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15 October 2021
Davenport Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa – A Davenport man, Cedric Cornelius Shivers, was sentenced on Wednesday, October 13, 2021, by United States District Court Chief Judge John A. Jarvey to 70 months in prison for Felon in Possession of Firearm. Shivers was ordered to serve three years of supervised release to follow his prison term and pay $100.00 to the Crime Victims’ Fund.
At approximately midnight on September 14, 2020, Shivers, age 26, drove on Interstate 80 in Davenport in a vehicle without state-issued license plates and an expired Illinois temporary registration tag. An Iowa State Trooper conducted a traffic stop and, after the trooper asked for Shivers’ driver’s license, Shivers fled from the traffic stop and traveled in excess of 110 m.p.h., ignoring traffic signals, nearly causing a collision with another vehicle, and, eventually, rolled his own vehicle down an embankment into a ditch. Shivers’ vehicle had two passengers inside, including a two-year-old. After crashing the vehicle, Shivers ran and law enforcement located him hiding in a field, where they placed him under arrest. Upon a search of his vehicle, troopers located a loaded handgun between the driver’s seat and door. As a convicted felon, Shivers was prohibited from possessing firearms. Shivers pleaded guilty to the offense on May 28, 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Iowa State Patrol investigated the case.
Davenport Man Sentenced to Federal Prison for Child Pornography ChargesRead the Press Release
DAVENPORT, Iowa – A Davenport man, Lamark Armond Combs, Jr., was sentenced on Thursday, October 14, 2021, by United States District Court Chief Judge John A. Jarvey to 210 months in prison for Receipt and Possession of Child Pornography. Combs was ordered to serve ten years of supervised release to follow his prison term and to pay $300.00 to the Crime Victims’ Fund.
Combs, age 21, was identified by law enforcement after the mother of a 15-year-old girl reported to the Davenport Police Department (DPD) that Combs had requested her daughter send him a sexually explicit video of herself and she had complied. At the time, DPD had two open sexual assault investigations of Combs, one relating to a 13-year-old girl and the other relating to a 15-year-old girl. Through their investigation, law enforcement determined Combs engaged in a pattern of soliciting, enticing, and grooming minor females on social media and had the girls send him nude images and videos of themselves and coerced the girls to have sex with him. In Combs’s electronic devices and accounts, law enforcement located seven images and 23 videos depicting child pornography, in addition to 50-100 images of sexually explicit images that law enforcement was unable to determine if minors were pictured. Combs pleaded guilty to the offenses on June 9, 2021.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Davenport Police Department investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Craig Cowles Sentenced for Evading over $250,000 in TaxesRead the Press Release
The Acting United States Attorney for the District of Vermont announced that Craig Cowles, 53, of Richmond, Vermont, was sentenced today in United States District Court in Burlington to five years of probation following his guilty plea to federal income tax evasion. Chief District Judge Geoffrey Crawford ordered that Cowles pay restitution totaling about $262,000 to the IRS for unpaid taxes. Since pleading guilty, Cowles has already paid the IRS more than $80,000 toward this restitution obligation.
In fall 2019, a federal grand jury in Rutland returned an indictment charging Cowles with five counts of tax evasion and 14 counts of structuring bank transactions to avoid currency reporting requirements. Last fall, Cowles pled guilty to one of the tax evasion counts.
According to court records, Cowles is the owner of Cowles Excavating, an earth-moving business located in Richmond. Between 2012 and 2017, Cowles generated approximately $2.8 million in gross revenue from Cowles Excavating and other businesses he operated. During that period, Cowles filed no tax returns with the Internal Revenue Service and paid no federal income taxes despite earning hundreds of thousands of dollars in net profits.
Court records also reflect that Cowles structured financial transactions to avoid federal currency reporting requirements. Under law, a financial institution must file a report with the Secretary of the Treasury whenever a customer engages in a financial transaction, such as a bank deposit or withdrawal, that involves more than $10,000 in cash. Cowles structured a number of transactions to avoid this reporting requirement. He did this by breaking down checks he received from business clients into cash amounts that were slightly under $10,000, then using additional funds from the checks to buy cashiers checks payable to himself. Cowles often converted these cashiers checks into additional cash. Federal law prohibits anyone from structuring deposits and withdrawals that are intended to circumvent the $10,000 cash reporting requirement.
The case was investigated by the Criminal Investigation Division of the Internal Revenue Service.
Cowles was represented by attorneys Tris Coffin and Tim Doherty. The prosecutor was Assistant U.S. Attorney Gregory Waples.
Convicted Felon Sentenced to 9+ Years for Possessing a FirearmRead the Press Release
SHREVEPORT, La. – Knoxsom R. Peterson, III, 26, of Shreveport, has been sentenced by United States District Judge Donald E. Walter to 115 months (9 years, 7 months) in prison, followed by 3 years of supervised release, for illegal possession of a firearm.
Peterson was indicted by a federal grand jury on January 27, 2021 and charged with felon in possession of a firearm. While investigating an incident in August 2020 when a Molotov Cocktail was thrown at the Caddo Parish Courthouse, agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) uncovered evidence that led to the discovery of Peterson’s prohibited possession of a firearm. On October 20, 2020, agents with the ATF executed a search warrant at Peterson’s residence and found a pistol in an empty purse which had been reported stolen by a Shreveport resident earlier in the year. Initially, Peterson’s girlfriend told law enforcement that the gun was hers but her story as to how she came into possession of it was inconsistent with the facts. Peterson later admitted to law enforcement that he had purchased the firearm from an individual off the streets, despite knowing that because he is a convicted felon, he could not possess any firearm or ammunition.
Peterson has previous felony convictions for simple burglary in 2016 and aggravated flight from an officer in 2020.
The ATF and Shreveport Police Department investigated the case. Assistant U.S. Attorney Cytheria D. Jernigan prosecuted the case.
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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Colorado Springs Man Charged with Distributing Fentanyl Resulting in DeathRead the Press Release
DENVER – The U.S. Attorney’s Office for the District of Colorado announces that a federal grand jury in Denver indicted Nathaniel Corser, age 21, of Colorado Springs, with a charge of distributing fentanyl, which resulted in death. The grand jury also indicted Corser on charges of dealing fentanyl near a school, possessing fentanyl with the intent to distribute it near a school, possessing morphine with the intent to distribute it near a school, and possessing a firearm in furtherance of a drug trafficking crime. If convicted of the charges in the indictment, Corser faces a minimum of 25 years and a maximum of life in prison.
Corser had his initial appearance in U.S. District Court in Denver on October 12, 2021. He is scheduled to return to U.S. District Court on October 15, 2021, for an Arraignment, Discovery, and Detention Hearing.
The charges in the indictment are allegations. The Defendant is presumed innocent until proven guilty beyond a reasonable doubt.
The Colorado Springs Police Department and the FBI conducted the investigation. Assistant United States Attorney Peter McNeilly is responsible for the prosecution of the case.
Case number: 21-cr-0331
Cheektowaga Contractor Agrees to Settle False Claims Act ViolationsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney Trini E. Ross announced today that Strock Contracting, Inc., of Cheektowaga, NY, has agreed to enter into a consent judgment with the United States for $4,752,000 to resolve claims that it violated the False Claims Act. The United States filed an action in federal court alleging that Strock Contracting profited financially after fraudulently obtaining federal contracts intended to benefit service-disabled veterans.
In order to be eligible for contracts that are reserved for service-disabled-veteran-owned small businesses, firms must be both owned and controlled by a service-disabled veteran. The United States alleged that Strock Contracting, which was not owned or controlled by a veteran, recruited a service-disabled veteran to create a pass-through company, known as Veterans Enterprises Company, Inc. (VECO), which the company and its owner, Lee Strock, actually controlled. In its complaint, the United States alleged that the company carried out this scheme by directing VECO to submit false certifications of eligibility to the government, which allowed Strock Contracting to obtain substantial profits on numerous federal contracts which should have been awarded to eligible companies. Strock Contracting allegedly profited from these contracts through phony loans, sham lease agreements, and other deceitful financial arrangements.
The resolution obtained in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch and the United States Attorney’s Office for the Western District of New York, with assistance from the VA Office of Inspector General (OIG), the Small Business Administration OIG, the Defense Criminal Investigative Service, and the Army Criminal Investigation Division.
The matter was handled by Trial Attorney Glenn Harris of the Civil Division’s Commercial Litigation Branch (Fraud Section) and Assistant U.S. Attorney David Coriell of the Western District of New York.
The lawsuit is captioned United States v. Strock Contracting, Inc., et al., No. 15-CV-887-G (W.D.N.Y).
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Charvez Brooks Sentenced to More Than 10 Years in Federal Prison for Conspiring to Rob a Gas Station OwnerRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge James K. Bredar today sentenced Charvez Deonte Brooks, age 32, of Gwynn Oak, Maryland, to 124 months in federal prison, followed by three years of supervised release, for conspiracy to commit a commercial robbery in connection with the robbery of a gas station owner. Brooks was convicted of that charge on August 20, 2020, after a five-day trial. Brooks has been detained since his arrest.
The sentence was announced by United States Attorney for the District of Maryland Erek L. Barron; Special Agent in Charge Charlie Patterson of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Washington Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to testimony at trial and court documents, Brooks and two others conspired to rob a gas station owner. According to court documents, one of the co-conspirators, Jesse James Elder, was a frequent customer of the gas station, located in the 10000 block of Reisterstown Road in Owings Mills, Maryland, and was friendly with the employees, including the owner. On January 16, 2018, video surveillance showed that the owner was already at the gas station when Elder pulled into the parking lot. Elder went inside the gas station to play the lottery, then left the store and waited in his car in the parking lot. Shortly thereafter, the owner placed approximately $17,000 in gas station proceeds into a bank bag and left the store. As the owner walked out, he stopped next to Elder’s vehicle and began talking to Elder. While the owner and Elder were talking, Brooks and co-conspirator Levon Verian Butts approached from a neighboring parking lot and hid behind other parked cars. When the owner walked away from Elder’s vehicle, Butts and Brooks charged the owner, pushed him to the ground, and grabbed the bank bag from his hand.
Witnesses testified that as Brooks and Butts tried to run back to the adjacent parking lot, a bystander who had seen the incident gave chase and tripped Butts, causing him to run out of his shoes, which Butts left in the parking lot. Brooks also dropped some of the money as he was running away. Brooks and Butts made it back to the adjacent parking lot, got into Brooks’ silver Infiniti, and fled the area. According to trial evidence, the bystander followed the vehicle and took two photographs of the car as it fled from the parking lot. Meanwhile, Elder drove around the owner, who was lying motionless in the parking lot, and left the gas station. The evidence presented at trial showed that while Brooks was attempting to get away, he crashed into another car that was waiting at a red light and continued driving to an area near Liberty Road, where he left the Infiniti.
As a result of being pushed to the ground, the owner of the gas station hit his head on the pavement and was knocked unconscious. He was transported to the hospital, where he was diagnosed with multiple skull fractures, a cerebral hemorrhage, and remained in critical condition for several weeks. He suffered a traumatic brain injury and has not returned to normal function.
Baltimore County Police officers responded to the gas station and recovered the money that had been dropped by Brooks along with Butts’ shoes from the gas station parking lot. They also recovered surveillance video from the gas station, a .22-caliber handgun, and additional money in the parking lot near where the Infiniti had been parked. Officers spoke with several witnesses, including the bystander who had taken photos of Brooks’ vehicle, as well as Elder, who provided a false statement. The photograph taken by the bystander of Brooks’ vehicle showed that it had a fraudulent New York license plate and was missing the insignia from the rear of the car. Subsequent testing of the shoes recovered from the robbery found that DNA from the shoes matched Butts’ DNA.
According to court documents and witness testimony, while at the crime scene, Elder remained in contact with Brooks and Butts, via Butts’ cell phone. Brooks, Butts and Elder met later at Reisterstown Plaza, discussed the robbery, the evidence that was, and divided the proceeds from the robbery.
Several months later, Butts and Elder were charged with the robbery. Elder was arrested on May 10, 2018. Five days later Brooks spoke to Elder over a jail phone, which records all inmate calls. During the recorded call, Brooks used coded language to tell Elder not to tell police that Brooks was involved in the robbery.
Investigators later identified Brooks as the third participant in the robbery and he was subsequently charged federally. During the investigation, law enforcement learned that Brooks drove a silver Infiniti with the same unique markings as the getaway vehicle, and that he had access to fraudulent license plates. For example, when Brooks was stopped by Baltimore County police officers for a traffic violation a few months before the robbery, he was driving a silver Infiniti with a missing insignia on the back of the car and a fraudulent temporary Florida license tag. On the day of the robbery, Brooks and Butts were seen arriving at Elder’s house, where Brooks took off his license plate and attached a fraudulent New York tag.
Levon Verian Butts, age 30, of Baltimore, Maryland pleaded guilty to his role in the robbery and was sentenced to 12 years in federal prison. Elder, age 46, of Owings Mills, previously pleaded guilty to conspiracy to commit a commercial robbery and faces a maximum sentence of 20 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for Elder on December 17, 2021 at 10:30 a.m.
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.
United States Attorney Erek L. Barron commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Barron thanked Assistant U.S. Attorneys Lauren E. Perry and Anatoly Smolkin, who are prosecuting the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/project-safe-neighborhoods-psnexile and https://www.justice.gov/usao-md/community-outreach.
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Carencro Man Sentenced on Firearms ChargesRead the Press Release
LAFAYETTE, La. – Terrance R. Jones, 27, of Carencro, Louisiana, was sentenced today by United States District Judge Robert R. Summerhays to 80 months (6 years, 8 months) in prison, followed by 2 years of supervised release, for possession of a firearm by a prohibited person.
According to information presented to the court, Jones was in the downtown Lafayette area on October 3, 2020. Multiple law enforcement officers were in the area on that same date and were called to a location in that area where a man had a firearm. The suspect turned out to be Jones and after further investigation, law enforcement officers learned that he was a convicted felon and as such, was prohibited from possessing any firearm or ammunition. Jones was arrested and charged with possessing a Taurus semi-automatic pistol and admitted to law enforcement that he knew he was prohibited from possessing any firearms.
Jones has previous felony convictions for attempted possession with intent to distribute marijuana and possession of hydrocodone (2014); and possession with intent to distribute marijuana (2019).
The ATF and Lafayette Police Department conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy prosecuted the case.
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. PSN is part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
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Camden County Man Sentenced to 15 Years in Prison for Conspiring to Distribute Large Amounts of Heroin, Crack Cocaine and CocaineRead the Press Release
CAMDEN, N.J. B A Camden County, New Jersey, man was sentenced today to 180 months in prison for conspiring to distribute heroin and cocaine in the city of Camden, Acting U.S. Attorney Rachael A. Honig announced.
Carlos Perez, 48, of Collingswood, New Jersey, previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to an information charging him with one count of conspiracy to distribute one kilogram or more of a mixture or substance containing heroin, as well as a mixture and substance containing cocaine, crack cocaine and fentanyl.
According to documents filed in this case and statements made in court:
Nineteen defendants were arrested in late 2018 based on the FBI’s investigation of a drug trafficking organization that ran the open air narcotics trade on the 400-500 block of Pine Street in Camden for several months in 2018. The investigation used video surveillance, confidential informants, consensual recordings, controlled drug purchases, and several court-authorized wiretaps to uncover the inner workings of the drug trafficking organization. The organization included street-level sellers who worked various shifts on the “drug set,” selling drugs to customers and collecting proceeds. The sellers were supervised by different layers of managers who, in turn, supplied the drug set with pre-packaged heroin, some of which was mixed with fentanyl, as well as cocaine and crack cocaine. Perez was a high-level supervisor for the drug trafficking organization and was responsible for obtaining powder cocaine from drug suppliers, converting or “cooking” the powder cocaine to manufacture crack cocaine and packaging the crack cocaine that was distributed on the Pine Street drug set. The FBI and other law enforcement officers recovered multiple firearms from different locations connected to the drug organization at the time of the 2018 arrests. Perez agreed, as a member of the conspiracy, that he was jointly responsible for the distribution of over 1 kilogram of heroin, as well as substantial quantities of crack cocaine, cocaine and fentanyl.
Sixteen of the defendants already have entered guilty pleas on drug conspiracy charges before Judge Bumb. Three defendants are awaiting trial. The charges and allegations against those three defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
In addition to the prison term, Judge Bumb sentenced Perez to five years of supervised release.
Acting U.S. Attorney Honig credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Acting Special Agent in Charge Bradley S. Benavides; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; the Camden County Prosecutor’s Office, under the direction of Prosecutor Acting Prosecutor Jill S. Mayer; the Camden County Sherriff’s Department, under the direction of Sheriff Gilbert L. Wilson; the Cherry Hill Police Department, under the direction of Chief William P. Monaghan; and the N.J. State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to today’s sentencing. She also thanked the Drug Enforcement Administration, the U.S. Marshals Service, and the Department of Homeland Security for their assistance.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorneys Sara Aliabadi and Patrick C. Askin of the U. S. Attorney’s Office Criminal Division in Camden.
California Man Pleads Guilty to Making Threats Directed Against A Journalist Relating to the Outcome of the 2020 Presidential ElectionRead the Press Release
Damian Williams, the United States Attorney for the Southern District of New York, announced today that ROBERT LEMKE pled guilty to making threatening interstate communications to a New York City-based family member of a journalist (the “Journalist”), citing the Journalist’s statements about the outcome of the 2020 U.S. presidential election. LEMKE pled guilty today before U.S. District Judge Alvin K. Hellerstein.
U.S. Attorney Damian Williams stated: “Robert Lemke was frustrated with the result of the 2020 Presidential Election. Rather than attempting to effect change through legal discourse or any of the other freedoms of expression that all Americans enjoy, he instead sent threatening messages to the family member of a journalist. Inevitably, elections result in frustrations for some – that is part of the political process – but trying to instill fear in others by threat will not be tolerated by law enforcement.”
According to the allegations in the Complaint, Superseding Indictment, and other documents in the public record, as well as statements made in public court proceedings:
From November 2020 through early January 2021, the defendant sent threatening electronic and audio messages to approximately 50 victims, including journalists and politicians, targeting those individuals as a result of their statements expressing that then-President Trump had lost the 2020 presidential election. On January 6, 2021, the same day that individuals purporting to protest the 2020 presidential election gathered in Washington, D.C. and stormed the Capitol Building, LEMKE sent a series of these threatening text messages to journalists, members of Congress, other politicians, and their families.
As the attack on the Capitol Building was ongoing, LEMKE sent threatening text messages to a relative of the Journalist, stating: “[The Journalist’s] words are putting you and your family at risk. We are nearby, armed and ready. Thousands of us are active/retired law enforcement, military, etc. That’s how we do it.”
At approximately the same time that LEMKE was sending threats directed at the Journalist, LEMKE also sent threats to the brother of a New York City-based U.S. Congressman (the “Congressman”), citing the Congressman’s statements about the result of the 2020 presidential election. LEMKE’s text messages, which included a picture of a home in the same neighborhood as the home of the Congressman’s brother, stated:
Your brother is putting your entire family at risk with his lies and other words. We are armed and nearby your house. You had better have a word with him. We are not far from his either. Already spoke to [the Congressman’s son] and know where his kids are.
. . . your words have consequences. Stop telling lies; Biden did not win, he will not be president. We are not[] white supremacists. Most of us are active/retired law enforcement or military. You are putting your family at risk. We have armed members near your home . . . . . Don’t risk their safety with your words and lies.
LEMKE acquired and used at least three different phone numbers and various electronic accounts to mask his identity when sending threats to his victims. LEMKE was not in fact affiliated with law enforcement or the U.S. military as he claimed in some of his threats. On or about November 7, 2020, LEMKE posted to Facebook: “Folks. Be ready for war. Trump has refused to cede. Evidence shows fraud occurred and the Supreme Court cases will be successful. We blockchained and watermarked ballots in 16 states. Trump will prevail.[] Spread this message. . . . FAITH my fellow Republicans. Do not give up.”
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ROBERT LEMKE, 36, of Bay Point, California, pled guilty to one count of making threatening interstate communications, which carries a maximum sentence of five years in prison. LEMKE is scheduled to be sentenced by Judge Hellerstein on December 14, 2021.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the Federal Bureau of Investigation (“FBI”), the New York City Police Department, and over 50 other federal, state, and local agencies. Mr. Williams also thanked the U.S. Attorney’s Office for the Northern District of California and the FBI’s San Francisco Field Office for their assistance.
The case is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant United States Attorneys Kimberly J. Ravener and Kyle A. Wirshba are in charge of the prosecution.
California Man Known as “icloudripper4you” Pleads Guilty to Hacking into Hundreds of Apple iCloud Accounts and Stealing Nude Photographs and ImagesRead the Press Release
Tampa, Florida – Hao Kuo Chi (40, La Puente, CA) today pleaded guilty to conspiracy and computer fraud. He faces a maximum penalty of 20 years in federal prison. A sentencing date has not yet been set.
According to court documents, for years Chi and others conspired to—and in fact did—gain unauthorized access to the Apple iCloud accounts of hundreds of individuals across the country. Using the online moniker “icloudripper4you,” Chi marketed himself as capable of hacking into iCloud accounts and stealing the content stored therein. Chi created email accounts for the purpose of impersonating Apple customer support representatives, and Chi’s conspirators sent Apple IDs and passwords of unsuspecting victims to these email accounts.
During the conspiracy, Chi hacked into more than 300 iCloud accounts belonging to victims from across the United States. Chi and his conspirators specifically sought out nude photographs and videos of young women, which the conspirators referred to as “wins.” Chi kept hundreds of thousands of stolen images for his personal collection and maintained a terabyte of cloud storage for this purpose. Chi also shared and traded these images with his conspirators, using a foreign-based, end-to-end encrypted email service. Some of those conspirators subsequently released the images into the public sphere.
This case was investigated by the Federal Bureau of Investigation and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Carlton C. Gammons.
Calabasas Doctor Sentenced to 14 Months in Federal Prison for Accepting Bribes as Part of Compounded Medication ConspiracyRead the Press Release
LOS ANGELES – A Calabasas physician was sentenced today to 14 months in federal prison for accepting nearly $800,000 in bribes and kickbacks as part of a conspiracy that unlawfully billed health insurers for compounded medication prescriptions.
Dr. Amir Friedman, 56, was sentenced by United States District Judge John F. Walter. Friedman pleaded guilty in October 2019 to one count of conspiracy to commit honest services mail and wire fraud, and to violate the Travel Act, a federal law that – among other things – forbids the use of the U.S. mail for the purpose of aiding bribery.
Friedman, a licensed anesthesiologist, violated the fiduciary duty he owed to his patients by accepting kickbacks and bribes for writing prescriptions for compounded medications for his patients.
Compounded drugs are tailor-made products doctors may prescribe when the Food and Drug Administration-approved alternative does not meet the health needs of a patient.
From August 2013 to May 2015, Friedman conspired with New Age Pharmaceuticals Inc., a Beverly Hills-based company, and a marketer – listed in court documents as “Marketer A” – to violate federal law. Insurance companies under the California Workers’ Compensation System reimbursed New Age for dispensing prescription drugs and other pharmaceuticals. Marketer A was paid commissions for facilitating the referral of compounded drug prescriptions.
Marketer A provided pre-printed prescription pads for compounded drugs to Friedman and offered Friedman kickbacks and bribes for each prescription he wrote. After Friedman wrote the kickback-tainted prescriptions, New Age dispensed the compounded drugs, billed insurance companies for reimbursement and shipped through the mail the compounded drugs to patients.
In total, Friedman accepted $788,140 in kickbacks and bribes – a sum he received in the form of approximately 28 check payments that represented illicit proceeds from the conspiracy. He admitted in his plea agreement that he was aware that the compounded drugs he prescribed were far more expensive than equivalents.
The FBI investigated this matter.
Assistant United States Attorney Poonam G. Kumar of the Major Frauds Section prosecuted this case.
Cheyenne Man Pleads Guilty to Being an Unlawful User of Methamphetamine in Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that PHILIP JAY SCALES, age 44, of Cheyenne, Wyoming pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm during a plea hearing held on October 12, 2021 in front of Federal District Court Judge Nancy D. Freudenthal.
Scales was arrested on July 29, 2021 in Cheyenne and indicted by a federal grand jury. He faces up to 10 years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
This crime was investigated by the United States Drug Enforcement Administration and the Cheyenne Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan C. Coppom.
Case Number 0:21-cr-00093Cheyenne Man Pleads Guilty to Being an Unlawful User of Methamphetamine in Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that PHILIP JAY SCALES, age 44, of Cheyenne, Wyoming pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm during a plea hearing held on October 12, 2021 in front of Federal District Court Judge Nancy D. Freudenthal.
Scales was arrested on July 29, 2021 in Cheyenne and indicted by a federal grand jury. He faces up to 10 years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
This crime was investigated by the United States Drug Enforcement Administration and the Cheyenne Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan C. Coppom.
Case Number 0:21-cr-00093Cheyenne Man Pleads Guilty to Being an Unlawful User of Methamphetamine in Possession of a FirearmRead the Press Release
Acting United States Attorney Bob Murray announced today that PHILIP JAY SCALES, age 44, of Cheyenne, Wyoming pleaded guilty to being an unlawful user of a controlled substance in possession of a firearm during a plea hearing held on October 12, 2021 in front of Federal District Court Judge Nancy D. Freudenthal.
Scales was arrested on July 29, 2021 in Cheyenne and indicted by a federal grand jury. He faces up to 10 years imprisonment, up to three years of supervised release, a fine of up to $250,000, and a $100 special assessment.
This crime was investigated by the United States Drug Enforcement Administration and the Cheyenne Police Department. The case is being prosecuted by Assistant United States Attorney Jonathan C. Coppom.
Case Number 0:21-cr-00093Broken Arrow Man Sentenced to Three Concurrent Life Sentences for Sexually Abusing Two ChildrenRead the Press Release
A Broken Arrow man was sentenced Friday in federal court for sexually abusing two children under the age of 12.
“Pedophile Jeffrey Jones will serve the remainder of his life in federal prison for sexually abusing two young children. I am thankful for the work of the FBI and Broken Arrow Police Department that ensured this defendant was held accountable for his crimes,” said Acting U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office and our local, state, tribal and federal law enforcement partners will bring the full weight of the law against sexual predators for the harm they inflict on children.”
U.S. District Judge Gregory K. Frizzell sentenced Jeffrey Arch Jones, 31, to serve three concurrent life terms in prison.
In June 2021, a federal jury found Jones guilty of two counts of aggravated sexual abuse of a child in Indian Country and one count of abusive sexual contact of a child in Indian Country.
From Sept. 29, 2015 to Sept 28, 2016, Jones sexually abused a young child. He also sexually abused a second child from Oct. 9, 2014 to Sept. 30, 2016. On Feb. 2, 2017, one of the victims disclosed to a teacher that the defendant had been touching her in a sexual manner. School officials contacted the Broken Arrow Police Department. During the ensuing investigation, it was determined the second child was also sexually abused by Jones.
During the June trial’s closing arguments, Assistant U.S. Attorney Reagan Reininger reminded the jury of the testimony of expert witnesses, law enforcement, and the victims. She assured the jury the children had no incentive to lie and that the medical evidence corroborated the type of sexual abuse reported by the victims. She described how their behavior and disclosures were similar to that seen in other child sexual abuse victims. She explained how some victims disclose abuse on their own when they are ready, but others may be asked about abuse before they are fully ready to disclose what happened to them, as in the case of the second victim. She explained how difficult it had been for the two victims to describe the abuse to others repeatedly since 2017. Finally, Reininger reminded the jury that child sexual abuse is perpetrated in secrecy, behind closed doors, in moments when the abuser is alone with a child. She asked the jury to evaluate the evidence, including the children’s accounts, and to find Jeffrey Jones guilty.
Jones, a Cherokee citizen, was previously convicted of sexually abusing the two victims in Tulsa County District Court but appealed his conviction, arguing the state did not have jurisdiction to prosecute the case because the crime occurred within the Muscogee Nation Reservation and he was a tribal citizen. The case was then prosecuted in federal court.
The FBI and Broken Arrow Police Department conducted the investigation. Assistant U.S. Attorneys Reagan V. Reininger and Leah Paisner prosecuted the case.
Breon Peace Sworn in as United States Attorney for the Eastern District of New YorkRead the Press Release
Breon Peace was sworn in earlier today as United States Attorney for the Eastern District of New York by United States Chief District Judge Margo K. Brodie. He was appointed by President Joseph R. Biden. As U.S. Attorney, Mr. Peace leads an office that is responsible for all federal criminal and civil cases in a district comprised of more than 8 million people in the boroughs of Brooklyn, Queens, and Staten Island, and in Nassau and Suffolk counties on Long Island. Mr. Peace now supervises a staff of approximately 163 Assistant U.S. Attorneys and 116 support personnel. Prior to his appointment, Mr. Peace was a partner in the New York office of Cleary Gottlieb Steen & Hamilton LLP and was a member of the firm’s White-Collar Defense & Investigations and Litigation Groups.
“I am honored to serve as the United States Attorney for the Eastern District of New York. This Office has a long history of excellence, integrity, and outstanding service to the community. I look forward to leading the Office’s incredibly talented and dedicated women and men in addressing present and future challenges in the Eastern District. We will continue to work tirelessly with our law enforcement partners to pursue equal justice under the law, and protect and serve the people of the district. I am eager to get to work,” stated United States Attorney Peace.
Mr. Peace has had a distinguished career, having joined Cleary in 1996. From 1997 to 1998, he served as law clerk to The Honorable Sterling Johnson, Jr., of the United States District Court for the Eastern District of New York. From 2000 to 2002, he served as an Assistant United States Attorney for the Eastern District of New York, where he successfully handled a wide array of federal criminal cases in the district court and U.S. Court of Appeals for the Second Circuit. As an Acting Professor of Clinical Law at New York University School of Law, Mr. Peace trained aspiring prosecutors in the law school’s Prosecution Clinic during the 2002-2003 academic year. He returned to Cleary in 2003 and in 2007 made history by becoming the first African American man to be elected partner at the firm. In addition to handling significant white collar, regulatory enforcement, and complex commercial litigation matters for clients, Mr. Peace held several positions of leadership at the firm, serving most recently as a member its Global Executive Committee.
In 2012, Mr. Peace was appointed by The Honorable Nicholas G. Garaufis of the United States District Court for the Eastern District of New York to serve as a Special Master in United States et al. v. City of New York, a high-profile case brought against the New York City Fire Department alleging discrimination on the basis of race and national origin in hiring black and Hispanic firefighters. While at the law firm, Mr. Peace also maintained an active pro bono practice vindicating the rights of clients in criminal, immigration, human trafficking, and civil rights cases. Notably, he led the team of lawyers that in 2016 won dismissal of the indictment of a man who had been wrongly convicted of murder, rape, and robbery in 1981 and spent almost 30 years in prison.
Mr. Peace received his J.D. in 1996 from New York University School of Law where he was a member of the Law Review and later served as a member of the Board of Trustees, and his B.A. from the University of California, Berkeley, in 1993.
Box Elder Man Sentenced to over 20 years for Drug Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm During a Drug Trafficking Crime was sentenced on October 4, 2021, by U.S. District Judge Karen E. Schreier.
Charles Clark, age 42, was sentenced to 15 years and 10 months in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for count one; and five years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for count two. Sentences are to run concurrently.
Clark was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm During a Drug Trafficking Crime by a federal grand jury on July 23, 2020. He pleaded guilty to both counts on June 25, 2021. During his involvement in the conspiracy, multiple pounds of methamphetamine were brought to South Dakota from Mexico through arrangements made by the Defendant. Upon arrival in South Dakota, it was further dispersed to others for use and distribution. The Defendant also possessed a firearm while in the presence of others as a display of intimidation, in furtherance of the drug distribution conspiracy.
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.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Clark was immediately turned over to the custody of the U.S. Marshals Service.
Box Elder Man Sentenced to over 20 years for Drug Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm During a Drug Trafficking Crime was sentenced on October 4, 2021, by U.S. District Judge Karen E. Schreier.
Charles Clark, age 42, was sentenced to 15 years and 10 months in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for count one; and five years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for count two. Sentences are to run concurrently.
Clark was indicted for Conspiracy to Distribute a Controlled Substance and Possession of a Firearm During a Drug Trafficking Crime by a federal grand jury on July 23, 2020. He pleaded guilty to both counts on June 25, 2021. During his involvement in the conspiracy, multiple pounds of methamphetamine were brought to South Dakota from Mexico through arrangements made by the Defendant. Upon arrival in South Dakota, it was further dispersed to others for use and distribution. The Defendant also possessed a firearm while in the presence of others as a display of intimidation, in furtherance of the drug distribution conspiracy.
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.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Clark was immediately turned over to the custody of the U.S. Marshals Service.
Belleville Nurse Pleads Guilty to Stealing Drugs from Elderly PatientsRead the Press Release
EAST ST. LOUIS, Ill. – A Belleville nurse, Angela Mohler, 40, pled guilty to five counts of obtaining drugs by fraud on Wednesday, October 13, 2021.
According to court documents, Mohler worked as a nurse for senior care and nursing facilities from
2018 to 2021, including facilities in Edwardsville, Belleville, Lebanon, and Caseyville. She used her position of trust to steal pain medications like oxycodone, hydrocodone, and morphine from vulnerable patients. After taking the drugs for her personal use, Mohler would often destroy or modify the patient’s records to cover up the thefts. This meant the patient’s records would show
Mohler had given him or her pain medication, when in fact they had often suffered without it.Mohler is one of several medical professionals recently charged with stealing medication from patients. In April, a nurse, Krista Brenner, was indicted on similar charges for stealing pain medication while working at senior care facilities in the Metro East area in 2019.
In September, another nurse, Joseph Mattingly, was sentenced on charges of stealing pain medication from residents while working at a center for adults with intellectual disabilities in
2018.The investigation was conducted by the United States Department of Health and Human Services, Office of Inspector General - Office of Investigations and the Illinois State Police Medicaid Fraud
Control Bureau.If you suspect or know of an individual or company that is not complying with healthcare laws or public aid programs, you may report this activity to the local office of the U.S. Department of
Health and Human Services, Office of Inspector General, or you may call 1.800.447.8477.
Battle Creek Man Sentenced to 57 Months in Prison for Fentanyl ChargeRead the Press Release
Clay Shepherd Possessed 1.37 kilograms of the synthetic opioid
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Byerly Birge announced today that Clay Shepherd, 57, of Battle Creek Michigan, was sentenced to 57 months in prison after pleading guilty to possession of fentanyl, a Schedule II controlled substance, with the intent to distribute it. Following his release from federal prison, Shepherd will serve five years on supervised release. United States District Judge Paul Maloney imposed the sentence.
Fentanyl is a synthetic opioid that is 80-100 times stronger than morphine, the substance to which heroin metabolizes. Drug traffickers add fentanyl to heroin to increase its potency or falsely claim that the fentanyl they are selling is highly potent heroin.
On April 18, 2018, Battle Creek Police officers executed a search warrant at Shepherd’s residence and discovered a package containing 399 grams of fentanyl and tramadol and a package containing 975 grams of fentanyl concealed behind insulation in the attic. The Battle Creek Police Department requested the assistance of federal authorities to investigate the matter further. Investigators from Homeland Security Investigations (“HSI”) developed evidence that Shepherd possessed the fentanyl with the intent to distribute it by investigating his known associates and customers, who confirmed that Shepherd was selling narcotics and possessed the fentanyl seized on April 18.
“Clay Shepherd profited from distributing fentanyl, an opioid nearly 100 times more potent than morphine, without any regard to the destruction it caused to families or communities here in Michigan,” Homeland Security Investigations (HSI) Special Agent-in-Charge Vance Callender said. “This complex investigation could not have been brought to conclusion without the outstanding partnership between HSI and Battle Creek PD. Thank you to the hardworking and dedicated officers in Battle Creek.”
U.S. Attorney Birge said, “My office will continue to aggressively pursue those who illegally peddle fentanyl to our community. The illegal trafficking of this drug is responsible for a multitude of overdose deaths in our state, and we are committed to deterring the trafficking that leads to these tragedies.”
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Bakersfield Man Pleads Guilty to Burglarizing 8 Post OfficesRead the Press Release
FRESNO, Calif. — Steven Martin, 39, of Bakersfield, pleaded guilty today to burglarizing a post office, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in December 2018, Martin burglarized eight different post offices in Kern, Kings, and Tulare counties. He stole cash registers, packages containing clothes, and other mail, and caused thousands of dollars in damages.
This case is the product of an investigation by the U.S. Postal Inspection Service. Assistant U.S. Attorney Joseph Barton is prosecuting the case.
Martin is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Jan. 14, 2022. Martin faces a maximum statutory penalty of five years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Aquilino Torres Sentenced to over 24 Years in Prison for Brutal Kidnapping of Mother and ChildRead the Press Release
Damian Williams, United States Attorney for the Southern District of New York, announced today that AQUILINO TORRES was sentenced to 292 months in prison for his kidnapping and stalking of an adult woman (“Victim-1”) and the kidnapping of her seven-year-old son (“Minor Victim-1”) in or around October 2020. TORRES was convicted following a one-week jury trial in July 2021 before U.S. District Judge Denise L. Cote, who imposed today’s sentence.
U.S. Attorney Damian Williams said: “Aquilino Torres carried out a brutal kidnapping of a 7-year-old child and his mother, and threatened to kill the child. He held his victims captive and physically abused both mother and child. Thanks to the FBI and NYPD, Torres was apprehended, prosecuted, and convicted of these horrific crimes, and has now been sentenced to a lengthy prison term.”
According to court documents and the evidence presented at the trial of TORRES:
On or about October 5, 2020, TORRES texted and called Victim-1 hundreds of times, including a text threatening to “kick [Minor Victim-1’s] teeth out.” Later that night, TORRES took Victim-1 and Minor Victim-1 to a motel in the Bronx, where he hit Minor Victim-1 in the face and assaulted Victim-1, breaking both sides of her jaw. While TORRES assaulted Victim-1, he told her that he would hang Victim-1 and that Minor Victim-1 would be found dead in the river. TORRES then had sex with Victim-1 against her will. For the next five days, TORRES held Victim-1 and Minor Victim-1 against their will at an apartment in Washington Heights, without medical treatment for Victim-1’s broken jaw. On or about October 10, 2020, Victim-1 and Minor Victim-1 escaped from the apartment and were admitted to a hospital shortly thereafter. In response to their escape, TORRES once again sent Victim-1 hundreds of threatening text messages and called Victim-1 hundreds of times. For example, TORRES texted Victim-1, telling her that he had put GPS on her phone and that, if he made the decision to go looking for her, “there won’t be turning back.” TORRES then followed through on those threats and attempted to track down Victim-1 and also posted nude photographs of Victim-1 on the internet.
At the time of the events described above, TORRES had absconded from parole supervision, having been placed on such supervision following a 2014 New York State conviction for second degree assault against the mother of TORRES’s children, who was then pregnant.
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TORRES, 27, was found guilty after trial of (i) one count of kidnapping, in violation of 18 U.S.C. §§ 1201(a)(1) and (b); (ii) one count of kidnapping of a minor, in violation of 18 U.S.C. §§ 1201(a)(1), (b), and (g); and (iii) one count of stalking, in violation of 18 U.S.C. §§ 2261A(2)(A) and (B), 2261(b)(3), and 2265A.
Mr. Williams praised the outstanding investigative work of the FBI-NYPD Violent Crimes Task Force.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys David Robles, Sarah Kushner, and Andrew Dember are in charge of the prosecution.
Albany Man Charged with Drug Trafficking OffenseRead the Press Release
ALBANY, NEW YORK – Wakeem Ricks, age 30, of Albany, was ordered detained today pending trial on a charge that he distributed cocaine base.
The announcement was made by United States Attorney Carla B. Freedman and Ray Donovan, Special Agent in Charge, U.S. Drug Enforcement Administration (DEA), New York Division.
The complaint alleges Ricks distributed cocaine base to another individual on September 23, 2021. The charge in the complaint is merely an accusation. The defendant is presumed innocent unless and until proven guilty.
The charge carries a maximum sentence of 20 years in prison, a fine of up to $1 million, and a term of post-imprisonment supervised release of at least 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the DEA, Albany Police Department, and Albany County Sheriff’s Department, and is being prosecuted by Assistant U.S. Attorney Dustin Segovia.
Acting U.S. Attorney Gonzalez Announces More Than $2.2 Million in Grants to Assist Domestic Violence Victims in IdahoRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. joins law enforcement partners, victim services professionals, advocates, and communities across the country in observing October as National Domestic Violence Awareness Month and announces that Idaho has received $2,255,613 in Office of Violence Against Women (OVW) grants. These OVW grants will help address domestic violence, dating violence, sexual assault, and stalking victims throughout the state.
Nationwide, OVW announced more than $476 million in grants. The funding supports projects that meaningfully address the needs of underserved and marginalized survivors, improve access to justice, enhance survivor safety, hold accountable those who have caused harm, and provide training and technical assistance to an array of professionals and systems working to address sexual assault, domestic violence, dating violence and stalking in every state and territory, as well as dozens of tribal communities.
Four OVW awards were granted to four Idaho recipients, including the Idaho Coalition Against Sexual and Domestic Violence, the Bingham Crisis Center, the YWCA of Lewiston and Clarkston, and the Coeur d’Alene Tribe. The awards will not only support local domestic violence and sexual assault victims with services, they will also provide funding to bolster the critical work of state and territory domestic violence and sexual assault coalitions.
The Acting U.S. Attorney for the District of Idaho encourages Idaho residents to be aware of the serious problem that is physical violence, sexual violence, stalking, and other forms of emotional abuse by a current or former intimate partner. “These forms of abuse affect millions of Americans and Idaho is not spared of this trauma,” Acting U.S. Attorney Gonzalez said. “It is estimated that nearly 20 people, on average, in the U.S. are abused by an intimate partner every minute, or 10 million instances of domestic violence every year. Domestic violence is connected to more than half of homicides with female victims, according to the Centers for Disease Control and Prevention. Victims need an escape, and these funds provide that life-line,” Gonzalez concluded.
“Domestic Violence Awareness Month is a sobering reminder of the harm domestic violence inflicts across our country, at a time when the COVID-19 pandemic means that for many survivors, abuse may be compounded by being isolated with an abuser, loss of income and stress over the virus itself,” said Deputy Attorney General Lisa O. Monaco. “These OVW grants will provide local organizations with resources to support survivors as they heal, promote victim access to justice, and further local, state and tribal training efforts to best prepare officials to respond to these dangerous calls.”
The OVW grants awarded in Idaho include the State and Territory Domestic Violence and Sexual Assault Coalitions Grant Program; the Transitional Housing Assistance Grants for Victims of Domestic Violence, Dating Violence, Sexual Assault, and Stalking Program; the Tribal Sexual Assault Services Program; and the Training and Technical Assistance Program.
The State Domestic Violence and Sexual Assault Coalitions grant will allow the Idaho Coalition Against Sexual and Domestic Violence to facilitate coordinating victim service activities and collaborating with federal, state and local entities engaged in addressing violence against women, provide training to Idaho’s tribal and community domestic and sexual violence organizations, public awareness activities, and public policy. In particular, the Idaho Coalition is focusing on increasing awareness and coordination on Missing and Murdered Indigenous People.
Also, the Training and Technical Assistance grant designated the Idaho Coalition as the national technical assistance provider on the prevention and response to teen dating violence and sexual assault in rural communities, focusing on increasing access to victim services for youth from historically marginalized communities who experience higher rates of dating violence and a lack meaningful access to intervention services.
Finally, the Transitional Housing Assistance grant will provide needed transitional housing funds to rural survivors of domestic and sexual assault in collaboration with domestic and sexual violence organizations and culturally specific service providers.
“We are honored to receive these grant awards from the Office on Violence Against Women,” said Kelly Miller, executive director of the Idaho Coalition. “We are committed to increasing access to services for survivors from communities that have been historically marginalized and are invested in creating the societal conditions so violence is no longer a common occurrence and everyone can thrive.”
Additional Idaho OVW grant recipients, the Bingham Crisis Center, the YWCA of Lewiston and Clarkston, and the Coeur d’Alene Tribe, were similarly pleased to receive this federal funding, which will be instrumental in furthering their missions to support victims of crime.
Through their domestic abuse and sexual assault programs, the YWCA of Lewiston and Clarkston is dedicated to providing safety and support through advocacy and education while working towards social change and to provide a safe and understanding environment that fosters hope, healing and empowerment. The mission of the Bingham Crisis Center is to work within the community to help eliminate domestic and sexual violence, promote healthy non-violent relationships by providing emergency services, shelter, individual and group treatment, education, and support services to survivors and their families. The Coeur d’Alene Tribe’s grant funding from OVW’s Tribal Sexual Assault Services Program will support the establishment, maintenance, and expansion of programs and projects within Indian country to assist those victimized by sexual assault. Acting U.S. Attorney Gonzalez commended the YWCA, the Center, and the Coeur d’Alene Tribe for their commitment to victim services.
To learn more about OVW, please visit www.justice.gov/ovw.
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Activity in the United States Attorney's OfficeRead the Press Release
Federal District Court Alan B. Johnson sentenced LUIS SALGUERO-NOLASCO, 33, of Brooklyn Center, Minnesota on October 15, 2021 for illegal re-entry of previously deported alien into the Unites States. He received 12 months and one day of imprisonment and ordered to pay a $100.00 special assessment. Salguero-Nolasco was arrested by Campbell County Sheriff’s Office on April 26, 2021, for no driver’s license and possession of a controlled substance. On April 27, 2021, he told a Homeland Security Investigations agent that he was an illegal alien and a former member of the violent street gang MS-13. On May 15, 2021, the agent filed a Complaint in federal court against Salguero-Nolasco for illegal re-entry of previously deported alien into the United States. The grand jury later returned an indictment re-alleging that charge. The United States Homeland Security Investigations investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced VICTORIA RENEE WILSON, 39, of Gillette, Wyoming on October 12, 2021 for possession of child pornography. She received 37 months of imprisonment to be followed by five years of supervised release. Wilson was ordered to pay a $100.00 special assessment. Wyoming Division of Criminal Investigation and Homeland Security Investigations investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced NATOSHA MARTIN, 37, of Cody, Wyoming on October 12, 2021 for conspiracy to distribute methamphetamine. She received 37 months of imprisonment to be followed by three years of supervised release. Martin was ordered to pay a $100.00 special assessment and a $300.00 community restitution. ThePostal Inspector with the United States Postal Service and the Wyoming Division of Criminal Investigation investigated this case.
Federal District Court Judge Nancy D. Freudenthal sentenced CHRISTOPHER RYAN GROSS, 34, of Cheyenne, Wyoming on September 30, 2021 for felon in possession of a firearm. He received 37 months of imprisonment to be followed by 37 months of supervised release. Gross was ordered to pay a $100.00 special assessment. The Laramie County Sheriff’s Office investigated this case.
14 October 2021
Waterbury Man Pleads Guilty to Violating Federal Sex Offender Registration and Notification ActRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that CHRISTOPHER POSKUS, 47, of Waterbury, pleaded guilty today to two counts of failing to register as a sex offender.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert M. Spector occurred via videoconference.
The Sex Offender Registration and Notification Act (“SORNA”), which was passed by Congress in 2006 as part of the Adam Walsh Act, provides a comprehensive set of minimum standards for sex offender registration and notification in the United States and seeks to strengthen the nationwide network of sex offender registration and notification programs. In part, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school.
According to court documents and statements made in court, in 2010, Poskus was convicted in state court of possession of child pornography and was sentenced to 14 years of incarceration, suspended after seven years, and 10 years of probation. He also was required to register as a sex offender upon his release from prison. While on probation, Poskus violated several mandatory and special conditions, had his probation revoked, returned to prison, and eventually was placed under house arrest with GPS monitoring.
In July 2019, Poskus removed his GPS monitoring device and fled to California. On August 29, 2019, the U.S. Marshals Service located and arrested Poskus in San Francisco, where he was residing in a homeless shelter. Poskus failed to update his Connecticut sex offender registration to reflect an interstate change of residence, and he failed to register as a sex offender in California.
Poskus was detained from the date of his arrest until December 21, 2020, when he began serving a seven-year term of probation. On January 7, 2021, state probation officers were unable to contact Poskus, and they subsequently discovered that Poskus had left Connecticut by train shortly after his release from prison. He was again located in San Francisco, and has been detained in federal custody on March 18, 2021. Poskus again had failed to update his Connecticut sex offender registration to reflect an interstate change of residence, and he failed to register as a sex offender in California.
Poskus is scheduled to be sentenced by U.S. District Judge Janet Bond Arterton on January 4, 2022, at which time he faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the United States Marshal Service. This case is being prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Vermont Man Pleads Guilty to Hiring A Person to Kidnap and Kill an Individual in a Foreign Country and Child Pornography ChargesRead the Press Release
A Vermont man pleaded guilty today to hiring a woman in Venezuela to kidnap an adult male and make a video of the man being beaten, tortured, and suffocated to death, and to conspiracy to produce child pornography and possession of child pornography.
According to court documents, Sean Fiore, 37, was arrested in May 2019, as part of an operation conducted by Vermont’s Internet Crimes Against Children Task Force (VT-ICAC) and Homeland Security Investigations (HSI). VT-ICAC and HSI executed search warrants in one week on 15 residences based on cyber tips received by the National Center for Missing and Exploited Children and leads developed through undercover investigation. Fiore’s digital media, seized and searched by law enforcement, revealed that he paid a woman in Venezuela $4,000 to kidnap, torture, and murder a “slave” in Venezuela. According to the indictment, Fiore provided specific instructions about what he wanted, which included beating, burning with a cigarette, urinating and defecating on, and suffocating the so-called slave to death. Fiore requested a video of the torture and murder, which the woman sent to him over the internet.
According to the plea agreement, Fiore’s digital media also revealed that he paid the same woman $600 to create a video of her inflicting sexually motivated sadistic abuse on a child. The woman also created that video and sent it to Fiore online. In addition, Fiore possessed other images and videos depicting minors engaging in sexually explicit conduct, including sexual intercourse and sadistic abuse.
Fiore pleaded guilty to murder-for-hire, conspiracy to kidnap or murder a person in a foreign country, conspiracy to produce child pornography, and possession of child pornography. He is scheduled to be sentenced on March 1, 2022, and faces a mandatory minimum penalty of 15 years in prison, and up to life. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors
The woman who sent Fiore the videos, co-defendant Moraima Escarlet Vasquez Flores, is charged with conspiracy to murder and kidnap a person in a foreign country, conspiracy to produce child pornography, production of child pornography, and aiding and abetting the receipt of child pornography. Vasquez Flores was arrested in Colombia pursuant to an Interpol Red Notice on Sept. 18, 2020. The United States is seeking her extradition from Colombia to the United States to face these charges. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Assistant U.S. Attorney Barbara Masterson of the District of Vermont, Trial Attorney Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section, and Trial Attorney Eduardo Palomo of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case with the assistance of the Justice Department’s Office of International Affairs.
U.S. Attorney’s Office recognized for work on Clarksburg VA Hospital Serial Murder caseRead the Press Release
AUSA Jarod J. Douglas and AUSA Brandon S. Flower receive a CIGIE award for their work on the serial killer case at the Clarksburg VA hospital.CLARKSBURG, WEST VIRGINIA – United States Attorney William J. Ihlenfeld, II is proud to announce that Assistant U.S. Attorneys Jarod J. Douglas and Brandon S. Flower are being recognized today for their tireless and superior work on the case of serial killer Reta Mays.
The Annual Council of the Inspectors General on Integrity and Efficiency Awards ceremony took place virtually this week. The award for excellence in investigation will be given to the Veterans Affairs Office of Inspector General investigative team for the murders committed by a nursing assistant at the Louis A. Johnson VA Medical Center in Clarksburg, West Virginia. This award is given in recognition of the personal sacrifice, exceptional investigative work, and unwavering dedication demonstrated in successfully investigating this case.
Douglas and Flowers will be recognized, along with VA OIG Resident Agent in Charge Keith Vereb, VA OIG Special Agent in Charge Colin Davis, VA OIG Special Agent in Charge Kim Lampkins, FBI Special Agent Ashley Archibald, and WV State Trooper Corporal John Smith.
In July 2020, Reta Mays, a former nursing assistant at the VA Medical Center in Clarksburg, admitted to killing seven veterans, and attempting to kill an eighth, with insulin injections. Mays was sentenced in May 2021 to seven consecutive life sentences plus 20 years.
For more information on the case, go to https://www.justice.gov/usao-ndwv/pr/former-va-hospital-nursing-assistant-sentenced-seven-consecutive-life-sentences.
The Council of the Inspectors General on Integrity and Efficiency (CIGIE) is an independent entity established within the executive branch to address integrity, economy and effectiveness issues that transcend individual Government agencies and aid in the establishment of a professional, well-trained and highly skilled workforce in the Offices of Inspectors General.
U.S. Attorney’s Office Joins Broad Effort to Observe National Disability Employment Awareness MonthRead the Press Release
BOISE – The U.S. Attorney’s Office for the District of Idaho today announced its participation in National Disability Employment Awareness Month, an annual awareness campaign that takes place each October. The purpose of National Disability Employment Awareness Month is to educate about disability employment issues and celebrate the many and varied contributions of America's workers with disabilities. This year's theme is "America’s Recovery: Powered by Inclusion."
The history of National Disability Employment Awareness Month traces back to 1945 when Congress enacted a law declaring the first week in October each year "National Employ the Physically Handicapped Week." In 1962, the word "physically" was removed to acknowledge the employment needs and contributions of individuals with all types of disabilities. In 1988, Congress expanded the week to a month and changed the name to National Disability Employment Awareness Month.
“Our national recovery from the pandemic cannot be completed without the inclusion of all Americans, in particular people with disabilities,” said U.S. Secretary of Labor Marty Walsh. “Their contributions have historically been vital to our nation’s success, and are more important today than ever. We must build an economy that fully includes the talent and drive of those with disabilities.”
"The U.S. Attorney’s Office is proud to be a part of this year's National Disability Employment Awareness Month," said Gonzalez. "We want to spread the important message that we value all perspectives, including those of individuals with disabilities."
Employers and employees in all industries can learn more about how to participate in National Disability Employment Awareness Month and ways they can promote its messages — during October and throughout the year — by visiting www.dol.gov/NDEAM.
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U.S. Attorney Announces Four Additional Enforcement Actions as Part of Data-Driven National Effort to Combat P-Stim Fraud Scheme and Recover MillionsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced three settlements and the filing of a complaint under the False Claims Act in the Eastern District of Pennsylvania. These are the latest actions in the national investigation into the scheme of improper billing involving P-Stim electro-acupuncture devices. P-Stim is also branded as, among other things, ANSiStim, Stivax, NeuroStim, and NSS-2 Bridge. Federal healthcare programs do not reimburse for P-Stim devices, whether they are characterized as an electro-acupuncture device or as an implantable neuro-stimulator. This District has helped lead the national Department of Justice effort to apply analytics to healthcare claims data to identify providers who have fraudulently billed federal healthcare programs for P-Stim services. As detailed below, this District and others have pursued and settled various False Claims Act cases against P-Stim providers, recovering millions.
The four enforcement actions announced today involve certain parties who sold P-Stim devices and/or promoted them as billable to Medicare and other federal healthcare programs, which then caused providers to submit fraudulent claims. The United States alleges that these promoters profited by conspiring together to make false representations to providers that P-Stim was reimbursable under billing codes that paid thousands of dollars per procedure. Those codes were meant for legitimate, surgically implanted neuro-stimulators to manage chronic pain. However, P-Stim devices can be applied in a few minutes in an office setting without anesthesia by someone with minimal training. The promoters allegedly had knowledge that the P-Stim devices were not reimbursable by federal healthcare programs but pushed the non-surgical devices anyway.
The three settlements announced today are all pursuant to DOJ’s inability to pay policy:
- Mark Kaiser of Bradenton, Florida, and his company, Doc Solutions, LLC, have paid $1.15 million; and
- James Carpenter of Rockledge, Florida, and his company, Solace Advancement Institute, have paid $150,000; and
- Aaron Oxenrider of Carmel, Indiana, and his company Baron, Inc., doing business as Access 2 Integration (known commonly as A2I) have paid $54,150.
The parties involved in these settlements also agreed to exclusions from federal healthcare programs, with 20-year exclusions for the Kaiser and Carpenter parties and a 7-year exclusion for the Oxenrider parties.
In a related case, today the United States filed a complaint in the Eastern District of Pennsylvania against Timothy Warren of Wichita, Kansas, and his company, Titan Medical Compliance, LLC, alleging violations of the False Claims Act. Warren is a chiropractor who promoted himself as a medical reimbursement consultant. Various marketers and distributors of P-Stim devices paid Warren a monthly fee, including Kaiser, to provide coding recommendations to customers. Certain providers also paid Warren directly for his coding guidance. Beginning in 2014, Warren promoted P-Stim devices as reimbursable by Medicare and other federal healthcare programs and provided instructions on what codes to bill. But, as detailed in the Complaint, the United States alleges that Warren had knowledge that he was providing incorrect advice: Warren knew that P-Stim was not reimbursable by federal healthcare programs because it was acupuncture, and not a surgically implanted neuro-stimulator. The United States alleges that Warren caused providers to submit to the federal Medicare and TRICARE programs thousands of fraudulent claims for P-Stim devices worth at least $20 million dollars.
“Our office has led the national charge to hold alleged fraudsters accountable for this P-Stim scheme,” said Acting U.S. Attorney Williams. Acting U.S. Attorney Williams continued: “Those who cause false claims by marketing alleged fraud schemes are also responsible for the tainted claims paid by federal health insurers. Working with our partners and using innovative investigative tools like data analytics, we will find those who peddle and profit from alleged false healthcare schemes like P-Stim—and, as the complaint filed today shows, we will fight you in court if needed.”
This ongoing national effort to identify and combat P-Stim fraud is a collaboration between this District, the Centers for Medicare & Medicaid Services’ (“CMS”) Center for Program Integrity, the Department of Health and Human Services Office of Inspector General (“HHS-OIG”), other federal healthcare programs, state partners, and sister U.S. Attorney’s Offices around the country.
Including the three settlements announced today, the national P-Stim initiative has so far produced over 15 False Claims Act settlements across the country worth approximately $15 million—of which, 8 settlements worth over $3 million have come from this District. (Previous press releases are linked below.) Additionally, outside of DOJ litigation, there are administrative enforcement actions by other federal agencies as well. In particular, CMS, through its Unified Program Integrity Contractors, is auditing and recovering improperly paid P-Stim claims. HHS-OIG is also pursuing civil money penalties and exclusion remedies.
“CMS is dedicated to removing fraudulent actors and protecting the people who rely on our programs,” said CMS Administrator Chiquita Brooks-LaSure. “We thank our partners at the Department of Justice and Department of Health and Human Services Office of Inspector General for collaborating with us to identify, investigate, and eliminate waste, fraud, and abuse in our federal health care programs.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General, Region III. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
All civil claims, including the settled claims, are allegations only. There has been no determination of civil liability. The cases in this District have been investigated by the U.S. Department of Health and Human Services Office of the Inspector General. They have been handled by Assistant U.S. Attorneys Deborah W. Frey and Matthew E. K. Howatt, as well as former Assistant U.S. Attorney John T. Crutchlow, Civil Chief Gregory B. David, Auditor Dawn Wiggins, and Investigator Frank O’Connor.
Prior DOJ press releases related to the P-Stim Initiative:
- Eastern District of Pennsylvania
- https://www.justice.gov/usao-edpa/pr/two-pa-chiropractic-practices-pay-over-800000-resolve-alleged-false-claims-act
- https://www.justice.gov/usao-edpa/pr/neurosurgeon-medical-practice-director-pay-over-1-million-resolve-false-claims-act
- https://www.justice.gov/usao-edpa/pr/chiropractor-and-related-practice-pay-nearly-100000-resolve-false-claims-act-liability
- https://www.justice.gov/usao-edpa/pr/doctor-and-physician-practice-pay-178000-resolve-false-claims-act-liability-arising
- Southern District of Texas
- https://www.justice.gov/usao-sdtx/pr/katy-anesthesiologist-pays-settle-allegations-arising-electro-acupuncture-device
- https://www.justice.gov/usao-sdtx/pr/katy-anesthesiologist-pays-settle-allegations-arising-electro-acupuncture-device
- Eastern District of Texas
- https://www.justice.gov/usao-edtx/pr/texas-company-agrees-reimburse-medicare-improper-billing-related-neurostimulators
- Western District of Texas
- https://www.justice.gov/usao-wdtx/pr/healthcare-practitioners-pay-over-1-million-resolve-false-claims-act-liability-arising
- Middle District of Tennessee
- https://www.justice.gov/usao-mdtn/pr/united-states-and-tennessee-resolve-claims-three-providers-false-claims-act-liability
- https://www.justice.gov/usao-mdtn/pr/comprehensive-pain-specialists-and-former-owners-agree-pay-41-million-settle-fraud
- Southern District of Georgia
- https://www.justice.gov/usao-sdga/pr/government-obtains-more-5-million-judgments-resolve-healthcare-fraud-allegations
Two Men Indicted in Connection with a Gun Trafficking Conspiracy Operating in Monmouth and Ocean CountiesRead the Press Release
TRENTON, N.J. – A New Jersey man and a Florida man were charged today with conspiring to illegally sell firearms, including multiple handguns and a semi-automatic rifle, in and around Monmouth and Ocean counties, Acting U.S. Attorney Rachael A. Honig announced.
Manuel Espinosa-Ozoria, 31, aka “Chino,” of Bartow, Florida, and Enrique Quijada, 24, aka “El Enano 13,” aka “Kike,” of Freehold, New Jersey, are each charged by indictment with one count of conspiracy to engage in firearms trafficking. Espinosa-Ozoria additional charged with two counts of possession of a firearm by a convicted felon, and Quijada is additionally charged with two counts of possession of a firearm by an alien unlawfully present in the United States.
According to the indictment:
From May 2020 through September 2020, Espinosa-Ozoria, Quijada, and others were members of a gun trafficking conspiracy operating in Monmouth and Ocean counties, in which they unlawfully obtained, possessed, and sold numerous firearms for profit.
The count of conspiracy to engage in firearms trafficking carries a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of a firearm by a convicted felon and possession of a firearm by an alien unlawfully present in the United States each carry a maximum penalty of 10 years in prison and a $250,000 fine.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to the charges. She also thanked the FBI Tampa Division, the ATF Newark and Tampa Field Divisions, and the Freehold Borough, New Jersey, Police Department for their assistance.
In July 2021 the U.S. Department of Justice launched five cross-jurisdictional strike forces to help reduce gun violence by disrupting illegal firearms trafficking in key regions across the country. Leveraging existing resources, the regional strike forces will better ensure sustained and focused coordination across jurisdictions and help stem the supply of illegally trafficked firearms from source cities, through other communities, and into five key market regions: New York, Chicago, Los Angeles, the San Francisco Bay Area/Sacramento Region and Washington, D.C. According to gun trace data, a significant number of firearms recovered in the New York/northern New Jersey area originate from outside the area. The new strike force will help ensure sustained and focused coordination between law enforcement and prosecutors in the New York/northern New Jersey area with their counterparts in those other locations.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the U.S. Attorney’s Office’s Criminal Division in Trenton.
The charges and allegations contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Top Prosecutors Seek Leads on Hurricane Ida Fraud CasesRead the Press Release
Acting United States Attorney Ellison C. Travis and Louisiana Attorney General Jeff Landry are urging suspected Hurricane Ida fraud victims to file complaints with the National Center for Disaster Fraud (NCDF) via phone at (866) 720-5721 or online at www.justice.gov/DisasterComplaintForm. Since the storm, numerous complaints have been filed regarding contractor, FEMA, and Small Business Administration (SBA) fraud.
The NCDF is a nationwide organization of law enforcement agents that further detects, investigates, and prosecutes those responsible for disaster related fraud. The NCDF Hotline receives complaints that are reviewed by law enforcement and referred to Federal, State, and local agencies for investigation.
Acting U.S. Attorney Travis stated, “My office has no tolerance for criminals who target disaster victims. Working with Attorney General Landry and other federal, state, and local law enforcement agencies, we can protect victims of Ida from criminals who, out of wanton greed, exploit this tragedy for their own gain. Potential fraudsters must know that, under Federal law, there is a 30-year maximum sentence in Federal prison for those who commit fraud related to disasters. My office will continue to act aggressively to bring to justice those who would further harm victims of Hurricane Ida and other disasters. After a storm, fraudulent contractors will target those affected by offering to perform repairs quickly, while at the same time demanding payment before any work is completed. You can avoid becoming a victim by never paying a contractor for work that has not been completed, hiring well-known local contractors with a reputation for performing good work, asking your insurance claim adjuster to review a contract before you sign, ask for proof of liability insurance and state licensure, and never paying with cash since that leaves no trail if an investigation becomes necessary. Payment should only be made with a check or credit/debit card.”
“Our office and the NCDF share a common aim to aggressively investigate, apprehend, and prosecute those who exploit calamity for personal reward,” said Attorney General Landry. “We stand united with our law enforcement partners to ensure victims of Hurricane Ida receive the help they need and do not fall prey to another tragedy.”
If you were visited by a FEMA inspector or received a letter from FEMA or the SBA stating that you have filed a claim for disaster assistance when you have not, you may be a victim of Federal disaster-assistance fraud. If this applies to you, it is important for you to contact FEMA at 800-621-3362, or the SBA at 800-827-5722, to let them know the application is fraudulent.
Three Men Arrested and Face Charges Related to the Oct. 9 death of a Tulsa County ManRead the Press Release
Three men face federal charges related to the alleged homicide of a Tulsa County man whose body was discovered in his front yard Oct. 9, 2021, announced Acting U.S. Attorney Clint Johnson.
Stephen John Rose, 56, and Vernon Leon Weaver, 49, were charged by criminal complaint Thursday with murder in the first degree in Indian Country. Rose and Weaver were further charged, along with Christopher James Squirrel, 28, with conspiracy to commit robbery. The men were arrested by the Tulsa County Sheriff’s Office and FBI Tuesday evening.
The affidavit filed with the complaint states that on or about Oct. 9, 2021, Rose, Weaver and Squirrel conspired to rob the victim and collect money owed to Rose. During the robbery, Rose and Weaver allegedly stabbed the victim using one or two knives, resulting in the victim’s death.
At approximately 3:15 pm on Oct. 9, the Tulsa County Sheriff’s Office responded to a 911 call reporting the discovery of a man lying in the front yard of a home located at 1525 E. 56th St. North near Turley. Upon arrival, deputies observed the victim’s body and visible signs of injury to the victim’s head and what appeared to be stab wounds to the victim’s face, hands, arms, neck, upper back, back of the neck, upper chest, and top and back of his head. Law enforcement learned that at least one neighbor also observed discarded money near the victim’s body.
This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal grand jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
The Tulsa County Sheriff’s Office and FBI are the investigative agencies. Assistant U.S. Attorney Cymetra M. Williams is prosecuting the case.
Three Defendants Indicted for $437,000 Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Three Missouri residents have been indicted by a federal grand jury in a scheme to use the identities of deceased people to file hundreds of false stimulus claims under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Warren W. Watkins, 39, and Marissia Jackson, 25, both of Kansas City, Mo., and Lamar K. Johnson, 40, of Eldon, Mo., were charged in a 37-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Oct. 5, 2021. The indictment was unsealed and made public following the arrests yesterday of Watkins and Johnson.
The federal indictment alleges that Watkins, Jackson, and Johnson participated in a conspiracy to defraud the federal government from March 28, 2020, while they were all living at the same Kansas City, Mo., address, to April 15, 2021.
They allegedly used the identities of other people to file a total of 238 false and fraudulent economic impact payment claims. Each claim sought a $1,200 economic impact payment available under the CARES Act, for a total of $285,600. Most of the individuals whose identities were used were deceased.
They allegedly also filed at least 28 false and fraudulent federal income tax returns in the names of other individuals seeking a total of $152,155 in income tax credits and refunds. (The IRS actually paid only $4,800 of the claims.) According to the indictment, the total attempted loss from both schemes was $437,755.
Watkins was associated with two Kansas City, Mo., funeral homes. According to the indictment, 226 of the individuals whose identities were used to file the false claims had received funeral services from the two funeral homes or a third associated funeral home.
In addition to the fraud conspiracy, the indictment charges 12 counts of false claims, 12 counts of wire fraud, and 12 counts of aggravated identity theft. Watkins is charged in each of the 37 counts of the indictment, while Jackson and Johnson each are charged in a total of 10 counts.
The charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Kate Mahoney. It was investigated by IRS-Criminal Investigation.
Theodore Man Sentenced to More Than Five Years for Knifepoint RobberyRead the Press Release
MOBILE, AL – A Theodore man was sentenced today to 63 months in prison for robbing a Raceway gas station in Theodore on December 27, 2020.
According to court documents, Corey Wilson Lyman, 29, threatened a cashier at the gas station with a knife and stole the victim’s money, cell phone, and car keys. Lyman then fled the scene of the robbery in the victim’s car and led police on a high-speed chase, blowing through several lighted intersections. During the chase, Lyman threw two bags from the car that contained cash and a knife. Lyman eventually ran the car into a grassy ditch and attempted to flee into the woods near Dauphin Island Parkway before police apprehended him. As part of his guilty plea, Lyman admitted that he committed the robbery, that he took the victim’s property by threatening force and violence, and that his actions obstructed, delayed, and affected interstate commerce in violation of the Hobbs Act.
United States District Judge Terry F. Moorer ordered Lyman to serve a three-year term of supervised release upon his release from prison, during which time he will undergo testing and treatment for substance abuse and will be subject to credit restrictions. The court did not impose a fine, but Judge Moorer ordered Lyman to pay $1,500 in restitution to the robbery victim and $100 in special assessments.
U.S. Attorney Sean P. Costello of the Southern District of Alabama made the announcement.
The Federal Bureau of Investigation investigated the case.
Assistant U.S. Attorney Justin Roller prosecuted the case on behalf of the United States.
The United States Attorney’s Office, Memphis Police Department, Faith Based Leaders and Community Stakeholders Announce Efforts to Reduce Violent CrimeRead the Press Release
Memphis, TN – Acting U.S. Attorney Joseph C. Murphy Jr., along with stake holders in the Frayser Community announced the “Better Community Summit” effort to reduce violent crime throughout our city. Organizers and participants in initial summit include the Memphis Police Department, represented by Deputy Chief Paul Wright, Pursuit of God Transformation Center, represented by Pastor Ricky Floyd, and Charles Caswell, Executive Director of Legacy of Legends, CDC.
The U.S. Department of Justice is committed to work with law enforcement and other stakeholders to reduce violent crime in Memphis and West Tennessee. To achieve this goal, the department has directed every U.S. Attorney’s Office to formulate a strategic plan designed to reduce violent crime. To that end, our office convened meetings with over 40 clergy leaders across the greater Memphis area to discuss violent crime and recommend possible solutions.
The U.S. Attorney’s Office, Memphis Police Department, non-profit organizations, clergy leaders, and other community stakeholders are pleased to announce the first of five “Better Community Summits” will be held at The Pursuit of God Transformation Center, 3759 North Watkins Street beginning on Saturday, November 6, 2021, at 10 a.m. The summit is tailored to address the needs of parents and children. Topics covered will include domestic violence prevention, gang talk, community conflict resolution, and de-escalation training.
Beginning in 2022, the remaining four workshops will be held quarterly in the areas of North Memphis; Whitehaven/Westwood; Hickory Hill/East Memphis and Orange Mound/South Memphis.###
Texas Woman Sentenced to over Four Years’ Imprisonment for Fraud OffensesRead the Press Release
HARRISBURG—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shannon Gray, age 41, of Houston, Texas, was sentenced today to 51 months’ imprisonment by United States District Court Judge Jennifer P. Wilson for bank fraud and aggravated identity theft.
According to Acting United States Attorney Bruce D. Brandler, Gray previously admitted that in September 2019, she purchased approximately $50,000 in postage stamps from post offices in Pennsylvania, Kentucky, and West Virginia by using personal checks that were not hers and that she was not authorized to use. Gray was arrested on September 13, 2019, outside of the post office in Mountville, Pennsylvania, after she attempted to purchase $935 in stamps using a fraudulent check. Gray was also ordered to pay $48,610.91 in restitution.
The case was investigated by the United States Postal Inspection Service and the West Hempfield Township Police Department. Assistant U.S. Attorney Carlo D. Marchioli prosecuted the case.
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Superseding Indictment Charges Mexican Mafia Member and Associates with Murdering Inmate at Federal Jail in Downtown L.A.Read the Press Release
LOS ANGELES – A federal grand jury today returned a superseding indictment charging three Pomona-area gang members and Mexican Mafia associates with murdering an inmate at the Metropolitan Detention Center (MDC) in downtown Los Angeles.
The superseding indictment alleges Jose Valencia Gonzalez, a.k.a. “Swifty,” 39, Carlos Gonzalez, a.k.a. “Popeye,” 38, and Juan Sanchez, a.k.a. “Squeaks,” 28, all of Pomona, killed the victim on June 28, 2020 at the direction of Mexican Mafia member Michael Lerma, a.k.a. “Big Mike,” 65, also of Pomona, who also is charged with the murder. The victim’s murder was ordered in retaliation for the victim’s failure to pay off a drug debt to the Mexican Mafia, according to the indictment.
These defendants previously were charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations (RICO) Act related to the Mexican Mafia’s control of the City of Pomona and surrounding areas, and included a separate conspiracy to murder, a kidnapping, and a carjacking. The superseding indictment alleges Lerma exercised control over, and extorted drug proceeds from, Latino street gangs in and around Pomona, as well as from inmates at Calipatria State Prison in Imperial County. Members of Lerma’s criminal enterprise also engaged in robberies, identity theft and fraud, drug trafficking, kidnapping, and other acts of violence, the indictment alleges.
The in-custody murder was committed while the defendants were in federal custody awaiting trial scheduled for April 12, 2022. In addition to the murder charges, the superseding indictment describes the enterprise’s takeover of MDC and seizing control of the drug trafficking within the facility. If convicted, these defendants would each face a statutory maximum sentence of life in federal prison or death. A decision whether to seek the death penalty will be made in the future.
This matter was investigated by the FBI’s Los Angeles Metropolitan Violent Crime Task Force in conjunction with the FBI’s San Gabriel Valley Safe Streets Task Force (SGVSSTF), which is comprised of agents and officers with the FBI, the Los Angeles County Sheriff’s Department, the Pomona Police Department, the El Monte Police Department, the Drug Enforcement Administration and the California Department of Corrections and Rehabilitation (CDCR). The Pomona Police Department is the sponsoring agency of the SGVSSTF and has been the headquarters for the task force since its inception in 2008.
Assistant United States Attorneys Max B. Shiner of the Violent and Organized Crime Section, and Shawn J. Nelson and Keith D. Ellison of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Suffolk County Man Pleads Guilty to Receiving and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Jacob Delaney, age 23, of Holtsville, New York, pled guilty yesterday to one count of receiving child pornography and three counts of possessing child pornography.
The announcement was made by United States Attorney Carla B. Freedman and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his guilty plea, Delaney admitted that between about September 2018 and December 12, 2019, while a resident of New Paltz, New York, he used the Internet to search for, and download, numerous still image and video files of child pornography.
Sentencing is scheduled for February 15, 2022 before Senior United States District Judge Thomas J. McAvoy in Albany. Delaney faces at least 5 years and up to 40 years in prison. The Court will also impose a term of supervised release of between 5 years and life. A defendant’s sentence is imposed by a judge based on the statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Delaney will also be required to register as a sex offender.
This case was investigated by the FBI. The case is being prosecuted by Assistant U.S. Attorneys Ashlyn Miranda and Rick Belliss as a part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Suburban Chicago Businessman Sentenced to Eleven Years in Federal Prison for Participating in Multi-Million Dollar Ponzi SchemeRead the Press Release
CHICAGO — A suburban Chicago businessman who schemed with an attorney and two others to sell millions of dollars in phony mortgages has been sentenced to eleven years in federal prison.
ALBERT ROSSINI, the owner of Devon Street Investments in Lincolnwood, was sentenced Tuesday in U.S. District Court in Chicago. A jury in 2018 convicted Rossini, 73, of Skokie, on multiple counts of mail fraud and wire fraud.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; William Hedrick, Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago; Michael Powell, Special Agent-in-Charge of the U.S. Department of Housing and Urban Development Office of Inspector General in Chicago; and Thomas J. Dart, Cook County Sheriff. The government is represented by Assistant U.S. Attorney John D. Mitchell.
Evidence at trial revealed that Rossini plotted with father-and-son co-defendants BABAJAN KHOSHABE, of Chicago, and ANTHONY KHOSHABE, of Skokie, to fraudulently induce more than a dozen victims into purchasing purported mortgage notes on apartment buildings in or near foreclosure. The defendants fraudulently promised that investors would receive title to the properties at the conclusion of the foreclosure process. In reality, the defendants did not own the mortgage notes, and instead the victims’ funds were misappropriated and used to make Ponzi-type payments to some of the investors.
The victims provided a total of more than $7 million in investment money to the defendants, and Rossini fraudulently pocketed more than $2.5 million of it.
A separate federal jury in 2019 convicted the Khoshabes for their roles in the scheme. They are awaiting sentencing.
A fourth defendant, Chicago attorney THOMAS MURPHY, claimed to validate the sale of the mortgage notes through a phony “Guaranty Agreement” that he prepared and gave to Rossini to present to the victims. Murphy pleaded guilty and admitted his role in the scheme. He is awaiting sentencing.
Stock Promoters Plead Guilty to “Pump and Dump” Securities Fraud SchemeRead the Press Release
MINNEAPOLIS – Two men have entered guilty pleas to securities fraud charges in connection to their illegal pump-and-dump stock manipulation scheme, announced Acting U.S. Attorney W. Anders Folk.
According to their guilty pleas, Mark Allen Miller, 44, of Breezy Point, and Christopher James Rajkaran, 36, of Queens, New York, and Guyana, participated in a scheme to hijack and assume control over dormant public shell companies. The defendants used their control over the companies to fraudulently manipulate and pump up the price of the companies' stock so that they could profit from the sale of stock to unwitting investors.
The defendants carried out their scheme by obtaining hundreds of thousands or even millions of shares of stock in dormant public shell companies that traded over-the-counter at low prices, often for less than a fraction of a penny per share. The defendants then assumed control over the shell companies by creating fake and filing fake resignation letters and board resolutions purporting to announce the resignation of the existing management team and the appointment of one or more conspirators as new officers and directors of the companies. The conspirators used their control over the hijacked shell companies to issue fraudulent press releases and filings designed to fraudulently inflate and “pump up” the price of the hijacked companies’ stock. The defendants then sold or “dumped” their stock at the fraudulently inflated prices.
The defendants each pleaded guilty to one count of conspiracy to commit securities fraud before Senior Judge David S. Doty in U.S. District Court. Miller entered his guilty plea earlier today and Rajkaran entered his guilty plea on October 7, 2021. Co-conspirator Saeid Jaberian, 59, of Hopkins, has pleaded not guilty to conspiracy, securities fraud, and wire fraud charges.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service and the FBI. The U.S. Attorney’s Office would also like to thank the Securities and Exchange Commission for its assistance on this matter.
Assistant U.S. Attorneys Joseph H. Thompson and Miranda E. Dugi are prosecuting the case.
Stafford County, Virginia, to Allow Islamic Cemetery in Response to Justice Department LawsuitRead the Press Release
The Justice Department today announced that it is dismissing its Religious Land Use and Institutionalized Persons Act (RLUIPA) lawsuit against Stafford County, Virginia, because it achieved the relief it sought in the case. Specifically, in response to the department’s complaint, the County repealed ordinances that prevented the All Muslim Association of America (AMAA) from developing a religious cemetery for persons of the Islamic faith, approved the AMAA’s site plan for the cemetery, and, in a private settlement with the AMAA to resolve the AMAA’s lawsuit, agreed to pay $500,000 in damages to the AMAA.
The notice of dismissal, which was filed today in the U.S. District Court for the Eastern District of Virginia, describes additional steps the County undertook to comply with RLUIPA after the department notified the County of its investigation. For example, the County has implemented an internal procedure to address complaints by any person who believes that the County may have violated RLUIPA, provided RLUIPA training to County employees who are responsible for implementing and enforcing zoning and land use regulations, posted notices of its obligations to comply with RLUIPA on several County website pages, and placed RLUIPA notices in land use application documents.
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce RLUIPA — through litigation if necessary — against zoning regulations that unreasonably burden religious exercise, including by restricting a religious group’s right to bury its dead in accordance with religious rituals and customs.”
The complaint, filed in June 2020, alleged that Stafford County violated RLUIPA when it enacted an ordinance in December 2016 that prevented the AMAA from developing an Islamic cemetery; County officials had previously confirmed that the proposed cemetery was a permitted use at this property. The ordinance imposed new requirements, unsupported by any legitimate health or safety concerns, that the County knew the AMAA could not meet. After the United States sued, the County replaced the ordinance with another one, but it, too, imposed unreasonable constraints on the group’s ability to build a religious cemetery. In October 2020, the County repealed the second ordinance as well, and replaced it with one that allows for the establishment of cemeteries as a permitted use, without the approval of the County, in the zoning district where the AMAA’s property is located and removes other restrictions specific to cemeteries.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
Stafford County to Allow Islamic Cemetery in Response to Justice Department LawsuitRead the Press Release
ALEXANDRIA, Va. – The Justice Department filed a notice to dismiss its Religious Land Use and Institutionalized Persons Act (RLUIPA) lawsuit against Stafford County because the County repealed ordinances that prevented the All Muslim Association of America (AMAA) from developing a religious cemetery for persons of the Islamic faith.
The original complaint, filed in June 2020, alleged that Stafford County violated RLUIPA when it enacted an ordinance in December 2016 that prevented the AMAA from developing an Islamic cemetery. County officials had previously confirmed that the proposed cemetery was a permitted use of the property. The ordinance imposed new requirements, unsupported by any legitimate health or safety concerns, that the County knew the AMAA could not meet. After the United States filed the lawsuit, the County replaced the ordinance with another one that also imposed unreasonable constraints on the group’s ability to build a religious cemetery.
In October 2020, the County repealed the second ordinance as well and replaced it with one that allows for the establishment of cemeteries by right in the zoning district where the AMAA’s property is located and removes other restrictions specific to cemeteries. This latest action allowed the AMAA to file its site plan application, which the County approved on July 9, enabling the organization to develop its cemetery. As a result, the Justice Department filed a notice to dismiss its RLUIPA lawsuit against Stafford County.
“RLUIPA protects people of all faiths in their right to exercise their religion,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The Department of Justice will continue to vigorously enforce RLUIPA—through litigation if necessary—against zoning regulations that unreasonably burden religious exercise, including by restricting a religious group’s right to bury its dead in accordance with religious rituals and customs.”
The Notice of Dismissal filed today describes additional steps the County undertook to comply with RLUIPA after the department notified the County of its investigation. For example, the County has implemented an internal procedure to address complaints by any person who believes that the County may have violated RLUIPA, provided RLUIPA training to County employees who are responsible for implementing and enforcing zoning and land use regulations, posted notices of its obligations to comply with RLUIPA on several County website pages, and placed RLUIPA notices in land use application documents.
In a private settlement between the County and AMAA, Stafford County agreed to pay $500,000 in damages to the AMAA.
RLUIPA is a federal law that protects religious institutions from unduly burdensome or discriminatory land use regulations. In June 2018, the Justice Department announced its Place to Worship Initiative, which focuses on RLUIPA’s provisions that protect the rights of houses of worship and other religious institutions to worship on their land. More information is available at www.justice.gov/crt/placetoworship.
Individuals who believe they have been subjected to discrimination in land use or zoning decisions may contact the Civil Rights Division Housing and Civil Enforcement Section at (833) 591-0291, or may submit a complaint through the complaint portal on the Place to Worship Initiative website. More information about RLUIPA, including questions and answers about the law and other documents, may be found at http://www.justice.gov/crt/about/hce/rluipaexplain.php.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Springfield Man Sentenced to 14 Years for Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for receiving child pornography over the internet.
Scott James Wells, 56, was sentenced by U.S. District Judge M. Douglas Harpool to 14 years in federal prison without parole. The court also sentenced Wells to a lifetime of supervised release following incarceration, and ordered him to pay $15,000 in restitution to his victims.
On May 4, 2021, Wells withdrew his plea of not guilty on the day his criminal jury trial was scheduled to begin. Wells entered a nolo contendre, or “no contest,” plea, neither admitting nor disputing the federal charges against him, but acknowledging the government had sufficient evidence to convict him of the crimes charged beyond a reasonable doubt. The court found Wells guilty of one count of receiving and distributing child pornography. Wells has been detained in federal custody since that date.
Wells received child pornography over the internet between Dec. 15, 2016, through March 22, 2017. Law enforcement received two CyberTipline reports from the National Center for Missing and Exploited Children after Wells used his Facebook account to transmit two images of child pornography to another Facebook user.
Officers executed a search warrant at Wells’s residence and seized his laptop computer, which contained child pornography.
This case was prosecuted by Assistant U.S. Attorneys James J. Kelleher and Nhan Nguyen. It was investigated by Homeland Security Investigations Special Agent J.D. Holdman and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Southern California Man Pleads Guilty to Multimillion-Dollar Medical Device Fraud SchemeRead the Press Release
SAN FRANCISCO – Joseph Albert Corey pleaded guilty in federal court today to one count of wire fraud conspiracy and three counts of wire fraud involving a multimillion-dollar medical device loan scheme, announced Acting United States Attorney Stephanie Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair.
Corey, 56 and last known to live in or near Los Angeles, earlier pleaded guilty to mail fraud in a separate federal criminal case. He was released from custody in that case and then absconded from his February 2020 sentencing hearing. While a fugitive, he continued committing a second fraud scheme. Corey remained a fugitive until he was detained by Mexican immigration authorities in January 2021 and deported to the United States.
Today Corey pleaded guilty to the second fraud scheme. He now awaits sentencing in both fraud cases.
Corey pleaded guilty today to a wire fraud conspiracy to defraud medical device lenders that began no later than March 2019 and continued through October 2020. According to his plea agreement, Corey assumed the identities of multiple medical doctors. In the scheme, Corey would impersonate an actual doctor and apply to a loan company for a loan to purchase an expensive medical device from a medical device supply company. Once the lender approved the loan for the doctor Corey impersonated, Corey directed the lender to deposit the loaned purchase funds into a specific bank account. The bank account was opened earlier in the scheme under an account name that closely resembled or was identical to the name of a legitimate medical device supply company, and Corey controlled that bank account. Once the unsuspecting lender deposited the funds into the account, Corey appropriated the money and, under a different false identity, used the money to purchase gold from a precious metals dealer, thus obscuring the trail of the stolen loan money.
Corey admitted in his plea agreement that he defrauded more than 10 victims in this scheme and that the scheme caused losses of at least $3.5 million.
In the earlier mail fraud case from which Corey absconded, Corey was charged for depositing fraudulent checks into an account opened under a false name and then purchasing gold with the deposited money. Corey entered a guilty plea in November 2019 to the charge of mail fraud in that case and, while out on bond, failed to appear at his February 2020 sentencing hearing.
According to a filing by the government, when Corey was detained in January 2021 he possessed numerous false identifications, including one identifying him as a “special agent” of the CIA.
The sentencing of Corey on both criminal cases is scheduled for January 6, 2022, at 10 a.m. before the Honorable Edward M. Chen, U.S. District Court Judge.
Corey pleaded guilty today in the more recent case (CR 20-481 EMC) to one count of conspiracy to commit wire fraud in violation of 18 U.S.C. § 1349 and three counts of wire fraud in violation of 18 U.S.C. § 1343. The conspiracy and wire fraud charges carry a maximum sentence of 30 years in prison and a $1,000,000 fine. The plea agreement specifies that restitution to the victims shall be ordered in an amount no less than $3.5million.
In his earlier case (CR 19-530 EMC), Corey pleaded guilty in November 2019 to one count of mail fraud in violation of 18 U.S.C. § 1341. In that case, he faces a maximum sentence of 20 years in prison and a maximum fine of $250,000, along with restitution in an as-yet unspecified amount.
While these are the maximum possible penalties, in a criminal case a court imposes a sentence only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Mohit Gourisaria is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Maddi Wachs and Maribel Gallegos. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
South Florida Resident Sentenced to 70 Years in Prison for Child ExploitationRead the Press Release
Miami, Florida – A United States federal district judge has sentenced Nikolas Cook, 23, of Stuart, Florida, to 840 months in prison and lifetime supervised release for producing, distributing, and possessing child pornography.
According to court documents, on September 10, 2020, Cook communicated with others in a social media group created for individuals interested in child sexual abuse material. While participating in the chat group, Cook produced and distributed multiple pornographic images of a three-year-old girl. An investigation led agents to Cook’s residence. Agents arrested Cook within 12 hours of learning of his activity in the chat group. During a search of Cook’s residence, agents located electronic devices containing multiple sexually explicit images and videos of minor children being sexually abused.
The sentence was imposed by Judge K. Michael Moore after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez and Special Agent in Charge for FBI Miami George L. Piro announced the sentence.
The Federal Bureau of Investigation and Martin County Sheriff’s Office investigated the case. Assistant U.S. Attorneys Daniel E. Funk and Luisa Berti are prosecuting it.
This case was brought as part of Project Safe Childhood (PSC), 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 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 the Project Safe Childhood initiative and for information regarding Internet safety, please visit www.justice.gov/psc.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov, under case number 21-cr-14007.
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Sinaloa Cartel Money Launderer Sentenced to 10 Years in PrisonRead the Press Release
A money launderer for the Sinaloa Cartel was sentenced yesterday in the U.S. District Court for the Southern District of California to 10 years in prison and a $50,000 fine for laundering approximately $15 million from the sale of methamphetamine, cocaine, and heroin that were smuggled into the United States by the Sinaloa Cartel.
Bianca Acedo-Ojeda, 34, of Sinaloa, Mexico, was extradited from Mexico to San Diego in November 2019, and on March 10, 2021, she pleaded guilty to conspiracy to commit money laundering. According to court documents, Acedo-Ojeda agreed with others to arrange, and did arrange, for the drug proceeds in the form of U.S. bulk currency to be smuggled into Mexico through ports of entry in Southern California in vehicles with hidden compartments. She also agreed with others to and did arrange for much of the U.S. bulk currency to be converted into Mexican pesos and transferred to drug traffickers.
“Money launderers are the lifeblood of criminal organizations,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will continue to vigorously prosecute money launderers associated with violent transnational drug trafficking organizations such as the Sinaloa Cartel. I want to thank the Government of Mexico for extraditing Acedo-Ojeda to the United States to face criminal charges. Through such partnerships, we will attack and work to dismantle dangerous drug cartels and their money laundering facilitators.”
“Those who launder funds in support the Sinaloa Cartel’s efforts to flood our borders with deadly drugs will face justice in this district,” said Acting U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to one of the most violent criminal organizations in the world is essential to disrupting their narcotics trafficking and other criminal efforts.”
“This investigation and prosecution serve as a prime example of how Homeland Security Investigations (HSI) and federal prosecutors work together to bring down those involved in large scale money laundering in support of international drug trafficking organizations,” said Special Agent in Charge Chad Plantz for HSI San Diego. “HSI will continue to identify and investigate criminal organizations who seek to exploit our borders in furtherance of their illicit activity – if you engage in illegal finance activity to aid drug cartels, you will be caught and prosecuted.”
Six other defendants, including Acedo-Ojeda’s brother, have previously pleaded guilty in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; Joel Acedo-Ojeda; Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, and Oscar Rodriguez-Guevara). Another defendant, Robert Gallegos-Lechuga, pleaded guilty to conspiracy to commit money laundering and is pending sentencing. In addition, approximately 20 other individuals linked to the conspiracy who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.
The investigation was conducted by HSI. The Justice Department’s Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extradition of Acedo-Ojeda in Mexico.
The case is being prosecuted by Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section and Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California.
Sinaloa Cartel Money Launderer Sentenced to 10 Years in PrisonRead the Press Release
Assistant U. S. Attorney Larry Casper (619) 546-6734
NEWS RELEASE SUMMARY – October 14, 2021
SAN DIEGO – A money launderer for the Sinaloa Cartel was sentenced in federal court yesterday to 120 months in prison and a $50,000 fine for laundering approximately $15 million from the sale of methamphetamine, cocaine, and heroin that were smuggled into the United States by the Sinaloa Cartel.
Bianca Acedo-Ojeda, 34, of Sinaloa, Mexico, was extradited from Mexico to San Diego in November 2019, and on March 10, 2021, she pleaded guilty to conspiracy to commit money laundering. According to court documents, Acedo-Ojeda agreed with others to and did arrange for the drug proceeds in the form of U.S. bulk currency to be smuggled into Mexico through ports of entry in Southern California in vehicles with hidden compartments. She also agreed with others to and did arrange for much of the U.S. bulk currency to be converted into Mexican pesos and transferred to drug traffickers.
“Those who launder funds in support of the Sinaloa Cartel’s efforts to flood our borders with deadly drugs will face justice in this district,” said Acting U.S. Attorney Randy Grossman for the Southern District of California. “Stopping the flow of funds to one of the most violent criminal organizations in the world is essential to disrupting their narcotics trafficking and other criminal efforts.”
“Money launderers are the lifeblood of criminal organizations,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will continue to vigorously prosecute money launderers associated with violent transnational drug trafficking organizations such as the Sinaloa Cartel. I want to thank the Government of Mexico for extraditing Acedo-Ojeda to the United States to face criminal charges. Through such partnerships, we will attack and work to dismantle dangerous drug cartels and their money laundering facilitators.”
“This investigation and prosecution serve as a prime example of how Homeland Security Investigations (HSI) and federal prosecutors work together to bring down those involved in large scale money laundering in support of international drug trafficking organizations,” said Special Agent in Charge Chad Plantz for HSI San Diego. “HSI will continue to identify and investigate criminal organizations who seek to exploit our borders in furtherance of their illicit activity – if you engage in illegal finance activity to aid drug cartels, you will be caught and prosecuted.”
Six other defendants, including Acedo-Ojeda’s brother, have previously pleaded guilty in this case and been sentenced (Omar Ayon-Diaz; Osvaldo Contreras-Arriaga; Joel Acedo-Ojeda; Cesar Hernandez-Martinez, Gibran Rodriguez-Mejia, and Oscar Rodriguez-Guevara). Another defendant, Robert Gallegos-Lechuga, pleaded guilty to conspiracy to commit money laundering and is pending sentencing. In addition, approximately 20 other individuals linked to the conspiracy who served as drug and money couriers and drug stash house operators have entered guilty pleas and been sentenced in related cases.
The investigation was conducted by Homeland Security Investigations. The Justice Department's Office of International Affairs worked with law enforcement partners in Mexico to secure the arrest and extraditio of Acedo-Ojeda in Mexico.
The case is being prosecuted by Assistant U.S. Attorney Larry Casper of the U.S. Attorney’s Office for the Southern District of California and Senior Trial Counsel Mark Irish of the Criminal Division’s Money Laundering and Asset Recovery Section.
DEFENDANTS Case Number 15cr950-BEN
Bianca Acedo-Ojeda Age: 34 Sinaloa, Mexico
SUMMARY OF CHARGES
Money Laundering Conspiracy – Title 18, U.S.C., Section 1956(h)
Maximum penalty: Twenty years in prison and $500,000 fine
AGENCY
Homeland Security Investigations
Saratoga County Woman Pleads Guilty to Tax ChargesRead the Press Release
ALBANY, NEW YORK – Elizabeth Doyle, age 49, of Ballston Lake. New York, pled guilty today to filing false tax returns. The announcement was made by United States Attorney Carla B. Freedman and Thomas Fattorusso, Acting Special Agent in Charge, New York Field Office, Internal Revenue Service – Criminal Investigation (“IRS-CI”).
Doyle operates a Saratoga County company that places home health care aides in patients’ homes. As part of her guilty plea, Doyle admitted to filing materially false tax returns that underreported business income in 2016 and 2017. Doyle admitted to underreporting a total of $647,263 in income, resulting in a loss to the federal government of at least $94,522.
Doyle faces up to 3 years in prison, a maximum fine of $100,000, and a term of supervised release of up to 1 year, when Senior United States District Judge Lawrence E. Kahn sentences her on February 16, 2022. 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.
In a related case, on March 24, 2021, Betty J. Marriott, age 71, of Gansevoort, New York – the prior owner of Doyle’s company – pled guilty to filing false tax returns; her sentencing is scheduled for October 21, 2021.
These cases were investigated by IRS-CI and are being prosecuted by Assistant U.S. Attorney Emily C. Powers.