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Thursday 2 September 2021
Registered Sex Offender in Fresno Charged with Child Sexual Exploitation OffensesRead the Press Release
FRESNO, Calif. – A federal grand jury has returned a three-count indictment against Andrew Michael Alonso, 31, of Fresno, charging him with sexual exploitation of a minor, receipt of a visual depiction of a minor engaged in sexually explicit conduct, and committing a felony offense involving a minor while being a registered sex offender, Acting U.S. Attorney Phillip A. Talbert announced today.
According to court documents, Alonso is a registered sex offender who was on California parole supervision with GPS location monitoring. He contacted a 13-year-old victim on Instagram and then communicated with the victim through text messages in May and June 2021. Alonso repeatedly asked the victim to create and send to him images of the minor victim engaged in sexually explicit conduct. Alonso received still and video images of the minor engaged in sexually explicit conduct. He has been ordered detained as a danger to the community and risk of flight.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task Force, which includes the Fresno Police Department and the Fresno office of Homeland Security Investigations. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
If convicted of sexual exploitation of a minor, Alonso faces a statutory penalty of 15 to 30 years in prison, a potential $250,000 fine, and a possible lifetime term of supervised release. If convicted of being a registered sex offender who is convicted for sexual exploitation of a minor, Alonso faces a mandatory 10-year consecutive sentence in prison. If convicted of receipt of a visual depiction of a minor engaged in sexually explicit conduct, Alonso faces five to 20 years in prison, a potential $250,000 fine, and a possible lifetime term of supervised release. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Readout of Meeting between the U.S. Department of Justice and EU CommissionRead the Press Release
U.S. Attorney General Merrick B. Garland met today with European Commissioner for Home Affairs Ylva Johansson in Washington, D.C., to further strengthen the partnership between the United States and the European Union on fighting transnational crime and terrorism.
In their inaugural meeting, the leaders reaffirmed their shared commitment to strengthen bilateral cooperation on law enforcement matters and to counter common threats, including those posed by foreign terrorism, domestic violent extremism, cybercrime, online child sexual exploitation and abuse, and the trafficking of humans, drugs, and firearms.
They additionally discussed the need for continued cooperation to combat transborder ransomware attacks, and to address the public safety challenges posed by the use of encryption technology to further criminal activity. The Attorney General and Commissioner committed to further dialogues between the United States and the European Union to help ensure the protection and security of the citizens of both jurisdictions.
Parkersburg Man Sentenced to More than 10 Years in Prison for Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Shaun Price, 41, of Parkersburg, was sentenced today to 123 months in prison for federal drug and gun crimes. Price previously pleaded guilty to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, an officer with the South Charleston Police Department attempted a traffic stop on Price’s vehicle in Cross Lanes on December 7, 2020. Price fled and led law enforcement in a high speed pursuit. The pursuit began in Cross Lanes and ended in South Charleston where officers were able to stop Price’s vehicle by using spike-strips. Officers recovered approximately 7.85 grams of meth and a loaded 9mm Taurus PT111 handgun from the vehicle. Price admitted that he intended to sell the methamphetamine and that he possessed the firearm to protect his drugs and money.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the South Charleston Police Department.
Assistant United States Attorney Nick Miller is handling the prosecution. Senior United States District Court Judge John T. Copenhaver, Jr. 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. 2:21-cr-00051.
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Oxford Man Indicted for Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2021, Jeffrey Christopher Cerrato, age 21, of Oxford, Pennsylvania, was indicted by a federal grand jury for drug trafficking offenses.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that on January 14, 2021, in York County, Pennsylvania, Cerrato possessed with the intent to distribute approximately one pound of methamphetamine.
The matter was investigated by the York City Police Department, along with the Drug Enforcement Administration. Assistant U.S. Attorney Paul J. Miovas, Jr. 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 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.
The maximum penalty for the distribution of a controlled substance offense is life imprisonment, with a mandatory minimum sentence of 10 years of incarceration, a term of at least 5 years of supervised release following imprisonment, and a $10,000,000 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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Owner of Purported Sports Marketing Agency Facing Federal Charges in Ponzi SchemeRead the Press Release
NASHVILLE –Katie Lynn Mancuso, 40, of Nashville, was charged today with bank fraud and wire fraud, resulting from a fraudulent scheme in which she received more than $2.8 million from investors, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
According to the charging document, Mancuso owned and operated Gray Area Marketing in Nashville, which was purportedly a sports marketing agency representing various famous athletes. As part of the fraudulent scheme and beginning in June 2017, Mancuso solicited funds from investors and falsely represented that Gray Area had been awarded contracts to perform marketing services for professional athletes. Mancuso overstated Gray Area’s assets and receivables and promised to repay investor’s funds within 90 days and with a rate of return usually between 15%-25%. Mancuso also provided investors with fake invoices that falsely reflected money owed to Gray Area by vendors such as Nike, Oakley, and Under Armour for services rendered.
During the course of the scheme, Mancuso generated fraudulent invoices and emails to make her business appear legitimate. She also forged the signature of an attorney on a fraudulent attorney-client representation and forged the signatures of another individual on a purported contract.
Between June 2017 and February 2021, Mancuso solicited funds from at least 26 investors and received more than $2.8 million. Although she repaid some investors, using funds from others, the total loss to investors was more than $1.1 million. Mancuso used the investment funds to pay her living expenses and at hotels, bars, and to obtain plastic surgery.
If convicted, Mancuso faces up to 20 years in prison for wire fraud and up to 30 years in prison for bank fraud.
This case was investigated by the FBI. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Oswego County Woman Charged with Misusing Social Security Numbers and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Tammy Tilton-Gajewski, age 48, of Fulton, New York, was arrested yesterday on an indictment charging her with 32 counts of misuse of a social security number and two counts of aggravated identity theft related to her use of the names of other people and social security numbers not assigned to her to obtain credit cards and loans. The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
Tilton-Gajewski was arraigned on the indictment yesterday in United States District Court in Syracuse, New York and released pending trial on a date to be scheduled in the future.
If convicted of misuse of a social security number, Powell faces a maximum term of imprisonment of five years, a fine of up to $250,000, and a term of supervised of up to three years. If convicted of aggravated identity theft, Tilton-Gajewski faces a mandatory minimum sentence of two years on each aggravated identity theft count. 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.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Social Security Administration Office of the Inspector General and the New York State Police and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Nigerian hacker and a repeat offender sentenced to federal prison for unemployment fraud and tax fraud schemeRead the Press Release
ATLANTA – Bamidele Muraina, a Nigerian national who hacked into tax preparation firms and filed fraudulent unemployment benefit claims and tax returns using stolen personally identifiable information, and Gabriel Kalembo, a previously convicted fraudster who laundered the fraudulent assets, have been sentenced to federal prison.
“These defendants stole funds from programs meant to assist American workers and families seeking to make ends meet during the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine. “The collaborative efforts of our law enforcement partners were essential to disrupting a sophisticated network of criminals and bringing their leaders to justice.”
“The COVID-19 pandemic has had a devastating effect on us all. The enterprise created by these serial criminals further victimized our citizenry by robbing them of financial resources that were intended to help them,” said Special Agent in Charge Steven Baisel, U.S. Secret Service Atlanta Field Office. “Thanks to our judicial system, justice has been served.”
“Bamidele Muraina engaged in a conspiracy to defraud the Employment Security Department of Washington State (“ESD-WA”) by filing dozens of fraudulent unemployment insurance (UI) claims in the names of identity theft victims who were not entitled to such benefits. As part of the same conspiracy, Gabriel Kalembo and his conspirators laundered the unlawfully obtained UI benefits from ESD-WA by purchasing and then later negotiating hundreds of money orders. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“The sentencing of the defendants should serve as a deterrent to all who intend to exploit the COVID-relief programs that were designated to assist those in need during the pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the United States Postal Inspection Service. “Postal Inspectors will continue to work with our law enforcement partners to investigate anyone that steals federal funds to enrich themselves and have them held accountable under the law.”
“The conspirators not only stole from the government but also victimized individuals and private businesses in this case,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey. “Recovering from ID theft often costs time, money, and stress for all parties involved. Thanks to successful partnerships with our agency counterparts and leveraging our financial expertise to serve and protect our communities from further harm.”
“These criminals shamelessly stole people’s hard-earned tax returns and money meant to help families during the pandemic, but thankfully they were exposed and are now facing justice,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners will continue to aggressively pursue those that seek to profit from these activities.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Bamidele Muraina was a Nigerian national residing in the metro Atlanta area at the time of his offenses. Between at least January 29, 2018 and continuing through approximately April 2020, Muraina hacked into multiple tax preparation and accounting firms located in several states, including a Brunswick, Georgia-based accounting firm. Muraina obtained access to the firms’ accounts with a national tax preparation program, stole personally identifiable information from their clients, and filed more than 275 fraudulent individual income tax returns in their names via the Internet. In total, Muraina’s fraudulent tax returns using stolen identities sought refunds from the IRS exceeding $2.6 million from 2018 through 2020.
Between May 9, 2020 and May 16, 2020, Muraina used stolen personally identifiable information from Washington residents to submit false claims for unemployment insurance benefits in Washington. Muraina’s false claims exploited a federal COVID-19 pandemic relief program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which expanded eligibility for unemployment benefits and provided an additional unemployment benefit of $600 per week. Based on Muraina’s fraudulent claims submitted in the names of approximately fifty Washington residents over a one-week span, the State of Washington issued more than $280,000 in unemployment benefits.
Muraina directed fraudulent funds from his unemployment benefits scheme and tax fraud scheme to be deposited into bank accounts set up by co-conspirators, including Gabriel Kalembo, who was convicted in 2017 of conspiracy to commit wire and bank fraud in the Northern District of Georgia. Kalembo recruited Zambian nationals to travel to the United States on tourist visas to incorporate sham corporations in Georgia and open business bank accounts in the names of those corporations. After the fraudulent funds were deposited into those accounts, Kalembo laundered the funds by cashing money orders purchased with debit cards linked to the accounts.
Bamidele Muraina, 35, of Oyo, Nigeria was sentenced by U.S. District Judge William M. Ray II to five years and ten months in prison to be followed by three years of supervised release, and he ordered Muraina to pay $561,125.62 in restitution.
Gabriel Kalembo, 33, of Atlanta, Georgia was sentenced by Judge Ray to four years and two months in prison to be followed by two years of supervised release, and he ordered Kalembo to pay $298,008.71 in restitution.
This case was investigated by the U.S. Secret Service, the Department of Labor Office of Inspector General, the Internal Revenue Service Criminal Investigation, the Department of Homeland Security-Homeland Security Investigations, and the United States Postal Inspection Service.
Assistant U.S. Attorneys Nathan P. Kitchens, Chief of the Public Integrity and Special Matters Section, Sarah E. Klapman, and Lauren T. Macon are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New Haven Man Admits Possessing Gun and Drugs While on Federal Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that RONNELL ROGERS, 28, of New Haven, pleaded guilty today via videoconference before U.S. District Judge Janet C. Hall to narcotics distribution and firearm possession offenses.
In July 2019, Rogers was released from federal prison after serving approximately 17 months for unlawful possession of ammunition by a felon. On January 17, 2021, while he was on federal supervised release, Rogers was arrested in New Haven on related state charges after officers searched his car and found distribution quantities of fentanyl and crack cocaine, and a loaded Smith & Wesson .45 caliber semi-automatic pistol. The firearm had been reported stolen in Virginia.
In addition to his prior federal conviction, Rogers’ criminal history includes state convictions for firearm, larceny and risk of injury offenses.
Rogers pleaded guilty to one count of possession with intent to distribute controlled substances, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. He also faces additional penalties for violating the conditions of his federal supervised release. Judge Hall scheduled sentencing for December 1, 2021.
Rogers has been detained since his federal arrest on January 28, 2021.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
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.
Montgomery County Man Sentenced to 30 Months for Unlawfully Selling “Ghost Guns”Read the Press Release
ALBANY, NEW YORK – Michael Castelluccio, age 43, of Fultonville, New York, was sentenced today to serve 30 months in prison, to be followed by 2 years of supervised release, for unlawfully transferring an unregistered short-barreled rifle that had machinegun capability.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
On November 5, 2020, Castelluccio pled guilty to one count of unlawful transfer of unregistered firearms. As part of his guilty plea, Castelluccio admitted that over the course of four transactions between August and September 2019, he built, sold and transferred 19 firearms from component parts ordered online. These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.
Castelluccio admitted to building, selling, and transferring short-barreled rifles, which are rifles with barrels less than 16 inches long. Castelluccio admitted to doing so without having filed an application with or received approval from the Secretary of the Department of the Treasury, or paying the tax required by federal law. He also admitted that one of the firearms he sold was modified to allow it to automatically shoot more than one shot by a single function of its trigger.
Castelluccio also forfeited a pickup truck that he used to transport the firearms.
This case was investigated by the ATF and Homeland Security Investigations, as well as the Schenectady County and Montgomery County Sheriff’s Offices. The case was prosecuted by Assistant United States Attorney Alexander Wentworth-Ping.
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.
Monongahela Man Sentenced for Possessing Videos and Images of Child PornographyRead the Press Release
PITTSBURGH - A resident of Monongahela, Pennsylvania, has been sentenced in federal court to 24 months’ imprisonment followed by 10 years of supervised release on his conviction for possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Eric Allard, 50.
According to information presented to the court, on November 27, 2017, investigators with Homeland Security Investigations executed a search and seizure warrant at Allard’s residence and seized numerous electronic devices. Investigators searched the electronic devices and found approximately 12,088 images and approximately 16 videos depicting child pornography. Prior to imposing the sentence, Judge Ambrose referenced the seriousness of the offense and the victims in this case.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended Homeland Security Investigations and the Monongahela Police Department for the investigation leading to the successful prosecution of Allard.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals, who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Monmouth Woman Pleads Guilty to Firearms ChargeRead the Press Release
BANGOR, Maine: A Monmouth woman pleaded guilty in federal court yesterday to making false statements to a firearms dealer during the purchase of a firearm, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in April 2019, Laura Love, 43, purchased a 9 mm pistol from a federally licensed firearms dealer in Windsor. When completing the sale, Love filled out a Firearms Transaction Record form in which she falsely reported that she was the actual purchaser of the firearm. She was actually purchasing the firearm for someone else.
Love faces up to 10 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Augusta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Man Pleads Guilty to Committing 2015 Rape near OSU-Tulsa CampusRead the Press Release
A Tulsa man pleaded guilty in federal court to a 2015 rape he committed within the Cherokee Nation near the OSU-Tulsa campus, announced Acting U.S. Attorney Clint Johnson.
Eugene Todd Nunley, 48, pleaded guilty to aggravated sexual abuse by force and threat in Indian Country on Aug. 26. As stipulated in his plea agreement, Nunley faces 14 years in federal prison followed by a lifetime of supervised release. U.S. District Judge Claire V. Eagan will make the final sentencing determination on Jan. 5, 2022.
The defendant admitted that he forced the female victim into a wooded area and raped her on Aug. 13, 2015. The victim was walking on the Osage Prairie Trail near 900 North Greenwood Avenue when Nunley attacked her from behind. Following the rape, the defendant told the victim she was “lucky” then ran away.
The victim reported the crime and told officers she did not know her attacker. In early September 2015, DNA testing revealed Nunley was the perpetrator. Officers located the defendant in the Creek County jail, where he was being held on unrelated charges.
Nunley, a Muscogee Nation citizen, was previously convicted of the 2015 rape in Tulsa County District Court. His conviction was overturned after the Cherokee Nation reservation was recognized as having never been disestablished by Congress. He was indicted in federal court in June 2021.
“My hope is that the victim in this case sees herself as a survivor and a protector of other women. Her willingness to again confront a life-altering trauma and defendant Eugene Nunley was crucial to ensuring this predator faced justice,” said Acting U.S. Attorney Clint Johnson.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case.
Luzerne County Man Sentenced to Forty-Six Months’ Imprisonment for Illegal Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Redmond, age 32, of Dallas, Pennsylvania, was sentenced on September 1, 2021, to 46 months’ imprisonment by United States District Court Judge Malachy E. Mannion for illegal possession of firearms and methamphetamine trafficking.
According to Acting United States Attorney Bruce D. Brandler, Redmond previously entered a guilty plea before Judge Mannion and admitted to being an illegal user of controlled substances in possession of firearms and to the possession of methamphetamine for further distribution. The charges stem from an incident in which law enforcement authorities served search warrants at Redmond’s residence in Dallas and business office in Kingston and seized approximately 58 firearms, 6,664 rounds of ammunition and a quantity of methamphetamine.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Local repeat felon headed to prison for firearms convictionRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison for being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
Francisco Campos pleaded guilty July 21.
Today, U.S. District Judge David S. Morales ordered him to serve a 65-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Campos was found in possession of meth, scales and $900 cash at the time of his arrest.
Campos apologized for “wasting everyone’s time,” explaining that he has spent most of his adult life behind bars. He added that he did not want to be locked up any longer and did not understand why it is illegal for a felon to possess firearms to protect themselves against non-felons who have firearms.
In handing down the sentence, Judge Morales noted his eight felony convictions, 13 misdemeanors and 10 additional arrests. The court further commented that Campos will eventually get out of prison and it would be up to him to better himself and get the help he needs while incarcerated.
As a convicted felon, Campos is prohibited from possessing firearms or ammunition per federal law.
However, on Aug. 3, 2020, Campos accidentally shot himself with a firearm while cleaning it at his dining room table. Law enforcement responded to the scene and noted blood splatter on the carpet, walls and curtains of the room. They also saw a gunshot hole that went through a curtain, blinds and a window.
Campos was found with a 2nd firearm as the result of a traffic stop that occurred Aug. 22, 2020. This incident also involved the seizure of meth, morphine sulfate pills, meth pipes containing residue, two electronic scales and a butane torch.
He was found again Sept. 24, 2020, in a stolen vehicle. Authorities discovered a firearm under Campos in the passenger seat. It had one round loaded in the chamber.
Campos has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
The case was brought as 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. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In late 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Lehigh Acres Couple Indicted for COVID Relief FraudRead the Press Release
Fort Myers, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Amber Rewis Bruey (34) and Anthony James Bruey (35), a married couple from Lehigh Acres, with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and illegal monetary transactions. The indictment also notifies the Brueys that the United States intends to forfeit a 2019 GMC Yukon XL, 2021 Chevrolet Spark LS, 2020 Honda Talon, 2020 Polaris RZR, real property in North Carolina, and $881,058.35, which are alleged to be traceable to proceeds of the offense.
Defendant
Charge
Maximum Penalty per Count
Amber Rewis Bruey
Conspiracy to Commit Wire Fraud
30 years in federal prison
Wire Fraud (10 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (4 Counts)
10 years in federal prison
Anthony James Bruey
Conspiracy to Commit Wire Fraud
30 years in federal prison
Wire Fraud (2 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (2 Counts)
10 years in federal prison
According to the
indictment , beginning in or around April 2020, and while they were both on probation for state criminal charges, the Brueys conspired to submit false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration (SBA) and PPP loan servicers and lenders. The loan applications contained numerous false representations, including the criminal history, dates of operation, number of employees, and gross revenues of the applicant. In support of their fraudulent EIDL and PPP loan applications, the Brueys submitted false and fictitious federal income tax documents.The Brueys’ materially false, fraudulent, and misleading representations caused the SBA and PPP lenders to approve and fund six EIDL and six PPP loans, totaling $881,058.35. The Brueys then unlawfully used the funds to purchase a $211,457 residence in North Carolina, a 2019 GMC Yukon SUV, a 2020 Honda Talon, and to make a $23,566 restitution payment as a condition of probation in a criminal court case for Amber Bruey.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
An indictment 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.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.
Justice Department Requires Divestitures in BancorpSouth Bank’s Merger with Cadence BankRead the Press Release
The Department of Justice announced today that BancorpSouth Bank and Cadence Bank have agreed to sell seven branches in northeastern Mississippi, with more than $446 million in deposits, to resolve antitrust concerns arising from BancorpSouth’s planned acquisition of Cadence Bank.
“Today’s settlement underscores that all Americans, including those in rural communities and small towns, are entitled to access competitively priced banking products and services close to where they live and work,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Banks are the anchors of many communities. Families and small businesses rely on banks to keep their money safe and obtain credit for important expenses and investments in their lives.”
Under the agreement with the department, the parties will divest seven branches located in Aberdeen, West Point, and Starkville, Mississippi. The assets that must be divested include all the deposits and loans associated with the seven branches, as well as all physical assets. The companies also have agreed to suspend existing non-compete agreements with branch managers and loan officers located in Aberdeen, West Point, and Starkville, Mississippi and will not enter into new non-compete agreements with those managers and officers. Further, the companies have agreed that any branches located in any of these markets that are closed within three years of the merger’s closing will be sold or leased to an insured depository institution that offers deposit and credit services to small businesses. As a result of the merger, BancorpSouth will become the 10th largest bank, based on assets, in its nine-state region in the southeastern United States and the 46th largest bank in the country.
The proposed merger is subject to the final approval of the Federal Deposit Insurance Corporation (FDIC). The department’s role when reviewing a proposed bank merger necessarily focuses on the merger’s competitive effects. Here, the department has advised the FDIC that the department will not challenge the merger provided that the parties divest branches in certain areas of overlap and agree to the commitments described above. The parties’ commitments to the department will be included as a condition that the parties’ make to the FDIC’s order allowing this transaction.
BancorpSouth Bank, headquartered in Tupelo, Mississippi, has approximately $25.8 billion in assets, $21.2 billion in deposits and 325 full-service branches across nine states in the southeastern United States. It provides a wide range of banking and other financial services to consumers, businesses, agricultural customers and wealth management customers.
Cadence Bank N.A., headquartered in Atlanta, Georgia, has approximately $18.8 billion in assets and $16.1 billion in deposits. Cadence Bank has 98 branches across the southeastern U.S. with 11 of those branches in Mississippi. Cadence also offers a full range of products and services to retail, small business and middle market customers as well as investment and trust services.
A list of the branches to be divested is below.
Branch
Address
City
County
State
Zip Code
Aberdeen Main
128 E. Commerce Street
Aberdeen
Monroe
MS
39730
Aberdeen Hwy 45
302 Hwy 145 North
Aberdeen
Monroe
MS
39730
West Point Main
657 Commerce Street
West Point
Clay
MS
39773
West Point Hwy 45
215 Hwy 45 South
West Point
Clay
MS
39773
Starkville Crossing
818 Hwy 12 West
Starkville
Oktibbeha
MS
39759
Starkville Russell St
793 Russell Street
Starkville
Oktibbeha
MS
39759
Starkville University
606 Hwy 12 East
Starkville
Oktibbeha
MS
39759
Justice Department Files Second Civil Contempt Claim Against CenturyLinkRead the Press Release
CenturyLink Inc., now known as Lumen Technologies Inc., has agreed to pay $275,000 to resolve a civil contempt claim by the Department of Justice arising from CenturyLink’s violations of the Amended Final Judgment that was designed to preserve competition following CenturyLink’s 2018 acquisition of Level 3 Communications Inc.
The Justice Department's Antitrust Division today filed a petition in federal court in Washington, D.C., asking the court to find CenturyLink in civil contempt of the Amended Final Judgment. At the same time, the department filed a settlement agreement and order that, if approved by the court, would resolve the claim.
“CenturyLink is a repeat offender,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The request for a finding of civil contempt is appropriate because the company violated its amended obligations immediately after the court imposed them. When companies fail to comply with court-ordered obligations, the Antitrust Division will take action to enforce them.”
CenturyLink previously violated the 2018 Final Judgment entered by the court to resolve the department’s competitive concerns arising from CenturyLink’s acquisition of Level 3. The August 2020 settlement relating to these violations led to a more stringent Amended Final Judgment and imposition of costs against CenturyLink. Among the additional requirements in the Amended Final Judgment was a two-year extension of the ban on CenturyLink’s initiating contact with customers in the Boise-Nampa, Idaho, metropolitan area who had switched their business to the acquirer of the assets divested under the original Final Judgment.
In the petition filed today, the department alleges that CenturyLink violated the non-solicitation provision by sending more than 100 marketing emails to Boise-area customers who had switched their business away from CenturyLink. The accompanying settlement agreement and order requires CenturyLink to make a $275,000 payment to the United States. That payment includes reimbursement to the government for the cost of its investigation into CenturyLink’s alleged violations.
In September 2020, CenturyLink changed its name to Lumen Technologies Inc. Lumen is incorporated and headquartered in Louisiana and is one of the largest wireline telecommunications providers in the United States. In 2020, Lumen had revenues of approximately $20.7 billion.
Jacksonville man sentenced to 33 months in prison for defrauding a religious organization and filing false income tax returnsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Charles Jon David (58, Jacksonville) to 33 months in federal prison for wire fraud and tax fraud. The court also ordered David to forfeit $273,500, representing the proceeds of the wire fraud, and to pay $273,000 in restitution to the victim of the wire fraud and approximately $111,000 in restitution to the Internal Revenue Service. David had pleaded guilty on April 9, 2021.
According to court documents, from February 2008 until July 2019, David was employed as the Director of Building and Construction by a Jacksonville-area religious organization. David’s role and responsibilities included overseeing sales of land belonging to the religious organization. David had a fiduciary duty to the religious organization to act in its financial best interests and to protect its assets in conducting these land sales. He understood that it would be a conflict of interest for him to receive compensation from a third-party in connection with these land sales.
Beginning in 2013, David engaged in a scheme to defraud the religious organization by offering the organization’s land for sale exclusively to two individuals, excluding other potential purchasers. In exchange for giving that preference to those individuals, they paid David kickbacks totaling $229,500. After the two individuals purchased the land, they resold it at a significant profit. David admitted that he sold the religious organization’s land for at least $229,500 less than it was worth. David did not disclose the kickbacks to the religious organization and used at least $72,000 of the kickbacks to fund mortgage payments and settlement costs associated with real property owned by his wife.
On another occasion involving a different individual, David arranged the sale of a piece of the religious organization’s property to a buyer by representing the buyer was a bona fide purchaser when, in reality, David had already arranged for a second buyer to purchase the same property at a significantly higher price on the same day. As a result, the religious organization sold the land to the first buyer for $150,000 and, later the same day, the first buyer sold it to the second buyer for $250,000. The first buyer then transferred to David $44,000 of the proceeds from the second sale.
In 2014, David falsely told his Certified Public Accountant that $216,000 in consulting income he had received in 2013 was not income, resulting in the filing of a fraudulent tax return. In tax years 2015, 2016, and 2018, David falsely underreported his income to the IRS by not reporting the kickbacks on his tax returns. The resulting tax loss was $110,956.
“This case demonstrates the FBI's commitment to hold accountable those who use illegal means and criminal behavior to take advantage of others,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Fraud of any kind poses a fundamental threat to our national security and our way of life. In this case, the defendant prioritized his own personal gain by siphoning away money that could have otherwise been used to support members of our community in need. We appreciate the partnership of the IRS-CI and the St. Johns County Sheriff's Office to find justice in this case. Together, the FBI and all of our law enforcement partners will continue to investigate these crimes and prosecute those who are intent on defrauding the American public.”
“We appreciate the partnership with the FBI and IRS-CI which ensured justice was served in this case. Any person who attempts to defraud an individual or organization in St. Johns County will be held accountable,” said Sheriff Robert Hardwick.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
ISIS Militant Pleads Guilty to Role in Deaths of Four Americans in SyriaRead the Press Release
A militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, pleaded guilty today to all charges that were pending against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to court records, from in or around November 2012 through on or about Feb. 7, 2015, former British citizen Alexanda Amon Kotey, 37, served as an ISIS fighter and participated in the captivity of American and European hostages in Syria. Kotey specifically participated in the seizure, detention and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Kotey participated in hostage operations involving British, Italian, Danish and German nationals, among others.
“This guilty plea ensures that Kotey will spend the rest of his life in prison for the horrific crimes he has committed,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Although there remains much work to be done in this case, we hope today’s events provide some measure of justice for Kotey’s victims and their families as they continue to grieve the loss of their loved ones. I want to thank all of the agents, analysts and prosecutors who worked tirelessly on this investigation and prosecution – their efforts are proof that the National Security Division and our partners will not rest in our commitment to hold accountable terrorists who target and attack U.S. citizens anywhere in the world.”
“This case has always been focused on the victims and their families,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Their resilience, courage, and perseverance have ensured that terror will never have the last word. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
“Years ago, Alexanda Kotey’s actions played out on the world stage, and those brutal crimes against Americans James Foley, Steven Sotloff, Peter Kassig and Kayla Mueller, as well as two British and two Japanese hostages are forever burned into the eyes of the American people,” said Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office. “This guilty plea will not lessen the suffering of those affected by his cruelty, but I hope it reminds the world of the FBI’s unwavering dedication to finding and prosecuting all individuals who inflict harm on U.S. citizens, no matter their location.”
“Today we take a moment to remember all of the victims who perished at the hands of the Islamic State of Iraq and al-Sham (ISIS) in Syria, and our thoughts are especially with the Sotloff, Kassig, Foley and Mueller families,” said Executive Assistant Director Jill Sanborn of the FBI’s National Security Branch. “Alexanda Kotey’s admission of guilt does not lessen the pain suffered by these families and others whose loved ones were taken from them by this heinous terror group, but we hope that this announcement will bring them closer to the justice that they deserve. I am proud of the unwavering dedication and tireless efforts of the men and women of the FBI and all of our partners – both domestic and international – to see justice served for these acts of terrorism.”
According to court records, Kotey and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held and were responsible for transferring hostages between detention facilities. Kotey and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to control the hostages. These actions were also intended to compel the victims’ family members and the U.S. government to pay large monetary ransoms for their release, in addition to compelling the U.S. government to agree to other terms and conditions for the victims’ return.
In addition to physically and psychologically abusing the hostages, Kotey and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed on or about April 25, 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Kotey and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about Feb. 7, 2015, Kayla Mueller’s family received an email from ISIS fighters confirming Mueller’s death in Syria.
Kotey was part of a group of four ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” Kotey and alleged co-conspirator El Shafee Elsheikh, 33, whose case remains pending in the U.S. District Court for the Eastern District of Virginia, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohamed Emwazi, who conducted the videotaped beheadings referenced above, was killed in November 2015 in a U.S. military airstrike in Syria.
Kotey pleaded guilty to all of the offenses charged in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British and Japanese nationals.
Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on March 4, 2022 by Senior U.S. District Judge T. S. Ellis, III.
The plea agreement entered in the case ensures that the defendant will serve the rest of his life in prison. Per the agreement, after 15 years of the defendant’s imprisonment in the United States, if the defendant has complied with all terms of the plea agreement and requests a transfer to the United Kingdom, the U.S. Attorney’s Office for the Eastern District of Virginia has agreed to take all reasonable measures under the law to support the transfer of Kotey to the United Kingdom. As part of the plea agreement, Kotey has agreed that, prior to any such transfer, he would plead guilty in a U.K. prosecution, accept responsibility for relevant violations of U.K. law, and face a sentence in the U.K. of life in prison without parole – a sentence which he has agreed would be a fair and proper punishment. If the actual sentence he serves in the U.K. is less than life for any reason, Kotey has agreed to serve the remainder of his U.S.-imposed life sentence in the U.K., if that is legally available, or to be transferred back to the United States to serve the remainder of his sentence.
Pursuant to the plea agreement, the U.S. Attorney’s Office for the Eastern District of Virginia and Kotey understand and agree that – even if all of the necessary preconditions are met – the acceptance of any such requested transfer would be subject to the discretion of the United Kingdom. As indicated in the plea agreement, should the U.K. government deny any such requested transfer, Kotey will serve his mandatory life sentence in the United States.
The Department of Justice expresses its profound appreciation to our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
This case is being investigated by the FBI’s Washington Field Office.
Assistant U.S. Attorney Dennis M. Fitzpatrick, Acting U.S. Attorney Raj Parekh, and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Alicia H. Cook of the National Security Division‘s Counterterrorism Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided invaluable assistance.
ISIS Militant Pleads Guilty to Role in Deaths of Four Americans in SyriaRead the Press Release
ALEXANDRIA, Va. – A militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, pleaded guilty today to all charges that were brought against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to court records, from in or around November 2012 through on or about February 7, 2015, former British citizen Alexanda Amon Kotey, 37, served as an ISIS fighter and participated in the captivity of American and European hostages in Syria. Kotey specifically participated in the seizure, detention, and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Kotey participated in hostage operations involving British, Italian, Danish, and German nationals, among others.
“This case has always been focused on the victims and their families,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Their resilience, courage, and perseverance have ensured that terror will never have the last word. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
“This guilty plea ensures that Kotey will spend the rest of his life in prison for the horrific crimes he has committed,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Although there remains much work to be done in this case, we hope today’s events provide some measure of justice for Kotey’s victims and their families as they continue to grieve the loss of their loved ones. I want to thank all of the agents, analysts and prosecutors who worked tirelessly on this investigation and prosecution – their efforts are proof that the National Security Division and our partners will not rest in our commitment to hold accountable terrorists who target and attack U.S. citizens anywhere in the world.”
“Years ago, Alexanda Kotey’s actions played out on the world stage, and those brutal crimes against Americans James Foley, Steven Sotloff, Peter Kassig, and Kayla Mueller, as well as two British and two Japanese hostages are forever burned into the eyes of the American people,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “This guilty plea will not lessen the suffering of those affected by his cruelty, but I hope it reminds the world of the FBI’s unwavering dedication to finding and prosecuting all individuals who inflict harm on U.S. citizens, no matter their location.”
According to court records, Kotey and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held and were responsible for transferring hostages between detention facilities. Kotey and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to control the hostages. These actions were also intended to compel the victims’ family members and the U.S. government to pay large monetary ransoms for their release, in addition to compelling the U.S. government to agree to other terms and conditions for the victims’ return.
In addition to physically and psychologically abusing the hostages, Kotey and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed on or about April 25, 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Kotey and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff, and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about February 7, 2015, Kayla Mueller’s family received an email from ISIS fighters confirming Mueller’s death in Syria.
Kotey was part of a group of four ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” Kotey and alleged co-conspirator El Shafee Elsheikh, 33, whose case remains pending in the U.S. District Court for the Eastern District of Virginia, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohamed Emwazi, who conducted the videotaped beheadings referenced above, was killed in November 2015 in a U.S. military airstrike in Syria.
Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British, and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals.
Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on March 22, 2022 by Senior U.S. District Judge T. S. Ellis, III.
The plea agreement entered in the case ensures that the defendant will serve the rest of his life in prison. Per the agreement, after 15 years of the defendant’s imprisonment in the United States, if the defendant has complied with all terms of the plea agreement and requests a transfer to the United Kingdom, the U.S. Attorney‘s Office for the Eastern District of Virginia has agreed to take all reasonable measures under the law to seek the transfer of Kotey to the United Kingdom. As part of the plea agreement, Kotey has agreed that, prior to any such transfer, he would plead guilty in a U.K. prosecution, accept responsibility for relevant violations of U.K. law, and face a sentence in the U.K. of life in prison without parole – a sentence which he has agreed would be a fair and proper punishment. If the actual sentence he serves in the U.K. is less than life for any reason, Kotey has agreed to serve the remainder of his U.S.-imposed life sentence in the U.K., if that is legally available, or to be transferred back to the United States to serve the remainder of his sentence. Pursuant to the plea agreement, the U.S. Attorney’s Office for the Eastern District of Virginia and Kotey understand and agree that – even if all of the necessary preconditions are met – the acceptance of any such requested transfer would be subject to the sole discretion of the United Kingdom. As indicated in the plea agreement, should the U.K. government deny any such requested transfer, Kotey will serve his mandatory life sentence in the United States.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Dennis M. Fitzpatrick; Acting United States Attorney Raj Parekh; and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-239.
Harrisburg Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2021, Omar Tollinchi-Torres, age 42, of Harrisburg, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearms offenses.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that on March 30, 2021, in Dauphin County, Pennsylvania, Tollinchi-Torres attempted to possess with the intent to distribute more than 500 grams of cocaine. The indictment further alleges that Tollinchi-Torres was in possession of a Glock model 23 .40 caliber semiautomatic pistol during and in relation to the attempted drug trafficking offense.
The matter was investigated by the Pennsylvania State Police, along with United States Postal Inspectors. Assistant U.S. Attorney Paul J. Miovas, Jr. 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 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.
The maximum penalty for the attempted distribution possession with the intent to distribute of a controlled substance offense as charged in the indictment is 40 years of imprisonment, a term of at least 4 years of supervised release following imprisonment, and a $5,000,000 fine. The maximum penalty for the possession of a firearm during and in relation to a drug trafficking crime is life imprisonment, a term of 5 years of supervised release following imprisonment, and a $250,000 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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Ft. Thomas Man Sentenced to 33 Months for Wire Fraud and Tax EvasionRead the Press Release
COVINGTON, Ky. — A Fort Thomas, Ky., man, Kevin R. Welsch, 48, was sentenced on Thursday, by Chief U.S. District Judge Danny C. Reeves, to 33 months, after previously pleading guilty to federal charges of wire fraud and tax evasion.
In his guilty plea, Welsch admitted defrauding clients of the debt collection business he owned and operated, RCC Services, Inc. Specifically, he admitted to collecting debts on behalf of creditors and keeping the money for his own use. He also admitted to collecting more than debtors owed (sometimes making multiple, unauthorized debits from their accounts) and charging his clients for fees/expenses that he never actually incurred. Finally, Welsch admitted evading taxes in the process.
Welsch pleaded guilty in May 2021.
Under federal law, Welsch must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Restitution has yet to be determined.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; Edward J. Gray., Acting Special Agent in Charge, FBI Louisville Field Office and Casey Kilgore, Chief of Police, Ft. Thomas Police Department, announced the sentencing.
The investigation was conducted by the IRS CI, the FBI, and the Ft. Thomas Police Department. The United States was represented in the case by Assistant United States Attorney Elaine K. Leonhard.
— END —
Former South Bay Executive Found Guilty of Federal Criminal Charges for Insider Trading and Securities Fraud SchemeRead the Press Release
LOS ANGELES – A former executive at a Hawthorne-based company was found guilty by a federal jury today of criminal charges that he traded in options contracts using inside information and illegally purchased shares of a company his employer had targeted for acquisition.
Mark A. Loman, 60, of Hermosa Beach, was found guilty of four counts of securities fraud and four counts of insider trading.
According to the evidence presented at his 10-day trial, Loman was a vice president of finance and the corporate controller for OSI Systems Inc., a publicly traded security, health care and electronics manufacturing company, from 2006 until 2018. In these roles, Loman had advance knowledge of OSI’s revenue and earnings and, as corporate controller, was responsible for compiling and internally reporting the company’s confidential financial results.
In December 2015, Loman received confidential information that OSI was financially underperforming and would fall far short of their earnings and revenue forecast for its second quarter of its fiscal year 2016. Acting on this information in December 2015, Loman purchased a series of options contracts with the intent of profiting when OSI’s stock price fell.
On January 27, 2016, OSI announced its disappointing second-quarter earnings, and lowered its sales and earnings guidance for the remainder of its fiscal year. On the day of this announcement, OSI shares plunged approximately 30 percent in value from their previous closing day price. As a result, Loman gained approximately $355,000 in illegal profits from this scheme.
In March 2016, Loman misused nonpublic information by purchasing stock of American Science & Engineering Inc., a Billerica, Massachusetts-based manufacturer of security screening equipment that OSI had targeted for acquisition. Once OSI publicly announced in June 2016 its agreement to acquire AS&E, Loman immediately sold his shares in AS&E and made approximately $120,000 in illegal gains. In September 2016, OSI formally acquired AS&E for approximately $270 million.
Loman made a total of approximately $475,000 in illicit gains through this scheme.
In July 2019, the Securities and Exchange Commission filed a lawsuit against Loman, charging him with insider trading. Trial is scheduled for that lawsuit in April 2022.
United States District Judge Dale S. Fischer has scheduled a January 10, 2022 sentencing hearing. Each charge of securities fraud carries a statutory maximum sentence of 25 years in federal prison. The statutory maximum sentence for each count of insider trading is 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorneys Scott Paetty and Karen E. Escalante of the Major Frauds Section are prosecuting this case.
Former Member of Springfield Latin Kings Chapter Pleads Guilty to Firearm OffenseRead the Press Release
BOSTON – A former member of the Springfield Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty yesterday to a firearm offense.
Hector Adorno, a/k/a “King Gordo,” 35, pleaded guilty to being a felon in possession of ammunition. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 15, 2021.
At the time of his arrest in May 2019, Adorno was found in possession of a loaded firearm, located beside him on a bedroom nightstand in his residence. Due to prior felony convictions, Adorno was prohibited from possessing firearms and ammunition.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings. Adorno is the 50th defendant to plead guilty in the case.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former East Tennessee Clinic Owner Convicted of Unlawful Opioid DistributionRead the Press Release
A federal jury in the Eastern District of Tennessee convicted a former nurse practitioner yesterday of unlawfully distributing prescription opioids to patients at a clinic he owned in Manchester, Tennessee.
According to court documents and evidence presented at trial, Mark Allen, 64, now of Destin, Florida, distributed oxycodone not for a legitimate medical purpose outside the course of professional practice and used his clinic for unlawful drug distribution. Specifically, the evidence showed that through his clinic, Volunteer Family Medical, he wrote controlled substance prescriptions for more than 15,000 pills to three women with whom he had sexual relationships, and a male patient who later passed away.
Allen was convicted of one count of maintaining a drug-involved premises and six counts of unlawful distribution of a controlled substance outside the scope of professional practice. He is scheduled to be sentenced on Jan. 21, 2022, and faces up to 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jones of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Assistant Director Mike Cox of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, and TBI investigated the case.
Trial Attorney Emily Petro of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee are prosecuting the case.
Former DOD Subcontractor Sentenced to Federal Prison for Submitting False Claims for Hours WorkedRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Melissa Heyer, age 46, of Gaithersburg, Maryland to a year and a day in federal prison, followed by three years of supervised release, for submitting false claims to the United States, specifically for claiming to have worked hours on a government contract when she allegedly was not at work. Judge Russell also ordered Heyer to pay $107,300 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Elton Howell, Assistant Inspector General for Investigations (Acting), Defense Intelligence Agency (DIA)- Office of Inspector General (OIG); and Special Agent in Charge Christopher Dillard, of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office.
According to her plea agreement, Company A was a subcontractor for Company B, providing employees that performed national security duties for the Department of Defense (DOD). From January 2017 until March 2019, Heyer worked for Company A, but was assigned on a day-to-day basis to work for the DOD on national security matters at the National Security Agency (NSA), in Fort Meade, Maryland.
From January 2017 through March 2019, Heyer held a Top Secret-Sensitive Compartmented Information (TS/SCI) security clearance and performed her duties for Company A and the DOD at a sensitive compartmented information facility (SCIF) at the NSA facility where she worked. She used a badge reader to gain access to the SCIF. On at least five occasions between January 2017 and March 2019, Heyer falsely represented to her employer that she had been working at the NSA SCIF when she was actually elsewhere. Heyer caused false claims to be submitted to the DOD that resulted in the government paying more than $100,000 to Company A, Company B, and Heyer, to which they and Heyer were not entitled.
In total, as result Heyer knowingly caused the government to be billed for more than 1,200 hours of her time when she had actually not worked.
Acting United States Attorney Jonathan F. Lenzner praised the DIA OIG and DCIS for their work on the investigation and thanked the U.S. CYBERCOM Office of Inspector General for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Foley Meth Dealer Sentenced to More Than Ten YearsRead the Press Release
MOBILE, AL – A Foley, Alabama, man was sentenced on September 1, 2021, to 131 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, William Wilson Roberts, 37, distributed methamphetamine ice in furtherance of the conspiracy. Roberts was living with co-defendant Amber White, and they traveled to Pensacola and other places to receive significant amounts of methamphetamine ice for distribution in Baldwin County. As White and Roberts were returning to Foley from one trip to Pensacola, a Baldwin County sheriff’s deputy attempted to stop their vehicle for a traffic violation. White attempted to elude the deputy, reaching speeds in excess of 90 miles per hour on County Road 10. White finally crashed through a fence and drove through a field into another fence. Roberts jumped out of the vehicle and began to run. Deputies recovered 33.9 grams of methamphetamine from White.
United States District Court Judge Callie V.S. Granade imposed the 131-month sentence and ordered that Roberts would also serve ten years on supervised release following his imprisonment. Roberts will also undergo testing and treatment for drug abuse and mental health counseling, and he will be subject to a search of his person and premises upon reasonable suspicion during that time. No fine was imposed but the judge ordered that Roberts pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the FBI Safe Streets Task Force. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Florida Man Pleads Guilty to Conspiracy to Defraud FDA in Connection with Dietary SupplementsRead the Press Release
A Florida man pleaded guilty today to conspiring to defraud the U.S. Food and Drug Administration (FDA) by concealing information about illegal products labeled as dietary supplements.
David Winsauer, 35, of Delray Beach, worked from 2014 to 2018 for Blackstone Labs, LLC, a Boca Raton company that sold products labeled as dietary supplements. According to court filings, Winsauer admitted that he and other co-conspirators worked to portray the company to consumers as complying with applicable federal laws, when in fact, the company arranged to manufacture products that were illegal under federal law. Winsauer admitted that members of the conspiracy also coordinated to conceal sales of products labeled as dietary supplements from the FDA, including by removing information about illegal products from online marketing to create the false impression that they were no longer selling those products.
“The FDA regulates dietary supplements to protect the health of American consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will prosecute individuals and companies who undermine that mission by deceiving the FDA.”
“Products mislabeled as dietary supplements can pose a serious risk to the health of U.S. consumers,” said Special Agent in Charge Justin C. Fielder for the FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health by selling violative products.”
Winsauer pleaded guilty to conspiracy to defraud the United States in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. He is scheduled to be sentenced on Nov. 12 and faces a maximum penalty of five years in prison.
The FDA’s Office of Criminal Investigations investigated the case.
Blackstone Labs, Winsauer and six other defendants previously were charged by indictment in connection with a conspiracy to defraud the FDA, distribute unapproved new drugs, and conspiracy to distribute controlled substances. One other defendant pleaded guilty in 2019, and the remaining defendants are set for trial in October.
The indictment charging the remaining defendants is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Alistair Reader and Steven Gripkey, Senior Litigation Counsel David Frank, and Assistant Director John W. Burke of the Justice Department’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Federal Jury Convicts Former East Tennessee Clinic Owner of Unlawful Opioid DistributionRead the Press Release
CHATTANOOGA, Tenn. – On September 1, 2021, following a three-day trial in the United States District Court at Chattanooga, a jury convicted Mark Daniel Allen, 64, formerly of Manchester, Tennessee, of unlawfully distributing prescription opioids to patients at a clinic he owned in Manchester, Tennessee. Following the jury’s verdict, Allen was taken into custody. Sentencing is scheduled for January 21, 2022, at 10:00 a.m., before the Honorable Travis R. McDonough. Allen faces up to 20 years in prison for each count of conviction.
According to court documents and evidence presented at trial, Allen was a nurse practitioner who distributed oxycodone not for a legitimate medical purpose outside the course of professional practice and used his clinic for unlawful drug distribution. Specifically, the evidence showed that through his clinic, Volunteer Family Medical, he wrote controlled substance prescriptions for more than 15,000 pills to three women with whom he had sexual relationships, and a male patient who later passed away. Allen was convicted of one count of maintaining a drug-involved premises and six counts of unlawful distribution of a controlled substance outside the scope of professional practice.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jones of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, TBI, Manchester Police Department, and Coffee County Sheriff's Office investigated the case.
Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee and Trial Attorney Emily Petro of the Criminal Division’s Fraud Section represented the United States at trial.
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Fayette County man sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darrell Ernest Reese, of Robson, West Virginia, was sentenced today to 77 months of incarceration for heroin distribution, Acting United States Attorney Randolph J. Bernard announced.
Reese, age 44, pled guilty in March 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Reese admitted to working with another to distribute heroin in March 2019 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Ex-President and CEO of Long Beach Substance Abuse Treatment Provider Sentenced to 7 Years in Prison for Health Care FraudRead the Press Release
LOS ANGELES – The former president and chief executive officer of a Long Beach substance abuse treatment provider was sentenced today to 84 months in federal prison for participating in a scheme in which more than $18.5 million in fraudulent claims were submitted to California’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students.
Richard Mark Ciampa, 67, of Commerce, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered him to pay $17,640,325 in restitution. Ciampa pleaded guilty on January 6 to one count of health care fraud.
Ciampa founded the non-profit Atlantic Recovery Services (ARS), later called Atlantic Health Services, in 1996 and served as its president and CEO until its closure in April 2013 following a suspension in payments. ARS provided substance use disorder treatment services to students at local high schools and middle schools through Medi-Cal and its Drug Medi-Cal program.
From March 2009 to April 2013, Ciampa participated in a scheme to defraud Medi-Cal in which ARS billed the Drug Medi-Cal program for services to students who did not medically need alcohol or drug treatment. ARS also billed Drug Medi-Cal for group and individual counseling sessions that were not provided or did not meet the requirements for reimbursement as to size, length or setting. ARS employees falsified documents to support the false claims.
In March 2009, Drug Medi-Cal ordered ARS to repay an overpayment assessed to the organization, which caused a significant amount of financial pressure on Ciampa. Ciampa, in turn, passed along this financial pressure to his employees and threatened the employees that they would lose their jobs with ARS or have their hours reduced to part-time if they did not generate significant billings.
Ciampa was aware or willfully blind to the fact that, in response to his threats, ARS employees were generating false and fraudulent claims for submission to Drug Medi-Cal. He also encouraged ARS employees to engage in fraud, telling them they should “find a way” to enroll more students in ARS’ program despite Drug Medi-Cal’s medical necessity requirement.
The scheme was executed in several ways, including ARS counselors and managers maintaining student caseloads by enrolling students in the ARS substance abuse counseling program even if they had used drugs or alcohol only occasionally or even just once.
For example, in December 2011, ARS fraudulently submitted a claim for Medi-Cal reimbursement for an individual counseling session for a student on November 23, 2011 – a school holiday and the day before Thanksgiving – when the student was absent and the counselor listed on the claim did not provide any counseling.
In total, $18,530,927 in fraudulent claims were submitted because of the scheme, resulting in an actual loss to Medi-Cal of $17,640,325.
Prosecutors have obtained a total of 19 guilty pleas in this case and related cases, including former ARS Program Manager Lori Renee Miller, 60, of Lakewood, multiple former ARS managers and counselors, and Dr. Leland Whitson, 81, of Redondo Beach, the former Medical/Clinical Director of ARS who previously pleaded guilty to making a false statement affecting a health care program.
Gregory Hearns, 65, of Long Beach, the billing supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal, LaLonnie Egans, 63, of Long Beach, a former manager, and Tina Lynn St. Julian, 57, of Inglewood, a former counselor, are expected to go on trial on January 6. They are charged with multiple counts of health care fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse; the United States Department of Health and Human Services, Office of Inspector General; and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Cathy J. Ostiller and Karen E. Escalante of the Major Frauds Section, Nisha Chandran of the General Crimes Section and Victor Rodgers of the Asset Forfeiture Section prosecuted this case.
Eleven More Individuals Plead Guilty to Oxycodone Distribution Offenses Involving Montgomery PhysicianRead the Press Release
Montgomery, Ala. – Over the past several weeks, eleven individuals have appeared in federal court and pleaded guilty to charges of conspiring to unlawfully possess oxycodone with intent to distribute and for illegally distributing the prescription drug, announced Acting United States Attorney Sandra J. Stewart. Information about the defendants and the dates on which they pleaded guilty are as follows:
- July 16, 2021- Joseph Anthony Coleman, 37, of Montgomery, Alabama.
- August 3, 2021- Kambria Symone Robinson, 29, of Atlanta, Georgia.
- August 4, 2021- Rubin Sanders, 30, of Atlanta, Georgia.
- August 5, 2021- Towanna Lorrell Chapman, 36, of Montgomery, Alabama.
- August 5, 2021- Jamal Anthony Thomas, 37, of Montgomery, Alabama.
- August 24, 2021- Maurice Daughtry, 38, of Marietta, Georgia.
- August 26, 2021- Melodie Donne Armer Cheatham, 38, of Savannah, Georgia.
- August 30, 2021- Carlos D’Angelo Jones, 34, of Memphis, Tennessee.
- August 30, 2021- Garren Charles Rogers, 35, of Houston, Texas.
- September 1, 2021- Geniece Chadell Maxon, 33, of Lynwood, Illinois.
- September 1, 2021- Robert Lee Thompson, 32, of Madison, Alabama.
According to court documents, these defendants agreed among themselves and with others to obtain illegitimate and unlawful prescriptions for oxycodone, a Schedule II controlled substance, signed by a Montgomery, Alabama physician, Dr. D’Livro Lemat Beauchamp. In many cases, this was facilitated through a third-party without actually going to the physician’s office. The defendants would then fill those prescriptions at pharmacies located in and around Montgomery, give the oxycodone tablets to organizers of the conspiracy, and collect payment. Additionally, the organizers of the conspiracy and Beauchamp agreed that Beauchamp would receive $350.00 per unlawful prescription he signed. Statements made at the various plea hearings, indicated that defendants Daughtry and Rogers were among the organizers of the conspiracy. The scheme operated from 2012 until April of 2020. However, each defendant did not necessarily participate for all or even most of that period.
In total, these eleven defendants unlawfully obtained, possessed with the intent to distribute, and, in most cases, did distribute, approximately 38,780 30-milligram oxycodone tablets, which is equal to 1,163,400 milligrams of the drug.
For his part in the scheme, on October 20, 2020, Dr. Beauchamp pleaded guilty to the same offense. Likewise, on March 30, 2021, another one of the organizers, Deandre Varnel Gross, entered a guilty plea. Finally, two other defendants in the case, Shayla Denise Moorer and Naaman Rashad Jackson, pleaded guilty earlier this summer. As noted in their press release, Moorer and Jackson each unlawfully received payments for filling oxycodone prescriptions and transferring oxycodone tablets.
In the coming months, United States District Judge Myron H. Thompson will conduct a sentencing hearing for each of the defendants discussed above. At his or her sentencing hearing, each defendant will face a maximum sentence of 20 years of imprisonment, a maximum fine of $1,000,000.00, and other monetary penalties.
Cases against other co-conspirators named in the indictment are still pending. Those defendants are presumed innocent until found guilty beyond a reasonable doubt in a court of law.
“It is disturbing how so many are willing to jeopardize the well-being of the community simply to make a few extra dollars,” stated Acting United States Attorney Stewart. “The drugs distributed through the work of this conspiracy were powerful opioids, capable of destroying lives and families. We will never be able to account for the harm caused by the collective action of this group. I am glad that, after many years and many pills pouring into our communities, these defendants are being held to account for their actions.”
"Those who choose to violate laws designed to ensure the safe and legal dispensation of pharmaceutical drugs will not escape the scrutiny of DEA by attempting to hide criminal activity and placing unbridled greed before health and safety,” said DEA Assistant Special Agent in Charge Towanda Thorne-James.
The Drug Enforcement Administration’s Tactical Diversion Squad investigated this case, assisted by the United States Department of Health and Human Services – Office of Inspector General and the Shelby County, Alabama Sheriff’s Office. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour are prosecuting the case.
Dominican Republic Native Going to Prison for 30 Months Following Drug ConvictionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Elison A. Ledesma-Melo a/k/a Carlos Rivera Perez a/k/a Ostin M. Echevarria-Roman, 46, a native of the Dominican Republic, who was convicted of possession with intent to distribute 100 grams or more of heroin and 40 grams or more of fentanyl, was sentenced to serve 30 months in prison by U.S. District Judge John L. Sinatra, Jr. The defendant will be deported to the Dominican Republic once his sentence is complete.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that in August 2018, the Drug Enforcement Administration began investigating the drug trafficking activities of the defendant who was a retail distributor of heroin in the Buffalo area. Ledesma-Melo traveled to the New York, NY, area to obtain heroin which he then brought back to Buffalo for distribution. On September 11, 2019, investigators conducted surveillance of the defendant’s vehicle as it traveled between the Buffalo area and the New York area. A traffic stop of Ledesma-Melo’s vehicle was conducted on Route 20A in Warsaw, NY. The defendant produced a Puerto Rico driver’s license in the name of Ostin M. Echevarria-Roman with a March 1972 birthdate. Following a brief roadside conversation, during which Ledesma-Melo provided false information and exhibited unusual behavior, a New York State Trooper searched the vehicle. A K-9 narcotics detection dog was also brought to the scene to assist in the search. The K-9 made a positive indication for the presence of narcotics in the rear seat/hatch area. A follow-up search of that area resulted in the recovery of a plastic bag which contained in excess of 100 grams of suspected heroin. Ledesma-Melo was taken into custody.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Domestic Disturbance Call Results in Oklahoma City Man Being Sentenced to Serve More Than 15 Years in Federal Prison for Illegal Possession of FirearmsRead the Press Release
OKLAHOMA CITY – Today, CORNELL WINSOR PITTS-GREEN, 41, of Oklahoma City, was sentenced to serve more than 15 years in federal prison for being a convicted felon in illegal possession of firearms, announced Acting U.S. Attorney Robert J. Troester.
On July 7, 2020, a federal grand jury returned a one-count Indictment against Pitts-Green, charging him with being a convicted felon in illegal possession of firearms. On October 2, 2020, Pitts-Green pleaded guilty to the Indictment.
Public records reflect that, on March 8, 2020, Oklahoma City Police officers were dispatched to a church in Oklahoma City in regards to a domestic disturbance. A church member reported that a female had ran to the church and told members of the church that her boyfriend had harmed her. The church members shielded the female from Pitts-Green when he came to the church to find her. Based on the female’s statements, law enforcement discovered a .22 caliber revolver and a .380 auto caliber semi-automatic pistol in Pitts-Green’s residence.
Federal law prohibits prior convicted felons from possessing firearms or ammunition. Prior to his arrest, Pitts-Green had been convicted of several felonies out of Garfield and Payne Counties, including Assault and Battery, Domestic Assault and Battery by Strangulation, and Unlawful Possession of Controlled Drugs with Intent to Distribute.
Today, U.S. District Chief Judge Timothy D. DeGiusti sentenced Pitts-Green to serve 188 months in federal prison, followed by five years of supervised release. In announcing the sentence, Chief Judge DeGiusti noted the nature and circumstances of the offense, including Pitts-Green’s criminal history. Pitts-Green has pending charges in a connected case in Oklahoma County including Domestic Assault and Battery with a Dangerous Weapon, Kidnapping, and Domestic Assault and Battery by Strangulation.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Oklahoma City Police Department. Assistant United States Attorney Bow Bottomly prosecuted the case.
This case is part of "Operation 922," the Western District of Oklahoma’s local implementation of the national Project Safe Neighborhoods initiative to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes prosecution of federal gun crimes connected to domestic violence.
Reference is made to public filings for more information.
Detroit man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyrone Wyatt-Smith, of Detroit, Michigan, was sentenced today to 46 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Wyatt-Smith, also known as “Fetty,” 29, pleaded guilty in March 2021 to one count of “Distribution of Oxycodone.” Wyatt-Smith admitted to selling Oxycodone in April 2019 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Dark Web Child Porn Leads to 12 Year Sentence for Randolph County ManRead the Press Release
SPARTA, Ill. – A Randolph County man is heading to federal prison today after years of downloading
and sharing child pornography on the dark web. Kory R. Schulein, 37, of Sparta,
Illinois, was sentenced this afternoon to 151 months in prison for knowingly receiving child
sexual abuse material over the internet. Schulein pled guilty to the charge in April.According to court documents, Schulein first came to the attention to law enforcement in 2018
during an FBI investigation of child pornography on the dark web. Agents were able to track his
internet protocol address and executed a federal search warrant at his home. Schulein served as a
moderator of a dark web site dedicated to child exploitation and had been an active participant on
other sites. Prosecutors told the court that on one of the sites, Schulein had posted 13,733
messages, many of which included links to child exploitation images and videos. Schulein also
collected and stored over 9,000 images and videos of child sexual abuse material on an encrypted
hard drive.In handing down the sentence, which fell at the low end of the advisory sentencing guidelines,
United States District Judge Stephen P. McGlynn observed that the guidelines called for a lengthy
sentence “because of the colossal and immensely harmful impact” child pornography has on children.
Schulein was unemployed and had for years actively participated in online forums where he
interacted with people who were producing child pornography. Judge McGlynn noted that some of the
images and videos collected by Schulein depicted children in bondage and adults raping children,
including 5- year-old girls and toddlers. “You must have felt no mercy or empathy for these
children you were watching being humiliated and tortured,” McGlynn told the defendant.During the sentencing hearing, prosecutors also submitted evidence that Schulein had engaged in an
online “romantic relationship” with an 11-year-old girl in the United Kingdom. Judge McGlynn called
Schulein’s involvement with the girl “classic grooming behavior.”Some victims of the child pornography that Schulein received and shared with others
submitted statements to the court. In their statements, they describe how impossible it is for them
to live any semblance of a normal life while images of their sexual abuse are traded online. “Every
time someone views this trash,” one survivor wrote, “he is once again making me re-live the most
horrific part of my childhood. I can never truly heal....” The mother of another victim
wrote: “Thousands upon thousands of people, all over the world have access to images of our
little girl during her darkest days.... A person can download her image, create their own child
pornography movie, share it with
other monsters, or keep it for themselves to continually exploit our daughter in their own private
bedroom.” Knowing that her abuse is memorialized on the internet for people like the defendant to
view and share forever “will shatter her soul,” the victim’s mother wrote.As part of his sentence, Schulein was ordered to serve 10 years on supervised release and pay a
$5,000 special assessment. He previously paid $12,000 in restitution to several of the victims.The case was investigated by FBI-Springfield, with valuable assistance provided by the U.S.
Marshals Service.Trial Attorneys Jessica Urban and Alicia A. Bove of the Criminal Division’s Child Exploitation and
Obscenity Section (CEOS) and Assistant U.S. Attorney Nathan D. Stump of the U.S.
Attorney’s Office of the Southern District of Illinois prosecuted the case.This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the
growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of
Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state,
and local resources to better locate, apprehend and prosecute individuals who exploit children via
the internet, as well as to identify and rescue victims. For more information about Project Safe
Childhood, please visit www.justice.gov/psc.
Convicted felon sentenced to additional prison time after threatening witness and judgeRead the Press Release
BRUNSWICK, GA: A convicted felon and gang member has been sentenced to more than a decade of additional time in federal prison after admitting he threatened a witness and a judge.
Wilbert Stephens, 29, of Brunswick, Ga., was sentenced to 174 months in prison after pleading guilty to Solicitation to Commit a Crime of Violence, and Mailing Threatening Communications, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Stephens to pay $7,500 in restitution to one of the victims, and to serve three years of supervised release after completion of his prison term, which runs consecutively to the 120-month term Stephens already was serving for a prior conviction. There is no parole in the federal system.
“Serial criminal Wilbert Stephens already faced 10 years in prison for illegally possessing ammunition,” said Acting U.S. Attorney Estes. “Rather than take his well-deserved medicine, he chose to compound the crime by threatening those who held him accountable.”
As described in court documents and testimony, Stephens was indicted in U.S. District Court in 2018 along with 23 other defendants as part of a drug trafficking conspiracy. He later pled guilty to an Information charging him with Possession of Ammunition by a Convicted Felon and was sentenced in June 2020 to 10 years in prison. While being held in the Glynn County Detention Center awaiting transfer to prison, Stephens asked a relative to kill a witness, and wrote and mailed a threatening letter to a judge.
“Stephens tried to use fear and intimidation to avoid being brought to justice. For this he will face steeper consequences,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentence sends the message that the FBI will not permit cooperating witnesses and judges to be targeted like this, in an attempt to undermine the rule of law.”
The case was investigated by the FBI and the U.S. Marshals Service, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Convicted Felon Ordered Held for Allegedly Importing Firearm Silencer, Silencer Parts from ChinaRead the Press Release
PROVIDENCE, R.I. – David Worster, 35, of Pawtucket, a convicted felon previously convicted of unlawful possession of a firearm, ammunition, and explosive devices, was arrested on Wednesday and ordered detained in federal custody on charges of unlawful importation of firearms/silencers he allegedly ordered from China, and for the unlawful possession of a firearm and ammunition seized by law enforcement during his arrest, announced Acting United States Attorney Richard B. Myrus.
It is alleged in court documents that in December 2020, a package mailed from China to Worster was examined by Border Protection (CBP) agents and found to contain a firearm silencer or suppressor parts. The contents of the parcel were falsely described on a U.S. Customs form as being a “Fuel Filter.”
Additionally, on August 4, 2021, CBP notified Homeland Security Investigations in Providence of a package mailed in July from China addressed to Worster’s girlfriend. A CBP inspection of the contents of the package, and further examination of photographs of the contents of the package by Bureau of Alcohol, Tobacco, Firearms and Explosives Technology Industry Services agents, determined that the package contained a firearm silencer. The contents of the package were falsely described on a U.S. Customs form as being “Shoe charm.”
On Wednesday, members of the HSI Providence Task Force and the HSI Boston Special Response Team, with the assistance of ATF agents and Pawtucket Police, arrested Worster and executed a court-authorized search of his residence. Agents and officers seized a .22 caliber rifle and ammunition, a 9mm magazine, a flak jacket and military style helmet, and various tools and components for constructing firearms.
According to court records, in 2008 Worster was investigated by ATF in Massachusetts for drug trafficking and for selling a firearm. At the time of his arrest in December 2008, ATF agents discovered two pipe bombs inside Worster’s storage locker. He was ultimately convicted of unlawful possession of a firearm, unlawful possession of ammunition, two counts of possession of an explosive device, and resisting arrest. Additionally, in April 2009, Worster was arrested in Massachusetts and convicted of unlawful possession of a firearm, unlawful possession of ammunition, and possession with intent to distribute cocaine.
The case in U.S. District Court in Providence is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The Providence HSI Task Force is comprised of agents and officers from HSI and the Pawtucket, Warwick, and Newport Police Departments.
Acting United States Attorney Myrus thanks the Massachusetts and Rhode Island State Police for their assistance in the investigation of this matter and with the arrest of Worster.
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College Park man pleads guilty to smuggling guns to BarbadosRead the Press Release
ATLANTA - Rashad Sargeant has pleaded guilty to unlawfully exporting firearms to Barbados. Together with co-defendant David Johnson, Sargeant shipped at least 30 guns to Barbados after obliterating the serial numbers of the firearms and packing them inside false compartments in boxes.
“Greed fuels the illicit firearms market with traffickers ignoring the violent consequences of helping to equip criminals with guns,” said Acting U.S. Attorney Kurt R. Erskine. “We remain steadfast in our efforts to curb gun-related violence in our communities and to prosecute firearms traffickers.”
“The unlawful acquisition and trafficking of firearms is a serious crime that threatens our communities here and abroad,” said Special Agent in Charge, Atlanta Field Division Ben Gibbons. “Obliterated firearms are hard to trace and that is what prohibited individuals are interested in. This investigation illustrates the dedication of ATF and its’ law enforcement partners to disrupt illegal firearm straw purchase schemes within the U.S. or anywhere firearm traffickers, like Sargeant, choose to operate.”
“Firearms illegally exported from the United States often end up in the wrong hands and are used to commit further criminal acts,” said Ariel Joshua Leinwand, Special Agent in Charge of the Bureau of Industry and Security’s (BIS), Office of Export Enforcement, Atlanta Office. “BIS will continue to work with our law enforcement partners to aggressively enforce export violations and combat illegal firearm exports in the interest of public safety in the U.S. and overseas.”
“Disrupting the flow of illegal guns inevitably saves lives and reduces overall crime, so I’m glad we were able to stop Sargeant’s scheme to illegally export guns to Barbados,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Cases like this highlight the great results that can be achieved when agencies work together to protect our communities.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Johnson recruited Shunquez Stephens and others, to unlawfully purchase guns from federally licensed firearms dealers. Stephens, and the other “straw purchasers,” made false statements to the licensed dealers by swearing that that they were purchasing the guns for themselves. Sargeant and Johnson would then take possession of the guns and use false identifications to mail the guns to Barbados through common carriers like UPS, FedEx, and DHL.
Rashad Sargeant, 27, of College Park, Georgia, pleaded guilty on September 2, 2021. Sentencing for Sargeant is scheduled for December 16, 2021, at 1:30 p.m., before U.S. District Judge William M. Ray II.
David Johnson, 31, of Belleville, Illinois, pleaded guilty on July 22, 2021. Sentencing is scheduled for November 4, 2021, at 1:30 p.m., before U.S. District Judge William M. Ray II.
Shunquez Stephens, 28, of Flowery Branch, Georgia, pleaded guilty for his role in this scheme on June 21, 2021. Sentencing is scheduled for September 22, 2021, at 11:00 a.m., before U.S. District Judge William M. Ray II.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and the Bureau of Industry and Security.
Assistant U.S. Attorney Jennifer Keen is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Cherokee, N.C. Woman Is Sentenced to 10 Years for Trafficking Methamphetamine, Fentanyl, and Other NarcoticsRead the Press Release
CHARLOTTE, N.C. – Today, Chief U.S. District Judge Martin Reidinger sentenced Lillian Elaine Brady, 53, Cherokee, N.C., to 10 years in prison and five years of supervised release for trafficking methamphetamine, fentanyl and other narcotics, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert J. Murphy, Special Agent in Charge of the Atlanta Field Division of the Drug Enforcement Administration (DEA), which oversees the Asheville Post of Duty, and Chief Joshua Taylor of the Cherokee Indian Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court records and today’s sentencing hearing, in April 2020, law enforcement learned that Brady was a major supply source of methamphetamine and other narcotics in and around Cherokee. Over the course of the investigation, law enforcement executed a search warrant at Brady’s residence, seizing methamphetamine, fentanyl, heroin, oxycodone, morphine, and marijuana, drug paraphernalia, $3,725 in cash, a loaded firearm, and ammunition. On February 17, 2021, Brady pleaded guilty to possession with intent to distribute controlled substances.
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In a separate case, Judge Redinger sentenced Brandy Michelle Fohmann, 32, of Arden, N.C., to seven years in prison today, followed by four years of supervised release for trafficking fentanyl in Henderson and Buncombe Counties. Court records in this case show that, between April and July 2020, Fohmann sold fentanyl on multiple occasions, including to an undercover law enforcement officer. On July 14, 2020, law enforcement seized from Fohmann’s residence and vehicles fentanyl, two loaded firearms, drug paraphernalia and more than $4,900 in drug proceeds. According to filed plea documents, Fohmann admitted to selling fentanyl daily and engaging in 10 to 15 drug transactions per day. On April 21, 2021, Fohmann pleaded guilty to distribution of fentanyl, and possession with intent to distribute fentanyl.
In announcing Fohmann’s sentence, Acting U.S. Attorney Stetzer thanked the DEA in Asheville, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the North Carolina State Bureau of Investigation, the Henderson County Sheriff’s Office, and the Hendersonville Police Department for their investigation of the case. Assistant U.S. Attorney Thomas Kent, of the U.S. Attorney’s Office in Asheville, prosecuted both cases.
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Charleston Woman Pleads Guilty to Facilitating Drug ConspiracyRead the Press Release
CHARLESTON, W.Va. – Rebecca Dunlap, 46, of Charleston, pleaded guilty today to traveling in interstate commerce to promote, carry on, and facilitate a methamphetamine and fentanyl drug conspiracy.
According to court documents, Dunlap drove from Charleston to Columbus, Ohio, on March 17, 2021, to pick up illegal drugs for Che Lark. Dunlap was stopped by law enforcement officers on her way back to Charleston with large quantities of both methamphetamine and fentanyl. Lark further admitted that she made the trip to Columbus to pick up drugs for Lark on two other occasions. Lark was indicted in June 2021 and is scheduled for trial on October 13, 2021. The charges against him include possession with intent to distribute heroin and methamphetamine, distribution of methamphetamine, distribution of fentanyl, felon in possession of a firearm, conspiracy to distribute methamphetamine and fentanyl and possession of a firearm in furtherance of a drug trafficking crime.
Dunlap faces up to five years in prison and a $250,000 fine when she is sentenced on December 2, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Metropolitan Drug Enforcement Network Team (MDENT).
United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Steve Loew is handling the prosecution.
An indictment is merely an accusation and the defendant is presumed innocent unless proven guilty.
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-00136.
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Central Valley Optometrist Indicted for Submitting over $1 Million in False Claims to MedicareRead the Press Release
FRESNO, Calif. — A federal grand jury returned a nine-count indictment today against optometrist Carole Sachs, O.D., 76, of Delhi, charging her with health care fraud, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Sachs was an optometrist and practiced out of offices in Turlock and Modesto. Between November 2016 and February 2021, Sachs fraudulently billed Medicare for optometry services she did not provide. Sachs billed over $1 million and received over $700,000 in payments from Medicare from these false and fraudulent claims. The fraudulent claims included claims for performing ultrasounds and for placing amniotic membranes on patients’ eyes despite the fact that Sachs did not perform these procedures.
This case is the product of an investigation by the U.S. Department of Health and Human Services Office of Inspector General and the Federal Bureau of Investigation. Assistant U.S. Attorneys Vincente A. Tennerelli and Joseph D. Barton are prosecuting the case.
If convicted, Sachs faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Capital One CEO to Pay Civil Penalty for Violating Antitrust Pre-Transaction Notification RequirementsRead the Press Release
The Justice Department’s Antitrust Division, at the request of the Federal Trade Commission (FTC), filed a civil antitrust lawsuit today in U.S. District Court for the District of Columbia, against Richard D. Fairbank, the CEO of Capital One Financial Corporation, for violating the pre-transaction notification and waiting period requirements of the Hart-Scott-Rodino Act of 1976 (HSR Act) when he acquired voting securities of Capital One in 2018. At the same time, the department filed a proposed settlement, subject to approval by the court, under which Fairbank has agreed to pay a $637,950 civil penalty to resolve the lawsuit.
The HSR Act imposes notification and waiting period requirements for transactions meeting certain size thresholds so that they can undergo pre-transaction antitrust review. Federal courts can assess civil penalties for pre-transaction notification violations under the HSR Act in lawsuits brought by the department. The maximum civil penalty for an HSR Act violation, which is adjusted annually, is currently $43,792 per day.
Further details about this matter are described in the FTC’s press release issued today, and in the attached complaint and competitive impact statement.
Consistent with the requirements of the Tunney Act, the proposed settlement, along with the competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period via email to [email protected] or by post to Maribeth Petrizzi, Special Attorney, United States, c/o Federal Trade Commission, 600 Pennsylvania Avenue, NW, CC-8416, Washington, D.C. 20580. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may approve the proposed settlement upon finding that it is in the public interest.
California Man Sentenced for Role in Scheme to Smuggle Endangered and Vulnerable Turtles from the U.S. to ChinaRead the Press Release
EUGENE, Ore.— A Chinese national residing in Los Angeles was sentenced in federal court today for his role in a scheme to purchase hundreds of endangered and vulnerable turtles in the U.S. and smuggle them via U.S. mail and commercial airline flights to China.
Yuan Xie, 30, was sentenced to 5 years’ federal probation, 500 hours of community service, and a $15,000 fine payable to the Lacey Act Reward Fund.
According to court documents, beginning in at least May 2017 and continuing until October 2018, Xie conspired with another Chinese national, Xiao Dong Qin, 35, of Shanghai, China, to purchase more than 769 live turtles from reptile dealers in Alabama, California, Florida, Kentucky, Michigan, New Jersey, Nevada, North Carolina, and South Carolina. All of the turtles purchased and smuggled by Xie are protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora.
A two-year investigation by the U.S. Fish and Wildlife Service (USFWS) revealed that in an 18-month period, Xie facilitated the purchase and transportation of approximately 134 Florida box turtles, 178 eastern box turtles, 127 North American wood turtles, 220 spotted turtles, 77 diamondback terrapins, 25 three-toed box turtles, seven yellow-blotched map turtles, and one Blanding’s turtle from his former residence in Eugene, Oregon. USFWS investigators determined the cost of the turtles involved in this investigation exceeded $150,000 and estimated the market value was more than double that amount in the Chinese pet trade.
In November 2018, Xie was arrested by USFWS agents at his residence in Los Angeles.
On November 16, 2018, Xie was charged by criminal complaint with one count of conspiracy to smuggle goods from the U.S. in violation of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). On May 6, 2021, he waived indictment and pleaded guilty to the single charge.
As part of the plea agreement, Xie has agreed to pay $2,233 in restitution to a rehabilitation facility near Chicago and The Turtle Conservancy near Los Angeles for costs associated with the care of turtles intercepted by law enforcement.
Qin was sentenced on February 27, 2020 to two years’ probation and paid nearly $8,000 in restitution.
This case was investigated by USFWS with assistance from the U.S. Postal Inspection Service. It was prosecuted by Pamela Paaso, Assistant U.S. Attorney for the District of Oregon.
Buffalo Woman Pleads Guilty to COVID FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shaneesha White, 25, of Buffalo, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to wire fraud involving benefits connected to a presidentially declared national emergency. The charges carry a maximum penalty of 30 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that between June 2020 and February 2021, the defendant defrauded the New York State Department of Labor by fraudulently collecting unemployment insurance benefits, to which she was not entitled. White applied for and received benefits in her own name, under false and fraudulent pretenses. The defendant and others also used the personal identifying information of two individuals fraudulently to create benefit accounts and collect benefits in the names of these individuals. The benefit money was deposited into bank accounts held and controlled by the defendant at Key Bank. Key Bank also issued ATM cards in both the White’s name and in the names of the two individuals, which the defendant used to make cash withdrawals of the benefits. As a result of the fraud, the defendant unlawfully collected $48,833.15 in benefits.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. It expands states’ ability to provide unemployment insurance for many workers impacted by COVID-19, including for workers who are not ordinarily eligible for benefits. The CARES Act provided for three new UI programs: Pandemic Unemployment Assistance (PUA); Federal Pandemic Unemployment Compensation (FPUC); and Pandemic Emergency Unemployment Compensation (PEUC).
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The plea is the result of an investigation by the U.S. Department of Labor, Office of Inspector General, Office of Investigations – Labor Racketeering and Fraud, New York Region, under the direction of Special Agent-in-Charge Jonathan Mellone; the Department of Homeland Security, Office of Inspector General, under the direction of Acting Special Agent-in-Charge Todd Allen; the U.S. Secret Service, under the direction of Special Agent-in-Charge Jeffrey Burr; and the Social Security Administration, Office of Inspector General, under the direction of Special Agent-in-Charge John F. Grasso.
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Broken Arrow Resident Found Guilty of Assault in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Robert Wayne Thompson, age 54, of Broken Arrow, Oklahoma was found guilty by a federal jury of the lesser included offense of Assault by Striking, Beating, or Wounding in Indian Country, in violation of Title 18, United States Code, Sections 113(a)(4), 1151 and 1153. The defendant was indicted by a federal grand jury last February with Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, in violation of Title 18, United States Code, Sections 113(a)(3), 1151 and 1153. The jury trial began with testimony on Tuesday, August 31, 2021 and concluded on Wednesday, September 1, 2021 with the guilty verdict. Based on the jury’s verdict, the defendant is facing up to 1 year of imprisonment.
During the trial, the United States presented evidence that the defendant assaulted an individual by picking up a bar stool and striking the victim on the head, causing a head laceration.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally-recognized Indian tribe and the crime occurred in Wagoner County, within the boundaries of the Muscogee (Creek) Reservation, and within the Eastern District of Oklahoma.
The guilty verdict was the result of an investigation by the Broken Arrow Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Thompson was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Benjamin Traster and Rob Wallace represented the United States.
Bladen County Political Consultant Sentenced to 6 Months in Prison for Theft of Government Property and Social Security FraudRead the Press Release
GREENVILLE, N.C. – A Bladenboro man was sentenced today to 6 months in prison for the theft of government property and Social Security fraud and ordered to pay $8,599.10 in restitution. He pled guilty to the charges on June 21, 2021.
According to court documents, Leslie McCrae Dowless, 65, defrauded the Social Security Administration by concealing his work and income while receiving monthly benefits payments. In February 2013, Dowless applied for Supplemental Security Income (SSI) benefits. In the application, Dowless claimed that he was unable to work due to a disability. Dowless received SSI benefits until July 2018, when he applied for Retirement Insurance Benefits (RIB). In his application for RIB, Dowless stated that he did not expect to work in 2018 and had not worked in the two years preceding his application. Dowless received RIB benefits through November 2018. Dowless was required to report certain events to the Social Security Administration, including changes in his work activity, income, or resources.
Unbeknownst to the Social Security Administration, Dowless worked as a consultant for at least two political campaigns during the 2018 Midterm Elections. From March 2017 to November 2018, Dowless received at least 59 checks totaling $135,365.57 for consulting work. Dowless failed to report his work and income to the Social Security Administration.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Social Security Administration Office of Inspector General and the Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Toby Lathan prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-53-B0.
Baltimore County Man Facing Federal Indictment for Illegally Purchasing and Possessing Firearms and AmmunitionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Al Jumal Mitchell, age 37, of Middle River, Maryland, for federal charges related to his illegal purchases and attempted purchase of firearms using a fraudulent Federal Firearms License. The indictment was returned on August 18, 2021. Mitchell has an initial appearance today at 1:30 p.m. in U.S. District Court in Baltimore before U.S. Magistrate Judge J. Mark Coulson.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to the six-count indictment, as a result of a previous conviction Mitchell was prohibited from possessing firearms or ammunition. The indictment alleges that Mitchell used fraudulent identification to illegally purchase two firearms and attempt to purchase a third outside of Maryland. Two of the firearms were allegedly shipped to Mitchell in Maryland.
Specifically, the indictment alleges that on October 9, 2020, December 18, 2020, and January 9, 2021, Mitchell used a Federal Firearms License that did not belong to him and had an altered address to purchase a 9mm semi-automatic pistol, a 93R17 rifle, and a 9mm semi-automatic rifle, from three licensed firearms dealers. Further, the indictment alleges that Mitchell unlawfully received at his residence two of the three firearms, which he had acquired outside Maryland.
Finally, as alleged in the indictment, on April 8, 2021, Mitchell illegally possessed the two 9mm firearms he purchased on October 9, 2020 and January 9, 2021, as well as a 20 gauge pump-action shotgun, a .357 magnum revolver, and 165 rounds of various caliber ammunition, including 100 rounds of jacketed hollow point ammunition.
If convicted, Mitchell faces a maximum sentence of five years in federal prison for each of two counts of unlawful receipt of a firearm acquired outside Maryland; a maximum of 10 years in federal prison for each of three counts of furnishing false identification to a licensed firearms dealer; and a maximum of 10 years in federal prison for possession of firearms and ammunition by a prohibited person. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and the Baltimore County Police Department for their work in the investigation and thanked Baltimore County State’s Attorney Scott Shellenberger and his Office for their assistance. Mr. Lenzner thanked Special Assistant U.S. Attorney Lindsay DeFrancesco, who is prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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2 men charged with murder of convenience store owner, 5 armed robberiesRead the Press Release
CINCINNATI – A federal grand jury has charged two men with a string of armed robberies and the February 2021 murder of Roop C. Gupta, the owner of Madeira Beverage.
Willie James Attaway, 30, of Cincinnati, and Lamond Johnson, 35, most recently of Cincinnati, are charged by a 14-count indictment.
According to the charging document, Attaway and Johnson conspired to commit five armed robberies on Feb. 8 and 9, 2021.
Specifically, the defendants allegedly brandished a firearm to commit robberies on the following occasions:
- February 8 – Shell on Montgomery Road in Deerfield Township,
- February 8 – Shell on Dixie Highway in Hamilton, Ohio,
- February 9 – Madeira Beverage on Kenwood Road in Madeira, Ohio,
- February 9 – Sunoco on Kenwood Road in Blue Ash, Ohio, and
- February 9 – Marathon on North Broadway in Lebanon, Ohio.
Attaway and Johnson are both charged with the Feb. 9, 2021 murder of Gupta, the owner of Madeira Beverage. Using a firearm to commit murder during a crime of violence is potentially punishable by the death penalty.
Related local charges pending against Johnson will be superseded by the federal indictment returned yesterday, and the case will proceed federally.
Attaway and Johnson appeared in federal court today at 1:30pm and the indictment was unsealed at that time.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, and Roland Herndon, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), announced the charges. Assistant United States Attorney Julie D. Garcia is representing the United States in this case.
The investigation was jointly conducted by ATF and the U.S. Attorney’s Office, the Madeira Police Department, the Warren County Sheriff’s Office, the Cincinnati, Lebanon, Blue Ash, and Hamilton police departments, and the Hamilton County Prosecutor’s Office.
An indictment is merely an allegation, and defendants are presumed innocent unless proven guilty in a court of law.
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Wednesday 1 September 2021
Wheeling man admits to methamphetamine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Scott Everly, of Wheeling, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Everly, also known as “Capt,” 70, pled guilty today to one count of “Distribution of Methamphetamine within 1000 Feet of a Protected Location.” Everly admitted to selling methamphetamine near Riverview Towers in Wheeling in July 2019.
Everly faces at least one year and up to 40 years of incarceration and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.