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27 September 2021
Six Members of Nine Trey Gangster Bloods Gang Plead Guilty to RICO ConspiracyRead the Press Release
Last week, six members of the Nine Trey Gangsters (NTG) national criminal organization pleaded guilty to Racketeer Influenced and Corruption Organization (RICO) conspiracy charges.
According to court documents, the NTG is a national gang that started in the prisons of New York as a subset of the United Bloods Nation and has since spread throughout the East Coast and Southeast. The NTG is a criminal organization whose members and associates engage in acts of crime and violence including murder, assault, robbery, firearms possession, witness tampering, obstruction of justice, drug trafficking and extortion among other criminal activity.
“The Department will continue to bring to justice the leaders and most violent members of dangerous criminal enterprises like the Nine Trey Gangsters,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “Removing those most responsible for the violence and drug dealing perpetrated by members and associates of violent street gangs like the Nine Trey Gangsters makes our neighborhoods and communities safer.”
“Members of the Nine Trey Gangsters showed a shocking indifference to human life, both in carrying out planned acts of violence, and in distributing drugs, including methamphetamine, throughout Georgia,” said Acting U.S. Attorney Kurt Erskine for the Northern District of Georgia. “While the gang offered members a sense of belonging and the opportunity to make money through illicit drug sales, it was those same members who were most often the targets of violence from the gang based solely on the whims of the gang’s leaders.”
“Members of Nine Trey Gangsters have plagued our streets with violence and drug trafficking for far too long,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “These pleas are an example of our commitment to dismantle organized, violent criminal enterprises. The community can rest assured these six defendants won’t be on our streets for a very long time, thanks to the efforts of the FBI-led Safe Streets Gang Task Force and its state and local partners.”
“As part of our commitment of ridding our facilities of criminal activity, we maintain a robust plan for identifying and managing those participating in gang activity from behind prison walls,” said Commissioner Timothy C. Ward of the Georgia Department of Corrections. “We appreciate the support and assistance of our law enforcement partners on every level, in our efforts to see that justice is being served on those who pose a threat to the safety of the public and the safe operations of our facilities.”
“These Bloods members terrorized communities by committing murders and robberies with no regard for human life,” said Assistant Director Calvin Shivers of the FBI Criminal Investigative Division. “Today’s convictions provide a measure of justice, and the FBI will continue to dismantle these criminal enterprises and protect communities from gang violence.”
The NTG have a hierarchical structure in which members throughout the country are subdivided into separate groups or “lines.” Each NTG member has a specific rank within the gang or a specific line, and this rank comes with specific duties and responsibilities. Each of the six defendants who pleaded guilty were part of the gang’s “fire” line.
The following NTG gang members, all of Georgia, pleaded guilty to count 1 of the second superseding indictment charging them and four others with RICO conspiracy:
- Tyrone Clark, aka “Tight Eye”; Joseph Riley, III, aka “Joe Blow”; Gary Sartor aka “G-Stacks”; and Patrick Caple, aka “Zoe,” all held the rank of “Fifth Floor” in the gang’s hierarchy, one of the highest ranks an individual can hold within a line of the gang. In those roles they were responsible for overseeing all the members below them and reporting up to the gang’s national leadership.
- Brandon Asberry, aka “B5,” held the rank of “Second Floor” in the gang’s hierarchy. In this role, Asberry was responsible for collecting dues form the gang’s members and overseeing the gang’s meetings or “nines.”
- Michael Jackson, aka “MJ,” held the rank of “Third Floor” in the gang’s hierarchy. He was responsible for planning “wars” or conflicts with rival gangs and providing weapons to other NTG members.
Clark, 40, of Marietta; Jackson, 27, of Chester; Caple, 56, of Glennville; and Riley, 37, Sartor, 37, and Asberry, 32, all of Atlanta, pleaded guilty to the RICO conspiracy charge for their involvement in planning, facilitating and executing multiple acts of violence and participating in the gang’s drug trafficking activities, including the distribution of methamphetamine, marijuana, and Xanax. Sartor, Caple and Jackson were in Georgia Department of Corrections custody when they participated in the conspiracy.
The defendants face a statutory maximum penalty of life in prison. Jackson, Riley and Clark are scheduled to be sentenced on Feb. 1, 2022. The others will be sentenced in the coming months by U.S. District Court Judge Amy Totenberg in the Northern District of Georgia. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by the FBI as part of the Safe Streets Task Force, with valuable assistance provided by the Georgia Department of Corrections.
Trial Attorney Kristen Taylor of the Criminal Division’s Organized Crime and Gangs Section and Assistant U.S. Attorneys in the Northern District of Georgia are prosecuting the case.
Rochester Man Pleads Guilty to Fentanyl Trafficking and Cuasing Non-Fatal OverdoseRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Shermart D. Merriwether, 26, of Rochester, NY, pleaded guilty before Chief U.S. District Judge Elizabeth A. Wolford to distribution of fentanyl. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorney Brett A. Harvey, who is handling the case, stated that the defendant was part of a group of individuals who ran a drug house at 192 Weaver Street in the City of Rochester. Merriwether and others sold quantities of fentanyl from the house in 2018 and 2019. As part of his guilty plea, the defendant admitted to selling a quantity of fentanyl to a 24-year-old female who suffered a non-fatal overdose at a gas station on East Ridge Road in Irondequoit, NY. The victim ingested the fentanyl and then lost consciousness while at a pump at the gas station. Irondequoit Ambulance personnel responded and gave the victim Narcan, after which she regained consciousness. Merriwether admitted that, if emergency personnel had not administered Narcan to the victim, there was a substantial risk that she would have died from fentanyl toxicity.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan.
Sentencing is scheduled for January 12, 2022, at 2:30 p.m., before Chief Judge Wolford.
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Rochester Man Going to Prison for Selling FentanylRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Derek Torres a/k/a Bebe, 22, of Rochester, NY, who was convicted of conspiring to possess with intent to distribute 40 grams or more of fentanyl, was sentenced to serve 18 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Cassie Kocher, who handled the case, stated that between July and November 28, 2018, the defendant conspired with others to distribute cocaine, heroin, and fentanyl in the area of Wilkins Street in Rochester. On July 18, 2021, Torres sold 10 wax envelopes containing heroin and fentanyl and 10 zip-loc baggies containing cocaine to an undercover law enforcement officer in exchange for $200 in cash.
The sentencing is the result of an investigation by the New York State Police, under the direction of Major Barry Chase; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
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Richland Man Extradited from Kazakhstan Pleads Guilty to Attempted Production of Child PornographyRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Trent Drexel Howard, age 50, of West Richland, Washington, pleaded guilty on September 23, 2021 pursuant to a plea agreement to one count of Attempted Production of Child Pornography. In the plea agreement, Howard and the United States agreed to a sentence of 23 years in prison. District Judge Salvador Mendoza, Jr. will decide whether to accept the plea agreement during the sentencing hearing set for January 6, 2022.
According to court documents, beginning on or about March 2008 and continuing through April 2016, Howard knowingly attempted to use fourteen different children to take part in sexually explicit conduct for the purpose of producing visual depictions of such conduct. For years, Howard used cameras hidden in bathrooms and bedrooms of his residence, within the Eastern District of Washington, to capture video footage of the minor victims in nude and semi-nude states. Federal agents discovered the video footage after execution of a search warrant authorizing the search of evidence of child pornography at Howard’s residence. Agents seized over 100 electronic devices. The investigation began, however, when Howard distributed over 168 suspected child pornography files to an undercover agent over a publicly accessible, Internet based, file-sharing network. Forensic review of the seized devices led to the discovery of the hidden camera footage and later identification of at least fourteen minor victims.
According to court documents, Howard was working in Kazakhstan when federal agents executed the search warrant at his residence in Richland, Washington. After learning of the investigation, Howard stayed in Kazakhstan and was eventually arrested by Kazakhstan authorities on September 12, 2019. A Kazakh judge ordered Howard be detained pending an extradition request from the United States. According to the Department of Justice’s Office of International Affairs, Howard’s removal from Kazakhstan is the first extradition from that country by the United States.
Acting United States Attorney Harrington said the United States Attorney’s Office for the Eastern District of Washington, said, “Production of child pornography is a despicable crime. The United States Attorney’s Office for the Eastern District of Washington will continue to aggressively prosecute those who exploit children. I commend our state, local and federal law enforcement partners who investigated this case.”
This case was pursued as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the United States 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. The Project Safe Childhood Initiative (“PSC”) has five major components:
· Integrated federal, state, and local efforts to investigate and prosecute child exploitation cases, and to identify and rescue children;
· Participation of PSC partners in coordinated national initiatives;
· Increased federal enforcement in child pornography and enticement cases;
· Training of federal, state, and local law enforcement agents; and
· Community awareness and educational programs.
For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
This case was investigated by the Spokane Resident Office of the Federal Bureau of Investigation, with the assistance of the Southeast Regional Internet Crimes Against Children Task Force, which includes detectives from the Kennewick and Richland Police Departments, and the Moses Lake Police Department. This case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
Randolph County man sentenced to more than 13 years for meth distribution and firearms violationRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Jesse White, of Montrose, West Virginia, was sentenced today to 160 months of incarceration for drug and firearms charges, Acting U.S. Attorney Randolph J. Bernard announced.
White, 40, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession of a Firearm in Furtherance of a Drug Crime” in September 2020. White admitted to having more than 5 grams of methamphetamine, also known as “ice” and “crystal meth” in October 2018 in Randolph County. White also admitted to having a .22 caliber revolver with him during the drug crime.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. District Judge Thomas S Kleeh presided.
Princeton Man Pleads Guilty to Federal Drug CrimeRead the Press Release
BLUEFIELD, W.Va. – Charles Boyett Mitchell, Jr., 35, of Princeton, pleaded guilty today to distribution of a quantity of cocaine.
According to court documents, Mitchell sold a quantity of cocaine to a confidential informant in Princeton on May 7, 2018. As part of the plea, Mitchell also admitted to distributing cocaine and methamphetamine on three other occasions, and to possessing a quantity of methamphetamine that he intended to distribute.
Mitchell faces up to 20 years in prison when he is sentenced on January 10, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Southern Regional Drug and Violent Crime Task Force. The Southern Regional Drug and Violent Crime Task Force is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Bluefield Police Department and the Princeton Police Department.
Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Timothy D. Boggess is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:21-cr-00089.
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Prentiss Man Sentenced to over Seven Years in Prison for Selling Firearms to a Convicted FelonRead the Press Release
Hattiesburg, Miss. – Marquis Jamal Buckley, 27, of Prentiss, was sentenced by U.S. District Judge Taylor B. McNeel to serve 87 months in the custody of the Bureau of Prisons, followed by three years of supervised release, for selling firearms to a convicted felon, announced Acting U.S. Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, on May 4, 2017, Buckley arranged to sell several firearms at an apartment in Hattiesburg. Buckley sold a Davis Industries .38 caliber derringer, a H&R .22 caliber revolver, and one FIE .22 caliber revolver to an individual for $600. Buckley had been previously advised by the individual that he was a convicted felon and was prohibited from possessing firearms.
Buckley pled guilty on April 7, 2021, to selling firearms to a convicted felon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Andrea Jones prosecuted the case.
Pope County White Supremacist Operative Convicted of RacketeeringRead the Press Release
LITTLE ROCK—A two-week federal jury trial has resulted in the conviction of the financial backer of a white supremacist gang for his involvement in a racketeering and drug conspiracy. Marcus Millsap, 54, of Little Rock, was found guilty on all counts when the jury returned their verdict late Friday afternoon. United States District Judge Brian S. Miller presided over the trial, and Judge Miller will sentence Millsap later.
Millsap was indicted in September 2019 for his involvement in a white supremacist prison gang known as the “New Aryan Empire,” or NAE. NAE’s slogan is “to the dirt,” referring to the fact that members must remain in the organization until they die. Millsap was charged with, and ultimately convicted of, conspiracy to violate racketeering influenced corrupt organization laws, or RICO, attempted murder in aid of racketeering, and drug conspiracy. Evidence at trial established that Millsap and others used the NAE as a corrupt organization to conduct racketeering activities including drug distribution, solicitations of murder, and attempted murder.
At trial, the prosecution presented evidence that in May 2014, Millsap sold methamphetamine to an individual named Bruce Hurley, who was working as a confidential informant. Once Hurley completed the controlled purchase of methamphetamine and reported back to law enforcement, a traffic stop located more methamphetamine in Millsap’s vehicle. Millsap was convicted in the methamphetamine case, and while on an appeal bond, Millsap solicited members and associates of NAE to kill Hurley for his work in cooperating with law enforcement against Millsap. In January 2016, other NAE members attempted to murder Hurley. That attempt failed, and NAE members and associates continued attempting to arrange Hurley’s death. This conduct resulted in Millsap’s conviction Friday for attempted murder in aid of racketeering.
Another 54 defendants were indicted in the case, all of whom have pleaded guilty except for Millsap and Troy Loadholt, who is currently a fugitive. While some defendants are still awaiting sentencing, the highest sentence so far has been given to Wesley Gullett, who was the President of the New Aryan Empire. Gullett was sentenced to 35 years imprisonment.
“The United States will not tolerate the vile and outrageous crimes committed by members and associates of the New Aryan Empire or any other white supremacist group,” said Jonathan D. Ross, Acting United States Attorney for the Eastern District of Arkansas. “If you are a member or associate of this or any other violent criminal organization, know that the United States will stop at nothing to dismantle and disrupt those who pose a threat to our communities and the future of our children.”
The statutory penalty for conspiracy to violate racketeering laws is up to life imprisonment. The statutory penalty for attempted murder in aid of racketeering is up to 10 years imprisonment. The statutory penalty for conspiracy to possess with intent to distribute methamphetamine, based on the amount of methamphetamine involved in the case, is a minimum of 15 years and up to life imprisonment.
The investigation included the Bureau of Alcohol, Tobacco, and Firearms; the Drug Enforcement Administration; the Federal Bureau of Investigation; the Pope County Sheriff’s Office; the Russellville Police Department; the U.S. Marshals Service; the U.S. Postal Inspection Service; the Arkansas State Police; 5th Judicial Drug Task Force; the Conway Police Department, and the Arkansas Army National Guard’s Counterdrug Unit. The case was prosecuted by Assistant United States Attorneys Liza Brown and Stephanie Mazzanti.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Pharmacy Owner Pleads Guilty to Federal Charge Involving theVaccination of Minors Under 12 with the Pfizer-BioNTech Covid-19 VaccineRead the Press Release
SAN JUAN, Puerto Rico – Liz Ann Banchs, the owner and president of Farmacia Gabriela, Inc. was charged and pleaded guilty on September 24, 2021 to participating in a felony conspiracy to convert government property and to commit health care fraud in connection with the illegal vaccination of minors between the ages of 7 to 11 with the Pfizer-BioNTech COVID-19 vaccine. The announcement was made by W. Stephen Muldrow, United States Attorney for the District of Puerto Rico and Scott Lampert, Special Agent in Charge for the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG), New York Regional Office.
From approximately May 28, 2021 through June 22, 2021, Liz Ann Banchs and employees of Farmacia Gabriela, Inc.’s pharmacy in Juana Díaz, Puerto Rico, conspired to knowingly and willfully administer the Pfizer-BioNTech COVID-19 vaccine to children 11 years old or younger and to submit corresponding Medicaid claims to MC-21. A total of twenty-four children aged 7-11 were administered the Pfizer-BioNTech COVID-19 vaccine, at full dosage, without lawful authority as a part of the conspiracy.
The Centers for Disease Control and Prevention (“CDC”) COVID-19 Vaccination Program required eligible pharmacies, like Farmacia Gabriela, Inc., to comply with all requirements established by the United States Food and Drug Administration (“FDA”), including the Emergency Use Authorization “EUA” which permitted the administration of the Pfizer-BioNTech COVID-19 vaccine to children aged 12 and older. Importantly, the EUA has not approved the administration of the Pfizer-BioNTech COVID-19 vaccine to children 11 years old and younger. As a result, the administration of the vaccine to children aged 7-11 represents an unauthorized and unlawful administration of the vaccine. The Pfizer-BioNTech COVID-19 vaccine batches at issue were the property of the United States government and were illegally converted without authority from the United States. Similarly, Farmacia Gabriela, Inc. was not permitted to submit claims to MC-21, the Pharmacy Benefit Manager for Medicaid in Puerto Rico, for the unlawful and unauthorized administration of the Pfizer-BioNTech COVID-19 vaccine to children aged 7-11.
Banchs’ unlawful activity was identified quickly by the Puerto Rico Department of Health and the COVID-19 vaccination program at Farmacia Gabriela, Inc. was subsequently suspended. No serious medical conditions have been identified to date as a result of the illegal vaccination program and all funds received for the corresponding Medicaid billings have been voluntarily returned to the United States. In conjunction with pleading guilty, Banchs has voluntarily agreed to be excluded as a provider for Medicare, Medicaid, and all federal health care programs for a period of five years.
“Pharmacists rank among the most trusted professionals,” said U.S. Attorney Muldrow. “This individual used her special access to illegally vaccinate children under the age of 12 years old putting their health at risk. The Department of Justice will continue to work with its law enforcement partners to ensure the public receives safe and effective vaccines.”
Special Agent in Charge Scott J. Lampert said, “HHS-OIG and our law enforcement partners are committed to helping the country get through the COVID-19 public health crisis, but the safety of our citizens comes first, especially when we are dealing with keeping children safe. There are clear guidelines set forth by our nation’s public health agencies regarding who is eligible to receive the COVID-19 vaccine at this time. We will not stray from our mission to protect the public and the federal health care programs that serve them.”
Banchs faces a maximum penalty of 5 years in prison, a fine of up to $250,000, and three years of supervised release.
The case was investigated by the HHS-OIG with the collaboration of the Puerto Rico Department of Health Office of Investigations, the Puerto Rico Medicaid Fraud Control Unit, the Puerto Rico Department of Justice Economic Crimes Unit, the United States Food and Drug Administration, Pfizer Global Security & Compliance Division, and the MC-21 Benefit Integrity Unit. The case was prosecuted by Assistant United States Attorney Seth A. Erbe, Chief of the Financial Fraud and Public Corruption Section at the United States Attorney’s Office.
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Northeastern Iowa Man Sentenced to Federal Prison for Guiding and Outfitting Illegal Deer HuntsRead the Press Release
A Northeastern Iowa man who guided and outfitted illegal deer hunts was sentenced on September 23, 2021, to federal prison. Cory Gene Fritzler, age 46, from Lansing, Iowa, received the prison term after a March 18, 2021 guilty plea to one count of conspiracy.
Evidence at Fritzler’s plea, sentencing, and other hearings established that Fritzler operated a guiding and outfitting business in Northeastern Iowa known as “NE Iowa Outfitters.” The Northeastern Iowa region is nationally recognized as a prime geographic area for hunting mature whitetail buck deer. Hunters travel to Northeastern Iowa from all over the United States to hunt high value, mature buck deer with large antlers. The demand for out-of-state hunting licenses, however, greatly exceeds the supply.
During the 2015 hunting season, Fritzler agreed to conduct an illegal hunt with two hunters from Florida who were actually undercover law enforcement officers. The agreed-upon cost of the illegal five-day hunt was $3,450 per person, plus an additional $500 per person for illegal licenses that Fritzler provided. Fritzler recruited others to participate in the illegal hunting scheme by applying for and receiving Iowa hunting licenses and tags to cover the deer.
That same hunting season, Fritzler legally provided guiding and outfitting services to two non-resident hunters from Louisiana. In 2015, one of the hunters shot a valuable “double drop tine buck” but wounded this deer in its backside only. When the hunters did not obtain out-of-state licenses the next year to obtain this deer, known as “the Monster Buck,” Fritzler accepted $3,450 from the hunters to guide and outfit their illegal hunts during the 2016 hunting season. Fritzler instructed the Louisiana hunters to tell people, falsely, that they were hunting in a public area in Wisconsin to hide the fact that they were illegally hunting on Fritzler's ground in Iowa. When questioned by law enforcement, Fritzler and the Louisiana hunters falsely stated they were hunting in Wisconsin. In the ensuing months, Fritzler later encouraged the Louisana hunters to continue to “stick to their story” as law enforcement was investigating the case.
Fritzler was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Fritzler was sentenced to two months’ imprisonment, two months of home detention, and fined $5,000. Fritzler must also serve a one-year term of supervised release after the prison term. There is no parole in the federal system.
Fritzler was released on the bond previously set and is to surrender to the Bureau of Prisons on a date yet to be set. The case was prosecuted by Assistant United States Attorney Tim Vavricek and investigated by the United States Fish and Wildlife Service, the Iowa Department of Natural Resources, and the Florida Fish and Wildlife Conservation Commission.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-1034.
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New York Man Sentenced for Heroin and Crack TraffickingRead the Press Release
BANGOR, Maine: A Rochester, New York man was sentenced today in U.S. District Court in Bangor for conspiring to distribute heroin and cocaine base, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Quinton Spinks, aka “Q,” aka “Travis,” 37, to 115 months in prison and three years of supervised release. Spinks pleaded guilty in August 2019.
According to court records, between November 2016 and September 2017, Spinks conspired with others from Rochester and central Maine to distribute heroin and crack. The drugs were acquired in Rochester and Spinks and others distributed the drugs in Augusta and surrounding communities.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; and the Maine Drug Enforcement Agency investigated the case, with significant assistance provided by the Maine State Police. The case is being prosecuted as part of the Department of Justice’s program to combat the opioid epidemic.
Miami Man Sentenced for Healthcare Fraud Kickback SchemeRead the Press Release
ABINGDON, Va. – A Miami, Florida man was sentenced last week to five months in prison and five months of home confinement for conspiring with another man to pay and receive kickbacks. In addition to home confinement, he will pay $66,000 in monetary penalties and will be permanently excluded from participating in federal healthcare programs.
According to court documents, Michael Olshavsky, conspired to receive and pay kickbacks to encourage urine drug screen testing performed by a lab in Florida. Some of the testing referred to the lab was paid for by Medicare, Virginia Medicaid, and TennCare. Co-conspirator John Linke was sentenced last week to three months home confinement.
“Using an opioid treatment practice to defraud federal and state health care programs is unconscionable and a serious federal crime,” Acting U.S. Attorney Daniel P. Bubar said today. “Investigating and prosecuting those who seek to commit health care fraud and illegally profit from the opioid crisis remains a top priority of this office. I appreciate the great work and assistance from our many state and federal partners, whose hard work brought Olshavsky to justice.”
“Healthcare providers who defraud the system are not only stealing from Medicaid and Medicare, but they are also stealing from taxpayers,” said Attorney General Mark Herring. “Virginians should be able to trust their healthcare providers to make decisions in a patient’s best interest, without any kind of outside influence or monetary gain. I want to thank my Medicaid Fraud Control Unit for their hard work on this case, as well as our local, state, and federal partners who continue to help my team hold individuals accountable when they defraud our healthcare system.”
“Those who seek to profit from the opioid crisis through illegal schemes make the problem worse,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who, through their dishonesty, jeopardize the public health.”
Between November 30, 2015, and May 30, 2016, Linke was employed at an office-based opioid treatment program that used medication-assisted treatment for patients suffering from substance use disorder. In exchange for being paid $5,000 per month, Linke arranged for the clinic to send urine drug screen samples to the laboratory in Florida where Olshavasky worked. These payments were disguised as commissions paid to Linke as an “independent sales representative” for Olshavsky’s company, Encore Holdings LLC. Olshavasky paid Linke at least $16,000 through Encore Holdings to direct WRC’s drug screening business to the Florida lab, although Linke was not actually an independent sales representative for Encore, and he did not act as such.
The Virginia Medicaid Fraud Control Unit, the Drug Enforcement Administration, the Food and Drug Administration Office of Criminal Investigations, the Department of Health and Human Services—Office of Inspector General, the Tennessee Bureau of Investigation, and the Virginia State Police investigated the case.
Special Assistant United States Attorney Janine M. Myatt and Assistant United States Attorneys Randy Ramseyer and Whit Pierce prosecuted the case for the United States.
Media Advisory: Press Conference to Announce Project Safe Neighborhood Gun Charges and Arrests in Waterloo, IowaRead the Press Release
CEDAR RAPIDS, IA – There will be a press conference held on Wednesday, September 29, 2021, at 11:00 a.m. at the United States Attorney’s Office in the federal courthouse, 111 Seventh Ave SE, in Cedar Rapids. Representatives from the United States Attorney’s Office and federal and local law enforcement agencies, including the Waterloo Police Departments, the Federal Bureau of Investigation, the Bureau of Alcohol Tobacco, Firearms, and Explosives, and the United States Marshal’s Service will be present at the press conference.. The purpose of the press conference is to announce more than a dozen recent Project Safe Neighborhood gun charges and arrests in Waterloo.
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
Event Details
When: September 29, 2021
Where: Cedar Rapids Federal Courthouse (United States Attorney’s Office), 111 Seventh Ave. SE
Time: 11:00 a.m.
A press release will be provided and interview opportunities will be available.
Please RSVP to Tony Morfitt at [email protected] if you plan to attend.
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Manhattan U.S. Attorney Announces $72.6 Million Settlement of Fraud Lawsuit Against Wells Fargo Bank for Overcharging Foreign Exchange Customers over Seven YearsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Michael J. Driscoll, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that the United States has simultaneously filed and settled a civil fraud lawsuit against Wells Fargo Bank, N.A. (“Wells Fargo” or the “Bank”) alleging that it violated the Financial Institutions Reform Recovery and Enforcement Act (“FIRREA”) by fraudulently overcharging hundreds of commercial customers, many of them small and medium-sized businesses and federally-insured financial institutions, who used the Bank’s foreign exchange (“FX”) service. Specifically, the United States alleged that, from 2010 through 2017, Wells Fargo FX sales specialists defrauded 771 customers by systematically charging them higher markups on FX transactions than they represented the Bank would charge, and concealing these overcharges through various misrepresentations and deceptive practices.
As part of the settlement, approved today by U.S. District Judge John G. Koeltl, Wells Fargo will pay a total of approximately $72.6 million, with approximately $35.3 million having been paid directly to the 771 customers collectively as restitution and approximately $37.3 million to be paid to the United States as civil penalties under FIRREA and as asset forfeiture. Wells Fargo also made extensive admissions of certain conduct alleged in the Government’s complaint, including that many FX sales specialists overcharged hundreds of commercial customers by applying larger sales margins or spreads than they represented they would, and that, in certain instances, when customers contacted the Bank to inquire about higher-than-agreed-upon pricing, FX sales specialists would give customers false explanations for the inflated prices.
U.S. Attorney Audrey Strauss said: “We all put trust in our banking institutions to deal with us honestly, fairly, and transparently when we are their customers. For the better part of a decade, Wells Fargo abused this trust, using tricks, false information, and other deceptive practices to fraudulently overcharge customers who used the Bank’s foreign exchange service. This settlement, which requires Wells Fargo to make its customers whole for their losses and pay a substantial penalty, sends a strong message to the banking industry that financial institutions who take advantage of their customers will be held to account.”
As alleged in the Government’s complaint:
During 2010 through 2017 (the “Covered Period”), Wells Fargo offered FX services to commercial customers located throughout the United States, such as converting the customers’ US dollars into foreign currency for outgoing wire transfers and converting incoming wire transfers of foreign currency into U.S. dollars. Wells Fargo profited from these transactions by marking up the prices on currency it was selling to and marking down the prices on currency it was buying from its customers. Wells Fargo employees referred internally to this currency mark-up as a “spread” or “sales margin.” Wells Fargo FX sales specialists frequently entered into agreements with the Bank’s customers pursuant to which they represented that the Bank would charge specific spreads or sales margins on their FX transactions. These agreements, referred to internally as “fixed-pricing agreements,” were both written and oral in nature.
During the Covered Period, Wells Fargo defrauded 771 of its commercial customers with fixed-pricing agreements, many of them small or medium-sized companies and federally-insured financial institutions, by falsely representing to the customers that the Bank would charge specific fixed FX spreads on FX transactions, when, in fact, Wells Fargo was surreptitiously and systematically charging significantly higher spreads and pocketing tens of millions of dollars in ill-gotten FX revenue. By financially incentivizing its FX sales specialists to overcharge FX customers while failing to take steps to ensure that FX sales specialists honored pricing representations, Wells Fargo created an atmosphere in which employees openly joked about and celebrated taking advantage of the Bank’s customers.
Wells Fargo FX sales specialists used a variety of misrepresentations and deceptive practices to defraud customers. For example, instead of applying agreed-upon fixed spreads to customers’ outgoing wires, FX sales specialists would charge inflated spreads that were as large as the FX sales specialists thought they could get away with. Furthermore, rather than charging the agreed-upon fixed spread to the FX market rate at the time the outgoing wire was converted, FX sales specialists would select the best rate for the Bank and worst rate for the customer from the FX price fluctuations from the beginning of the trading day until the time of the transaction. This practice was referred to internally as “Range of Day” Pricing.
In addition, FX sales specialists sometimes would give customers fictitious underlying FX market rates and spread calculations to create the false impression that Wells Fargo was complying with pricing representations when that was not the case. Other times, FX sales specialists would make intentional “errors” to the exchange rate given to a customer to make the Bank’s spread much larger. If caught, the FX sales specialist would falsely claim that digits in the price had been mistakenly transposed. This practice was known as the “Big Figure Trick.”
FX sales specialists also at times would charge a customer different spreads depending on which customer representative initiated the transaction. Because Wells Fargo’s online FX service tracked user identities, FX sales specialists would impose larger spreads on transactions initiated by those representatives thought to be less sophisticated or experienced in FX trading. This practice was known internally as “User-Based Pricing.”
FX sales specialists frequently would apply an even more egregious form of Range of Day pricing to customers’ incoming wire transfers, called “BSwift” wires. Because Wells Fargo generally did not notify customers when they received incoming wires of foreign currency or when those wires were converted, FX sales specialist could wait until the end of the day and select the best rate for the Bank and worst rate for the customer from price fluctuations throughout the entire trading day. One FX specialist called this practice the “BSwift Pinata.”
As part of the settlement, Wells Fargo admitted and accepted responsibility for the following conduct:
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- During the Covered Period, many FX sales specialists overcharged hundreds of commercial customers by applying larger sales margins or spreads to customer FX transactions than they represented they would.
- Wells Fargo received millions of dollars from customers to which the Bank was not entitled.
- FX sales specialists internally discussed and even celebrated transactions resulting in larger FX spreads than agreed to with customers or transactions generating large FX revenue. For example, FX sales specialists on Wells Fargo’s San Francisco FX desk would celebrate transactions with large spreads or sales margins by ringing a bell located on the trading floor. Other FX sales specialists would use expressions such as, “back the truck up,” and “when in doubt, spread them out,” to jokingly describe how Wells Fargo and its FX sales specialists were making money on transactions by charging large FX spreads, including larger FX spreads than agreed to with customers.
- Wells Fargo’s own internal CMR database indicated that FX sales specialists were charging customers FX spreads that were higher than those the Bank had represented. Certain CMR notes reflected that while a customer thought it would receive the rate that the Bank had represented to the customer, the Bank in fact charged the customer undisclosed higher spreads. For example, an FX sales specialist stated in one CMR note concerning Customer A that there was an “agreement w/the customer” to charge “25 pips [points in percentage]on spot trades” but that the Bank would “take 30-35 . . . if possible.”
False Information
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- In certain instances, when customers contacted the Bank to inquire about higher-than-agreed-upon pricing, FX sales specialists would give false explanations for the prices such as “time fluctuations” or other supposed events in the market.
- In a few cases, FX sales specialists provided customers false transaction data. In one instance, an FX sales specialist represented to Customer E that it would charge a spread of 5 basis points on certain BSwift wire transactions. Contrary to this agreement, the Bank actually charged higher spreads on a series of FX transactions. Then, in email correspondence with representatives of Customer E, the FX sales specialist provided inaccurate market rate information to the customer to make the FX spread falsely appear consistent with the agreement terms.
The Big Figure Trick
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- For some customers, FX sales specialists also used what they internally called the “big figure trick” or the “transposition error game” to increase the FX sales margin by switching digits in the price of the transactions in a way that would cost customers more money. For example, if the correct hypothetical price to purchase a Euro was 1.0123 dollars, an FX sales specialist would use the big figure trick to switch the price to 1.0213 dollars, thus taking more spread (in this example, an additional 89 basis points) from the customer.
- If caught by the customer, the FX sales specialist would claim that it was simply a mistake of adjusting the wrong digit in the price. One FX sales specialist explained, “You can play the transposition error game if you get called out.” Another FX sales specialist noted to a colleague about a previous transaction that a customer “didn’t flinch at the big fig the other day. Want to take a bit more?”
User-Based Pricing
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- At times, Wells Fargo’s FX sales specialists charged the same customers different spreads depending on which representative of the customer happened to be involved in executing the trade. Specifically, Wells Fargo’s FX sales specialists would charge larger spreads on transactions requested by certain customer representatives thought to be less sophisticated or experienced in FX trading.
BSwift Piñata
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- As noted above, because Wells Fargo generally did not provide immediate notice to customers when they received incoming wires, known as BSwifts, Wells Fargo’s FX sales specialists took advantage of this time delay to charge higher spreads than the Bank had represented it would.
- An FX sales specialist in a written instant message to another sales specialist referred to the Bank’s pricing of BSwift wire transfers as the “BSWIFT pinata.” An additional FX sales specialist noted in a recorded call that she preferred to book her own BSwifts to stretch the spread and could take more spread because she was doing the pricing herself. She observed that she could “dance around it” if the customer called with questions.
- Another FX sales specialist observed in an internal email communication that customers would not notice higher spreads on BSwift wires. He wrote, after noting that he “bumped spreads up a pinch,” that “these clients who are in the mode of just processing wires will most likely not notice this slight change in pricing” and that it “could have a very quick positive impact on revenue without a lot of risk.”
Financial Incentives and Lack of Meaningful or Effective Oversight
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- Wells Fargo incentivized its FX sales specialists to generate FX sales revenue by tying their bonuses exclusively to the amount of sales revenue they generated for the Bank from FX transactions. Specifically, before 2017, Wells Fargo paid bonuses to FX sales specialists based upon the percentage of the FX sales revenue that each FX sales specialist and FX desk generated. Each year during the Covered Period, Wells Fargo paid hundreds of thousands of dollars in bonuses to various FX sales specialists based on FX revenue. Some FX sales specialists received bonus compensation exceeding $1 million in a single year.
- Prior to 2017, Wells Fargo failed to put meaningful or effective safeguards in place to ensure that FX sales specialists priced customer FX transactions in accordance with the terms represented in fixed-pricing agreements. For example, during the Covered Period, Wells Fargo: (i) had no meaningful or effective policies or procedures governing how fixed-pricing agreements should be negotiated, memorialized, recorded, or implemented; (ii) provided no training to FX sales specialists concerning fixed-pricing agreements; (iii) had no meaningful or effective process to systematically track the existence or terms of fixed-pricing agreements; (iv) had no systemic process in place to monitor whether FX sales specialists were pricing FX transactions in a manner that was consistent with fixed-pricing agreements; (v) did not implement any electronic safeguards that would have prevented FX sales specialists from pricing transactions in a manner that deviated from fixed-pricing agreements; and (vi) did not conduct any audits or reviews of FX transactions to determine whether FX pricing matched fixed-pricing agreements until 2017.
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In the settlement, Wells Fargo acknowledged that it took adverse employment actions against more than 20 Wells Fargo employees who were involved in the FX business, including various disciplinary actions and separation of employment, and affirmed that it has taken various steps in an effort to comply with industry FX best practices.This matter was initially brought to the Government’s attention by a whistleblower who filed a confidential declaration with the U.S. Department of Justice pursuant to the Financial Institutions Anti-Fraud Enforcement Act.
Ms. Strauss praised the investigative work of the FBI.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Lawrence H. Fogelman and Pierre G. Armand are in charge of the case, and Assistant U.S. Attorney Alex Wilson of the Money Laundering and Transnational Criminal Enterprises Unit is responsible for the forfeiture aspects of the case.
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Man admits burglary on Fort Peck Indian ReservationRead the Press Release
GREAT FALLS – A Mississippi man accused of breaking into a residence on the Fort Peck Indian Reservation and threatening individuals admitted to charges today, Acting U.S. Attorney Leif M. Johnson said.
Dejarreh La’Kean Talley, also known as “DJ” Talley, 23, of Philadelphia, Mississippi, pleaded guilty to burglary. Talley faces a maximum 20 years in prison, a $50,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Dec. 30. Talley was detained pending further proceedings.
The government alleged in court documents that at about 5:30 a.m. on June 30, 2020, law enforcement responded to a 911 call that someone had kicked in the door of a Poplar residence, on the Fort Peck Indian Reservation. An individual at the residence reported that Talley had kicked in a door, held a baseball bat in his hands, punched the individual in the face and threatened others. Law enforcement interviewed Talley, who admitted to kicking in the door but denied having a bat, striking the individual and threatening anyone.
Assistant U.S. Attorney Ethan R. Plaut is prosecuting the case, which was investigated by the FBI and Fort Peck Law Enforcement.
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Madera County Woman Sentenced for Dealing Heroin that Caused Overdose DeathRead the Press Release
FRESNO, Calif. — Ashley Michelle Hill, 33, of Coarsegold, was sentenced today to 11 years and three months in prison for selling heroin that resulted in the overdose death of another Coarsegold resident, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 22, 2019, Hill and Georgia Nicole Dean, 38, of Coarsegold, drove to the victim’s residence because he had contacted Dean asking for heroin. They arrived after midnight and met with the victim outside his residence on the street. Hill gave approximately .3 grams of heroin and a syringe to Dean, who then gave it to the victim. The victim died later that day as a result of using that heroin.
On April 19, 2021, Dean was sentenced to 12 years in prison for distributing heroin.
This case was the product of an investigation by the Madera County Sheriff’s Office, the Fresno Police Department, and the Drug Enforcement Administration. Assistant U.S. Attorneys Kathleen A. Servatius and Justin J. Gilio prosecuted the case.
Jury Convicts Clarksville Doctor of 36 Counts Related to Pill Mill OperationRead the Press Release
NASHVILLE – A federal jury on Friday, completed its deliberations in the case of Dr. Samson Orusa, 59, of Clarksville, Tennessee, who was convicted last month of federal drug charges, healthcare fraud, money laundering, and illegally distributing oxycodone at his medical practice, announced Acting U.S. Attorney Mary Jane Stewart for the Middle district of Tennessee.
After finding Orusa guilty in August of 36 of the 45 counts, the jury returned on Friday to hear evidence supporting the forfeiture of the ill-gotten proceeds of the crimes. After deliberations, the jury determined that five bank accounts, one annuity and one 401K, with a combined value of more than $918,000 was subject to forfeiture, and also a 2017 Mercedes Benz.
Following a two-week trial, Dr. Orusa was convicted on August 13, 2021, of maintaining a drug-involved premise, 13 counts of unlawfully distributing controlled substances without a legitimate medical purpose and outside the bounds of professional medical practice, 13 counts of health care fraud, seven counts of money laundering, and two counts of laundering more than $10,000 of criminally derived property. The jury acquitted Dr. Orusa of nine counts of illegal distribution of oxycodone.
“Physicians like Dr. Orusa who violate their oath and engage in such reckless conduct and contribute to the opioid epidemic facing this nation can expect to bear the full force and effect of the federal justice system,” said Acting U.S. Attorney Stewart. “I commend our prosecutors and law enforcement partners for their exceptionally hard work in thoroughly investigating this case and preparing it for a successful prosecution.”
Dr. Orusa was initially charged in a 45-count indictment handed down in December 2018. The evidence at trial established that Dr. Orusa, while operating a pain clinic in Clarksville, routinely prescribed oxycodone and other Schedule II controlled substances without obtaining the patient’s prior medical history, performing a physical examination, or ordering diagnostic tests of patients. Evidence also established that two patients overdosed while inside Dr. Orusa’s clinic.
Trial testimony from former employees and patients described a standing room only lobby area at Orusa’s clinic, along with an unsanitary public bathroom. Patients with insurance coverage were forced to visit the clinic four to six times a month and undergo cortisone shots to receive pain medication and Dr. Orusa threatened to withhold pain management prescriptions from those who refused the injections. Cash paying patients generally were not required to accept injections in order to receive prescriptions. Due to the excessive number of controlled substance prescriptions, Walmart and CVS pharmacies refused to fill prescriptions written by Dr. Orusa.
Other evidence and testimony established that Orusa conducted financial transactions designed to disguise the nature of the unlawful activity and that he transferred proceeds of the unlawful activity to foreign bank accounts; used clinic proceeds to make a $12,451.00 down payment on a Mercedez-Benz; and wrote a check for the purchase of $100,000 in securities.
In one instance, Dr. Orusa billed Medicare for services he claimed to have provided to 57 patients in a single day despite being at the clinic for less than six hours.
Orusa faces up to 20 years in prison on each drug-related count and up to 10 years in prison on each healthcare fraud and money laundering count. A sentencing date has not yet been scheduled.
This case was prosecuted by the U.S. Drug Enforcement Administration; the U.S. Department of Health & Human Services Office of Inspector General; the IRS-Criminal Investigation; the Tennessee Bureau of Investigation; the Clarksville Police Department; and the 19th Judicial District Drug Task Force.
Assistant United States Attorneys Stephanie N. Toussaint and Miller A. Bushong prosecuted the case.
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Judge sentences St. Louis County business owner to 18 months in federal prison for tax fraudRead the Press Release
Charles, Missouri to 18 months in prison today. Additionally, Windsor was ordered to pay restitution in the amount of $304,296. The defendant had previously been found guilty during a four-day jury trial in May.
The evidence during the trial proved Windsor was the owner of a St. Louis County company that produced mass mailers for its customers. During the years 2013 and 2014, large sums of money, which were business receipts, were deposited into Windsor’s personal bank account. These funds were payments from only one client. All other business receipts from other company customers were deposited in Windsor’s business account. Many of the sales which were deposited into Windsor’s personal account were not reported on his tax returns. This methodology caused the gross receipts to be underreported on Windsor’s tax documentation in years 2013 and 2014. Thus, Windsor assisted in the preparation of personal tax returns that were fraudulent.
The Internal Revenue Service investigated this case which was prosecuted by Assistant United States Attorney Anthony Box.
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Jefferson County man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Antonio Junior Guerrero, of Ranson, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Guerrero, also known as “Mula,” 29, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Twenty-Eight Grams or More of Cocaine Base.” Guerrero admitted to working with others to distribute 28 grams or more of cocaine base from July 2018 to June 2021 in Jefferson County and elsewhere.
Guerrero faces at least five years and up to 40 years of incarceration and fine of up to $5,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; U.S. Marshals Service; Homeland Security Investigations; the West Virginia Air National Guard; the Eastern Panhandle Drug Task Force, a HIDTA-funded initiative; the West Virginia State Police, the DEA Task Force Montgomery County, Maryland; and the Frederick, Maryland, HIDTA group investigated. The EPDTF consists of the West Virginia State Police, Berkeley County Sheriff’s Office, the Jefferson County Sheriff’s Office, Ranson Police Department, the Charles Town Police Department, and the Martinsburg Police Department.
U.S. Magistrate Judge Robert W. Trumble presided.
Illinois woman admits to counterfeit chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Asante James, of Freeport, Illinois, has admitted to a counterfeit charge, Acting United States Attorney Randolph J. Bernard announced.
James, 21, pleaded guilty to one count of “Possession of Counterfeit Obligations.” James admitted to having 69 $100 counterfeit bills in December 2020 in Ritchie County.
James faces up to 20 years of incarceration and a fine of up to $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The United States Secret Service, the Ritchie County Sheriff’s Office, and the South Charleston Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Illinois Man Charged with Stealing Unemployment Insurance Benefits While IncarceratedRead the Press Release
NEWARK, N.J. – An Illinois man was arrested today for allegedly using other individuals’ personal identification information to obtain unemployment insurance benefits while he was incarcerated, Acting U.S. Attorney Rachael A. Honig announced.
Devontae Stokes, 27, of Country Club Hills, Illinois, is charged by complaint with conspiracy to commit wire fraud. He is scheduled to appear this afternoon by videoconference before U.S. Magistrate Judge Jeffrey Cole in the Northern District of Illinois.
According to documents filed in this case and statements made in court:
On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was signed into law. The CARES Act created a new, temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA), which provided unemployment insurance benefits (UIB) for individuals who were not eligible for other types of unemployment (e.g., the self-employed, independent contractors, gig economy workers). The CARES Act also created a new temporary federal program called Federal Pandemic Unemployment Assistance (FPUC) that provided an additional weekly benefit to those eligible for PUA and regular UIBs.
Between August 2020 and November 2020, Stokes was incarcerated at FCI Fort Dix, a federal correctional institutional with an adjacent satellite camp located in Fort Dix, New Jersey. While incarcerated, Stokes and his associates caused UIB applications to be made to numerous states in the names of three victims. In response, the states provided more than $70,000 in UIB.
The charge of conspiring to commit wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits to Stokes or twice the gross loss suffered to the victims of his offense.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Jonathan Mellone, in Manhattan, New York; special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark; special agents with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, in Newark; and special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s arrest. She also thanked Federal Bureau of Prisons personnel at Fort Dix for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cyber Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Huntington Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Huntington man was sentenced today to 70 months in prison for possession with the intent to distribute heroin.
According to court documents and statements made in court, Cecil Monroe Bowman, 66, was pulled over by the West Virginia State Police on October 14, 2020. After giving Troopers consent to search his vehicle, Troopers found 23 grams of heroin under the driver’s seat. Bowman admitted he intended to sell the heroin.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration, the Violent Crime and Drug Task Force West, and the West Virginia State Police.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Stephanie S. Taylor handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00081.
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Huntington Felon Pleads Guilty to Possessing FirearmRead the Press Release
HUNTINGTON, W.Va. – Kevan Curry, 49, of Huntington, pleaded guilty today to being a felon in possession of a firearm.
According to the plea agreement and statements made in court, officers with the Huntington Police Department executed a search warrant on November 18, 2020, at Curry’s residence on 20th Street in Huntington. Law enforcement officers seized a Comanche III .357 magnum revolver, a Browning .40 caliber handgun, and an American Tactical AR-15 rifle. Curry was prohibited from possessing firearms under federal law because of a 2009 felony conviction for conspiracy in Cabell County Circuit Court.
Curry faces up to 10 years in prison when he is sentenced on January 10, 2022.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the plea hearing. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00114.
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Hillsboro Man Sentenced to Federal Prison for Mail and Identity Theft SchemeRead the Press Release
PORTLAND, Ore.—A Hillsboro, Oregon man was sentenced to federal prison today for stealing hundreds of pieces of residential mail throughout the Portland Metropolitan Area and using the personal identity of one local resident to purchase a luxury car.
Dwayne Leroy Daan, 42, was sentenced to 90 months in federal prison and three years’ supervised release.
According to court documents, between February and May 2020, Daan stole more than 800 pieces of mail from residences in Portland, Beaverton, West Linn, Milwaukee, and Hillsboro, Oregon. Some of the mail was stolen using a counterfeit U.S. Postal Service arrow key. On April 20, 2020, Daan used the stolen identity of a local resident to obtain a line of credit and purchase a 2018 Audi for $51,031 from a car dealership in Milwaukee.
On July 16, 2020, a federal grand jury in Portland returned a four-count indictment charging Daan with possessing stolen mail and a counterfeit U.S. Postal Service arrow key. Later, on June 29, 2021, a superseding criminal information added felony charges for bank fraud and aggravated identity theft.
On July 1, 2021, Daan pleaded guilty to possessing stolen mail and a counterfeit U.S. Postal Service arrow key, bank fraud, and aggravated identity theft.
A restitution hearing has been scheduled for December 20, 2021.
As part of a global resolution, Daan's federal prison sentence will run concurrently with a sentence previously imposed in Washington County Circuit Court and a sentence to be imposed in Multnomah County Circuit Court for similar conduct. The Clackamas County District Attorney’s Office will dismiss charges pending against Daan as part of this resolution. Daan will serve his entire sentence in federal prison.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Postal Inspection Service with assistance from Homeland Security Investigations, the Portland Police Bureau, West Linn Police Department, and Hillsboro Police Department. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon with assistance from the Multnomah, Clackamas, and Washington County District Attorney’s Offices.
Hartford Man Sentenced to More Than 3 Years in Federal Prison for Possessing Sawed-Off ShotgunRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that KEVIN BARCO, 37, of Hartford, was sentenced today by U.S. District Judge Stefan R. Underhill in Bridgeport to 39 months of imprisonment, followed by three years of supervised release, for illegally possessing a sawed-off shotgun.
According to court documents and statements made in court, on October 6, 2018, Hartford Police encountered Barco sitting in a car that was parked on Albany Avenue. A subsequent search of the car revealed a Harrington and Richardson, Model 176, 10 gauge shotgun with a sawed-off barrel. Eight shotgun shells were also found in the car.
Barco’s criminal history includes state convictions for felony weapon, robbery, larceny and escape offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
On July 17, 2020, Barco pleaded guilty to one count of possession of a firearm by a felon.
Barco, who is released on $50,000 bond, is required to surrender to the U.S. Marshals Service on October 1 to begin serving his sentence.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Hartford Police Department. The case was prosecuted by Assistant U.S. Attorney Ray Miller.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fresno County Man Sentenced to over 5 Years in Prison for Illegal Possession of AmmunitionRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Alejandro Chavarria, 34, of Mendota, on Friday, Sept. 24, to five years and four months in prison for being a felon in possession of ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Oct. 10, 2020, Chavarria was arrested in Oakhurst in possession of a handgun with a loaded extended magazine, two disassembled AR-style rifles, and numerous rounds of ammunition. Chavarria attempted to flee from police at the scene. Chavarria has been convicted of attempted carjacking, drug possession and robbery, and is prohibited from possessing firearms and ammunition. He was on parole for robbery at the time of his arrest.
This case was the product of an investigation by Homeland Security Investigations, the Fresno Police Department, the Madera County Sheriff’s Office, the Fresno County District Attorney’s Office, the Fresno County Sheriff’s Office, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorney Katherine Schuh prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Four Skilled Nursing Facility Entities Agree to Resolve Allegations of Americans with Disabilities Act ViolationsRead the Press Release
BOSTON – Four health care entities that operate and manage skilled nursing facilities have agreed to resolve allegations that their Massachusetts-based skilled nursing facilities denied admission to prospective residents because they were prescribed an FDA-approved medication for Opioid Use Disorder (OUD).
“Compliance with the ADA is mandatory, and the ADA protects people with recognized disabilities, such as Opioid Use Disorder,” said Acting United States Attorney Nathaniel R. Mendell. “Vindicating the right to treatment afforded by the ADA is important to my office – it is an effective way to prevent discrimination against disabled people and ensure fair access to treatment for those in recovery.”
The United States allege that CareOne Realty, LLC; Hebrew Senior Life, Inc.; Sheehan Health Group, LLC (which manages Laurel Ridge and Presentation Rehabilitation Centers); and Wingate Healthcare violated the Americans with Disabilities Act (ADA), the Rehabilitation Act and the Patient Protection and Affordable Care Act by denying admission to individuals because they were being treated with buprenorphine or methadone, medications used to treat OUD. Individuals receiving medication to treat OUD are generally considered disabled under federal civil rights laws. The individuals who were the subject of the complaints in these cases were seeking admission for health issues unrelated to their dependency, but also needed treatment for OUD.
Under the terms of the settlement agreement, these entities will, among other things, adopt a non-discrimination policy and provide training on the ADA and OUD to admissions personnel. The entities will also pay civil penalties totaling $55,000, of which $35,000 will be suspended and forgiven if the facilities comply with the terms of the agreement.
Since May 2018, the U.S. Attorney’s Office has settled with eight healthcare providers to resolve ADA violations arising from OUD treatment.
Acting U.S. Attorney Mendell of the District of Massachusetts made the announcement today. Assistant U.S. Attorney Sara Miron Bloom handled the matters.
Former Treasurer of the Detroit Fire Department Union Charged with Stealing over $220,000 in Union FundsRead the Press Release
DETROIT - The former Treasurer of the Detroit Fire Department Union (DFFA) has been charged in a federal criminal complaint with embezzling over $220,000 in union funds, announced Acting United States Attorney Saima Mohsin.
Joining Mohsin in the announcement were Timothy Waters, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
Verdine Day, age 62, is scheduled to appear in federal court this afternoon in connection with a federal criminal complaint charging her with bank fraud and wire fraud. The affidavit supporting the complaint states that Day was hired by the Detroit Fire Department in 1986. She worked as a firefighter, engineer, and held other positions in the union before she was elected by her peers to Treasurer of the DFFA in November 2015. She was Treasurer from December 2015 until her retirement from the DFFA and the City of Detroit in September 2019.
The affidavit further states that during the four years Day was Treasurer of the DFFA, she fraudulently obtained approximately $167,900.00 of union funds by (1) issuing checks in her name and then changing the name of the payee in the Union’s Quickbooks software (2) cashing checks which were voided by her in Quickbooks and (3) writing checks made payable to cash.
Day also used DFFA credit cards as her own personal credit cards while she was Treasurer and after she retired. In total, she charged approximately $52,143.65 in personal expenses using DFFA credit cards. Her purchases on DFFA credit cards included flights, hotel rooms, cruises, car insurance premiums, satellite and cable TV service, national and state parks fees, and furniture. For example, Day used a DFFA union credit card to charge $9,553 for a cruise with Royal Caribbean cruise lines in 2017. Day also used a union credit card to pay for another Royal Caribbean cruise costing $8,975 on the Liberty of the Seas in 2019. She used the union’s credit card to pay her bar bill at a casino in Ohio in May 2019 and for a meal at a Bubba Gump Shrimp Co. restaurant in Cozumel, Mexico in 2019.
Acting U.S. Attorney Saima Mohsin commended the work of the FBI and the Department of Labor in conducting this criminal investigation of a corrupt union officer and said, “This prosecution demonstrates that we will not tolerate union officers who abuse their authority and line their own pockets at the expense of the union’s membership. We will continue to work with our law enforcement partners to root out corruption and fraud involving unions.”
“Union officials are expected to serve with integrity, particularly when they are sworn to represent men and women who put their lives on the line every day to protect our communities,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “When a union official violates their position of trust, the FBI will continue to aggressively investigate these matters to ensure individuals are held accountable for their actions.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud involving labor unions. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
The case is being prosecuted by Assistant U.S. Attorney Sarah Resnick Cohen. The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Labor.
A complaint is only a charge and is not evidence of guilt. Trial cannot be held on felony charges in a complaint. Day is facing a maximum of 30 years in prison on the bank fraud charge and up to 20 years in prison on the wire fraud charge.
Final Defendants Sentenced in Federal Dog Fighting CaseRead the Press Release
The last four of 12 defendants convicted on federal dog fighting charges were sentenced today in Albany, Georgia, by the U.S. District Court for the Middle District of Georgia. Collectively, the court sentenced the defendants to a total of 272 months in prison.
On June 22, a federal jury convicted defendant Kizzy Solomon, 44, of Camilla, Georgia, of 15 counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture. Eleven other defendants previously pleaded guilty to various offenses related to their participation in a dog fighting ring.
“The injuries that dogs suffer in fights are horrible enough, but this case shows how the cruelty of the dog fighting industry goes far beyond the fighting pit,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to vigorously prosecute those who engage in these crimes.”
“Dog-fighting is vicious and illegal; it is also a breeding ground for other dangerous criminal activity that undermines the safety of our communities,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will not tolerate dog-fighting; we will continue to work with our law enforcement partners to hold offenders accountable with federal prosecution.”
“The cruelty exhibited by these individuals has left a stain on the human psyche of our civilization” said Special Agent in Charge Jason Williams of the U.S. Department of Agriculture-Office of Inspector General (USDA-OIG). “This collaborative effort with our local and federal partners demonstrates that wherever you are, you will be held accountable to the fullest extent of the law.”
The individual prison sentences imposed by the court are:
- Germany Brockington, 34, of Ambrose, Georgia – 7 months
- Kevin Charles, also known as “Trinidad,” 45, of Jackson, Georgia – 18 months in prison to be followed by two years of supervised release
- Terry Driggers, 71, of Hoboken, Georgia – time served (a period of approximately 17 months)
- Kentre Gibson, 40, of Douglas, Georgia – 21 months
- Maurice Glover, 48, of Douglas, Georgia – 12 months
- Orlando Johnson, 35, of Americus, Georgia –30 months in prison to be followed by two years of supervised release
- Shadon Johnson, 37, of Fitzgerald, Georgia – 2 years of probation
- Alonza Jordan, 48, of Americus, Georgia – 7 months
- Leslie Meyers, also known as Les Meyers, 44, of Tallahassee, Florida – 123 months in prison to be followed by two years of supervised release (upward departure to statutory maximum of 60 months on each of 4 dog fighting charges, to run concurrent to one another and consecutive to 63 months sentence on firearm)
- Starlin Morgan, 39, of Plains, Georgia – 11 months
- Kizzy Solomon, also known as Kizzy Andrews, 44, of Tallahassee, Florida – 30 months
- Timothy White, 51, of Patterson, Georgia – 11 months
Defendants Brockington, Shadon Johnson and Jordan had been convicted of knowingly spectating at a dog fight, a misdemeanor offense. The other defendants were convicted of felony violations of the Animal Welfare Act and/or felony conspiracy to commit the same. Defendant Meyers had also pleaded guilty to the unlawful possession of a handgun by a person with a prior felony conviction. Meyers had brought a pistol to a dog fight.
This case was based largely on a “two-card” dog fight in Sumter County, Georgia, that was disrupted by law enforcement while in progress on Jan. 21, 2017. According to court documents, Defendant Meyers traveled to the event from Florida with a dog, whom he pitted in a fight against a dog handled by Defendant White.
Meyers’s dog was declared the winner of the dog fight, but refused to complete a “courtesy scratch” – a macabre dog fighting ritual in which a dog who has already won is taken back to a corner of the ring and released one final time to attack the losing dog (or its dead body). The dog’s continuing willingness to attack garners extra prestige for the handler. After Meyers’s dog refused to complete the courtesy scratch, Meyers suffocated the dog to death by hanging him from a tree branch. Law enforcement found this dog’s body under the bumper of Meyers’s car. Authorities also came upon two other live dogs in the middle of a fight, one of which had extensive injuries and had to be euthanized. After most participants fled the scene, agents recovered several firearms and approximately $18,000 in U.S. currency.
Search warrants executed later at the residences of some of the defendants revealed dozens of pit bull-type dogs housed in conditions consistent with dog fighting. Many of these dogs were emaciated and/or had scarring or injuries. Authorities also seized dog fighting equipment, including injectable veterinary steroids and a dog treadmill on which various dogs’ fighting histories, including whether they had perished during dog fights, was printed.
The case was investigated by the USDA-OIG, the Sumter County Sheriff’s Office and Decatur County Animal Control. Assistant U.S. Attorney Jim Crane for the Middle District of Georgia and Trial Attorney Ethan Eddy of the Justice Department’s Environment and Natural Resources Division prosecuted the case.
Edmonds, Washington business owner pleads guilty to wire fraud in connection with her arson for insurance schemeRead the Press Release
Seattle —An Edmonds, Washington, business owner pleaded guilty today to wire fraud related to the April 30, 2018, fire at her business, CJN Miniatures & More, a dollhouse, miniatures, collectibles, and antiques shop, announced Acting U.S. Attorney Tessa M. Gorman. Connie L. Bigelow, 53, is scheduled for sentencing by U.S. District Judge Robert S. Lasnik on December 17, 2021 at 10am.
In the plea agreement, Bigelow admits she set fire to her business to collect insurance money as the store was struggling to make enough money to pay the rent. Bigelow moved her business, CJN Miniatures LLC, into the building at 23030 Highway 99, in Edmonds in September 2017. The store maintained an inventory of miniatures and collectables for sale, consigned items on behalf of other individuals, and rented out space to other vendors. Between October 2017 and April 2018, the business fell behind in rental payments and payments to consigners.
Bigelow carried an insurance policy with State Farm Fire and Casualty Company that covered up to $100,000 in loss of business personal property, as well as loss of income. The policy did not cover loss arising from arson.
Bigelow set the fire underneath three Thomas Kinkade paintings worth thousands of dollars. In May 2018, Bigelow initiated a claim to State Farm for the losses arising from the fire. On May 3, 2018, Bigelow communicated with the insurance agent via email as part of the wire fraud scheme. Bigelow made false statements to law enforcement, as well as representatives of State Farm as part of the scheme to defraud.
As part of the plea agreement, Bigelow agrees to make full restitution. Currently the restitution is over $195,000 but may grow as further losses are calculated in advance of sentencing.
Wire fraud is punishable by up to 20 years in prison and a $250,000 fine. Judge Lasnik will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), along with the Snohomish County Fire Marshals’ Office. The case is being prosecuted by Assistant United States Attorney Amy Jaquette.
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations for Underpaying Royalties on Gas from Federal LandsRead the Press Release
DENVER - Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its affiliates, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company, LP (collectively, “Devon”), have agreed to pay $6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.
The United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that, in calculating royalties, Devon improperly deducted payments to third-parties for gas transportation and processing that included costs to place the gas in marketable condition, and thereby knowingly underreported and underpaid royalties to the Department of the Interior (DOI).
“The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
“We hold our public lands very dear in Colorado,” said Acting U.S. Attorney Matt Kirsch for the District of Colorado. “We will not allow companies extracting natural resources from those lands to avoid paying what they rightfully owe.”
“The OIG is committed to working with our partners at the Department of Justice, Office of Natural Resources Revenue, and the Office of the Solicitor to ensure that companies producing minerals from areas under Federal jurisdiction fulfill their legal and professional responsibilities,” said Special Agent in Charge Ron Gonzales for the DOI Office of Inspector General’s Energy Investigations Unit.
The resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section, and the United States Attorney’s Office for the District of Colorado, with the assistance of DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor, and DOI’s Office of Natural Resources Revenue.
The matter was investigated by Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Amanda Rocque of the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Devon Energy Companies Agree to Pay $6.15 Million to Settle False Claims Act Allegations for Underpaying Royalties on Gas from Federal LandsRead the Press Release
Devon Energy Corporation, an Oklahoma-based oil and natural gas exploration and production company, and its affiliates, Devon Energy Corp. (Oklahoma) and Devon Energy Production Company LP (collectively, “Devon”), have agreed to pay $6.15 million to resolve allegations that it violated the False Claims Act by underpaying and underreporting royalties for natural gas from federal lands in Wyoming and New Mexico.
The United States leases federal lands for the production of natural gas in exchange for the payment of royalties on the value of the gas produced. Lessees must put the gas in marketable condition at no cost to the United States. The settlement resolves allegations that, in calculating royalties, Devon improperly deducted payments to third-parties for gas transportation and processing that included costs to place the gas in marketable condition, and thereby knowingly underreported and underpaid royalties to the Department of the Interior (DOI).
“The United States allows companies to remove gas from federal lands, which belong to all of us, in exchange for the payment of appropriate royalties,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “This settlement demonstrates that the government will hold accountable those who take improper advantage of public resources.”
“We hold our public lands very dear in Colorado,” said Acting U.S. Attorney Matthew T. Kirsch for the District of Colorado. “We will not allow companies extracting natural resources from those lands to avoid paying what they rightfully owe.”
“The Office of the Inspector General is committed to working with our partners at the Department of Justice, Office of Natural Resources Revenue and the Office of the Solicitor to ensure that companies producing minerals from areas under Federal jurisdiction fulfill their legal and professional responsibilities,” said Special Agent in Charge Ron Gonzales for the DOI Office of Inspector General’s Energy Investigations Unit.
The resolution in this matter was the result of a coordinated effort between the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section and the United States Attorney’s Office for the District of Colorado, with the assistance of DOI’s Office of the Inspector General-Energy Investigations Unit, DOI’s Office of the Solicitor, and DOI’s Office of Natural Resources Revenue.
The matter was investigated by Senior Trial Counsel Gregory Pearson and Assistant U.S. Attorney Amanda Rocque of the District of Colorado.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Delray Beach Man Convicted of Bank Fraud, False Statements, and Aggravated Identity Theft Involving COVID-19 Relief ProgramsRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville has convicted Jeremie Saintvil, 46, of Delray Beach, Florida, of bank fraud, making false statements to a federally insured financial institution, aggravated identity theft, and making false statements to a federal agency. The guilty verdict, returned late Friday, at the conclusion of an eight-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The theft of vital taxpayer relief funds and victimization of our elderly is reprehensible,” stated Acting U.S. Attorney Coody. “The deceptive and sophisticated acts of this defendant not only diverted emergency financial assistance from small businesses necessary for job retention, but also victimized our elderly citizens, many of whom due to advanced age or illness, were more vulnerable and unable to readily discern their identities had been stolen and used for illegal acts. With the assistance of our dedicated law enforcement partners, we are committed to investigating and prosecuting those who engage in acts of elder abuse and covid-related fraud.”
Evidence introduced at trial revealed that between February 2018 and June 2020, Saintvil submitted fraudulent applications seeking more than $1.5 million in Paycheck Protection Program (PPP) and Economic Injury Disaster (EIDL) loans offered by the United States Small Business Administration (SBA). As part of his scheme, Saintvil fraudulently obtained the identities of elderly individuals who were residents of senior living facilities, whom he then represented were principles in the fictitious businesses seeking the forgivable loans. The fraudulent applications, which were directed to nine different federally insured credit unions, banks, and the SBA, misrepresented the number of employees and payroll expenses of the alleged companies, and made numerous other inaccurate statements in support of the PPP and EIDL loan applications, including submitting falsified tax documents and bank account information.
"Any attempt to defraud the PPP loan program, which is designed to support struggling businesses during the COVID 19 pandemic, is in and of itself a deplorable act. But Saintvil's crimes are made worse by the fact that he used the identities of the elderly to carry out the scams,” said IRS Criminal Investigation Special Agent in Charge Brian Payne. “We work very closely with our federal agency partners to help seek justice for those impacted by these heinous crimes."
The Coronavirus Aid Relief and Economic Security (CARES) Act is a federal law enacted March 29, 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of forgivable loans to small businesses for job retention and certain other expenses through the PPP. The Small Business Administration (SBA) guarantees PPP loans which are funded by participating financial institutions. The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP then allows the interest and principal to be forgiven if businesses spent the loan proceeds on qualifying expenses within a set time-period and used at least a certain percentage of the loan proceeds for payroll expenses.
“In a time of national turmoil and uncertainty, this defendant flagrantly defrauded programs intended to assist Americans and their businesses,” said FBI Jacksonville Special Agent in Charge Rachel L. Rojas. “His total disregard for his fellow citizens during the pandemic – especially vulnerable elders – revealed his true colors as a fraudster. The FBI will continue to allocate resources to investigate COVID-19 and elder fraud, and work alongside our partners to hold accountable those who use illegal means and criminal behavior to take advantage of others.”
Saintvil’s sentencing hearing is scheduled on December 20, 2021, at 2:00 pm at the United States Courthouse in Gainesville before the Honorable United States District Judge Allen Winsor. Saintvil faces a maximum penalty of 30 years in federal prison for the charges of bank fraud and making false statements to a federally insured institution, and a maximum penalty of 5 years in prison for making a false statement to a federal agency. Saintvil also faces an additional 2-year mandatory minimum prison sentence for the aggravated identity theft charge, which must be served consecutively to the other sentences imposed.
“Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our office will aggressively pursue evidence of wrongdoing and bring those responsible to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
This conviction was the result of a joint investigation by Internal Revenue Service - Criminal Investigations, the Federal Bureau of Investigation, and the Small Business Administration -Office of Inspector General. Assistant United States Attorneys Justin M. Keen and David Byron prosecuted the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Since President Trump signed the bipartisan Elder Abuse Prevention and Prosecution Act (EAPPA) into law, the Department of Justice has participated in hundreds of enforcement actions in criminal and civil cases that targeted or disproportionately affected seniors. In particular, this past March the Department announced the largest elder fraud enforcement action in American history, charging more than 400 defendants in a nationwide elder fraud sweep. The Department has likewise conducted hundreds of trainings and outreach sessions across the country since the passage of the Act. Learn more about the Justice Department’s Elder Justice and National Nursing Home Initiatives at http://www.justice.gov/elderjustice/.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Danville Restaurant Owner Sentenced for Wire Fraud, Food Stamp FraudRead the Press Release
ROANOKE, Va. – The owner of Seaford and More in Danville, Virginia, was sentenced today to 12 months and one-day in prison for defrauding the Supplemental Nutrition Assistance Program (SNAP) by exchanging cash for SNAP benefits.
According to court documents, Bobby Lee James, 69, and others who worked at Seafood and More, redeemed SNAP benefits in exchange for cash between 2010 and 2018. James also admitted that he directed his employees to redeem SNAP benefits for cash during the same time and that he knew what he was doing was wrong.
James pleaded guilty in January 2021 to one count of wire fraud and one count of food stamp fraud.
According to court documents, from October 2010 to July 2018, SNAP redemptions for Seafood and More exceeded the state average of all other seafood specialty class stores in Virginia by more than $2,465,555. In total, Seafood and More caused approximately $1,835,767 in losses to the SNAP program.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement today.
The investigation of the case was conducted by the United States Department of Agriculture Office of Inspector General, the United States Secret Service, and the Danville Police Department.
Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.
Convicted Felon Who Unlawfully Possessed a Gun Sentenced to over Two Years in Federal PrisonRead the Press Release
A man who possessed a gun despite being legally prohibited was sentenced September 20, 2021, to more than two years in federal prison.
John Michael Dockery, age 37, from Cedar Rapids, Iowa, received the prison term after an April 1, 2021 guilty plea to possession of a gun by a prohibited person.
At the guilty plea, Dockery admitted possessing a firearm following two felony convictions from California and while he was an unlawful user of methamphetamine. Dockery was a passenger in a vehicle that was stopped in Cedar Rapids and a gun was found in the back of vehicle behind Dockery’s seat.
Dockery was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Dockery was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dockery is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by Cedar Rapids Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-80.
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Convicted Dog-Fighter, Co-Defendants, Sentenced to Federal Prison for Violations of the Animal Welfare ActRead the Press Release
ALBANY, Ga. – The last four of 12 defendants convicted on federal dog fighting charges were sentenced to federal prison on Friday.
Leslie Meyers aka Les, 45, of Tallahassee, Florida, was sentenced to serve a total of 123 months in prison to be followed by two years of supervised release after he pleaded guilty to conspiracy to violate the Animal Welfare Act and unlawful possession of a handgun by a person with a prior felony conviction. Kizzy Solomon aka Kizzy Andrews, 44, of Camilla, Georgia, was sentenced to serve 30 months in prison after a federal jury convicted her on Tuesday, June 22, of 15-counts of aiding and abetting the possession and training of dogs for purposes of an animal fighting venture. Orlando Johnson aka OJ and Juiceman, 35, of Americus, Georgia, was sentenced to serve 30 months in prison to be followed by two years of supervised release after he pleaded guilty to conspiracy to violate the Animal Welfare Act. Kevin Charles aka Trinidad, 45, of Jackson, Georgia, was sentenced to serve 18 months in prison to be followed by two years of supervised release after he pleaded guilty to conspiracy to violate the Animal Welfare Act.
The following co-defendants were sentenced to prison after previously pleading guilty to conspiracy to violate the Animal Welfare Act:
Kentre Gibson aka Gipp, 40, of Douglas, Georgia, was sentenced to serve 21 months in prison to be followed by two years of supervised release on July 21;
Terry Driggers, 71, of Hoboken, Georgia, was sentenced to serve 17 months in prison to be followed by two years of probation on July 22;
Maurice Glover, 48, of Douglas, Georgia, was sentenced to serve 12 months in prison to be followed by two years of supervised release on July 22;
Starlin Morgan, 39, of Plains, Georgia, was sentenced to serve 11 months in prison to be followed by two years of supervised release on July 21; and,
Timothy White, 51, of Patterson, Georgia, was sentenced to serve 11 months in prison to be followed by two years of supervised release on July 21.
The following co-defendants were sentenced after pleading guilty to attending an animal fighting venture (misdemeanor):
Germany Brockington aka Rat and Gator, 34, of Ambrose, Georgia, was sentenced to serve seven months in prison consecutive to his current prison sentence on Aug. 17;
Alonza Jordan, 48, of Americus, Georgia was sentenced to serve three months in prison to be followed by one year of supervised release on July 21; and,
Shadon Johnson, 37, of Fitzgerald, Georgia, was sentenced to serve two years of probation on July 21.
U.S. District Judge Leslie Gardner presided over the sentencing hearings. There is no parole in the federal system.
According to court documents, this case was based largely on a “two-card” dog fight in Sumter County, Georgia, that was disrupted by law enforcement while in progress on Jan. 21, 2017. According to court documents, Defendant Meyers traveled to the event from Florida with a dog, which he pitted in a fight against a dog handled by Defendant White. Meyers was in illegal possession of a pistol at the time of the fight.
Meyers’s dog was declared the winner of the dog fight but refused to complete a “courtesy scratch” – a macabre dog fighting ritual in which a dog who has already won is taken back to a corner of the ring and released one final time to attack the losing dog (or its dead body). The dog’s continuing “gameness” or willingness to attack garners extra prestige for the handler. After Meyers’s dog refused to complete the courtesy scratch, Meyers suffocated the dog to death by hanging him from a tree branch. Law enforcement found this dog’s body under the bumper of Meyers’s car. Authorities also came upon two other live dogs in the middle of a fight, one of which had extensive injuries and had to be euthanized. After most participants fled the scene, agents recovered several firearms and approximately $18,000 in U.S. currency.
Search warrants executed later at the residences of some of the defendants revealed dozens of pit bull-type dogs housed in conditions consistent with dog fighting. Many of these dogs were emaciated and/or had scarring or injuries. Authorities also seized dog fighting equipment, including injectable veterinary steroids and a dog treadmill on which various dogs’ fighting histories, including whether they had perished during dog fights, was printed.
“Dog-fighting is vicious and illegal; it is also a breeding ground for other dangerous criminal activity that undermines the safety of our communities. Our office will not tolerate dog-fighting; we will continue to work with our law enforcement partners to hold offenders accountable with federal prosecution,” said Peter D. Leary, the Acting U.S. Attorney for the Middle District of Georgia.
“The injuries that dogs suffer in fights are horrible enough, but this case shows how the cruelty of the dog fighting industry goes far beyond the fighting pit,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division. “We will continue to vigorously prosecute those who engage in these crimes.”
“The cruelty exhibited by these individuals has left a stain on the human psyche of our civilization,” said Jason Williams, Special Agent in Charge, U.S. Department of Agriculture-Office of Inspector General. “This collaborative effort with our local and federal partners demonstrates that wherever you are, you will be held accountable to the fullest extent of the law.”
The case was investigated by the U.S. Department of Agriculture-Office of Inspector General, the Sumter County Sheriff’s Office and Decatur County Animal Control.
Assistant U.S. Attorney Jim Crane and Department of Justice Trial Attorney Ethan Eddy prosecuted the case.
Columbus man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Sihrahn Major, II, of Columbus, Ohio, was sentenced today to 84 months of incarceration for his role in a drug trafficking conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Major, also known as “Black,” age 25, pled guilty in June 2021 to one count of “Distribution of 5 Grams or More of Methamphetamine within 1000 feet of a Protected Location.” Major admitted to selling five grams or more of methamphetamine near Riverview Towers on in Wheeling in January 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Columbus man admits to methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Devante Crutez Taylor, of Columbus, Ohio, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Taylor, 28, pleaded guilty today to one count of “Possession with Intent to Distribute 50 Grams or More of Methamphetamine.” Taylor admitted to having 50 grams or more of methamphetamine in August 2019 in Ohio County.
The government is also seeking the forfeiture of $3,638 in cash found with Taylor that is believed to be proceeds from drug sales.
Taylor is facing at least 10 years and up to life incarceration and a fine of up to $10,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
Chicago Drug Dealer Who Flipped Car While Attempting to Flee from Police Pleads GuiltyRead the Press Release
A man who led Dubuque, Iowa, police on a high‑speed chase that ended with his car on its hood and his gun, heroin, fentanyl, and cocaine in the snow, pled guilty today in federal court in Cedar Rapids.
Richard Allen Roberts, age 39, from Chicago, Illinois, was convicted of one count of distributing crack near a playground and one count of being a felon in possession of a firearm.
In a plea agreement, Roberts admitted that he sold about a half gram of crack cocaine to a confidential informant near Jefferson Park in Dubuque on January 26, 2021. About a week later, police tracked Roberts’s car from Dubuque to Chicago. When he returned to Iowa on February 5, 2021, officers stopped the car after it crossed the bridge into Dubuque from Wisconsin. A narcotics K9 alerted to the odor of narcotics coming from Roberts’s vehicle. After an officer asked Roberts to get out of his car, Roberts put the car in gear and fled. During the subsequent chase, Roberts’s vehicle reached speeds over 80 miles per hour and collided with a snowplow but kept going. Roberts eventually lost control of his car approximately three-and-half miles away in Illinois, flipping the car over onto a snow‑filled median. When the car was turned back over, officers found a plastic bag containing about 32 grams of powder cocaine, 44 grams of crack cocaine, over 9 grams of heroin, and 1.5 grams of heroin and fentanyl. Next to the bag was a Smith & Wesson 9mm pistol. Roberts had previously been convicted of 11 felony crimes in Illinois.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Roberts remains in custody of the United States Marshal. On the drug charge, Roberts faces a mandatory minimum sentence of one year imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $2,000,000 fine, and a lifetime of supervised release following any imprisonment. On the gun charge, Roberts faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years’ supervised release.
The case was investigated by the Dubuque Drug Task Force is being prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21‑CR‑1017‑CJW‑MAR.
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Chester County Man Sentenced to 28 Years for Secretly Recording Multiple Children in the BathroomRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Israel Faber, 34, of Nottingham, PA, was sentenced to 28 years in prison, and lifetime of supervised release, by United States District Court Judge Mark A. Kearney for multiple child exploitation charges including producing, possessing and distributing child pornography.
In April 2021, the defendant pleaded guilty to three counts of manufacturing child pornography, one count of distribution of child pornography and one count of possession of child pornography. The charges stem from an investigation into an online forum known for being a place where users trade child pornography. For almost a year, the defendant hid his cell phone in a bathroom and secretly recorded child victims while they used the bathroom facilities. Law enforcement agents caught onto the defendant’s crimes in April 2020 during an undercover investigation into an online chat group in which users shared ‘homemade’ child pornography. Faber distributed his own ‘homemade’ child pornography showing a young child using the bathroom. The defendant even highlighted the child’s face to the undercover officer, saying, “that’s [the child’s] face.”
The defendant hid these recordings on his phone and in secret online accounts that federal agents were able to identify using numerous search warrants. These accounts contained thousands of additional child pornography videos and images depicting children as young as infants being sexually abused and raped. Hundreds of child victims have been identified.
“This is an incredibly disturbing case – sexually exploiting children by secretly recording them in the bathroom is horrific,” said Acting U.S. Attorney Williams. “Strong law enforcement collaboration between our Office, the FBI, the Pennsylvania State Police and local police forces, has ensured that this dangerous defendant will be behind bars and unable to hurt children anymore.”
“Israel Faber repeatedly violated children’s privacy, exploiting them for his own sexual gratification,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He further victimized them by sharing the material with other predators. The FBI and our law enforcement partners are working every day to find and bring to justice anyone actively harming children like this.”
"Producing, possessing, and distributing child pornography is an exploitive crime that should never occur," said Major Jeremy Richard, director of the Pennsylvania State Police Bureau of Criminal Investigation. “I would like to extend my gratitude to the partner law enforcement agencies involved in investigating Mr. Faber's heinous online behavior. This sentence serves as a lesson to others who wish to secretly record children in private locations: Your actions are criminal and carry consequences."
The case was investigated by the Federal Bureau of Investigation, York Area Regional Police, Lancaster City Bureau of Police and the Pennsylvania State Police, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang.
Champaign County Woman Sentenced to Prison for 52 Months for Embezzlement and Federal Tax EvasionRead the Press Release
URBANA, Ill. – Joan Chenoweth, of Tolono, Illinois, was sentenced to 52 months’ imprisonment, to be followed by three years of supervised release, on September 27, 2021, for embezzlement of over $600,000 from her former employer, Illini Contractor Supply, and her failure to pay federal income tax.
United States District Judge Colin S. Bruce imposed the fifty-two month sentence, citing Chenoweth’s lack of concern for others and residual harm to a viable community business. Judge Bruce ordered Chenoweth to pay restitution in the amount of $599,152.72 to Illini Contractor Supply, and an additional $159,384 to the Internal Revenue Service. The prosecution had recommended a fifty-seven-month sentence of imprisonment, reflecting the U.S. Sentencing Guidelines.
During the sentencing hearing, the government presented testimony from the owner of Illini Contractor Supply who testified to the hardship Chenoweth’s theft placed on the company in the wake of the crime.
Court documents show that from 2014 to 2018, Chenoweth, who had control of the business’s financial records as well as control of and access to the business’s credit cards and bank account, wrote unauthorized vendor checks to herself or to cash payable from Illini Contractor Supply’s bank account; wrote unauthorized payroll checks to herself that exceeded her salary; and used the business’s credit cards to make payments to her personal credit cards. She used her position as office manager to avoid detection by making false entries in the business’s financial records.
Chenoweth pleaded guilty on May 17, 2021, but had remained free on conditions of bond until her sentencing. Judge Bruce ordered her to report to begin serving her sentence on October 5, 2021.
The Champaign Police Department and the Internal Revenue Service, Criminal Investigation Division investigated the case. Supervisory Assistant U.S. Attorney Eugene L. Miller represented the government in the prosecution.
Brooklyn-Based “Rival Impact” Gang Member Sentenced to Two Life Sentences Plus 20 Years’ Imprisonment for Racketeering, Gang War-Related Double Murder and Narcotics OffensesRead the Press Release
Earlier today, at the federal courthouse in Brooklyn, United States District Judge Frederic Block sentenced Frank Smith, also known as “Fresh,” a leader of the Coney Island-based gang Rival Impact, to two mandatory life sentences plus an additional 20 years’ imprisonment for racketeering, including predicate acts of murder conspiracy and narcotics offenses, as well as two counts of murder-in-aid-of racketeering for the murder of rival gang members Terrance Serrano and Rashawn Washington. These sentences also include two counts of causing a death through the use of a firearm. Smith was convicted by a jury in June 2018 following a three-week trial.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“Today’s sentence brings a measure of justice to the families of the victims of these calculated murders and holds Frank Smith accountable not only for the lives he snuffed out, but also for the devastation he and the other members of his street gang caused for years in Coney Island and elsewhere with their drug trafficking and senseless violence,” stated Acting United States Attorney Kasulis. “This Office, together with our federal and local law enforcement partners, will continue to use all available tools to disrupt and dismantle violent street gangs that wreak havoc on our communities.” Ms. Kasulis expressed her appreciation to the Manhattan District Attorney’s Office for its assistance in the case.
Between January 2000 and January 2014, Smith was a member—ultimately rising to become one of the leaders—of the Rival Impact street gang, a criminal enterprise based in the Mermaid Houses in Coney Island. For more than a decade, Smith and other members of Rival Impact distributed heroin, crack and other narcotics in Brooklyn, New York, and several other states. Smith and other Rival Impact members also engaged in multiple acts of violence in connection with their drug trafficking, including murders, attempted murders, armed robberies and assaults. By the late 2000s, Rival Impact was engaged in a war with members of Thirty-O, a rival street gang based around the Coney Island Houses. After a high-ranking Rival Impact member was slain, purportedly by Thirty-O crew members, Smith and other members of Rival Impact plotted retaliatory murders of Thirty-O members, including Serrano and Washington, who Smith and his gang believed were responsible for the killing of their Rival Impact member. On October 4, 2010, after learning that Serrano and Washington were at a nightclub near Union Square in Manhattan, Smith and another Rival Impact member drove from Coney Island to Manhattan, where they laid in wait to ambush Serrano and Washington. Once Serrano and Washington entered their car, Smith and his co-conspirator opened fire, killing both men.
This case was brought as part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. As part of the program, U.S. Attorneys’ Offices work in partnership with federal, state, local and tribal law enforcement and their local communities to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Maria Cruz Melendez, Jennifer M. Sasso and Josh Hafetz are in charge of the prosecution.
The Defendant:
FRANK SMITH (also known as “Fresh”)
Age: 36
Brooklyn, New YorkEDNY Docket No. 16-CR-346 (S-1)
Brooklyn Man Admits Role in Scheme to Defraud New Jersey Banks by Depositing $1 Million in Stolen ChecksRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man today admitted his role in a scheme to defraud banks of more than $1 million using stolen and counterfeited checks and stolen identities, Acting U.S. Attorney Rachael A. Honig announced.
Frank Ambrosio, 36, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of conspiracy to commit bank fraud and one count of aggravated identity theft.
According to the documents filed in this case and statements made in court:
Ambrosio and his conspirators, including Benjamin Rich and Felix Alamo, agreed to defraud banks across New Jersey by using the stolen personal identification information of other individuals to open fraudulent bank accounts and deposit stolen and counterfeited checks. Rich used stolen identities, which included Social Security numbers belonging to minors, to create sham businesses. Ambrosio, Rich, Alamo and others opened bank accounts for the sham businesses and deposited stolen or counterfeited checks into the accounts and attempted to withdraw or transfer the funds before the banks could detect the fraud. Over the course of the scheme, Ambrosio and his conspirators deposited approximately $1 million in fraudulently obtained checks into the fraudulent business bank accounts, resulting in at least $250,000 in losses to the various banks.
The charge of bank fraud carries a maximum of 30 years in prison and a statutory maximum fine of $1 million, or twice the gain derived from the offense or loss caused by the offense, whichever is greatest.The charge of aggravated identity theft carries a statutory minimum prison term of two years in prison, to run consecutively to any term of imprisonment imposed on the bank fraud charge. Sentencing is scheduled for February 9, 2022.
Alamo previously pleaded guilty and is scheduled to be sentenced on Oct. 4, 2021.
Rich was indicted on these charges on June 25, 2021, and his trial date has not been scheduled.
Acting U.S. Attorney Rachael A. Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of the Treasury Inspector General for Tax Administration under the direction of Special Agent in Charge Andrew McKay; and the New York Police Department’s Special Fraud Squad under the direction of Assistant Police Chief Jason Wilcox.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office in Newark.
The charges and allegations against Rich and are merely accusations, and he is presumed innocent unless and until proven guilty.
Defense counsel: William Strazza Esq., Chester, New Jersey
Brazilian National Sentenced to 4 Years in Prison for $15 Million Advance Fee Scheme; Additional Charges Unsealed Against 4 Co-ConspiratorsRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Philip R. Bartlett, Inspector in Charge of the New York Office of the U.S. Postal Inspection Service (“USPIS”), announced that JOAO DJALMA PRESTES JUNIOR, a/k/a “Joao Pereira,” a Brazilian national, was sentenced today to 48 months in prison after pleading guilty to defrauding Brazilian businesses of approximately $15 million through an international advance fee scheme. PRESTES JUNIOR was arrested in June 2020 and pled guilty in April 2021 before U.S. District Judge Jed S. Rakoff, who imposed today’s sentence.
In addition, Superseding Indictments were unsealed today charging co-conspirators HERMINIO RIBEIRO DIAS CRUZ, JUAN CARLOS VILLALBA, ROSE MARTINS DE OLIVEIRA, and ALEX PEREIRA DE SOUTO with wire fraud and conspiracy to commit wire fraud in connection with the same international advance fee scheme. CRUZ, VILLALBA, DE OLIVEIRA, and DE SOUTO remain at large.
Manhattan U.S. Attorney Audrey Strauss said: “Partly through face-to-face meetings with victims in a Manhattan skyscraper, Joao Djalma Prestes Junior stole millions of dollars from companies seeking loans. Prestes Junior will now spend four years in U.S. prison for those crimes. As alleged, Prestes Junior did not work alone. His four fugitive alleged co-conspirators in this multimillion-dollar international advance fee scheme have now been charged.”
USPIS Inspector-in-Charge Philip R. Bartlett said: “Postal Inspectors usually see advance fee scams tied to lottery fraud. However, in this case the victims were allegedly duped into paying fees in advance to secure business loans. The defendants allegedly used victim money to fund their opulent lifestyles. Postal Inspectors remind those seeking loans to exercise due diligence when you have to pay money to get money.”
According to public filings and court proceedings in the case against PRESTES JUNIOR, CRUZ, VILLALBA, DE OLIVEIRA, and DE SOUTO, including the allegations in the Superseding Indictments[1]:
Since at least July 2018 up to and including February 2020, PRESTES JUNIOR participated in a scheme to defraud Brazilian-based businesses of millions of dollars through an advance fee scheme.
As part of the scheme PRESTES JUNIOR and his co-conspirators falsely represented that the victims would receive a large loan after making advance payment of various fees to entities that, unbeknownst to the victims, were controlled by the conspirators. To effect the scheme, PRESTES JUNIOR and his co-conspirators created several shell companies (and accompanying websites) in the United States: a purported financial entity, a purported escrow company, and a purported insurance entity. The defendant and his co-conspirators directed victims to pay advance fees to the escrow company and the insurance entity. After the initial payments were made, the defendant and his co-conspirators falsely represented that there was some obstacle to transferring the loan money to the victim – such as a tax payment – and that the obstacle could be overcome if the victim made yet another advance payment. Ultimately, despite paying one or more such fees up front, the victims never received the promised loans, and the money paid in advance was never returned.
PRESTES JUNIOR also had executives of the victim companies travel to New York, New York, for in-person meetings in a suite in a skyscraper in downtown Manhattan that was purportedly the financial entity’s New York office. When interacting with victim companies, however, PRESTES JUNIOR used an alias, “Joao Pereira,” due to the defendant’s notoriety in Brazil, where the defendant was previously the subject of widely publicized criminal proceedings.
Money stolen from victims was used in part to fund PRESTES JUNIOR’s lavish lifestyle. For example, although PRESTES JUNIOR did not even live in the United States full time, he owned a Maserati in this country.
* * *
In addition to the prison term, JOAO DJALMA PRESTES JUNIOR, a/k/a “Joao Pereira,” 48, a Brazilian national, was ordered to forfeit $15,266,679.10 and to make restitution in the amount of $15,266,679.10.
HERMINIO RIBEIRO DIAS CRUZ, 76, a Portuguese national, JUAN CARLOS VILLALBA, 56, a Paraguayan national, ROSE MARTINS DE OLIVEIRA, 61, a Brazilian national, and ALEX PEREIRA DE SOUTO, 40, a Brazilian national, are each charged with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, each of which carries a maximum sentence of 20 years in prison. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of these defendants would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the USPIS.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Micah F. Fergenson is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictments and the description of the Superseding Indictments set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Biddeford Man Pleads Guilty to Child Sexual Exploitation OffensesRead the Press Release
PORTLAND, Maine: A Biddeford man pleaded guilty today in federal court to sexually exploiting a minor and transporting child pornography, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in 2016 or 2017, Jason Proulx, 43, recorded sexually explicit videos of a girl who was seven or eight years old at the time. In July 2019, Proulx uploaded the videos to a French website. Investigators with Homeland Security Investigations executed a search warrant at a residence in Biddeford in June 2020. Proulx was present and agreed to speak with investigators. After initially denying any involvement with pornography, he eventually admitted that he had recorded sexually explicit videos of the girl in a room in the residence.
Proulx faces a minimum of 15 years and a maximum of 30 years in prison and a $250,000 fine for sexually exploiting a minor. He faces a minimum of five years and a maximum of 20 years in prison and a $250,000 fine for transporting child pornography. He also faces a term of supervised release of at least five years and up to life. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigations investigated the case with assistance from the Biddeford Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Berkeley County man sentenced to 13 years for child pornographyRead the Press Release
MARTINSBURG, WEST VIRGINIA – William Eugene Wright, IV, of Martinsburg, West Virginia, was sentenced today to 156 months of incarceration for a child pornography charge, Acting U.S. Attorney Randolph J. Bernard announced.
Wright, 40, pleaded guilty to one count of “Distribution of Child Pornography” in June 2021. Wright admitted to having and distributing child pornography from July to September 2017 in Berkeley County.
Wright was also ordered to pay a $10,000 fine.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Thomas E. Johnston presided.
Bergen County Woman Pleads Guilty to Embezzling Money from Guided Tour Company and Subscribing to False Tax ReturnsRead the Press Release
NEWARK, N.J. – A Lyndhurst, New Jersey woman admitted to her participation in a multi-year embezzlement scheme and to subscribing to a false personal income tax return, Acting U.S. Attorney Rachael A. Honig announced today.
Ruby Baroni, 54, of Lyndhurst, New Jersey, pleaded guilty today by videoconference before U.S. District Judge Julien Xavier Neals to a two-count information charging her with one count of wire fraud and one count of subscribing to a false tax return.
According to documents filed in this case and statements made in court:
Between October 2010 and August 2016, Baroni held an accounting position at a New Jersey guided-tour company. In that capacity, Baroni had authority to cut checks against the company’s bank accounts. During that period, Baroni and Estela Laluf, a manager at the company, devised a scheme to embezzle funds from the company. Laluf would direct Baroni to cut company checks to actual company employees and contractors, which did not reflect any actual work or services done by those individuals. Baroni would then cash these checks, and Laluf and Baroni would then convert the resulting funds to their personal use. In this way, Laluf and Baroni embezzled hundreds of thousands of dollars from the company. Baroni then fraudulently omitted the proceeds from the embezzlement scheme from her tax year 2016 tax return. Laluf pleaded guilty before Judge Neals to a separate information related to the scheme on September 20, 2021.
The charge of wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine. The charge of subscribing to a false tax return carries a maximum penalty of 3 years in prison and a $250,000 fine. Sentencing is scheduled before Judge Neals for January 25, 2022.
Acting U.S. Attorney Honig credited special agents of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raiumundo Marrero, and the Internal Revenue Service—Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Andrew M. Trombly of the Cybercrime Unit in Newark.
Defense counsel: Amie E. DiCola, Esq., Passaic, New Jersey
Belgrade Man Pleads Guilty to Bank RobberyRead the Press Release
BANGOR, Maine : A Belgrade man pleaded guilty today in U.S. District Court in Bangor to bank robbery, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on September 30, 2016, Clinton Damboise, 45, entered the Camden National Bank in Manchester, Maine. He approached a female teller and told her, “this is a robbery, not a joke.” He gestured to the waistband of his jacket and said he had a gun. The teller gave him $3,179 and he fled. He was subsequently identified by the teller and by the bank’s security camera footage.
Damboise faces up to 20 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI, the Maine State Police, the Kennebec County Sheriff’s Office and the Southington (Connecticut) Police Department investigated the case.
Bath Man Pleads Guilty to Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Jeffrey Clark, 35, of, Bath NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to two counts of distributing child pornography. The charges carry a minimum penalty of five years in prison, a maximum penalty of 40 years, and a $500,000 fine.
Assistant U.S. Attorney John J. Field, who is handling the case, stated that the defendant was observed by an undercover FBI agent distributing child pornography online. A search warrant was executed at Clark’s residence during which investigators seized thousands of files containing images and videos of child pornography. The images included violence against young children.
The defendant also admitted to the FBI that he had physically molested a minor victim on several occasions, which resulted in separate state charges.
The plea is the result of an investigation by the Federal Bureau of Investigation, acting under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for January 7, 2022, at 11:00 am before Judge Siragusa.
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Bank Robbers Who Tracked and Kidnapped Bank Employees Sentenced in Federal CourtRead the Press Release
Memphis, TN – After a four-day federal jury trial in June 2021, Antonio Johnson 44, Travis Jackson 37, and Shalundra Johnson, 39 were found guilty of kidnapping and multiple bank robberies. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentencing today.
According to information presented in court, on September 14, 2018, at approximately 2:15 a.m., an employee of Trustmark Bank on Elvis Presley Blvd., got off work from her second job and arrived home. As the victim walked into her home, a male with a firearm grabbed her and pushed her inside of the residence. The victim was zip-tied and taken to the bank to complete the robbery where approximately, $73,400 was taken. Travis Jackson’s DNA was recovered from the zip-ties used to restrain the victim.
On December 7, 2018, at approximately 7:18 p.m., an employee of the First Tennessee Bank on Elvis Presley Blvd arrived home from work. While in her driveway, an unknown male wearing a mask approached her vehicle. The unknown male forced the victim at gunpoint to the passenger seat of her vehicle and drove her to a location near the bank. The victim was then zip-tied and taken to the bank to complete the robbery; approximately, $110,435 was taken. Again, Travis Jackson’s DNA was recovered from the zip-ties used to restrain the victim and from other zip-ties recovered from the scene. Travis Jackson’s cell phone records placed him at the bank at the time of the robbery. Cell phone records also placed Antonio Johnson at the scene of the victim’s house and at the bank at the time of the kidnapping and the robbery. A tracking device was placed on the victim's vehicle for the gunman to determine where she lived.
On April 4, 2019, at approximately 6:15 p.m., an employee of First South Financial Credit Union on East Shelby Drive, arrived at her home in Horn Lake, Mississippi. Armed men entered the victim’s home, zip-tied the victim’s hands, and demanded keys to the bank.
The victim, along with her three-year-old child, were then forced into her personal car and driven away. Eventually, the victim was taken to the bank for the robbery.
Approximately, $425,000 was taken in the robbery. Shalundra Johnson placed a tracking device on the victim's vehicle for the gunmen to determine where the victim lived. Cell phone records, tracking device information, and evidence recovered from the respective defendant’s residences proved the involvement of the defendants in the robbery.
United States District Court Judge Sheryl H. Lipman sentenced each defendant. Travis Jackson was sentenced on September 3, 2021, to a total of 544 months (45.3 years) in federal prison to be followed by three years’ supervised release. Antonio Johnson was sentenced on September 24, 2021, to 432 months (36 years) to be followed by three years supervised release. Shalundra Johnson was sentenced on September 1, 2021 to 140 months (11.6 years) imprisonment to be followed by three years supervised release. There is no parole in the federal system.
"These sentences should send a clear message that the FBI and our law enforcement partners make it a priority to bring to justice those who resort to bank robbery and kidnapping for ill-gotten financial gains," said Special Agent in Charge of the Memphis Division of the Federal Bureau of Investigation, Douglas M. Korneski. "Violent crimes will not be tolerated, and law enforcement will not rest, until offenders are caught, prosecuted and held accountable for their actions."
This case was investigated by the FBI’s Safe Streets Task Force, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Memphis Police Department, Desoto County (MS) Sheriff’s Department and Horn Lake, MS Police Department.
Assistant U.S. Attorneys Marques Young and Kevin Whitmore prosecuted this case on behalf of the government.
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