraud and aiding/abetting aggravated identity theft. Travieso is awaiting a sentencing date. The case against Oliva is still pending.
This case was investigated by the Nacogdoches Police Department and the Department of Homeland Security Investigations (HSI) and prosecuted by Special Assistant U.S. Attorney Tommy L. Coleman.
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Coolidge Real Estate Investor Convicted of Wire Fraud and Money LaunderingRead the Press Release
PHOENIX, Ariz. – Last week, Sarah Nicole Kelley, 40, of Coolidge, Arizona, was found guilty by a federal jury of 24 counts of wire fraud and 8 counts of money laundering. The case was tried before U.S. District Judge John J. Tuchi. Kelley is currently out of custody until her sentencing date, which is scheduled for February 3, 2022.
The evidence at trial showed that Kelley defrauded a family friend out of the friend’s entire $185,000 in savings. Kelley, a former real estate agent, convinced the victim to invest in a real estate project and send additional money for a short-term loan. Instead of using the money as promised, Kelley used all of the victim’s savings to pay off her own debts and then strung the victim along for months with a series of lies and excuses about how the money was spent and when the victim would get it back. Other evidence showed that Kelley defrauded another family friend out of $647,000 just a few years earlier using similar tactics.
A conviction for wire fraud carries a maximum penalty of 20 years of imprisonment, a $250,000 fine, or both. A conviction for money laundering carries a maximum penalty of 10 years of imprisonment, a $250,000 fine, or both.
The Internal Revenue Service – Criminal Investigation conducted the investigation in this case. Assistant United States Attorneys Caitlin Noel, James R. Knapp, and M. Bridget Minder, District of Arizona, handled the prosecution.
CASE NUMBER: CR-19-1143-PHX-JJT
RELEASE NUMBER: 2021-072_Kelley# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Columbia Man Sentenced to Seven Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced that James Eric Hampton, Jr., 37, of Columbia, was sentenced to seven years in federal prison today after pleading guilty to being a felon in possession of a firearm and ammunition and possession with intent to distribute marijuana.
Evidence presented in court showed that on the night of June 10, 2019, an officer with the University of South Carolina Police Department observed a vehicle at the intersection of Gervais Street and Assembly Street and noticed that it had a suspended license plate. Upon approaching the vehicle, the officer smelled marijuana coming from the vehicle. A search of the vehicle revealed over an ounce of marijuana, packed in baggies, along with a digital scale and cash. Hampton admitted to having sold marijuana earlier. The officer also located a stolen, loaded Ruger 9mm handgun, which Hampton admitted to purchasing off the street. Hampton had been released from the South Carolina Department of Corrections a year earlier after serving time for possession of a firearm.
Hampton was placed under arrested on state charges and later indicted federally. Hampton, who was later released on federal bond with GPS monitoring, absconded supervision, cut off the ankle monitor, and fled to North Carolina, where the United States Marshal’s Service apprehended him and returned him to South Carolina where he remained in custody. As a result, Hampton received an enhancement for obstruction of justice, his federal bond was revoked, and a portion of the bond was forfeited.
Hampton is a felon and prohibited from possessing firearms and ammunition under federal law based upon prior state convictions. Hampton has prior state convictions from Richland, Fairfield, Newberry, and Lexington Counties for use of a vehicle without permission, driving under suspension, unlawful possession of a firearm, burglary 3rd degree, assault and battery of a high and aggravated nature, giving false information, simple possession of marijuana, habitual traffic offender, assault and battery 2nd degree, and possession of a pistol by an unlawful person convicted of a crime of violence.
United States District Judge Mary Geiger Lewis of Columbia sentenced Hampton to 84 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the University of South Carolina Police Department. The case was prosecuted as part of the as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorney Stacey D. Haynes prosecuted the case.
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Cocaine supplier, codefendant sentenced to federal prison in Richmond County narcotics conspiracyRead the Press Release
AUGUSTA, GA: The man who supplied cocaine for a major Richmond County drug trafficking operation, and another man who admitted to a firearms offense related to the operation, have been sentenced to federal prison.
Mario Hubbard, 45, of Smryna, Ga., was sentenced to 151 months in prison, fined $35,000 and ordered to serve four years of supervised release after completion of his prison term after pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana, and Conspiracy to Commit Money Laundering, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. Hubbard also forfeited his Smyrna home, with an estimated value of more than $600,000, that was alleged to have been purchased with drug trafficking proceeds.
U.S. District Court Chief Judge J. Randal Hall also sentenced one of Hubbard’s co-defendants, Timothy Dale Reid, 53, of Augusta, to 78 months in prison after pleading guilty to Possession of a Stolen Firearm. Reid also was fined $1,500 and ordered to serve three years of supervised release after completion of his prison term.
There is no parole in the federal system.
“This operation is an outstanding example of the results of the collaborative law enforcement effort from local, state, and federal agencies,” said Acting U.S. Attorney Estes. “We particularly commend the work of investigators from Internal Revenue Service Criminal Investigations for their assistance in seizing the ill-gotten gains of this significant drug trafficking enterprise.”
The sentences are the culmination of the 2019 indictment in USA v. Freeman, et. al., a two-year Organized Crime Drug Enforcement Task Forces (OCDETF) investigation initiated by the Richmond County Sheriff’s Office and the U.S. Drug Enforcement Administration into cocaine distribution throughout the greater Augusta area. The investigation identified Hubbard as supplying cocaine through Atlanta-area connections to Terrance Quain Freeman, 50, of Augusta, who served as a leader of the conspiracy that funneled kilos of cocaine and crack cocaine into the community for distribution by local dealers.
During the investigation of Operation Snowfall – so named because of the large quantities of powder cocaine involved – DEA agents and sheriff’s office investigators seized more than $500,000 in cash, more than two kilos of cocaine, 32 grams of crack cocaine, and more than 9 pounds of marijuana, along with eight firearms.
Freeman is serving 100 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana. Four other defendants are serving sentences of up to 151 months in federal prison, while Quieaton Freeman, 23, of Augusta, awaits sentencing after pleading guilty to Possession of Firearms by an Illegal Drug User. He is a son of Terrance Freeman and the last remaining federal defendant in the operation. More than a dozen other defendants also have been prosecuted on state charges in the investigation.
“Collaboration with our agency partners and utilizing all of our specialized talents were the keys to success in this investigation,” said IRS Criminal Investigation Assistant Special Agent in Charge Demetrius Hardeman. “This Operation is a win in the war against drugs and its financing. We are committed to continue using our financial expertise to bring justice to those who harm our communities.”
“Drug trafficking breeds violence, and the traffickers who engage in this dangerous lifestyle often protect their ill-gotten gains with dangerous weapons – as was the case in this investigation,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA and the entire law enforcement community are committed to making the citizens of these affected communities in Georgia and elsewhere safer by removing dangerous criminals from their neighborhoods.”
Sheriff Richard Roundtree directed the Richmond County Sheriff’s Office Narcotics Division to neutralize and dismantle local drug organizations, but to also target the organization’s source of supply. “In this case, RCSO and its federal partners reduced the supply lines from Atlanta to Augusta-Richmond County,” said Sheriff Roundtree. “Some of the defendants indicted in this case are career drug traffickers. Their removal from our community will enhance Augusta’s safety and security.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The investigation was conducted by the U.S. Drug Enforcement Administration, the Internal Revenue Service Criminal Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the Aiken County Sheriff’s Office, the Dekalb County HIDTA Task Force, the Greene County Sheriff’s Office, and the Georgia National Guard Counterdrug Task Force, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and Hank Syms.
Charlotte Man Is Sentenced to Nine Years for Robbing Store Owner at GunpointRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Max O. Cogburn, Jr. sentenced Solomon Davon Gilliam, 37, of Charlotte today to 108 months in prison for robbing a store owner at gunpoint, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina. Judge Cogburn also ordered Gilliam to serve two years of supervised release after he is released from prison.
Richard R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Johnny Jennings, of the Charlotte-Mecklenburg Police Department, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s sentencing hearing, on June 30, 2018, at approximately 2:00 p.m., Gilliam entered Tobacco 2022, a retail store located at 2020 Beatties Ford Road in Charlotte. The store owner, M.D., and Gilliam were alone inside the store at the time. Soon after entering, Gilliam approached M.D. and struck him in the back of the head, causing M.D. to fall down. While holding a pistol in his hand, Gilliam ordered M.D. to hand over his wallet. The victim complied and Gilliam took $500 from the victim’s wallet along with the victim’s phone. Gilliam then threatened to kill M.D. if M.D. did not open the store’s register. The victim opened the register and Gilliam took approximately $2,800 in cash. After ordering the victim to stand in the corner, Gilliam fled the store on foot. Gilliam was later arrested by law enforcement in South Carolina.
In July 2020, Gilliam pleaded guilty to robbery of a business affecting interstate commerce, or Hobbs Act robbery. He is currently in custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility.
The investigation was handled by the FBI and CMPD. Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, prosecuted the case.
Charleston Man Sentenced to Prison for Gun CrimeRead the Press Release
CHARLESTON, W.Va. – William Edward Byers II, 44, of Charleston, was sentenced today to 36 months in prison for prohibited possession of firearms by a felon. Byers was one of 15 individuals charged federally as a result of a long-term investigation, dubbed the “Woo Boyz.”
According to court documents, law enforcement officers executed a search warrant on February 10, 2021, at Byers’ Charleston residence and located five firearms. Byers is prohibited from possessing firearms due to a 2016 felony conviction in Kanawha County Circuit Court for conspiracy to manufacture, deliver, or possess with intent to manufacture or deliver methamphetamine.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team (MDENT). The U.S. Marshals Service and the West Virginia State Police provided assistance during the investigation.
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney Monica D. Coleman prosecuted the case.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00047.
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Cary Man Sentenced in Child Pornography CaseRead the Press Release
WILMINGTON, N.C. – A Cary man was sentenced today by Chief Judge Richard E. Myers II to a total of 165 months for Receipt of Child Pornography. On February 19, 2021, Randall Womble Smith, 66, pled guilty to the charges.
According to court documents and other information presented in court, the Cary Police Department conducted a proactive investigation attempting to identify individuals using dark web websites and programs to distribute and collect child pornography. Based upon their investigation, detectives received a search warrant for Plastic Tooling Corporation to search for child sexual abuse material. They requested assistance from the Department of Homeland Security for the execution of the search warrant and the remainder of the investigation.
Smith, owner of the company was present when law enforcement arrived. Smith admitted to downloading and possessing child pornography. He admitted he had been looking at child pornography for a decade. When his digital devices were seized, investigators found nearly 9,000 images and videos of child pornography.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after the sentencing by Chief U.S. District Judge Richard E. Myers II. The Cary Police Department and the Department of Homeland Security investigated the case and Assistant U.S. Attorney Charity Wilson prosecuted the case.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-cr-00438-M-1.
Bronx Man Convicted of Possessing Ammunition in Connection with August 2020 ShootingRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced that ROBERT GONZALEZ pled guilty today to possessing ammunition after having been convicted of a felony in connection with a shooting that took place in the vicinity of the 1800 block of University Avenue in the Bronx, New York, in August of 2020. GONZALEZ pled guilty before U.S. District Judge Valerie E. Caproni.
U.S. Attorney Damian Williams said: “Robert Gonzalez possessed ammunition in furtherance of a violent shooting. Today’s plea and conviction send the message that our Office is committed to bringing to justice those who perpetrate gun violence in our communities.”
As alleged in the Complaint, Indictment, and statements made in open court:
ROBERT GONZALEZ committed a shooting in the vicinity of the 1800 block of University Avenue in the Bronx on or about the evening of August 9, 2020. Law enforcement officers responded to the shooting after three 911 calls. When they arrived at the scene, law enforcement officers noticed two victims with gunshot wounds – one in the hand and another in the leg. The victims were attending a neighborhood block party that began around midnight and continued into the early hours of the morning.
Law enforcement officers identified ROBERT GONZALEZ as the shooter through, among other evidence, surveillance photographs and videos, which showed the shooter’s clothing and a unique-looking fanny pack around his torso, which matched surveillance images and videos of GONZALEZ from shortly before and after the shooting. Officers recovered a 9mm Luger shell casing from the vicinity of the shooting and found a fanny pack that matched the unique-looking fanny pack the shooter wore during a search of GONZALEZ’s apartment.
At the time of the August 9, 2020, shooting, GONZALEZ had been previously convicted of multiple felony offenses, including attempted criminal possession of a weapon, attempted robbery, and narcotics conspiracy.
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GONZALEZ, 34, of the Bronx, New York, pled guilty to one count of being a felon in possession of ammunition, in violation of 18 U.S.C. §§ 922(g)(1), 924(a)(2), and 2, which carries a maximum penalty of 10 years in prison. The statutory maximum penalty is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
GONZALEZ is scheduled to be sentenced by Judge Caproni on February 7, 2022.
Mr. Williams praised the outstanding investigative work of the New York City Police Department, Homeland Security Investigations, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Brandon D. Harper is in charge of the prosecution.
Boulder Weather Research Organization and Officers Pay over $2 Million to Resolve Investigation into Improper Use of Federal Grants for Scientific ResearchRead the Press Release
DENVER –The Center for Severe Weather Research (CSWR), a nonprofit organization in Boulder, Colorado, has paid over $2.4 million to resolve allegations that it engaged in fraud related to grants it received from three federal agencies: the National Science Foundation (NSF), the National Aeronautics and Space Administration (NASA), and the National Oceanic and Atmospheric Administration (NOAA), an agency within the U.S. Department of Commerce.
CSWR conducted scientific weather research popularly known as “storm chasing” with its “Doppler on Wheels” fleet. The United States alleges that from 2004 to 2020, CSWR improperly requested payments from federal grants for expenses that CSWR had not incurred. The United States also contends that CSWR had inadequate internal controls for the federal funds it received, including inadequate documentation and controls over large cash transactions.
The settlement announced today also resolves allegations that the principals of CSWR, Joshua Wurman and Ling Chan, improperly obtained payments to which they were not entitled. Those allegations, which relate primarily to rental payments for CSWR offices in their personal residence, are resolved with Dr. Wurman and Ms. Chan’s repayment to the United States of $203,776.
“Our office works to protect taxpayers by stopping people who wrongfully obtain federal grant money,” said Acting U.S. Attorney Matt Kirsch. “We will pursue both organizations and individuals if they improperly obtain federal funds or fail to track those funds with adequate safeguards and controls.”
NSF Inspector General Allison Lerner stated: “Each year the National Science Foundation awards millions of dollars in grants to promote promising scientific research. However, the Foundation expects grant recipients to follow federal cost principles. Expenses charged to grants must be allowable, allocable, and reasonable. I commend the U.S. Attorney's Office and our investigative partners for their work on upholding federal grant rules in this case.”
“This investigation is a prodigious example of how we partner with other law enforcement agencies that are committed to protecting federal grants and ensuring that funds are appropriately spent,” said Bob Steinau, Assistant Inspector General for Investigations, NASA Office of Inspector General (OIG). “I want to applaud the exemplary efforts from Commerce OIG, NSF OIG, and the U.S. Attorney’s Office. The NASA OIG along with its law enforcement partners, will continue to aggressively investigate those individuals and entities that take advantage of the trust of the American taxpayers.”
“We are committed to ensuring grant funds NOAA awards for important research are handled appropriately and used for their intended purpose,” said Scott Kieffer, Assistant Inspector General for Investigations for the U.S. Department of Commerce, Office of Inspector General (OIG). “Our office appreciates the investigative partnership with the U.S. Attorney’s Office, NASA OIG and NSF OIG that led to this result, and we will continue to focus our resources on investigations that serve to protect taxpayer money.”
This case was handled by Assistant U.S. Attorney Andrea Wang.
Beresford Man Sentenced for Receipt and Distribution of Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Beresford, South Dakota, man convicted of Receipt and Distribution of Child Pornography was sentenced on October 18, 2021, by U.S. District Judge Lawrence P. Piersol.
Anthony James Berst, age 34, was sentenced to 66 months in federal prison, followed by 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Berst was indicted by a federal grand jury on March 2, 2021. He pled guilty on August 2, 2021.
The conviction stemmed from incidents between September 7, 2020, and January 6, 2021, when Berst used his Snapchat account to upload files containing child pornography. Berst also downloaded files that contained child pornography from the internet on to his cell phone and laptop.
Berst knowingly received digital files that depicted child pornography that had been mailed, shipped, and transported in or affecting interstate or foreign commerce by any means, including by computer.
This case was investigated by the Federal Bureau of Investigation, Homeland Security Investigations, South Dakota Division of Criminal Investigation, and the Beresford Police Department. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Berst was immediately turned over to the custody of the U.S. Marshals Service.
Austin Man Pleads Guilty to Attempted Robbery and Shooting Convenience Store EmployeeRead the Press Release
AUSTIN – An Austin man pleaded guilty today to participating in the robbery of a gas station convenience store, which resulted in the shooting of an employee of the business.
According to court documents, on October 7, 2020, at approximately 11 p.m., Deon Ross, 36, along with co-defendant Lavante Carter, 19, of Austin, attempted to rob a Shell gas station on Interstate Highway 35 in Austin. Both Carter and Ross carried firearms and displayed them to two store employees who were working that night. After demanding money Ross shot one of the employees.
Ross pleaded guilty to one count of interference with commerce by threats or violence and one count of discharge of a firearm during and in relation to a crime of violence. He is scheduled to be sentenced on December 21, 2021 and faces up to 20 years in prison on the robbery charge and 10 years to life for the firearm charge.
On October 19, 2021, Carter pleaded guilty to one count of interference with commerce by threats or violence and one count of brandishing a firearm during and in relation to a crime of violence. Carter is scheduled to be sentenced on December 21, 2021. He faces up to 20 years in prison on the robbery charge and 7 years to life for the firearm charge.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas; FBI Special Agent in Charge Christopher Combs; and Austin Police Chief Joseph Chacon made the announcement.
The FBI and the Austin Police Department are investigating the case. Assistant U.S. Attorneys Gabriel Cohen and Keith Henneke are prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Alleged Boston Gang Member Pleads Guilty to Drug ConspiracyRead the Press Release
BOSTON – An alleged member of the Franklin Hill street gang in Boston pleaded guilty today to federal drug charges.
Timmy Hunt, 30, pleaded guilty to two counts of distribution and possession with intent to distribute cocaine base and one count of distribution and possession with intent to distribute over 28 grams of cocaine base. U.S. District Court Judge Denise J. Casper scheduled sentencing for Feb. 9, 2022. Hunt was indicted in June 2020 along with co-defendant Trevel Brewser.
Hunt and Brewster distributed and possessed with intent to distribute cocaine base in Boston on Feb. 26, 2020 and March 2, 2020 and conspired to distribute and possess with intent to distribute over 28 grams of cocaine base. On Sept. 16, 2021, Brewster was sentenced by Judge Casper to five years in prison and four years of supervised release.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Division; Boston Police Acting Commissioner Gregory Long; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Brockton Police Chief Emanuel Gomes made the announcement today. Mendell’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Alice man admits to distributing methRead the Press Release
CORPUS CHRISTI, Texas – A 29-year-old local resident has entered a guilty plea to possession with intent to distribute 6.4 grams of meth after being found with several drugs, money and a stolen firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
On May 8, law enforcement pulled Jacob Garcia over for a traffic violation. They soon observed him and believed he was intoxicated. The car also smelled of marijuana. They inquired as to whether he had been drinking or smoking marijuana, at which time he responded yes and that his wife had smoked marijuana in the vehicle. Authorities asked him to step out of the vehicle and conducted a thorough search.
They ultimately uncovered several bags of narcotics - 37 grams of cocaine, 6.4 grams of meth, 119 grams of marijuana and three THC pens. Authorities also discovered a stolen firearm and $1,260.
U.S. District Judge Nelva Gonzales Ramos accepted the plea and set sentencing for Jan. 12, 2022. At that time, Garcia faces a minimum of five and up to 40 years in federal prison as well as a possible $5 million maximum fine.
He has been and will remain in custody pending that hearing.
The Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; Jim Wells County Sheriff’s Office and the Alice Police Department conducted the investigation. Assistant U.S. Attorney Christopher Marin is prosecuting the case.
Ada Resident Found Guilty of Sexual Abuse and Sexual Contact of Two Minors in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Montelito Sanchez Simpkins, age 36, of Ada, Oklahoma was found guilty by a federal jury of Sexual Abuse of a Minor in Indian Country, in violation of Title 18, United States Code, Sections 2243(a), 2246(2)(D), 1151 and 1152 and Abusive Sexual Contact in Indian Country, in violation of Title 18, United States Code, Sections 2244(a)(3), 2246(3), 1151 and 1152.
The jury trial began with testimony on Tuesday, October 19, 2021, and concluded on Wednesday, October 20, 2021, with the guilty verdicts returned by the jury after approximately 30 minutes of deliberation. Based on the jury’s verdicts, the defendant is facing over 10 years of imprisonment.
The United States presented evidence that on July 15, 2020, Simpkins sexually abused a 12-year-old child, and that on September 27, 2020, Simpkins sexually abused a 13-year-old.
The guilty verdicts were the result of an investigation by the Ada Police Department with assistance from the Federal Bureau of Investigation. The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the child victims in this case are members of federally-recognized Indian tribes and the crimes occurred in Pontotoc County, within the boundaries of the Chickasaw Nation Reservation, and within the Eastern District of Oklahoma. This case was also brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The Honorable David Cleveland Joseph, United States District Judge out of the United States District Court for the Western District of Louisiana, temporarily assigned to the Eastern District of Oklahoma, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following the completion of the report. Simpkins was remanded to the custody of the United States Marshal pending the sentencing hearing.
Assistant United States Attorney Edith Singer and Special Assistant United States Attorney Jo E. Lawless represented the United States.
14 Defendants Charged with Drug Trafficking Conspiracy and Related Crimes in Racine, Wisconsin, and ElsewhereRead the Press Release
Richard G. Frohling, Acting United States Attorney for the Eastern District of Wisconsin, announced that on October 20, 2021, a federal indictment was unsealed that charged thirteen Racine-area individuals with conspiracy to possess with intent to distribute and to distribute five kilograms or more of cocaine, and 500 grams or more of cocaine base in the form of “crack” cocaine.
The following individuals are charged in the indictment:
Name
Resident
GERARDO LARA, a.k.a. “MIGO,” a.k.a. “DINEROO,” (age 27)
Franksville, WI
SARAH A. BECKIUS (age 27)
Kenosha, WI
PLAZE E. ANDERSON (age 23)
Milwaukee, WI
JASMINE J. GONZALES (age 40)
Racine, WI
DEBRA J. URNESS (age 42)
Racine, WI
MARQUAN L. WASHINGTON, a.k.a. “MUNCH,” (age 30)
Racine, WI
MARIO M. JOHNSON, a.k.a. “RO,” a.k.a. “ROEGOTTI,” (age 33)
Racine, WI
ASHLEY M. WESTMORELAND (age 28)
Racine, WI
MICHAEL D. HARDIN, a.k.a. “MOJO,” (age 33)
Racine, WI
TERRY BRUMBY, JR., a.k.a. “T-NICE,” (age 32)
Racine, WI
CARL GRAYSON, a.k.a. “POPS,” (age 64)
Racine, WI
BRIAN L. PHILLIPS, a.k.a. “B,” a.k.a. “BRITTLE,” (age 33)
Racine, WI
MICHAEL A. WRIGHT, JR. (age 31)
Racine, WI
JERI L. BALDERAS (age 31)
Racine, WI
On the morning of October 20, 2021 , law enforcement personnel from the FBI, Racine Police Department, Racine County Sheriff’s Department, Mount Pleasant Police Department, Caledonia Police Department, Cudahy Police Department, Milwaukee Police Department, Milwaukee County Sheriff’s Office, Wisconsin State Patrol, Wisconsin Division of Criminal Investigation, Kenosha County Sheriff’s Department, North Central HIDTA, Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and with the assistance of the United States Marshals Service, simultaneously arrested 12 defendants in the greater Racine and Kenosha areas as well as the State of Tennessee, and executed 18 federal search warrants.
The search warrants resulted in the recovery of multiple firearms and controlled substances. Two defendants were already in custody. According to court records, the majority of the individuals arrested in this operation are alleged to be members of the Vice Lord and Gangster Disciple street gangs, who worked together to further their drug trafficking organization.
“The indictment in this case and today’s arrests demonstrate the joint commitment of federal, state, and local law enforcement to combat drug trafficking activity by gang members and violent offenders and to improve the quality of life of residents throughout the district,” stated Acting U.S. Attorney Frohling.
“We will continue to work collectively with all of our partners on the FBI Milwaukee Area Safe Streets Task Force (MASSTF),” said Special Agent in Charge Robert Hughes. “Utilizing joint resources creates the greatest impact in removing violent gangs, guns and drugs from our communities.”
“This morning’s operation was the culmination of almost 12 months’ worth of investigative work between local, state and federal law enforcement officers to hold members of these two violent organizations accountable. The execution of arrest and search warrants was as close to flawless as any I’ve seen in my 19-year career,” said Racine Chief of Police Maurice A. Robinson. “It is important to note that the subjects named in the arrest warrants were taken into custody without any force being used. I am extremely grateful for all of the officers involved that made this such a successful operation.”
The investigation of this case was conducted by MASSTF, which is comprised of personnel from the FBI, Racine Police Department, Racine County Sheriff’s Office, Mount Pleasant Police Department, and Caledonia Police Department.
If convicted of the drug trafficking conspiracy, each defendant faces a minimum of ten years’ imprisonment with a maximum of life, a $10,000,000 fine, and between five years and life on supervised release. In addition, Balderas is charged with structuring a financial transaction to avoid a reporting requirement and faces a maximum of five years’ imprisonment if convicted of that charge. This case is being prosecuted by Assistant United States Attorneys Katie Halopka-Ivery and Bridget J. Schoenborn.
An indictment is only a charge and is not evidence of guilt. All defendants are presumed innocent and is entitled to a fair trial at which time the government must prove guilt beyond a reasonable doubt.
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20 October 2021
Zephyrhills Man Sentenced to 10 Years in Federal Prison for Attempting to Entice 11-Year-Old and 13-Year-Old Children to Engage in Sexual ActivityRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Lavern Lee Renninger (62, Zephyrhills) to 10 years in federal prison for attempted online enticement of a minor to engage in sexual activity. Renninger was also ordered to serve a 20-year term of supervised release and to register as a sex offender.
Renninger had pleaded guilty on July 19, 2021.
According to court documents, from March 3 through March 18, 2020, Renninger engaged in chats through an online classified advertising site and through text messaging with an individual he believed to be the mother of two children, ages 11 and 13. Unbeknownst to Renninger, the “mother” was an undercover law enforcement officer. During online conversation, Renninger provided the “mother” with graphic details of the sexual activity that he wanted to engage in with these children. Renninger said he had “90,000 visions of this” during a phone call with the “mother” of the children. During text conversations that he believed he was having directly with the children, Renninger detailed what he wanted to do to them sexually and stressed the importance of keeping their interactions secret. Renninger was arrested on March 18, 2021, when he traveled to meet the “mother” to engage in sexual activity with the children.
“Child predators prey on our most vulnerable, our children,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “HSI and our partners at the St. Johns County Sheriff’s Office are now making sure he is held accountable for those crimes.”
This case was investigated by the St. Johns County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Ashley Washington.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Ypsilanti Man Sentenced to Life in Prison for Drug Trafficking Resulting in the Death of a VictimRead the Press Release
An Ypsilanti man was sentenced today to life in prison after having been convicted by a federal jury on charges of distribution and conspiracy to distribute and to possess with the intent to distribute controlled substances, heroin and fentanyl, resulting in the overdose death of one victim and the serious bodily injury to a second victim, announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement were Keith Martin, Special Agent in Charge of the DEA Detroit Field Division, and Chad Baugh, Deputy Director of Canton Police Department.
Sentenced was Adam Dean Brown, 41. Brown was convicted on all three counts after an eleven-day trial which took place in September 2019 before United States District Judge Sean Cox. Brown also pleaded guilty to two lesser charges prior to trial. The jury deliberated approximately six hours before returning their verdicts.
According to the evidence presented at trial, on October 17, 2017, law enforcement responded to a house call where they found an individual deceased in his basement. Officers found a syringe and packet of suspected heroin at the scene and determined the deceased died of an apparent drug overdose. A subsequent investigation revealed that the suspected heroin was actually fentanyl, and that the 22-year-old victim died from a fentanyl overdose. Through their investigation, officers learned that the victim purchased the fentanyl from defendant Brown, a previously convicted drug trafficker. Further evidence showed that Brown and co-defendant James Sharp conspired to distribute illegal drugs, including heroin and fentanyl, over a fourteen-month period in 2016 and 2017. Co-defendant Terence Robinson connected Brown to the October 17, 2017, overdose victim. Before officers could stop Brown, however, he sold fentanyl to a second local man, leading to his overdose and serious bodily injury. The second victim also overdosed on fentanyl sold by Brown, but the victim’s mother called 911 and first responders worked diligently to revive the victim.
"This case is an example of the grave threat fentanyl poses to both witting and unwitting users,” said Acting US Attorney Mohsin. “We are fully committed to prosecuting individuals who continue to fuel the opioid epidemic in this state and throughout this country. We hope that today’s sentence is significant step in helping to bring closure to the victim’s family.”
“Fentanyl and heroin are causing overdose deaths throughout the state of Michigan in increasing numbers”, stated Acting Special Agent in Charge Martin. “The DEA is committed to aggressively pursuing individuals and Drug Trafficking Organizations who distribute these poisons across the state in order to profit from the destruction of lives and communities.”
“The Canton Police Department is fortunate to be able to partner with the federal government and in this case, provide a voice for the victim and a sense of justice for the family members struggling with the loss of their loved ones,” said Chad Baugh, Deputy Director of Canton Police Department. “We are hopeful this sentence sends a message to drug traffickers in southeast Michigan,” Baugh adds.
James Sharp pleaded guilty to the charge of conspiracy to distribute and possess with intent to distribute controlled substances on January 11, 2019 and was sentenced to 41 months in prison. Terence Robinson pleaded guilty to the charge of conspiracy to distribute and possess with intent to distribute controlled substances and was sentenced to 36 months in federal prison.
This investigation was led by agents of the Drug Enforcement Administration assigned to the Southeast Michigan Regional OCDETF Strike Force along with assistance from the Canton Township Police Department. The case was prosecuted by Assistant U.S. Attorneys J. Michael Buckley and Hank Moon.
West Haven State Representative and City Employee Charged in $600K Fraud SchemeRead the Press Release
Leonard C Boyle, United States Attorney for the District of Connecticut, David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, and Christina D. Scaringi, Special Agent in Charge of the Office of Inspector General, U.S. Department of Housing and Urban Development, announced that MICHAEL DiMASSA, 30, of West Haven, was arrested today on a federal criminal complaint charging him with defrauding the City of West Haven of more than $600,000.
DiMassa surrendered to law enforcement this morning. He appeared before U.S. District Judge Sarah A. L. Merriam in New Haven and was released on a $250,000 bond.
As alleged in the complaint, DiMassa has been employed by the City of West Haven for approximately 12 years and has most recently served as the Administrative Assistant to the City Council. He is also currently a Connecticut State Representative. In January 2021, DiMassa and another individual formed Compass Investment Group, LLC. Beginning in February 2021, Compass Investment Group LLC fraudulently billed the City of West Haven and its “COVID-19 Grant Department” for consulting services purportedly provided to the West Haven Health Department that were not performed. From February 2021 through September 2021, the City of West Haven paid Compass Investment Group a total of $636,783.70.
It is further alleged that DiMassa made several large cash withdrawals from the Compass Investment Group LLC bank account, some of which were made shortly before or after he was recorded as having made a large cash “buy-in” of gaming chips at the Mohegan Sun Casino.
The complaint charges DiMassa with wire fraud, which carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle stressed that a criminal complaint is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development – Office of Inspector General for Investigations. The case is being prosecuted by Assistant U.S. Attorney Ray Miller.
Wando Man Sentenced to Fifteen Years in Federal Prison for Folly Road Bank RobberyRead the Press Release
Charleston, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Quinton Allen Manigault, 26, of Wando, was sentenced to 15 years in federal prison after pleading guilty to armed bank robbery.
Evidence presented to the Court showed that Manigault robbed the Pinnacle Bank at the corner of Folly Road and Cross Creek Drive at gunpoint on March 27, 2018. Following the robbery, Special Agents with the Federal Bureau of Investigation (FBI) and detectives with the Charleston Police Department used surveillance footage from surrounding establishments to identify the car Manigault used, and a money band from the bank was discovered in the vehicle.
United States District Judge Bruce Howe Hendricks sentenced Manigault to 180 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the FBI and the Charleston Police Department. The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Assistant United States Attorneys Chris Schoen and Allessandra Stewart prosecuted the case.
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Virginia Man Indicted for Investment SchemeRead the Press Release
CHARLOTTE, N.C. – A federal grand jury in Charlotte has indicted a Virginia man for allegedly orchestrating an investment scheme that defrauded victims of more than $740,000, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Reginald DeMatteis, Special Agent in Charge of the United States Secret Service, Charlotte Field Office, joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations contained in the indictment, from 2009 to October 2021, Michael Mandel Baldwin, 52, of Alexandria, Virginia, was the Chief Executive Officer of the Miracle Mansion, LLC (Miracle Mansion). The indictment alleges that over the course of the scheme, Baldwin made numerous fraudulent representations to victim-investors about the purpose, legitimacy, and success of Miracle Mansion, and solicited investments from a Charlotte-area church and its members, and other individuals and entities located throughout the United States, including in Virginia, Arkansas, Florida, and Georgia.
As part of the fraudulent investment scheme, Baldwin allegedly created and distributed promotional materials to potential investors that described Miracle Mansion as “a one-of-a-kind entertainment complex that [would] reshape the face of family entertainment in the Washington Metropolitan region,” with a mission “to provide a high-quality performing arts experience that promotes family-focused inspiration, entertainment and enrichment anchored by a Biblical worldview.” Baldwin also held in-person and virtual meetings with potential investors, during which he falsely claimed the investors’ money would be used to develop Miracle Mansion, including to purchase the land on which Miracle Mansion would be located. As alleged in the indictment, Baldwin also falsely represented to potential investors that The Kennedy Center and high-level executives at Hobby Lobby and Chick-Fil-A had endorsed and supported Miracle Mansion. The indictment further alleges that Baldwin described to investors several investment opportunities, including “GroundSwell 73,” which was described as “73 acres = 7,300 people, investing $73 per month, for 73 months.”
The indictment also alleges that, contrary to Baldwin’s representations to investors, rather than using the victims’ money to further Miracle Mansion’s purpose, Baldwin spent hundreds of thousands of dollars on his personal lifestyle, including to pay for personal expenses, travel, and meals at restaurants, and to make credit card payments and cash withdrawals. He also allegedly used a portion of the victims’ money to pay others involved in Miracle Mansion, and to make Ponzi style payments to other investors.
Baldwin is charged with wire fraud, which carries a maximum prison term of 20 years and a $250,000 fine, and securities fraud, which carries a maximum prison term of 20 years and a $5 million fine.
The details contained in the indictment are allegations. The defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The U.S. Secret Service led the investigation. Assistant U.S. Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte is prosecuting the case.
Valrico Man Charged with CyberstalkingRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of a criminal complaint charging Dominique Jade Dragan (28, Valrico) with cyberstalking. If convicted, Dragan faces a maximum penalty of five years in federal prison. He made his initial appearance in federal court on October 19, 2021, and ordered detained pending trial.
According to the
criminal complaint , from approximately January 2020 through July 2021, Dragan engaged in a course of conduct with the intent to harass and intimidate three victims. Using Instagram, Dragan cyberstalked, harassed, and threatened the victims with a series of continuous messages. He made specific threats to kill the victims, including by stating, “I can’t wait to hear the bones in your neck break,” “I’m gonna put a bullet in your forehead,” and “I can’t wait to murder you.” Dragan also included racially charged language and threatened the victims with violence if they reported him to law enforcement. Dragan’s conduct placed the victims in reasonable fear of serious injury and death.This case was investigated by the Federal Bureau of Investigation. It will be prosecuted by Assistant United States Attorney Ilyssa M. Spergel.
A criminal complaint is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
United States reaches a $1.25 Million Settlement with South Carolina Family Practice Clinics for Billing Unnecessary Services to Federal Health ProgramsRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that Colonial Family Practice, LLC, a physician-owned primary and urgent care practice with multiple clinics in South Carolina, has agreed to a $1.25 million settlement to resolve allegations that it violated the False Claims Act by billing Medicare, Medicaid, and TRICARE for medically unnecessary services.
Specifically, the United States alleged that Colonial Family Practice filed claims for medically unnecessary nuclear stress tests ordered by Dr. Clay Lowder and Dr. David Whaley between February 22, 2012, and November 26, 2019. Further, the United States alleged the practice systematically billed for unnecessary Cystatin-C laboratory tests—a test to detect kidney dysfunction that is only payable in a narrow set of patients. Colonial Family Practice allegedly added this test to a panel run on most of its patients between August 13, 2013, and November 29, 2019.
The allegations settled arose from two whistleblower lawsuits—one by a Physician Assistant formerly employed by Colonial and the other by a former clinical manager at the practice.
In United States ex rel. Debi Coker v. Colonial Family Practice LLC, et al., Civ. No. 3:18-cv-00800-JMC, the former clinical manager alleged that between February 2012 and November 2019 physicians at the practice falsified symptoms in medical records to support unnecessary EKGs, laboratory orders, and radiology services.
In United States ex rel. James Fields v. Colonial Family Practice, et al., Civ. No. 3:19-cv-02703-JMC, the Physician Assistant alleged that, between August 2013 and November 2019, Colonial created a protocol to add a Cystatin-C laboratory test to its Basic Metabolic Panel, which led to systematic billing for medically unnecessary Cystatin-C tests.
“The United States Attorney’s Office will continue its effort to ensure healthcare providers doing business with the federal government do so with competent care within the full letter of the law,” said Acting U.S. Attorney DeHart. “By doing so, we not only will ensure the rule of law is followed but also ensure tax dollars are protected.”
"False and inappropriate healthcare billing erodes public confidence in the healthcare system, subjects patients to unnecessary tests and procedures, and increases the cost of healthcare for active duty service members, retirees, and their families,” said Special Agent in Charge Christopher Dillard, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Mid-Atlantic Field Office. “DCIS and its law enforcement partners will continue targeting fraud waste and abuse of the TRICARE program and hold wrongdoers accountable.”
The matter was investigated by the Department of Defense’s Defense Health Agency, the South Carolina Attorney General’s Medicaid Fraud Enforcement Unit, and Assistant United States Attorneys Beth Warren and Nancy Cote.
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. 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).
The claims resolved by this settlement are allegations only. Colonial Family Practice, LLC does not admit wrongdoing or liability.
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U.S. Attorney Announces Indictment Charging Former President and Bookkeeper of Moving Company with Multimillion-Dollar Payroll Tax Fraud Scheme, and Related Guilty PleasRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, and Thomas Fattorusso, Acting Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the unsealing of a federal Indictment charging JOSEPH EUGENE LEMAY, a/k/a “Gene Lemay,” and JOEL LINGAT with criminal tax offenses. LEMAY is the former president of a company that provides moving and storage services (“Company-1”), and LINGAT is Company-1’s bookkeeper. LEMAY and LINGAT are alleged to have conspired to perpetrate a long-running scheme to evade more than approximately $7.8 million in federal payroll taxes owed by Company-1 and affiliated companies to the Internal Revenue Service (“IRS”). LEMAY is also alleged to have evaded his personal income taxes. LINGAT was previously arrested in this case; LEMAY self-surrendered to the federal courthouse today and is expected to be presented on the charges in the Indictment this afternoon. The case is assigned to U.S. District Judge Mary Kay Vyskocil.
Mr. Williams and Mr. Fattorusso also announced today the previously entered guilty pleas of SALMAN RAMI HAIM, former president of Company-1, and NISSIM FADIDA, current President of Company-1. Both HAIM and FADIDA previously admitted to participating in the payroll tax fraud conspiracy while employed by Company-1. The case against HAIM and FADIDA is assigned to U.S. District Judge Ronnie Abrams.
U.S. Attorney Damian Williams said: “As alleged, Gene Lemay and Joel Lingat conspired to defraud the United States and evade nearly $8 million in payroll taxes by creating sham companies and making it appear as though their company’s employees were actually employed by these fictitious companies. Lemay is also alleged to have engaged in criminal chicanery to evade personal income taxes. Now both men face federal charges for their alleged crimes.”
IRS-CI Acting Special Agent in Charge Fattorusso said: “Mr. Lemay and Mr. Lingat today stand accused of participating in a long-running conspiracy to hide millions of dollars in payroll from the IRS. This allegedly cost the American taxpayer millions of dollars in lost tax revenue. As alleged, these men, with others, went through extraordinary lengths to hide the money through a series of completely bogus companies. Today’s indictment, alongside the just announced guilty pleas of Mr. Haim and Mr. Fadida for their own roles in this scheme, demonstrate that IRS Criminal Investigation will continually endeavor to ensure honest taxpayers are protected from these types of criminal abuses.”
According to the allegations in the Indictment unsealed today and the criminal complaint previously filed against LINGAT (where LEMAY is identified as CC-1):[1]
From in or about 2010 through in or about December 2016, LEMAY, LINGAT, and other co-conspirators perpetrated a scheme to defraud the U.S. government of payroll and income taxes due and owing to the IRS by Company-1 and affiliated companies. As part of the criminal scheme, LEMAY, LINGAT, and their co-conspirators created sham companies, nominally owned by close associates or family members of LEMAY or others at Company-1; assigned (on paper only) foremen and movers working for Company-1 to the sham companies; and fraudulently made it appear that the sham companies were independent contractors, including by creating fake invoices by which the sham companies purportedly billed Company-1 for labor. Because the conspirators fraudulently made it appear that the labor was performed by independent contractors, Company-1 was able to deduct the cost of the labor as an expense on its tax returns, without withholding or paying over any payroll taxes to the IRS. Through the criminal scheme, Company-1 and affiliated companies evaded in excess of approximately $7.8 million in payroll taxes, including FICA and Medicare contributions, during the charged period.
LEMAY is also alleged to have evaded personal income taxes by receiving substantial personal income through an entity called GM3 Enterprises Inc (“GM3”); fraudulently deducting substantial personal expenses paid through GM3 as business expenses on GM3’s corporate tax returns; and significantly underreporting his true income and resulting tax liabilities on his personal tax returns, which LEMAY caused to be prepared and filed with the IRS.
LEMAY, 61, of Delray Beach, Florida, and LINGAT, 61, of Jersey City, New Jersey, are charged with one count of conspiracy to defraud the IRS, which carries a maximum sentence of five years in prison. LEMAY is also charged with two counts of tax evasion for the tax years 2014 and 2015, each of which also carry a maximum sentence of five years in person.
The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
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Also announced today were the previously entered guilty pleas of SALMAN RAMI HAIM, former president of Company-1, and NISSIM FADIDA, current president of Company-1. As part of their guilty pleas, HAIM and FADIDA both admitted to participating in the payroll tax fraud conspiracy while employed at Company-1.
HAIM, 46, of Jersey City, New Jersey, pled guilty on May 9, 2019, before U.S. Magistrate Judge Ona T. Wang to one count of conspiring to fail to collect or pay over payroll taxes between approximately 2001 and 2016, in violation of 18 U.S.C. § 371, which carries a maximum sentence of five years in prison; one count of tax evasion for the tax years 2009 through 2016, in violation of 26 U.S.C. § 7201, which carries a maximum sentence of five years in prison; and one count of conspiring to produce false identification documents, in violation of 18 U.S.C. § 1028, which carries a maximum sentence of 15 years in prison.
FADIDA, 45, of East Brunswick, New Jersey, pled guilty on October 15, 2021, before U.S. District Judge Ronnie Abrams to one count of conspiring to defraud the IRS between approximately 2005 and December 2016, in violation of 18 U.S.C. § 371, which carries a maximum sentence of five years in prison; and one count of tax evasion for the tax years 2010 through 2013, in violation of 26 U.S.C. § 7201, which carries a maximum sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the IRS-CI.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Jilan Kamal, Katherine Reilly, and Olga I. Zverovich are in charge of the prosecution.
[1] As the introductory phase signifies, the entirety of the text of the Indictment and the criminal complaint, and the description of the Indictment and criminal complaint set forth below, constitute only allegations, and every fact described should be treated as an allegation.
Two Maryland Men Plead Guilty to Charges in Armed Robbery of Unlicensed Marijuana DispensaryRead the Press Release
WASHINGTON – Two Maryland man have pleaded guilty to charges stemming from an armed robbery of an unlicensed marijuana dispensary in Northeast Washington in which four employees were bound with zip ties, announced Acting U.S. Attorney Channing D. Phillips and Robert J. Contee III, Chief of the Metropolitan Police Department (MPD).
Dexter T. Brown, 43, and Gregory Sharps, 42, both of Severn, Md., pleaded guilty on Oct. 15, 2021, in the Superior Court of the District of Columbia, to kidnapping, armed robbery, assault with a dangerous weapon, and a firearms offense. The plea, which is contingent upon the Court’s approval, calls for an agreed-upon prison sentence in the estimated range of 72 to 88 months. The Honorable Neal E. Kravitz scheduled sentencing for Dec. 22, 2021.
According to the government’s evidence, on Feb. 12, 2019, at approximately 10:50 p.m., Brown, Sharps, and a third man arrived at “Higher Limits,” an unlicensed marijuana dispensary in the 500 block of H Street NE. They pretended to be normal customers perusing the shop’s wares before each of them brandished a firearm at the employees minding the store and announced the robbery. Over the next several minutes, they proceeded to round up the employees and placed four of them in zip ties. One other employee was ordered to open the cash register and a sixth escaped. The assailants gathered marijuana, merchandise, and cash.
They then fled in a van. Metropolitan Police Department (MPD) officers were called to the scene and gave chase to the van. The suspects ultimately bailed out of the van and fled. Three weapons were eventually recovered along with a bag containing proceeds of the armed robbery. Brown and Sharps were arrested in October 2019 and have been in custody ever since.
A third defendant previously pleaded guilty to related charges.
In announcing the plea, Acting U.S. Attorney Phillips and Chief Contee commended the work of those who investigated the case from the Metropolitan Police Department. They also expressed appreciation for the efforts of those who handled the case for the U.S. Attorney’s Office, including Paralegal Specialist Allison Gregory Daniels. Finally, they commended the work of Assistant U.S. Attorneys Felice Roggen, William Hart, and Tamara Rubb, who investigated and prosecuted the case.
Two Individuals Sentenced for Providing “Bulletproof Hosting” for CybercriminalsRead the Press Release
Two Eastern European men were sentenced for providing “bulletproof hosting” services, which were used by cybercriminals between 2009 to 2015 to distribute malware and attack financial institutions and victims throughout the United States.
On June 28 and Oct. 20, Chief Judge Denise Page Hood of the U.S. District Court for the Eastern District of Michigan sentenced Pavel Stassi, 30, of Estonia, to 24 months in prison; and Aleksandr Skorodumov, 33, of Lithuania, to 48 months in prison, for their roles in the scheme.
According to court documents, Stassi and Skorodumov were members of a bulletproof hosting organization founded and led by two co-defendants, Aleksandr Grichishkin and Andrei Skvortsov, both 34 and of Russia. The group rented IP addresses, servers, and domains to cybercriminal clients who employed this technical infrastructure to disseminate malware used to gain access to victims’ computers, form botnets, and steal banking credentials for use in frauds. Malware hosted by the organization included Zeus, SpyEye, Citadel, and the Blackhole Exploit Kit, which attacked U.S. companies and financial institutions between 2009 and 2015 and caused or attempted to cause millions of dollars in losses to U.S. victims. The defendants also helped their clients evade detection by law enforcement and continue their crimes uninterrupted by monitoring sites used to blocklist technical infrastructure used for crime, moving “flagged” content to new infrastructure, and registering all such infrastructure under false or stolen identities.
“Cybercrime presents a serious and persistent threat to the United States, and these prosecutions send a clear message that ‘bulletproof hosters’ who purposely aid other cybercriminals are responsible, and will be held accountable, for the harms their criminal clients cause within our borders,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.
“Given their international nature, and the anonymity of the internet, cybercrime investigations often take years,” said Acting U.S. Attorney Saima Mohsin for the Eastern District of Michigan. “They can require the resources of multiple law enforcement agencies, the cooperation of multiple governments, skilled interpreters, and time-consuming extradition procedures. The persistence and hard work of our law enforcement partners has led to these successful prosecutions and sends a message to cybercriminals that they will be brought to justice.”
“Over the course of many years, the defendants facilitated the transnational criminal activity of a vast network of cybercriminals throughout the world by providing them a safe-haven to anonymize their criminal activity,” said Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office. “This resulted in millions of dollars of losses to U.S. victims. Cybercriminals may believe they are beyond the reach of the FBI and our international partners, but today’s proceeding proves that anyone who facilitates or profits from criminal cyber activity will be brought to justice.”
According to court filings and statements made in connection with the defendants’ guilty pleas, Skorodumov was one of the organization’s lead systems administrators and, at some points, its only systems administrator. In this role, he configured and managed the clients’ domains and IP addresses, provided technical assistance to help clients optimize their malware and botnets, and monitored and responded to abuse notices. Stassi undertook various administrative tasks for the organization, including conducting and tracking online marketing to the organization’s criminal clientele and using stolen and/or false personal information to register webhosting and financial accounts used by the organization.
Stassi, Skorodumov, Grichishkin and Skvortsov each pleaded guilty to one count of Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Grichishkin and Skvortsov are pending sentencing and face a maximum penalty of 20 years in prison. A federal district court judge will determine each sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI investigated the case with critical assistance from law enforcement partners in Germany, Estonia and the United Kingdom.
Senior Counsel Louisa K. Marion of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Patrick E. Corbett of the Eastern District of Michigan prosecuted the case. The Justice Department’s Office of International Affairs provided substantial assistance.
Two Chicago Defendants Plead Guilty to Bank FraudRead the Press Release
BOISE – Two Chicago women pleaded guilty to bank fraud.
According to court proceedings, Jakara B. Edwards, 23, and Tatyana A. Love, 21, both of Chicago, Illinois, traveled to Idaho with at least two co-defendants in May 2020. On May 6, 2020, Edwards and Love cashed counterfeit checks at different First Interstate Bank branches in the Treasure Valley. The counterfeit checks had the logo and business information for the company accountholder along with a forgery of the account owner’s signature. The checks were payable to Edwards and Love. Edwards and Love presented their Illinois identification cards to cash the counterfeit checks. Edwards and Love knowingly presented the counterfeit checks and provided false information to the bank, intending to defraud the financial institution. In addition to the checks in Idaho, Edwards and Love traveled with other named and unnamed co-conspirators to other states to cash counterfeit checks.
Edwards and Love are scheduled to be sentenced on January 6, 2022 and face a maximum penalty of 30 years in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Co-defendant Abbi L. Sullivan, 21, of Bloomington, Illinois, is scheduled for a change of plea on October 27, 2021.
Acting U.S. Attorney Rafael M. Gonzalez, Jr., of the District of Idaho made the announcement and commended the cooperative efforts of the Federal Bureau of Investigation, Ada County Sheriff's Office, Boise Police Department, Garden City Police Department, Meridian Police Department, Nampa Police Department, Chicago Police Department, Ellisville Police Department, Fort Atkinson Police Department, Gahanna Police Department, Johnson Creek Police Department, Montgomery Township Police Department, Normal Police Department, Peoria County Sheriff’s Office, Redwood City Police Department, San Mateo County Sheriff’s Office, Sioux Falls Police Department, Social Security Administration Office of the Inspector General, Stockton Police Department, Waltham Police Department, and Wellesley Police Department, which led to charges.
“The loss to these community banks would have been much greater if not for responsive bank employees who reported the crime and the cooperative investigative work by law enforcement agencies across the country,” said Mr. Gonzalez. “Committing fraud against a bank is not a victimless crime, and our office will not hesitate to prosecute individuals caught deceiving people or financial institutions for profit, especially those who travel to Idaho to commit nefarious acts.”
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Turtle Creek Woman Sentenced for Participating in Her Brother’s Drug TraffickingRead the Press Release
PITTSBURGH - A resident of Turtle Creek, Pennsylvania, has been sentenced in federal court to 18 months’ imprisonment and 2 years’ supervised release on her conviction of narcotics trafficking, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Marleka Robinson, age 26, of Turtle Creek, Pennsylvania.
According to information presented to the court, on September 11, 2016, Marleka Robinson obtained a large quantity of fentanyl from a distributor in the Knoxville section of Pittsburgh at Robinson’s brother and co-defendant Jerry Coker’s request. Robinson returned the drugs to the residence she shared with Coker and their other sister, codefendant Monique Robinson. A search warrant executed at the Coker residence the following day resulted in the seizure of more than 285 grams of fentanyl and small quantities of heroin, cocaine, and marijuana. Drug packaging, weighing, and distributing materials were found strewn through the house, along with two Smith & Wesson pistols and $8,900 in cash, all of which were seized by law enforcement. Robinson admitted that she had transported narcotics for Coker on more than one occasion.
Prior to imposing sentence, Judge Bissoon stated that a sentence of 18 months imprisonment reflected the serious nature of her conduct, her lack of criminal history, and the limited role in the trafficking activity that Robinson played.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Drug Enforcement Agency for the investigation leading to the successful prosecution of Robinson.
Tulsa Man Pleads Guilty to Defrauding Investor and Banks of Millions of DollarsRead the Press Release
A con artist who defrauded a man out of $4.5 million and defrauded banks out of $3.9 million pleaded guilty Tuesday in U.S. District Court, announced Acting U.S. Attorney Clint Johnson.
William Brian Mulder, 63, of Tulsa, pleaded guilty to causing the interstate transmission of moneys taken by fraud and money laundering.
“William Mulder was driven by greed and a relentless spirit of deception. For nearly twenty years, this fraudster repeatedly lied to and cheated friends and banks out of millions of dollars,” said Acting U.S. Attorney Clint Johnson. “I commend the team of federal prosecutors and agents who brought Mulder to justice for his criminal deceit.”
Mulder was set to go to trial this week but instead pleaded guilty. Mulder admitted that beginning in 2000 and continuing through 2017, he received numerous checks totaling approximately $4.5 million from the victim, who was a local businessman and friend to Mulder. Mulder advised the victim to create a trust for his special needs son and for which Mulder would be the trustee and have complete discretion and control. Mulder told the victim that he would prudently invest the funds on the son’s behalf. Instead, Mulder used the funds for his own personal expenses and enrichment.
Mulder admitted that in December 2015, he fraudulently received a check from the victim in the amount of $142,500 and deposited funds from the check in the amount of $83,378.54 into his personal account, which he later used on a personal investment in generators in Missouri.
Further, Mulder admitted that he lied about his assets and submitted fabricated documents to obtain loans from Oklahoma banks in order to support a lifestyle he couldn’t afford on his own.
According to the indictment, Mulder, as part of his scheme, misrepresented himself as worth millions to friends. Mulder told several individuals that a wealthy Missouri widow had left him over $100 million in a blind trust in appreciation for his services as an insurance salesman for the widow. In another story, he said he was the beneficiary of a different blind trust worth hundreds of millions of dollars from his father. The government alleged that Mulder convinced his friends that if they pooled their investments with his fortune, they could grow their money faster. To cover his tracks, Mulder created a web of convoluted rules and restrictions to keep the victims from seeing the progress of their investments. The government alleged that, in reality, there were no investments. Mulder deposited checks into his personal bank accounts and used the funds to pay off credit card debts and to run a coffee shop chain. He also allegedly moved money between more than 60 bank accounts in order to make it difficult for the investors and law enforcement to follow the trail of money.
As part of the plea deal, Mulder agreed to pay $3.9 million in restitution to two of the banks and $4.5 million in restitution to his former friend and investor. Mulder also faces a sentence of 70 to 90 months in federal prison if the plea agreement is accepted by Chief U.S. District Judge John F. Heil III. Judge Heil will determine the sentence at a hearing on April 28, 2022.
The FBI, IRS-Criminal Investigation, U.S. Department of Treasury-Office of Inspector General; and the Federal Deposit Insurance Corporation (FDIC)-Office of Inspector General conducted the investigation. Assistant U.S. Attorneys Kevin C. Leitch, Vani Singhal, and Thomas E. Duncombe are prosecuting the case.
Tennessee Man Pleads Guilty to Civil Rights Violations for Series of Church ArsonsRead the Press Release
A Tennessee man pleaded guilty today to civil rights violations for a series of church arsons.
Alan Douglas Fox, 28, of Nashville, pleaded guilty to all counts of an information charging him with setting fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019; and with carrying and using a firearm during the arson of the Crievewood Baptist Church. During the plea hearing, Fox admitted to intentionally setting the fires because of the religious character of the four churches.
“The defendant in this case set fire to four Christian churches, causing fear and anguish to church members and their denominations. The freedom to practice the religion we choose, without discrimination or danger, is a fundamental civil right in our nation and a hallmark of our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prosecute, to the fullest extent of the law, those who target and harm houses of worship because of bigotry and prejudice.”
“The U.S. Attorney’s Office will always pursue those, who by their malicious actions, infringe upon our freedom of religion,” said Acting U.S. Attorney Mary Jane Stewart of the Middle District of Tennessee. “I commend our law enforcement partners and our prosecution team for bringing this individual to justice.”
U.S. District Judge Eli J. Richardson of the Middle District of Tennessee scheduled sentencing for Feb. 11, 2022. By the terms of the plea, Fox faces up to 20 years in prison for each fire and a consecutive five-year sentence for the firearms violation.
The FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department investigated the case. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division are prosecuting it.
Suitland Man Sentenced to 10 Years in Federal Prison for Coercion of a 14-Year-Old ChildRead the Press Release
Greenbelt, Maryland – U.S. District Judge George J. Hazel sentenced Sean Levan Henson, age 28, of Suitland, Maryland to 10 years in federal prison, followed by 10 years of supervised release, for coercion and enticement of a minor. Judge Hazel also ordered that, upon his release from prison, Henson must register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Prince George’s County State’s Attorney Aisha N. Braveboy, Chief Russell E. Hamill III of the Laurel Police Department; and Chief Eric L. Reiley of the Woodstock Virginia Police Department.
According to his guilty plea, in February 2019, Henson used various social media platforms to communicate sexual messages with a 14-year-old female victim residing in Shenandoah County, Virginia. For example, on February 15, 2019 Henson sent a message stating “I’m gonna take my time and appreciate you and make love to that body.”
As detailed in his plea agreement, on February 22, 2019, Henson traveled to Shenandoah County, Virginia where he picked up the victim for the purpose of transporting her to Maryland and engaging in sexual activity. On February 23, 2019, Henson engaged in sexual intercourse with the victim in Laurel, Maryland. Henson subsequently paid for a ride-sharing service to transport the female victim back to Shenandoah County, Virginia. The victim’s parents reported the victim as a missing person and gave a statement to law enforcement.
On March 6, 2019, law enforcement communicated with Henson by telephone. At that time Henson admitted he was aware the victim was 14 years old and that he had been communicating with the victim for two months with the intention of a romantic relationship. Henson also informed law enforcement he picked up the victim at a Virginia gas station before he proceeded to Maryland where he engaged in sexual intercourse with the victim in Maryland.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
United States Attorney Erek L. Barron praised the FBI, the Prince George’s County State’s Attorney’s Office, the Laurel Police Department, and the Woodstock Virginia Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorney Timothy F. Hagan, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Stolen identity scheme sends Jordan man to prisonRead the Press Release
BILLINGS — A Jordan man who admitted to stealing personal identifying information from family members and acquaintances to obtain credits cards to fund his life and a drug habit was sentenced today to 51 months in prison to be followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Eric Richard Morrow, 37, pleaded guilty in March to mail fraud and to aggravated identity theft.
U.S. District Judge Susan P. Watters presided. Judge Watters also ordered $61,188 restitution. Morrow was detained.
In court documents, the government alleged that from 2017 to 2020, Morrow assumed the identities of family members, a former employer and the former employer’s deceased wife, a former girlfriend and others who were acquainted with him by getting their personal identifying information and using it to open fraudulent credit card accounts. Morrow had access to the information because of his relationship to the various victims. Morrow then used the credit cards to buy goods and services around Montana, including in Billings, Laurel and Jordan, and to fund his drug habit. The scheme caused more than $50,000 in losses.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Billings Police Department and the U.S. Postal Service.
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State Senate Campaign Volunteer Admits Role in Scheme to Obtain Public Election FundsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that TINA MANUS, 42, of Stratford, waived her right to be indicted and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to a conspiracy offense related to her role in a scheme to obtain public funds for the 2018 Connecticut State Senate campaign of Dennis A. Bradley.
According to court documents and statements made in court, in 2018, Manus was a campaign volunteer for the Bradley campaign. Between March and October 2018, Manus conspired with Bradley, his former campaign treasurer, Jessica Martinez, and others to defraud the Connecticut State Election Enforcement Commission (“SEEC”), the Citizens’ Election Fund, and the State of Connecticut by making misrepresentations concerning compliance with state election law and the requirements and restrictions of the Citizens’ Election Program (“CEP”), a voluntary public election-financing program under which candidates can apply to SEEC for grants to fund their primary and general election campaigns.
Manus pleaded guilty to one count of conspiracy to commit wire fraud, an offense that carries a maximum term of imprisonment of 20 years.
Manus, who has agreed to cooperate in the ongoing investigation of this matter, is released on a $150,000 bond pending sentencing.
On May 24, 2021, a federal grand jury in New Haven returned an indictment charging Bradley and Martinez with offenses related to Bradley’s 2018 run for State Senate. Each entered a plea of not guilty and is awaiting trial. Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This case is being investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Jonathan N. Francis and David E. Novick.
Seven Defendants Sentenced in $10 Million Mortgage Fraud and Identity Theft SchemeRead the Press Release
Miami, Florida – This week, a federal district judge sent six South Florida residents and one New Jersey resident to federal prison for their roles in a fraud scheme that involved stealing identities, creating and using fake foreign passports, impersonating homeowners, and falsifying loan documents to trick lenders into providing millions of dollars of mortgage loans on unencumbered residential properties.
The scheme followed a general pattern. First, the fraudsters would identify residential homes with no mortgages, and absent owners, located in high-end South Florida neighborhoods. Next, using the names and other identity information of the true homeowners, the fraudsters created fake passports. Alongside the homeowners’ names, the fraudsters placed photographs of co-conspirators. Some of those co-conspirators appeared at loan closings posing as the homeowners. The fraudsters used the fake passports to apply for mortgage loans from private lenders and to open bank accounts in the homeowners’ names -- accounts into which lenders wired the loan money. They used the stolen money to buy luxury cars, expensive watches, and other items. In total, the scheme drained close to $10 million of equity from South Florida homes.
The prison sentences in this case include:
- Carlos Rafael Castaneda Mendez, 34, of Miami, was sentenced to 78 months.
- Alejandro Boada Oliveros, 45, of Miami, was sentenced to 46 months.
- Jonnathan Jesus Gonzalez, 33, of Miami, was sentenced to 44 months.
- Yanjeisis Alejandra Pompa Villafane, 25, of Hialeah, was sentenced to 28 months.
- Lilia Rosa Morales Moreno, 45, of Miami, was sentenced to 30 months.
- Katherine Hansen Mendoza, 25, of Miami, was sentenced to seven months.
- Isbel Rodriguez Batista, 23, of Teaneck, New Jersey was sentenced to 30 months.
Charges against other defendants are pending. An indictment is only an accusation and defendants are presumed innocent unless and until proven guilty.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida; Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office; and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office made the announcement.
USSS Miami, HSI Miami, and Aventura Police Department investigated this case. Assistant U.S. Attorney Stephanie Hauser is prosecuting the case. Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case no.: 20-cr-20155.
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Parkersburg Man Sentenced to 10 Years in Prison for Gun and Drug CrimesRead the Press Release
CHARLESTON, W.Va. – Jonathan Ray Sindledecker, 40, of Parkersburg, was sentenced today to 120 months in prison for prohibited possession of a firearm by a felon and possession with intent to distribute methamphetamine. Sindledecker previously pleaded guilty to those two felony offenses on July 28, 2021.
According to court documents and statements made in court, officers with the Parkersburg Police Department arrested Sindledecker on January 17, 2020 due to outstanding warrants. When officers approached Sindledecker at a Go-Mart store near the intersection of 16th Street and St. Mary’s Avenue, he ran around the store into an alley. As Sindledecker was running, he attempted to pull a pistol with an obliterated serial number from his waist area. Upon doing so, Sindledecker lost his balance and fell to the ground. Officers apprehended Sindledecker and located the pistol nearby. Officers also located a quantity of methamphetamine, digital scales and a small amount of cash on Sindledecker. Sindledecker knew he was prohibited from possessing the firearm due to prior felony convictions for unlawful entry and manufacture of a controlled substance in Wood County Circuit Court. Sindledecker admitted that he intended to distribute the methamphetamine to others.
Including the two convictions from this case, Sindledecker now has 25 adult criminal convictions including seven felony convictions and 18 misdemeanor convictions. Included in Sindledecker’s criminal history are convictions for battery, domestic battery, domestic assault, and two felony convictions for manufacture of a controlled substance.
The United States sought a strong sentence of imprisonment in this case due to Sindledecker’s criminal history as well as his decision to pull a pistol out of his waistband while fleeing from law enforcement officers just prior to his arrest.
United States Attorney William S. Thompson made the announcement and commended the investigative work of the Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Assistant United States Attorney Jeremy B. Wolfe is handling the prosecution.
United States District Judge Joseph R. Goodwin imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00050.
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Owner of Construction and Building Inspection Businesses and Two Employees Charged with Tax FraudRead the Press Release
NEW ORLEANS – The U.S. Attorney’s Office and the Department of Justice’s Tax Division announced that RANDY A. FARRELL SR., and DAVID FARRELL, both of Jefferson Parish, and DAWN FARRELL RUIZ, of St. Tammany Parish, were charged in a superseding bill of information with conspiring to defraud the IRS.
According to court documents, from 2011 through at least June 2019, RANDY FARRELL, an owner of construction and building inspection businesses, and his two siblings and employees, DAVID FARRELL and DAWN FARRELL RUIZ, conspired to defraud the IRS by failing to report their full personal income to the IRS and by failing to withhold employment taxes from employees’ wages. RANDY FARRELL and Mathew Reck co-owned two construction businesses, SES Construction Consulting Group (“SES”) and Global Technical Solutions (“GTS”). As co-owners, RANDY FARRELL and Reck caused certain SES and GTS employees, including DAVID FARRELL and RUIZ, to be paid outside of the normal payroll process such that employment taxes were not withheld from their paychecks. The three defendants and others then caused SES and GTS to issue Forms W-2 to employees that fraudulently underreported their actual compensation. Since DAVID FARRELL and RUIZ were paid outside of the normal payroll process and received false Forms W-2, they were able to fraudulently avoid paying federal income and employment taxes on their salaries. Reck previously pled guilty to conspiring with these three defendants to defraud the IRS.
In addition to SES and GTS, RANDY FARRELL has also co-owned a building inspection business, IECI & Associates LLC (“IECI”), since 2007. After the IRS executed a search warrant at RANDY FARRELL’s home and companies’ offices in September 2017, he filed tax returns that falsely underreported the taxable income he earned from his businesses.
If convicted of these charges, RANDY FARRELL, DAVID FARRELL, and RUIZ each faces up to five years in prison, followed by up to three years of supervised release, as well as a fine, restitution, and a $100 mandatory special assessment fee. A bill of information is merely a charge, and the guilt of the defendants must be proven beyond a reasonable doubt.
The Justice Department’s Tax Division and the United States Attorney’s Office for the Eastern District of Louisiana praised the work of IRS Criminal Investigation. Trial Attorneys William Montague and Parker Tobin of the Justice Department’s Tax Division and Assistant U.S. Attorney Nicholas Moses of the Eastern District of Louisiana are in charge of the prosecution.
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North Carolina Man Pleads Guilty in Connection with Distributed Denial of Service Attack in PlattsburghRead the Press Release
ALBANY, NEW YORK – Thomas A. Johnson, age 24, of Boone, North Carolina, pled guilty today to directing a distributed denial of service (“DDoS”) attack that disrupted internet access for thousands of Plattsburgh-area internet customers. The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
DDoS attacks target websites and online services. The attacker causes the targeted server or network to be overwhelmed by more internet traffic than the server or network can typically accommodate, which renders the affected server or network inoperable for a period of time until service can be restored.
As part of his misdemeanor guilty plea, Johnson admitted to intentionally causing damage to a protected computer on March 2, 2016, by orchestrating a DDoS attack intended to knock a Plattsburgh-area user off the internet while the two were playing an internet-based video game, after Johnson believed the target had insulted him. In addition to disrupting the intended target’s internet access, Johnson’s actions impacted all of the users of the target’s internet network.
Sentencing is scheduled for December 20, 2021 in Albany before United States Magistrate Judge Daniel J. Stewart. Johnson faces a maximum statutory penalty of 1 year in prison, as well as a fine of up to $100,000, and a term of supervised release of up to a year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Emily C. Powers.
New York Man Sentenced to 78 Months in Prison for Trafficking MethamphetamineRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 78 months in prison for possessing more than 500 grams of methamphetamine with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Joseph McMaster, 58, of Queens County, New York, previously pleaded guilty before U.S. District Judge Brian M. Martinotti in Newark federal court to an information charging him with possession with intent to distribute methamphetamine. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
On June 8, 2019, McMaster was arrested after he traveled to Lyndhurst, New Jersey, to sell crystal methamphetamine. Agents conducting surveillance identified McMaster when he arrived at the meeting location. A search of his car recovered more than one pound of crystal methamphetamine.
On Sept. 13, 2021, in the Southern District of New York, McMaster was sentenced to 30 months in prison – to be served consecutively to the sentence imposed today – for violating the terms of his supervised release.
In addition to the prison term, Judge Martinotti sentenced McMaster to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ray A. Mateo of the Opioid Abuse Prevention and Enforcement Unit in Newark.
New York Man Indicted for Armed Bank RobberyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on October 19, 2021, Michael Muse, age 43, of Brooklyn, New York, was indicted for armed bank robbery.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that on September 16, 2021, Michael Muse, age 43, committed an armed robbery of the ESSA Bank in Middle Smithfield Township, Monroe County.
The charge against the defendant resulted from an investigation conducted by the Pennsylvania State Police and the FBI Safe Streets Task Force. Assistant United States Attorney Robert J. O’Hara is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under federal law, Muse faces a maximum sentence of up to twenty-five years in prison, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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New York Litigation Funder and Fifth Member of $31 Million Dollar Trip-And-Fall Fraud Scheme Arrested and Charged in Manhattan Federal CourtRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced the unsealing of a Superseding Indictment charging ADRIAN ALEXANDER with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud in connection with a scheme to obtain fraudulent insurance reimbursements and other compensation for fraudulent trip-and-fall accidents. ALEXANDER was arrested yesterday and will be presented today before United States Magistrate Judge Robert W. Lehrburger.
A prior Indictment in the case charged New York lawyers George Constantine and Marc Elefant and New York doctors Sady Ribeiro and Andrew Dowd for their participation in the fraud scheme. The Superseding Indictment adds ALEXANDER, who allegedly funded fraudulent lawsuits in furtherance of the trip-and-fall scheme, as the fifth individual charged in the case. The case is assigned to United States District Judge Sidney H. Stein.
U.S. Attorney Damian Williams said: “As alleged, a New York litigation financier has been implicated in this massive trip-and-fall fraud scheme, along with lawyers and doctors who were previously charged. The defendant is alleged to have knowingly financed scores of fraudulent lawsuits, preying upon the desperation of others for his own financial gain. Thanks to the efforts of the FBI, the defendant faces federal charges.”
According to the allegations in the Superseding Indictment[1]:
From in or about January 2013, up to and including in or about April 2018, ALEXANDER and his codefendants engaged in an extensive fraud scheme through which the defendants defrauded businesses and insurance companies by staging trip-and-fall accidents and filing fraudulent lawsuits arising from those staged trip-and-fall accidents.
Fraud scheme participants recruited individuals (the “Patients”) to stage or falsely claim to have suffered trip-and-fall accidents at particular locations throughout the New York City area (the “Accident Sites”). In the course of the fraud scheme, scheme participants recruited more than 400 Patients. In the beginning, scheme participants would instruct Patients to claim they had tripped and fallen at a particular location, when in fact the Patients had suffered no such accidents. Eventually, at the direction of the lawyers who filed fraudulent lawsuits on behalf of the Patients, scheme participants began to instruct Patients to stage trip-and-fall accidents, i.e., to go to a location and deliberately fall. Common Accident Sites used during the fraud scheme included cellar doors, cracks in concrete sidewalks, and purported “potholes.”
After the staged trip-and-fall accidents, Patients were referred to specific attorneys, including George Constantine and Marc Elefant, who would file personal injury lawsuits (the “Fraudulent Lawsuits”) against the owners of the Accident Sites and/or insurance companies of the owners of the accident sites (the “Victims”). The Fraudulent Lawsuits did not disclose that the Patients had deliberately fallen at the accident sites or, in some cases, had not fallen at all. During the course of the fraud scheme, the defendants, together with others known and unknown, attempted to defraud the Victims of more than $31 million.
The Patients were also instructed to receive ongoing chiropractic and medical treatment from certain chiropractors and doctors, including Andrew Dowd and Sady Ribeiro. The fraud scheme participants advised the Patients that if they intended to continue with their lawsuits, they were required to undergo surgery. As an incentive to getting surgery, the recruited Patients were offered a payment of typically between $1,000 and $1,500 after they completed surgery (“Post-Surgery Payments”). Patients generally were told to undergo two surgeries. Doctors in the fraud scheme, including Dowd and Ribeiro, were expected to, and in fact did, conduct these surgeries regardless of the legitimate medical needs of the Patients.
Members of the fraud scheme often recruited individuals who were extremely poor as Patients – individuals desperate enough to submit to surgeries in exchange for the small Post-Surgery Payments. For example, it was common for Patients to ask for food when they would appear for their intake meetings with the lawyers. Many of the Patients did not have sufficient clothing to keep them warm during the wintertime and had poor-quality shoes. Members of the fraud scheme also recruited Patients who were drug addicts. It was also common for scheme participants to recruit Patients from homeless shelters in New York City.
The Patients’ legal and medical fees were usually paid for by litigation funding companies (the “Funding Companies”), including a funding company owned by ALEXANDER, even if the Patient maintained medical coverage through an insurance company or a government-subsidized program. The Funding Companies also paid the fraud scheme organizers and participants referral fees, typically $1,000 to $2,500, for each Patient who signed a funding agreement. In exchange for funding Patients’ medical and legal costs, the Funding Companies charged the Patients high interest rates, sometimes up to 50% on medical loans and up to 100% on personal loans. The interest rates were so high that oftentimes the majority (if not all) of the proceeds that were awarded in the Fraudulent Lawsuits were paid to the Funding Companies, lawyers, doctors, and others, with the Patients receiving a much smaller percentage of the remaining recovery.
ALEXANDER’s participation in the fraud scheme, which included funding Fraudulent Lawsuits and unnecessary medical procedures at high interest rates, was extremely lucrative. For example, ALEXANDER had boasted to investors that his funding company had annual returns in excess of 30%.
In addition to owning one of the primary Funding Companies used in the fraud scheme, ALEXANDER owned an MRI facility that performed MRIs on many of the Patients.
ALEXANDER, 75, of New York, New York, is charged with conspiracy to commit mail and wire fraud, which carries a maximum sentence of 20 years in prison, mail fraud, which carries a maximum sentence of 20 years in prison, and wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
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Mr. Williams praised the outstanding investigative work of the New York FBI. Mr. Williams also thanked the National Insurance Crime Bureau for their assistance in the investigation.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Nicholas Chiuchiolo, Nicholas Folly, and Alexandra Rothman are in charge of the prosecution.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictment, and the description of the Superseding Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Nebraska City Nurse Sentenced for Acquiring a Controlled Substance by FraudRead the Press Release
Acting United States Attorney Jan Sharp announced that Skye Parde, 38, of Nebraska City, Nebraska, was sentenced today in federal court in Omaha for acquiring a controlled substance by fraud, a felony. The Honorable Brian C. Buescher sentenced Parde to 3 years of probation. Parde will also be required to pay a $5,000 fine.
In November 2018, administrators with Ambassador Health, an assisted-living facility in Nebraska City, Nebraska, reported theft of controlled substances to local law enforcement after learning that narcotic pain medication had been repeatedly refilled from a pharmacy but not logged as given to patients. The facility conducted an audit and determined that more than 6,000 tablets of Hydrocodone, Tramadol, and Oxycodone prescribed to 23 different assisted-living patients had been ordered but were missing from the facility. Staff observed that most of the medication refills had been ordered by Parde. At the time of the thefts, Parde was employed at the facility as a registered nurse on the night shift at the facility.
This case was investigated by the Nebraska City Police Department and Federal Bureau of Investigations.
National Labor Organization Employee Pleads Guilty to Embezzling Hundreds of Thousands of Dollars from UnionRead the Press Release
WASHINGTON – Donnell Owens, a former employee of the American Federation of Government Employees, pleaded guilty today to one count of embezzlement and theft of labor union assets stemming from a scheme in which he stole more than $275,000.
The announcement was made by Acting U.S. Attorney Channing D. Phillips, Wayne A. Jacobs, Special Agent in Charge of the FBI Washington Field Office Criminal Division, and Mark Wheeler, Director of the Washington District Office of the U.S. Department of Labor, Office of Labor-Management Standards.
Owens, 34, of District Heights, Md., pleaded guilty in the U.S. District Court for the District of Columbia. The charge carries a statutory maximum sentence of five years in prison and potential financial penalties. Under federal sentencing guidelines, Owens faces a likely range of 24 to 30 months in prison, a fine of up to $95,000, and restitution. The Honorable Judge Reggie B. Walton scheduled sentencing for Jan. 21, 2022.
According to the statement of offense submitted to the Court and admitted by Owens, from October 2014 through June 2018, Owens worked as a Secretary to the Director of Communications at the American Federation of Government Employees (AFGE), a labor organization headquartered in Washington, D.C. which represents workers in various functions of the private sector and the government affecting commerce throughout the United States and overseas. During this period, Owens embezzled approximately $275,524 in AFGE funds for his use and the use of others.
As detailed in court documents, throughout the scheme Owens abused and misused his position and employment at AFGE in order to seek and obtain illegal monetary gains at the expense of the labor organization. For example, Owens submitted false and fraudulent check requests for payments related to services, such as photography and videography, that were purportedly provided by alleged vendors. As a result of these submissions, AFGE funds were subsequently disbursed. These check requests listed fictitious dollar amounts for fake work assignments supposedly performed by vendors, who were not actually hired by AFGE. In fact, the purported vendors who allegedly performed the fake work assignments were really friends and associates of Owens, who he recruited as part of his illegal scheme.
As Secretary to the Director of Communications, Owens also had access to an Amazon account and a union credit card linked to it. During the scheme, Owens also used this account and linked credit card to embezzle items and make dozens of unauthorized personal purchases, including clothing, shoes, jewelry, and party supplies. Additionally, Owens used union credit cards to purchase items from other online retailers for personal use, including T-shirts for his online business, microphones, and flowers.
To avoid detection and cover up the fraud, Owens provided falsified signatures, fraudulent expense vouchers, and altered receipts for these items. However, the investigation revealed photos of Owens, his family members, and associates wearing the clothing purchased on Amazon with the union credit card on social media accounts belonging to the defendant.
This investigation was conducted by the FBI’s Washington Field Office and the U.S. Department of Labor, Office of Labor-Management Standards. The prosecution is being handled by Assistant U.S. Attorney Anne P. McNamara of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by Assistant U.S. Attorney Emily A. Miller and Paralegal Specialists Amanda Rohde and Mariela Andrade.
Natchitoches Man Sentenced to Federal Prison for Distributing HeroinRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Quintarence D. Morris, 29, of Natchitoches, Louisiana, has been sentenced by United States District Judge Dee D. Drell to 120 months (10 years) in prison, followed by 3 years of supervised release, on drug trafficking charges.
Law enforcements agents with the U.S. Drug Enforcement Administration (DEA) received information that Morris was distributing heroin and methamphetamine in the Shreveport/Bossier City and Natchitoches areas. Agents began investigating and surveilling Morris’ activities in July 2020 and observed his active involvement in the trafficking of illegal narcotics, specifically heroin. During their investigation, agents learned that Morris kept heroin at his residence in Natchitoches and was selling the heroin there.
On October 13, 2020, a federal arrest warrant was issued for Morris and a federal search warrant was issued for his residence. DEA agents were unable to locate Morris to serve the arrest warrant and on October 26, 2020 Morris was entered into the National Crime Information Center as a fugitive. While executing the search warrant at the residence, agents found heroin, methamphetamine, marijuana and other drug paraphernalia. The DEA Lab tested the narcotics and found there to be a net weight of 144.321 grams of heroin.
A Nacogdoches, Texas Police Officer conducted a traffic stop of a rented vehicle on October 27, 2020 and Morris was the driver. The officer learned of the outstanding warrants for Morris and he was arrested and returned to the Western District of Louisiana.
The DEA, Natchitoches Police Department and Nacogdoches, Texas Police Department investigated the case. Assistant U.S. Attorney Robert F. Moody prosecuted the case.
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Nashville Man Pleads Guilty to Civil Rights Violations for Series of Church ArsonsRead the Press Release
NASHVILLE – A Nashville, Tennessee man pleaded guilty today to civil rights violations for a series of church arsons, the Justice Department announced.
Alan Douglas Fox, 28, pleaded guilty to all counts of an information charging him with setting fire to the Crievewood United Methodist Church on June 17, 2019; the Crievewood Baptist Church on June 25, 2019; the Saint Ignatius of Antioch Catholic Church on June 25, 2019; and the Priest Lake Community Baptist Church on June 26, 2019; and with carrying and using a firearm during the arson of the Crievewood Baptist Church. During the plea hearing, Fox admitted to intentionally setting the fires because of the religious character of the four churches.
“The U.S. Attorney’s Office will always pursue those, who by their malicious actions, infringe upon our freedom of religion,” said Acting U.S. Attorney Mary Jane Stewart of the Middle District of Tennessee. “I commend our law enforcement partners and our prosecution team for bringing this individual to justice.”
“The defendant in this case set fire to four Christian churches, causing fear and anguish to church members and their denominations. The freedom to practice the religion we choose, without discrimination or danger, is a fundamental civil right in our nation and a hallmark of our democracy,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Justice Department will continue to prosecute, to the fullest extent of the law, those who target and harm houses of worship because of bigotry and prejudice.”
U.S. District Judge Eli J. Richardson of the Middle District of Tennessee scheduled sentencing for February 11, 2022. By the terms of the plea, Fox faces up to 20 years in prison for each fire and a consecutive five-year sentence for the firearms violation.
The FBI, the Tennessee Bureau of Investigation, the Metropolitan Nashville Police Department, and the Nashville Fire Department investigated the case. Assistant U.S. Attorney Sara Beth Myers and Trial Attorney Kyle Boynton of the Department’s Civil Rights Division are prosecuting it.
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Minneapolis Man Pleads Guilty to Impersonating an FBI Agent about a Fake Terrorism Investigation Concerning Victim’s HouseholdRead the Press Release
ST. PAUL, Minn. – A Minneapolis man pleaded guilty today to impersonating a federal officer, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on July 24, 2017, Bernard Holmes, 66, pretended to be a Special Agent of the Federal Bureau of Investigation (FBI). Holmes spoofed his telephone number to make it appear that he was calling his victim from the FBI’s Minneapolis Field Office. Holmes provided the victim with his purported name, “FBI Special Agent John Tidwell,” and alleged FBI badge number. Holmes falsely stated that he was investigating terrorism-related conduct involving the victim's household, including terrorism evidence that supposedly originated from a computer and IP address at the victim's house. In his fake capacity, Holmes asked questions of the victim in furtherance of the supposed terrorism investigation.
Holmes pleaded guilty today to one count of impersonating a federal officer before U.S. District Judge Eric C. Tostrud. A sentencing date has not yet been scheduled.
This case is the result of an investigation conducted by the FBI and the Bloomington Police Department.
Assistant U.S. Attorney Matthew S. Ebert is prosecuting the case.
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