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Friday 6 August 2021
Two Myanmar Citizens Arrested in Plot to Injure or Kill Myanmar’s Ambassador to the United NationsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Jacqueline Maguire, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced the arrests of PHYO HEIN HTUT and YE HEIN ZAW for conspiracy to assault and make a violent attack upon Myanmar’s Permanent Representative to the United Nations. HTUT and ZAW were charged in two separate complaints and will be presented later today in the U.S. District Court in White Plains before U.S. Magistrate Judge Andrew E. Krause.
U.S. Attorney Audrey Strauss said: “As alleged, Phyo Hein Htut and Ye Hein Zaw plotted to seriously injure or kill Myanmar’s ambassador to the United Nations in a planned attack on a foreign official that was to take place on American soil. We commend the tireless work of our law enforcement partners at all levels of government to ensure the safety of foreign diplomats and officials.”
FBI Acting Assistant Director Jacqueline Maguire said: “Time was of the essence when we received information about a threat to Myanmar’s Ambassador to the United Nations. I would like to thank our Westchester Safe Streets Task Force and each of our partner law enforcement agencies that worked quickly and diligently to track down the men allegedly hired in this plot to harm and potentially kill a foreign diplomat on U.S. soil. Our laws apply to everyone in our country, and these men will now face the consequences of allegedly breaking those laws.”
NYPD Commissioner Dermot Shea said: “As alleged in today’s federal charges, these defendants reached across borders and oceans in designing a violent plot against an international leader on United States soil. But our NYPD investigators and prosecutors from the United States Attorney’s Office in the Southern District of New York worked relentlessly with our law enforcement partners to bring them to justice before any harm could be done.”
According to the allegations in the two Complaints filed today[1]:
Between at least in or about July 2021 through at least on or about August 5, 2021, HTUT and ZAW, citizens of Myanmar currently residing in New York, conspired to injure or kill Myanmar’s Permanent Representative to the United Nations (the “Ambassador”). During the conspiracy, HTUT communicated with an arms dealer in Thailand (the “Arms Dealer”) who sells weapons to the Burmese military, which overthrew Myanmar’s civilian government in or about February 2021. In the course of those conversations, HTUT and the Arms Dealer agreed on a plan in which HTUT would hire attackers to hurt the Ambassador in an attempt to force the Ambassador to step down from his post. If the Ambassador did not step down, then the Arms Dealer proposed that the attackers hired by HTUT would kill the Ambassador.
Shortly after agreeing on the plan, ZAW contacted HTUT by cellphone and transferred approximately $4,000 to HTUT through a money transfer app as an advance payment on the plot to attack the Ambassador. Later, during a recorded phone conversation with ZAW, HTUT discussed how the planned attackers would require an additional $1,000 to conduct the attack on the Ambassador in Westchester County, and for an additional payment the attackers could, in substance, “finish off” the Ambassador. In response, ZAW agreed, in substance, to pay the additional $1,000 and to try to obtain the additional money.
HTUT, 28, and ZAW, 20, both citizens of Myanmar, are each charged in separate complaints with one count of conspiracy to assault and make a violent attack upon a foreign official, which carries a maximum sentence of five years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI’s Westchester Safe Streets Task Force, which comprises special agents and task force officers from the FBI, NYPD, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, and the police departments of Yonkers, Mount Vernon, New Rochelle, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown. Ms. Strauss also thanked the Pelham Manor Police Department and the U.S. Department of State’s Diplomatic Security Service for their assistance in the investigation.
Ms. Strauss said that the investigation is ongoing, and asked any individuals with relevant information to contact the FBI at (800)-CALL-FBI.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
The charges in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints and the description of the Complaints set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Two Hartsville Men Sentenced to 12.5 Years in Federal Prison for Meth DistributionRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Chazoid Cenetell Rogers, 42, and Oyarmma Robinson, 42, both of Hartsville, were sentenced to more than twelve years in federal prison, after pleading guilty to their roles in possessing with the intent to distribute and distributing methamphetamine.
Evidence presented to the Court showed that, in the Spring and Summer of 2019, law enforcement conducted a series of controlled buys of methamphetamine from Rogers and/or Robinson. Rogers participated in five sales of methamphetamine over a three-month period, for a total of 209 grams of methamphetamine. Robinson participated in two sales of methamphetamine in one month, for a total of 111 grams of methamphetamine.
United States District Judge Sherri A. Lydon sentenced Rogers and Robinson to 150 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Chesterfield County Sheriff’s Office, the Darlington County Sheriff’s Office, and the Hartsville Police Department.
Assistant United States Attorney Katherine Flynn prosecuted the case.
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Two Defendants Plead Guilty for Their Roles Helping Cybercriminals Launder Money as Part of the QQAAZZ OrganizationRead the Press Release
PITTSBURGH – Two individuals have pleaded guilty for their roles in the cybercriminal money laundering organization QQAAZZ. On August 6 and July 13, two of the charged defendants, Arturs Zaharevics and Aleksejs Trofimovics, respectively, pleaded guilty to money laundering conspiracy in the Western District of Pennsylvania. QQAAZZ was a European-based money laundering organization that provided illegal cash-out and cryptocurrency transactions for computer hackers and their associates. In total, 20 individuals have been charged as part of this scheme.
In furtherance of QQAAZZ’s criminal conspiracy, Trofimovics, using his own name, registered a shell company in Portugal that conducted no legitimate business. Trofimovics then opened at least thirteen corporate bank accounts in Portugal in the name of the shell company for the intended purpose of enabling QQAAZZ to receive and launder money stolen by cybercriminals from victims and their respective financial institutions. Several of these Portuguese accounts received, or were intended to receive, funds stolen from U.S. victims.
Arturs Zaharevics was successfully extradited from the United Kingdom in April. In furtherance of QQAAZZ’s criminal conspiracy, Zaharevics established a shell company under a false name and set up foreign bank accounts in the name of that shell company that received or intended to receive funds stolen from U.S. victims.
Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania and FBI Pittsburgh Special Agent in Charge Mike Nordwall made the announcement today.
“Transnational money laundering organizations like the QQAAZZ group play a critical role in helping cybercriminals profit from their schemes. The guilty pleas announced today reflect our ongoing commitment to dismantle these pernicious groups through collaboration with our foreign partners. The guilty pleas further demonstrate our commitment to pursue such criminals in other parts of the world and ensure that they face justice in our U.S. courts,” said Acting United States Attorney Stephen R. Kaufman of the Western District of Pennsylvania.
“These individuals operated a money laundering scheme working in concert with cyber criminals who stole from unsuspecting victims in the United States and around the globe,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Their guilty pleas are proof no one can hide behind a computer or an international border. The FBI is engaged in numerous efforts to combat cyber threats, from improving threat identification and information sharing, to examining the way we operate to disrupt and defeat these threats. Partnerships are a vital part of the work we do every day, and the global partners in this investigation allowed all of us to combine tools, skills and knowledge to create a stronger team to put these criminals out of business.”
According to the factual bases for the two guilty pleas and the various charging instruments in this case, the QQAAZZ members, acting in concert with cybercriminals across the world, conspired to launder money stolen from victims of computer fraud in the United States and elsewhere. More than 40 house searches were conducted in Latvia, Bulgaria, the United Kingdom, Spain and Italy, with criminal prosecutions initiated in the United States, Portugal, Spain and the United Kingdom. The largest number of searches and arrests were carried out in Latvia by the Latvian State Police (Latvijas Valsts Policija), and an extensive bitcoin mining operation associated with the group was seized in Bulgaria. Europol and several law enforcement agencies across Europe collaborated with the United States to develop parallel investigations and prosecutions of the QQAAZZ members in their own countries.
The investigation was conducted by FBI. The Justice Department’s Office of International Affairs and law enforcement partners in the United Kingdom and Latvia secured the arrest of the defendants overseas.
The case is being prosecuted by Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section of the U.S. Department of Justice’s Criminal Division, Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of the National Security and Cybercrime Section for the Western District of Pennsylvania, and Assistant U.S. Attorney Brian Czarnecki of the Western District of Pennsylvania.
Tulsa Man Sentenced for Applying for Paycheck Protection Program Loans under False PretensesRead the Press Release
A Tulsa man who fraudulently applied for Paycheck Protection Program forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Ibanga Etuk, 41, to a total of four years in federal prison— two years for bank fraud and two years for aggravated identity theft. Judge Eagan also ordered Etuk to pay $168,000 in restitution to Chickasaw Community Bank.
In a plea agreement, Etuk admitted that from April 6, 2020, to April 29, 2020, he knowingly applied for a Paycheck Protection Program loan from Frontier State Bank under false pretenses. The defendant lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the business, and relationships between the parties in a $300,000 loan application submitted for AboveAll Business Inc.
During the same time, Etuk unlawfully used another individual’s identity on payroll records submitted to Frontier State Bank when he applied for the $300,000 loan.
Etuk’s wife, Teosha Etuk, also fraudulently applied for Paycheck Protection Program loans. She pleaded guilty to one count of bank fraud on April 6, 2021. She was sentenced on July 19, 2021, to one year and a day in federal prison followed by five years of supervised release. She was further ordered to pay restitution in the amount of $150,000 to First Liberty Bank.
In a plea agreement, Teosha Etuk, 33, admitted that from April 14, 2020, to April 29, 2020, she fraudulently applied for a Paycheck Protection Program loan through First Liberty Bank. Specifically, she lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the businesses and relationships between the conspirators in a loan application for $150,000 for the company TMARK Enterprises, Inc.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI conducted the investigation. Assistant U.S. Attorneys Kristin Harrington and Victor A.S. Régal are prosecuting the case.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-for
Tucson Drug Trafficker Sentenced to Five YearsRead the Press Release
TUCSON, Ariz. – Oscar Alberto Martinez, 27, of Tucson, Arizona was sentenced yesterday by U.S. District Judge John C. Hinderaker to five years in prison, followed by three years of supervised release. Martinez previously pleaded guilty to conspiracy to distribute methamphetamine, heroin, and fentanyl.
Martinez operated as a drug courier for a Tucson-based drug trafficking organization that trafficked methamphetamine, heroin, and fentanyl. Martinez made daily deliveries of drugs to buyers in Tucson for approximately three months. On February 20, 2020, Martinez was arrested while attempting to deliver three pounds of methamphetamine and ten ounces of heroin. Martinez fled from law enforcement, leading them on a high-speed vehicle chase through Tucson before abandoning his vehicle and continuing his flight on foot. Officers finally apprehended Martinez as he was trying to run into a home.
The Drug Enforcement Administration conducted the investigation in this case, with assistance from the Pima County Sheriff’s Office, the Tucson Police Department, and the Oro Valley Police Department. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 20-1864-03-TUC-JCH (LCK)
RELEASE NUMBER: 2021-027_Martinez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Swainsboro, Ga., banker admits obtaining hundreds of thousands of dollars in fraudulent loansRead the Press Release
SAVANNAH, GA: A former commercial loan officer at a Chatham County bank is facing significant penalties after admitting to obtaining hundreds of thousands of dollars in fraudulent loans.
Jason McMillan, 45, of Swainsboro, Ga., awaits sentencing after pleading guilty in U.S. District Court to an Information charging him with Bank Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. McMillan’s guilty plea subjects him to a statutory penalty of up to 30 years in prison, up to $1 million in fines, significant restitution and asset forfeiture, and up to three years of supervised release after completion of any prison term.
There is no parole in the federal system.
“Customers of financial institutions rightly depend on the integrity of those institutions, and of the staff they employ,” said Acting U.S. Attorney Estes. “As part of his plea, Jason McMillan will never again work as a banker – and that will help protect those institutions and their customers.”
As described in court documents and testimony, McMillan was employed as a commercial loan officer at a Chatham County branch of a bank when, in July 2009, he used the identity of C.J. without the victim’s knowledge or authorization to obtain a commercial loan for $187,000, “purportedly for obtaining industrial farm equipment.”
During the next four years, McMillan made interest payments on the loan and completed renewal applications to obtain additional loan amounts of $160,000, $157,000, and $250,000. The plea agreement attributes a total of approximately $200,271 in fraudulently obtained funds that McMillan converted to his personal use. The bank discovered the fraud during an internal investigation.
In addition to the statutory guidelines for sentencing, as part of the plea agreement, McMillan agrees to forfeit $112,430.32, to pay restitution as ordered by the court, and to consent to an order prohibiting him from future employment as a banker.
“Purposely stealing from others for one’s own personal benefit is a greedy, criminal act that burdens all involved,” said Steven R. Baisel, Special Agent in Charge of the Atlanta Field Office of the U.S. Secret Service. “Thankfully, our daily investigative collaboration with our prosecutorial partners helps identify and bring to justice those who choose a felonious path.”
The case was investigated by the U.S. Secret Service, and prosecuted for the United States by Assistant U.S. Attorney Steven H. Lee and Asset Forfeiture Unit Section Chief Xavier A. Cunningham.
Statement of the U.S. Attorney’s Office for the Eastern District of Pennsylvania Regarding Recent Publication by Institute for Quantitative Study of Inclusion, Diversity, and Equity, Inc.Read the Press Release
In our constitutional democracy, the court is the focal point of the entire criminal justice system; its mission is to serve the public by administering justice in a fair and impartial manner, by preserving each citizen’s constitutional rights, and by faithfully applying the rule of law in each individual case. The court’s ability to fulfill this mission – one that the Department of Justice shares with the court – depends on the public’s confidence in our judiciary as an institution.
A recent paper by an organization called the Institute for the Quantitative Study of Inclusion, Diversity, and Equity claims that two judges in our District – Judges C. Darnell Jones II and Timothy J. Savage – have engaged in discriminatory sentencing practices. Our Office is the most frequent litigant before the U.S. District Court for the Eastern District of Pennsylvania. We can report that Judges Jones and Savage treat defendants fairly and even handedly, balancing the complexities presented in each case without regard to race or ethnicity.
Putting aside questions about the paper’s methodology and underlying data set, what we have seen over many years is wholly inconsistent with the paper’s assertions. Simply put, it’s conclusion is belied by our experience appearing before these judges.
Statement from Acting U.S. Attorney Sandra Hairston on Death of Sheriff ClemmonsRead the Press Release
GREENSBORO, NC - Acting U.S. Attorney Sandra Hairston’s statement following the death of Richmond County Sheriff Clemmons:
“It is with great sadness that we learned of the passing of Richmond County Sheriff James E. Clemmons, Jr. He was a trusted partner to the U.S. Attorney’s Office for the Middle District of North Carolina, always fully supportive of the mission to eradicate crime in Richmond County. He was held in the highest regard possible by both his deputies and the constituents he served. Sheriff Clemmons was a leader of rare qualities, having risen through the ranks of the Sheriff’s Office over the last 32 years to become a highly respected voice for law enforcement throughout his own county and the State of North Carolina. Always approachable, always candid, and never one to back down from a tough issue, he will be sorely missed by everyone in this Office. His collegiality, professionalism, and dedication to ‘doing it the right way’ will never be forgotten.”
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Stamford Man Pleads Guilty to Trafficking Counterfeit Oxycodone Pills Containing Fentanyl AnaloguesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ARBER ISAKU, 31, of Stamford, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a charge related to his manufacturing and distributing counterfeit oxycodone pills containing fentanyl analogues.
According to court documents and statements made in court, Isaku and his associate, Vincent Decaro, purchased fentanyl analogues from suppliers in China and, working out of Decaro’s residence at 77 West Hill Circle in Stamford, pressed the drug into counterfeit oxycodone pills, which they sold to customers on dark web markets. David Reichard, who lived for a short time at Decaro’s residence, helped Decaro and Isaku press pills and mail the pills to customers.
On April 3, 2018, a court-authorized search of Decaro’s residence revealed numerous pills containing approximately 330 grams of fentanyl and acetyl fentanyl, approximately 40 grams of fentanyl analogues in powder form, three pill presses, instructions on how to prepare the fentanyl analogue Carfentanil, a hazardous material suit, a gas/respirator-type mask, and numerous U.S. Postal mail envelopes.
At the time of the search of Decaro’s home in April 2018, Decaro and Isaku were in Europe. On September 21, 2018, Decaro and Isaku were arrested by Albanian State Police as they were attempting to cross the border from Albania into Kosovo. A search of an apartment in Tirana where they had been staying revealed alprazolam, fentanyl and other controlled substances; tools and dies for pressing pills, and instructions for synthesizing fentanyl.
Isaku pleaded guilty to one count of possession with intent to distribute 100 grams or more of fentanyl analogues. Judge Underhill scheduled sentencing for October 29, 2021.
Isaku is released on a $50,000 bond pending sentencing.
Decaro and Reichard pleaded guilty to related charges and await sentencing.
This matter has been investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, Connecticut State Police and Stamford Police Department, with the assistance of the Albanian State Police. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
Acting U.S. Attorney Boyle thanked the U.S. Department of Justice's Office of International Affairs for coordinating the extradition proceedings in this matter.
Se acusa a hombres puertorriqueños de delitos de odio por haber disparado a una mujer transgénero con una pistola de paintballRead the Press Release
Un gran jurado federal en San Juan, Puerto Rico, presentó una acusación formal que acusa a Jordany Rafael Laboy García, Christian Yamaurie Rivera Otero y Anthony Steven Lobos Ruiz de delitos de odio por haber agredido a una mujer transgénero por motivos de su identidad de género. Rivera Otero y Lobos Ruiz también fueron acusados de obstrucción a la justicia.
La acusación formal alega que el 24 de febrero del 2020, Laboy García, Rivera Otero y Lobos Ruiz estaban viajando en un carro cuando reconocieron a la víctima en la orilla del camino en Toa Baja, Puerto Rico. Según consta en la acusación formal, los conspiradores reconocieron a la víctima de sus publicaciones en los medios sociales que previamente la identificaban como hombre que entró en el aseo de mujeres en un restaurante local. Tras identificarla, Laboy García, Rivera Otero y Lobos Ruiz acosaron verbalmente a la víctima. Después, los tres hombres se fueron en carro a conseguir una pistola de paintball con la cual disparar a la víctima. Los hombres volvieron posteriormente al lugar donde habían visto a la víctima y la dispararon con bolas de pintura. En los dos encuentros, los hombres usaron un teléfono celular para grabar sus acciones. Los hombres compartieron estas grabaciones con otros. Más aún, la acusación formal alega que después de la alegada agresión, Rivera Otero le indicó a Lobos Ruiz que borrara de su celular al menos una grabación de vídeo de la agresión con la pistola de paintball y acoso verbal de la víctima y que, como respuesta, lo hizo.
De ser condenados, los acusados se enfrentan a una pena máxima de 10 años de cárcel por la acusación de delito de odio, cinco años de cárcel por el cargo de confabulación y una sanción de hasta 250.000 $ por cada cargo. De ser condenados, Rivera Otero y Lobos Ruiz también se enfrentan a una pena máxima de 20 años de cárcel y una sanción de hasta 250.000 $ por el cargo de obstrucción a la justicia.
El caso está siendo investigado por la Oficina Local en San Juan del FBI. El caso está siendo procesado por la Consejera Especial para Litigios, Rose E. Gibson, y la Abogada de Litigios, Laura B. Gilson, de la División de Derechos Civiles del Departamento de Justicia, junto con el Fiscal Federal Auxiliar, José A. Contreras, de la Fiscalía Federal para el Distrito de Puerto Rico.
La acusación formal lo anunciaron la Fiscal General Auxiliar, Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia, el Fiscal Federal del Distrito de Puerto Rico, W. Stephen Muldrow y el Agente Especial Encargado de la Oficina Local del FBI en San Juan, Joseph González.
Una acusación formal es meramente un alegato y a los acusados se los considera inocentes mientas no se pruebe su culpabilidad.
Real Estate Investor Pleads Guilty to Rigging Bids at Foreclosure AuctionsRead the Press Release
A California man pleaded guilty yesterday to rigging bids at public foreclosure auctions.
According to court documents filed in Sacramento, Yama Marifat was indicted for conspiring with other real estate investors to rig bids when purchasing selected properties at foreclosure auctions in San Joaquin County, California, beginning in or about April 2009 and continuing until in or about October 2009. Trial was scheduled to begin on August 17.
“Real estate investors who take advantage of the foreclosure process to line their own pockets will be held accountable,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The defendant’s guilty plea is a testament to our persistence and the strong case built by the division’s talented prosecutors, paralegals and staff, along with our partners at the FBI.”
According to the one-count indictment, Marifat and his co-conspirators carried out the conspiracy by agreeing not to bid against each other on selected properties. Instead, they designated one co-conspirator to bid at the public auction, then held a second, private auction and made payoffs to one another.
“Real estate fraud had devastating impact on the regional economy during the previous recession,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “This case exemplifies the FBI’s commitment to working with our local, state and federal partners to identify and investigate crimes that impact the communities we serve to ensure no crime goes unpunished, and public trust in our financial and real estate systems is maintained.”
Marifat is the 11th individual to plead guilty in the investigation of fraud and bid rigging at real estate auctions in San Joaquin County. Including Marifat, the division’s efforts to prosecute bid rigging and fraud at real estate foreclosure auctions in regions across the country have resulted in charges against 140 individuals, including 124 guilty pleas and 12 individuals convicted at trial.
A criminal violation of the Sherman Antitrust Act carries a maximum sentence of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office is prosecuting the case, which was investigated with the assistance of the FBI’s Sacramento Field Office. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Puerto Rico Men Charged with Hate Crimes for Shooting Transgender Woman with a Paintball GunRead the Press Release
WASHINGTON – A federal grand jury in San Juan, Puerto Rico, returned a three-count indictment charging Jordany Rafael Laboy García, Christian Yamaurie Rivera Otero and Anthony Steven Lobos Ruiz with hate crimes for assaulting a transgender woman because of her gender identity. Rivera Otero and Lobos Ruiz were also charged with obstruction of justice.
The indictment alleges that on Feb. 24, 2020, Laboy García, Rivera Otero and Lobos Ruiz were traveling in a car when they recognized the victim on the side of the road in Toa Baja, Puerto Rico. According to the indictment, the conspirators recognized the victim from social media posts previously identifying her as a man who entered the women’s restroom at a local restaurant. After identifying her, Laboy García, Rivera Otero and Lobos Ruiz verbally harassed the victim. The three men then drove to get a paintball gun and paintballs to be used to shoot at the victim. The men returned to the same place where they had spotted the victim and fired paintballs at her. During both encounters, the men used a cell phone to record their actions. The men then shared these recordings with others. The indictment further alleges that after the alleged assault, Rivera Otero directed Lobos Ruiz to delete at least one video recording of the paintball gun assault and verbal harassment of the victim from his cellular phone, and that Lobos Ruiz, in response, did so.
If convicted, the defendants face a maximum sentence of 10 years in prison for the hate crime charge, five years in prison for the conspiracy charge, and a fine up to $250,000 with respect to each charge. If convicted, Rivera Otero and Lobos Ruiz also face a maximum sentence of 20 years in prison and a fine up to $250,000 for the obstruction of justice charge.
The case is being investigated by the San Juan Field Office of the FBI. The case is being prosecuted by Special Litigation Counsel Rose E. Gibson and Trial Attorney Laura B. Gilson of the Department of Justice Civil Rights Division along with Assistant U.S. Attorney José A. Contreras of the U.S. Attorney’s Office for the District of Puerto Rico.
The indictment was announced by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico and Special Agent in Charge Joseph González for the FBI’s San Juan Field Office.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
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Puerto Rico Men Charged with Hate Crimes for Shooting Transgender Woman with a Paintball GunRead the Press Release
A federal grand jury in San Juan, Puerto Rico, returned a three-count indictment charging Jordany Rafael Laboy García, Christian Yamaurie Rivera Otero and Anthony Steven Lobos Ruiz with hate crimes for assaulting a transgender woman because of her gender identity. Rivera Otero and Lobos Ruiz were also charged with obstruction of justice.
The indictment alleges that on Feb. 24, 2020, Laboy García, Rivera Otero and Lobos Ruiz were traveling in a car when they recognized the victim on the side of the road in Toa Baja, Puerto Rico. According to the indictment, the conspirators recognized the victim from social media posts previously identifying her as a man who entered the women’s restroom at a local restaurant. After identifying her, Laboy García, Rivera Otero and Lobos Ruiz verbally harassed the victim. The three men then drove to get a paintball gun and paintballs to be used to shoot at the victim. The men returned to the same place where they had spotted the victim and fired paintballs at her. During both encounters, the men used a cell phone to record their actions. The men then shared these recordings with others. The indictment further alleges that after the alleged assault, Rivera Otero directed Lobos Ruiz to delete at least one video recording of the paintball gun assault and verbal harassment of the victim from his cellular phone, and that Lobos Ruiz, in response, did so.
If convicted, the defendants face a maximum sentence of 10 years in prison for the hate crime charge, five years in prison for the conspiracy charge, and a fine up to $250,000 with respect to each charge. If convicted, Rivera Otero and Lobos Ruiz also face a maximum sentence of 20 years in prison and a fine up to $250,000 for the obstruction of justice charge.
The case is being investigated by the San Juan Field Office of the FBI. The case is being prosecuted by Special Litigation Counsel Rose E. Gibson and Trial Attorney Laura B. Gilson of the Department of Justice Civil Rights Division along with Assistant U.S. Attorney José A. Contreras of the U.S. Attorney’s Office for the District of Puerto Rico.
The indictment was announced by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico and Special Agent in Charge Joseph González for the FBI’s San Juan Field Office.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
Promoter of Bogus Green Energy Firm Based in Montgomery County Sentenced to 18 Years for $54 Million Ponzi SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Wayde McKelvy, 59, of Aurora, Colorado, was sentenced to 18 years in prison, five years of supervised release, and ordered to pay $37 million restitution today by United States District Judge Joel Slomsky for operating a $54 million Ponzi scheme in one of the largest green energy frauds in U.S. history.
In October 2018, the defendant was convicted after trial of seven counts of wire fraud, conspiracy to commit wire fraud, securities fraud, and conspiracy to engage in securities fraud. The government established at trial that McKelvy and his co-conspirators ran an elaborate Ponzi scheme operating as Mantria Corporation, which received more than $54 million in fraudulently obtained new investor funds. The group promised investors huge returns, as high as 484%, for securities investments in supposedly profitable business ventures in real estate and green energy. In reality, Mantria, based in Bala Cynwyd, PA, was a classic Ponzi scheme in which new investor money was used to pay “returns” to early investors, and the business generated meager revenues and no actual profits.
To induce investors to invest money, the defendant and his co-conspirators repeatedly made fraudulent representations and material omissions about the economic state of Mantria. McKelvy also promoted himself as a financial wizard through aggressive marketing tactics, even though he had little financial acumen and was an unlicensed securities salesman. McKelvy operated what he called “Speed of Wealth” clubs, which advertised on television, radio and the Internet, held seminars for prospective investors, and promised to make them rich. During those seminars and other programs, McKelvy lied to prospective investors to dupe them into investing in Mantria. When the SEC shut down Mantria in November 2009, the pyramid scheme collapsed and was exposed.
McKelvy’s co-conspirators, Troy Wragg and Amanda Knorr, who met as Temple University students, were previously sentenced for their involvement in this scheme to 22 years and two and a half years in prison, respectively.
“This case is a classic example of the warning: if it seems too good to be true, it probably is,” said Acting U.S. Attorney Williams. “McKelvy is nothing more than a twenty-first century snake oil salesman, with all of the trappings to make him appear to be a legitimate businessman. The defendant is clearly a danger to the investing public and deserves to be in prison for a very long time, as the government demonstrated at trial.”
“Wayde McKelvy didn’t care about green energy. The only ‘green’ on his mind was money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “At his bogus financial seminars, he actively and enthusiastically duped people into investing in Mantria, even urging them to liquidate retirement funds and other assets to do so. When the teetering Ponzi scheme finally collapsed, many victims were left financially devastated. It’s the FBI’s duty to hold scammers like McKelvy and his co-conspirators accountable for the serious damage they’ve done.”
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert Livermore and Sarah Wolfe. Additionally, the U.S. Attorney’s Office appreciates the assistance of Securities and Exchange Commission.
Porcupine Man Sentenced to Twenty Years in Federal PrisonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Porcupine, South Dakota, man convicted of Abusive Sexual Contact was sentenced on August 2, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Leonard Martin Brings Plenty, age 73, was sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brings Plenty was indicted by a federal grand jury in June 2019. He pleaded guilty on December 9, 2020.
In 2016, Brings Plenty sexually molested two young females, ages four and six, at his residence in Porcupine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Brings Plenty was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Man Sentenced to Prison for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 30, 2021, by Judge Karen E. Schreier, U.S. District Court.
Ronald Pumpkin Seed, age 36, was sentenced to 7 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Pumpkin Seed was indicted for the charge by a federal grand jury in January 2017. He pleaded guilty on April 30, 2021.
The conviction stems from Pumpkin Seed having sexual contact with a female under the age of 10, between 2011 and 2016 at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Pumpkin Seed was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Sex Offender Convicted of Failing to Register After Absconding from Federal SupervisionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edward C. Kipp, 74, of Philadelphia, PA, was convicted today at trial of failing to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA), also known as “Megan’s Law.” Under Megan’s Law, sex offenders are required to register their home, work, and school addresses with state law enforcement, so that individuals can search a database and be aware of convicted sex offenders living, working, or attending school in their neighborhood.
In 2013, the defendant was convicted of possessing child pornography. Because of that conviction, he is required to register as a sex offender with the Pennsylvania State Police, and to verify that registration on an annual basis for 10 years. The defendant must also notify the State Police within three business days if there is any change in his residence. In 2020, Kipp absconded from federal supervised release and moved to a new residence without updating his registration. In September 2020, the defendant was charged by Indictment with one count of failing to register as a convicted sex offender.
“The purpose of Megan’s Law is to provide the public with current information about the whereabouts of sex offenders in order to ensure public awareness and safety,” said Acting U.S. Attorney Williams. “Failure to comply with the Megan’s Law registration requirement is not simply an administrative hiccup; it is a new federal crime. And if these offenders do not comply, we will aggressively prosecute.”
“The U.S. Marshals Service is pleased to lead Sex Offender Registration and Notification Act (SORNA) enforcement as part of Project Safe Childhood initiatives to diminish the risk posed by those that have the potential to dangerously endanger children,” said Eric Gartner, U.S. Marshal for the Eastern District of Pennsylvania.
“Parents and caregivers deserve to know if a sex offender lives next door,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “That's precisely why the registration and notification law was passed, to provide that critical information to the public and better protect children. Convicted offenders are required to advise the state police if their address of record changes. Edward Kipp was well aware of that, failed to do so, and is now being held appropriately accountable.”
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 United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the United States Marshals Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Jessica Rice and Nancy Rue.
Pembroke Man Sentenced for Fentanyl and Firearm CrimesRead the Press Release
WILMINGTON, N.C. – A Pembroke man was sentenced yesterday to 160 months in prison for possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime. On May 3, 2021, Patrick Warren Privette pled guilty to the charges.
According to court documents and other information presented in court, on October 15, 2020, officers with the Robeson County Sheriff’s Office executed a search warrant at Patrick Privette’s residence after learning he supplied drugs to an individual which led to an overdose. Inside the defendant’s bedroom, officers located a quantity of fentanyl, and approximately 50 prescription pills. Inside an air vent near the nightstand, officers recovered a Walther .380, model PK380, semi-automatic handgun. Officers arrested Privette and transported him to the Robeson County Sheriff’s Office where he waived his Miranda rights and gave a statement. Privette stated that the drugs found in the house were his and that he had been dealing heroin and fentanyl. He also admitted to possessing the gun and needing it for protection. Privette is also a convicted felon and prohibited from possessing firearms. Another witness confirmed that Privette had been dealing fentanyl for months.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robeson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00193-M.
Pain Management Organization Pays $5.1 Million to Settle Criminal Medicare Kickback ViolationsRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Joseph S. Green (619) 546-6955
SAN DIEGO – National Spine & Pain Center, LLC (“NSPC”), a physician management services organization headquartered in Rockville, Maryland, agreed this week to pay $5.1 million in restitution to Medicare as part of a criminal settlement for receiving payments in violation the Anti-Kickback Statute.
CLICK HERE for Non-Prosecution Agreement
As part of a non-prosecution agreement resolving criminal liability, NSPC admitted that the company and its affiliate Physical Medicine Associates, Ltd. (“PMA”) entered into an arrangement with Proove Biosciences, a defunct genetics testing company formerly based in Irvine, California, in which Proove unlawfully compensated physicians under the guise of a clinical research program.
The federal Anti-Kickback Statute provides for criminal penalties for whoever knowingly and willfully offers, pays, solicits, or receives remuneration to induce or reward the referral of business that is reimbursable under any of the Federal health care programs, including Medicare. The statute covers the payers of kickbacks - those who offer or pay remuneration - as well as the recipients of kickbacks - those who solicit or receive remuneration.
NSPC admitted that certain NSPC and PMA physicians referred to the clinical research payments offered by Proove as being payments “per test” or “per patient,” and that as a part of the scheme physicians completed timesheets used by Proove to pay the physicians which overstated the time that the physicians spent conducting related clinical research. In some cases, the timesheets indicated that the physicians had performed certain tasks, which had, in fact, been performed by Proove’s own employees, resulting in payments from Proove to the physicians for tasks that they did not perform.
NSPC admitted that certain NSPC personnel communicated to Proove that the company would not offer Proove’s genetic tests at additional NSPC sites unless Proove was current on its payments to NSPC and PMA physicians. Conversely, Proove communicated to NSPC that Proove expected NSPC and PMA physicians to order a certain volume of tests from Proove. Proove’s genetic tests purportedly could determine a patient’s risk of abusing certain prescription opioids and how patients metabolized certain drugs.
PMA received a total of $1.1 million in payments from Proove. Medicare paid Proove approximately $4 million for claims submitted by Proove from referrals from NSPC and PMA physicians.
“Referring patients based on expectation of personal profit corrupts the health care system by encouraging medical providers to make decisions based on their own financial gain rather than a patient’s best interests,” said David Leshner, Attorney for the United States. “Kickback payments also unfairly generate business for dishonest providers at the expense of those who do not engage in illegal conduct. This office is committed to holding perpetrators accountable for these fraudulent schemes.” Leshner commended AUSA Joseph Green, the FBI and HHS-OIG for the diligent investigation and prosecution of this matter.
“The defendants bilked millions of dollars intended to fund services that promote and improve the health of Medicare beneficiaries, some of whom were their own patients,” stated Timothy DeFrancesca, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “They prioritized their own enrichment above their duties as health care providers. HHS-OIG is dedicated to protecting Federal health care beneficiaries and programs, so our work includes the pursuit of providers who cheat both.”
“This week's restitution order sends a strong message to healthcare providers that choose to put personal gain over professional responsibility,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work with our federal partners at HHS-OIG to root out these schemes which further diminish trust in the health care system.”
The non-prosecution agreement cited NSPC’s new ownership group, its voluntary termination of its relationship with Proove prior to the company’s knowledge of the criminal investigation, its continuing cooperation with investigators, and the adoption of a robust compliance program, as factors that supported the resolution of the criminal investigation with a non-prosecution agreement.
On June 9, 2021, nine individuals were charged in connection with the scheme in United States v. Brian Meshkin, et al., 21CR0112-JLS, United States District Court, Central District of California. The case is presently pending.
AGENCIES
Federal Bureau of Investigation
Department of Health and Human Services, Office of Inspector General
Ocala Man Convicted of Wire Fraud in Relation to Resale of Wireless Communications PlansRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville has convicted Justin Lewis, 38, of Ocala, Florida of six counts of wire fraud. The guilty verdict, returned Tuesday, at the conclusion of a five-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Evidence introduced at trial revealed that between September 2015, and February 2018, Lewis engaged in a scheme to defraud a wireless carrier by obtaining unlimited cellular data lines through fraudulent means and reselling them to the public for a 1500% mark-up. During most of this time-period, unlimited plans were not widely available to the public. When his actions were discovered, Lewis made false representations to the carrier, created new companies in other people’s names, and submitted altered documentation to conceal his activities. Finally, he used a technique to manipulate the carrier’s customer website portal to obtain unlimited data for free through accounts he had opened in other people’s names.
“Notwithstanding the size of the corporation, fraud schemes harm companies and their customers,” stated Acting U.S. Attorney Coody. “The deceptive, persistent, and sophisticated acts employed by this defendant demonstrate the danger posed to both corporations and their consumers. With the assistance of our dedicated law enforcement partners, we are committed to investigating and prosecuting those who engage in acts of corporate fraud.”
“This case is an example of the FBI’s relentless effort to protect American companies and their customers,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “When individuals defraud corporations, it is ultimately us – the corporation’s customers – who pay the price. The FBI remains committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
Lewis’ sentencing hearing is scheduled for October 26, 2021, at 10:00 am at the United States Courthouse in Gainesville before the Honorable United States District Judge Allen Winsor. Lewis faces a maximum penalty of 20 years in federal prison for the wire fraud offenses.
This conviction was the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorneys Gary Milligan and David Byron prosecuted the case.
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, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Norwood Woman Indicted for Stealing Government BenefitsRead the Press Release
BOSTON – A Norwood woman was arrested today in connection with fraudulently receiving federal workers’ compensation benefits and disability benefits from the Social Security Administration (SSA).
Karen Nolan, 64, was indicted on two counts of theft of public funds and two counts of making false statements. Nolan will make an initial appearance this afternoon before U.S. District Court Magistrate Judge Jennifer Boal.
According to the charging document, from approximately November 2017 through August 2021, Nolan repeatedly stole federal workers’ compensation benefits, as well as Social Security disability benefits from approximately July 2019 through August 2021. It is alleged that in April 2019, Nolan falsely reported to the SSA that she had not worked since 2017 due to a medical disability but was actively employed at a dermatology practice at the time. It is further alleged that Nolan made similar false statements to the Department of Labor, Office of Workers’ Compensation Programs in May 2021.
The charges of theft of public funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making a false statement each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Kate Mulligan, Chief of Investigations, Insurance Fraud Bureau of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North Dakota Man Sentenced on Drug ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Bottineau, North Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on July 30, 2021, by Judge Karen E. Schreier, U.S. District Court.
Jeffrey Walters, age 62, was sentenced to four years and nine months in federal prison, followed by three years supervised release, and was ordered to pay $100 special assessment to the Federal Crime Victims Fund.
Walters was indicted for Possession with Intent to Distribute a Controlled substance by a federal grand jury on July 23, 2020. He pleaded guilty on April 9, 2021.
The conviction stems from Walters possessing, with intent to distribute, 1,288 grams of methamphetamine, 80 grams of cocaine, and 14 grams of marijuana near Buffalo, South Dakota, which was found after Walters came into contact with a Harding County Sheriff’s Deputy in March 2020.
This case was investigated by the U.S. Drug Enforcement Administration, the Harding County Sheriff’s Office, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Walters was immediately turned over to the custody of the U.S. Marshals Service.
New Orleans Man Sentenced for Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JASON PICK, age 40, a resident of New Orleans, Louisiana, was sentenced on August 5, 2021 for committing wire fraud in violation of Title 18, United States Code, Section 1343 announced U.S. Attorney Duane A. Evans. The Honorable Eldon Fallon sentenced PICK to 2 months incarceration, 10 months of home detention, 2 years of supervised release, a mandatory $100 special assessment fee and payment of $140,791.21 in restitution.
According to court documents, PICK was employed as an accountant for Company A between August 2016 and June 2018. Part of PICK’s duties was handling the credit card accounts of Company A. Without authorization, PICK used Company A’s credit cards for his own personal expenses. In total, PICK stole approximately $140,791.21 from Company A.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
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New Orleans Man Sentenced for Possessing a Gun in Furtherance of Drug DealingRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced ASHONTI HALL, 31, of New Orleans, Louisiana, on August 5, 2021 to 60 months in the Bureau of Prisons for possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c), announced U.S. Attorney Duane A. Evans.
In October 2019, HALL was indicted for possessing heroin, cocaine base, cocaine, and marijuana with the intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking.
Court documents show that HALL admitted that he fled from New Orleans Police Department Officers who were investigating HALL for a shooting that occurred the previous day. The police caught HALL and found him with a backpack that contained several different types of drugs, scales, cash, and a loaded gun.
District Judge Vance sentenced HALL to the mandatory minimum term of 5 years imprisonment to be followed by three years of supervised release. She also ordered that he pay a mandatory $100 special assessment fee.
U. S. Attorney Evans praised the work of the New Orleans Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
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New Orleans Man Admits to Defrauding Customers Through Bitcoin SalesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL YUSKO, III, age 46, a resident of New Orleans, pleaded guilty today to operating an unlicensed money transmitting business before U.S. District Judge Barry W. Ashe.
According to court documents, federal agents received complaints beginning in May 2018 that YUSKO was selling customers bitcoin and other cryptocurrencies but failing to follow through on transactions. YUSKO would promise customers any amount of bitcoin in exchange for U.S. dollars at five percent above market price for a five percent fee. He then directed these customers to deposit U.S. dollars into one of several business bank accounts, among them Nervous Light Capital LLC, Ready Demolition LLC, Patriot Concrete Pumping, LLC, Praetorian Energy, LLC, and Hudson Oak Partners LLC. YUSKO did not register these companies as money transmitting businesses with Financial Crimes Enforcement Network (FinCEN) of the Department of Treasury, and he otherwise did not comply with the regulations of Title 31, United States Code, Section 5330. YUSKO also instructed his clients not to tell any bank employees that the purpose of their wire transfer was to purchase cryptocurrency. Agents have learned that banks frequently shut down accounts used to sell cryptocurrency, and banks had previously shut down YUSKO’s accounts for such activity.
The court documents detail how customers communicated with YUSKO and paid him tens of thousands of dollars for bitcoin. While YUSKO did carry out transactions with many customers, he failed to fulfill other transactions, and then he failed to return the U.S. dollars deposited in his accounts. YUSKO admitted to being responsible for $201,399.00 in losses to victims. As part of his plea, YUSKO agreed to make full restitution.
YUSKO faces a maximum of five years in prison, a maximum $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment. Judge Ashe scheduled YUSKO’s sentencing for November 4, 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Field Office and the U.S. Secret Service New Orleans Field Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Nebraska Fugitive Sentenced to Four Years in PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Howard D. Farley, Jr. (72, Weirsdale) to four years in federal prison, followed by one year of supervised released for passport fraud, aggravated identity theft, and operating as a pilot without a legitimate airman’s certificate. The court also ordered the forfeiture of an aircraft that was seized by the Department of Homeland Security at Farley’s home.
Farley had pleaded guilty in April 2021.
According to his plea agreement, Farley admitted to using the identity of a deceased person to obtain a United States passport and an Airman’s Certificate (pilot’s license). Farley admitted to operating as an airman using the fraudulently obtained certificate between January 4, 2016, until his arrest by federal authorities on November 28, 2020.
Other court documents established that Farley used the identity of a deceased infant for more than 35 years to avoid apprehension in the Nebraska where, in 1985, he had been indicted on federal narcotics conspiracy charges.
The case against Farley’s co-defendant, Duc Hanh Thi Vu, remains pending and is scheduled for the October 2021 trial term.
“The Diplomatic Security Service (DSS) has a statutory mandate to investigate passport fraud,” said Peter Kapoukakis, Special Agent in Charge of the DSS Miami Field Office. “We are firmly committed to collaborating with the U.S. Attorney’s Office, along with our federal, state, and local law enforcement partners to bring fugitives like Mr. Farley to justice regardless of how long they have been on the run. Strong relationships like those that made this prosecution possible are vital toward ensuring the integrity of U.S. travel documents and protecting our country’s greater interests.”
“By operating aircraft for several years with a fraudulently obtained airman’s certificate, Howard D. Farley, Jr., put the safety of those traveling in our National Airspace System at serious risk,” said Todd Damiani, Special Agent-in-Charge, Department of Transportation Office of Inspector General Southern Region. “May today’s sentencing serve as a stern warning that, together with our law enforcement and prosecutorial partners, we will not waver in our commitment to pursue those who are willing to compromise safety for personal gain.”
“The importance of the U.S. passport system and aviation security procedures cannot be overstated,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “By using a variety of investigative techniques and leveraging strong partnerships, HSI has helped ensure this criminal faces the consequences of his actions.”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, the Department of Transportation – Office of Inspector General, the Social Security Administration – Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service – Criminal Investigation, with support from the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Montgomery County Man Sentenced for Receipt of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 327 months in prison for receipt of child pornography.
Ronnie Nelson Clark, 38, was indicted on September 2, 2020, on one count of receipt and attempted receipt of child pornography. He pleaded guilty to the indictment on February 3, 2021.
According to court documents, in April, 2019, North Carolina Department of Public Safety Probation and Parole officers conducted a compliance check on Clark, who was a registered sex offender under their supervision. Clark was convicted of first-degree rape of a child in Montgomery County Superior Court in 2006 and sentenced to 173 months to 217 months of imprisonment. Clark had completed his term of imprisonment and was under supervision as a result. Clark’s conditions of supervision included limitations on his use of electronic devices and contact with minors, and required him to submit to warrantless searches, including searches of computers and electronic devices.
When officers arrived at Clark’s residence, they asked to see Clark’s cell phone and saw several text message conversations with what appeared to be underage girls. These conversations were sexual in nature. Montgomery County Sheriff’s Office (MCSO) deputies then obtained search warrants for Clark’s cell phone and residence. MCSO detectives seized two of Clark’s cell phones and a tablet and noted conversations on both cell phones between Clark and underage girls. In the messages, Clark would ask the girls about their schools and their parents. In most of the messages, Clark referred to the girls as “baby girl,” and the girls referred to Clark as “daddy.” Federal Bureau of Investigation review of one of Clark’s cell phones found images and videos of child pornography and revealed additional conversations that appeared to be with minors using social media applications including Instagram, Snapchat, Facebook Messenger, and the default text messaging application. Clark often asked the girls if they were single and asked their ages. The girls would say their ages, often ages twelve to fourteen years old. Clark told the girls he wanted to date them and would ask if age mattered to the girls. Many of the girls told Clark he was too old for them. Clark often tried to convince them otherwise. In one conversation, when the minor indicated she was only twelve, Clark responded, “Why does that matter nobody gotta know but us ik you wouldn’t tell on me would u.” Clark asked one person, later identified as an adult purporting to be a 9-year-old, for pictures of her genitals.
Following release from prison, Clark will be subject to supervised release for life.
This case was investigated by the Federal Bureau of Investigations, the Montgomery County Sheriff’s Office, and the North Carolina Department of Public Safety Probation and Parole and was prosecuted by Assistant U.S. Attorney Kennedy Gates.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
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Mission Woman Sentenced to Five and a Half Years for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 29, 2021, by Judge Karen E. Schreier, U.S. District Court.
Carmen Dillon, age 49, was sentenced to five and a half years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Carmen Dillon was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on October 22, 2020. She pleaded guilty on April 23, 2021.
From approximately July 2019 to January 2020, methamphetamine was brought to South Dakota by others. The defendant tracked packages she knew to contain methamphetamine that were being sent through the mail. The defendant also accepted such packages and signed for them upon their arrival. She thereafter distributed methamphetamine in South Dakota.
This case was investigated by the U.S. Postal Inspection Service, Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Dillon was immediately returned to the custody of the U.S. Marshals Service.
Minneapolis Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man pleaded guilty today to possessing a firearm as a felon, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on May 21, 2020, law enforcement arrested Deshawn Tyrone Braziel, 36, who had an outstanding warrant and was suspected in connection with a shooting that occurred in Minneapolis on April 16, 2020. At the time of his arrest, Braziel was wearing a backpack containing a loaded, Springfield XD 9mm pistol, 94 ecstasy pills, a credit card in his name, and a digital scale. Because Braziel has prior felony convictions, including a previous conviction for a drive-by shooting in 2005, he is prohibited under federal law from possessing firearms or ammunition.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison Ethen is prosecuting the case.
Michigan Biodiesel Exporter Sentenced to Prison for Tax FraudRead the Press Release
A Bloomfield, Michigan, businessman, who operated a biodiesel fuel company, was sentenced to 30 months in prison today for filing a false income tax return.
Chandra Yarlagadda owned and operated Alpha Bioenergy LLC, formerly known as Naturol Bioenergy LLC, which purchased and sold biodiesel fuel. Under the Clean Air Act and related federal regulations, companies such as Alpha that exported biodiesel fuel were required to purchase and retire Renewable Identification Numbers (RINs) for any volume of renewable fuel they exported. The RINs are used by the Environmental Protection Agency to track compliance with its annual Clean Air Act standards.
According to court documents, Yarlagadda reported income and expenses associated with Alpha on Schedules C attached to his personal income tax returns. Yarlagadda admitted as part of his plea that on the Schedules C attached to his 2009, 2010, and 2011 tax returns, he substantially overstated expenses associated with the purchase of RINs. For these three years, Yarlagadda reported RIN expenses totaling more than $14.2 million, when, in fact, he was only entitled to claim approximately $80,000 in RIN expenses for those years. Yarlagadda admitted that if he had not claimed these false deductions, he would have owed an addition $2.3 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Gershwin A. Drain ordered Yarlagadda to serve one year of supervised release and pay restitution to the IRS in the amount of $3,285,303.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Saima S. Mohsin for the Eastern District of Michigan made the announcement.
IRS Criminal Investigation, the U.S. Environmental Protection Agency – Criminal Investigation Division, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, conducted the investigation.
Trial Attorneys Melissa S. Siskind and Sarah C. Ranney of the Tax Division prosecuted the case, and Assistant U.S. Attorney Stephen Hiyama of the Eastern District of Michigan provided substantial assistance in this matter.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Metro East Personal Assistant Facing Health Care Fraud ChargesRead the Press Release
EAST SAINT LOUIS, Ill. – Shomanicka Holly, 36, of East Saint Louis, Illinois, was arraigned in
federal court today after a grand jury returned an indictment charging her with three counts of
felony health care fraud.
The indictment alleges that Holly served as a personal assistant from 2016 to 2019 for a qualified
beneficiary enrolled in the Illinois Department of Human Services Home Services Program. The Home
Services Program is a Medicaid program in Illinois that provides personal assistants to
Medicaid recipients to assist them with general household activities and personal care. It is
designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including
nursing home care.According to the indictment, Holly submitted false timesheets requesting payment for
personal assistant services that she never actually performed because she was working at another
job, not caring for the Medicaid recipient. In doing so, Holly allegedly defrauded the
program and breached its policies stating that personal assistants “cannot charge [the Home
Services Program] for the same hours worked when working another job” and “billing for
hours not worked constitutes Medicaid fraud.”Holly’s case is set for trial on October 4, 2021, at 9:00am, before United States District Judge
David W. Dugan in the federal courthouse in East St. Louis. If convicted, Holly faces a maximum penalty
of 10 years in prison on each fraud count.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be
innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.This case was investigated by agents of the U.S. Department of Health and Human Services, Office of
Inspector General (HHS-OIG) and the Illinois State Police, Medicaid Fraud Control Bureau (MFCB).
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Member of O.B.H. Sentenced to & 7½ Years for Attempting to Intimidate Witness During 2019 Trial That Sent Fellow Gang Members to PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Charles Salley, a/k/a “Dark Lo,” a/k/a “Ron Harvey,” 39, of Philadelphia, PA, was sentenced to seven and a half years in prison, one years of supervised release, and was ordered to pay a $10,000 fine by United States District Court Judge Mark A. Kearney for threatening a cooperating witness during a federal trial in November 2019.
Salley, a well-known Philadelphia-based rapper and member of the violent street gang “O.B.H.” (or “Original Block Hustlaz”), mailed a menacing letter to a witness on the eve of the witness’ testimony during a federal trial in which Salley’s O.B.H. associates were charged with drug trafficking and weapons possession. The letter threatened violence against the witness and the witness’ girlfriend if the witness told the truth during his testimony. Salley was then present in the courtroom during the course of the 2019 trial, including on the day of the witness’ scheduled testimony. Later that day, following the witness’ testimony, Salley was arrested at his home in Delaware and charged with witness tampering for sending the letter. Ultimately, the O.B.H. defendants were all convicted after trial and sentenced to lengthy prison terms. Salley will now join them.
“Witness intimidation has no place in the criminal justice system and will be dealt with immediately so as to deter anyone else who might consider acting so reprehensibly,” said Acting U.S. Attorney Williams. “If you attempt to intimidate a federal witness, you will face federal charges of your own.”
“Imagine agreeing to be a federal witness against members of a violent drug gang and the day before you take the stand, one of their buddies threatens you and yours,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “This is exactly the type of thing our witness tampering laws are designed to prevent, as our justice system depends on witnesses being willing to share what they know. The FBI simply will not permit them to be targeted like this, in an attempt to subvert the rule of law. Charles Salley was hoping to keep his OBH associates out of prison. Instead, he finds himself behind bars as well, for quite some time.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.
Man Convicted of Sex Trafficking 14-Year-Old, Adult out of Dallas HotelRead the Press Release
A Dallas man has been found guilty of sex trafficking a 14-year-old minor and an adult victim, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
After less than a half hour of deliberation, a federal jury in Dallas convicted Anthony Lennell Acy, 34, on one count of child sex trafficking and one count of sex trafficking by force, fraud, and coercion.
“Human trafficking is one of the most degrading crimes we prosecute. Like so many traffickers, this defendant preyed on vulnerable victims, lining his pockets at the expense of their dignity,” said Acting U.S. Attorney Prerak Shah. “The North Texas Trafficking Task Force is proud to stand against the exploitation of women and girls.”
“Sex trafficking has no place in our communities. HSI will vigorously pursue anyone involved in the exploitation of victims for commercial sexual acts,” said Ryan L. Spradlin, Special Agent in Charge HSI Dallas. “We will aggressively investigate these types of cases to ensure predators are identified, arrested, and face the justice deserved.”
According to evidence presented at trial, Mr. Acy trafficked at least two victims — including the 14-year-old girl, a runaway from McKinney, Texas — out of multiple hotels in Dallas and in California.
Agents with the North Texas Trafficking Task Force testified that they recovered Jane Doe 1 and Adult Victim 1 out of a Dallas hotel room and arrested Mr. Acy as he was leaving the hotel parking lot.
At trial, Jane Doe 1 testified that Mr. Acy approached her in a parking lot next to a hotel a couple weeks after she ran away from home. Jane Doe 1 stated that Mr. Acy told her that she could model for his clothing line and then drove her to a hotel, where he offered her dinner and a place to stay that night. She testified that Mr. Acy later forced her to take ecstasy pills, caused her to engage in commercial sex in Dallas and in California, and physically assaulted her multiple times.
Adult Victim 1 testified at trial that Mr. Acy first recruited her over Facebook, claiming that he wanted to be her boyfriend. Adult Victim 1 stated that, after she traveled to Dallas to visit Mr. Acy, he took her cell phone and her car keys and forced her to engage in commercial sex in order to pay back the money he claimed to have spent on her. Mr. Acy trafficked Adult Victim 1 first in Dallas and later in Austin and California. Adult Victim 1 testified that Mr. Acy forced her to earn $1,000 a day, with all proceeds turned over to him.
Both victims testified that Mr. Acy repeatedly beat them, threatened them at gunpoint and knifepoint, and threatened to kill them and their families if they called the police.
In the course of the investigation, investigators reviewed Mr. Acy’s hotel records, phone records, financial records, online advertisements, and Facebook posts that corroborated the victims’ accounts of Mr. Acy’s sex trafficking activity.
Mr. Acy now faces a minimum sentence of 15 years and up to life in federal prison.
The North Texas Trafficking Task Force, led by Homeland Security Investigations, conducted the investigation, with assistance from the Texas Department of Public Safety, the Dallas County Sheriff’s Office, the Colleyville Police Department, and the Dallas County District Attorney’s Office. Assistant U.S. Attorneys Rebekah Ricketts and John Kull are prosecuting the case. U.S. District Judge Jane J. Boyle presided over trial.
Lynn Man Pleads Guilty to Conspiring to Distribute Methamphetamine and Firearms OffensesRead the Press Release
BOSTON – A Lynn man pleaded guilty yesterday in federal court in Boston to conspiring to distribute methamphetamine and possessing firearms.
David Oth, a/k/a “Baby Bouncer,” a/k/a “BB,” 32, pleaded guilty to conspiracy to distribute and possess with intent to distribute 50 grams or more of methamphetamine and possession of firearms in furtherance of a drug trafficking crime. U.S. Senior District Court Judge Mark L. Wolf scheduled sentencing for Dec. 9, 2021. Oth was charged by criminal complaint on Feb. 24, 2021.
Oth was a member of the Tiny Rascals Gangsters, a street gang with a presence in the area north of Boston. Oth admitted that he and other gang members conspired to distribute methamphetamine by transporting it to Maine, where it would yield a higher resale value. A search of Oth’s residence resulted in the seizure of approximately three pounds of pure methamphetamine and two firearms.
The charge of conspiracy to distribute and possess a controlled substance with intent to distribute provides for a sentence of up to life years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $10 million. Based upon the weight of suspected narcotics involved in the conspiracy, the statute provides for a mandatory minimum sentence of 10 years. The charge of possessing a firearm in furtherance of a drug trafficking conspiracy provides for a sentence of at least five years and up to life in prison, to be served consecutively to the sentence imposed for the drug trafficking crime, five years of supervised release and a fine of $250,000. Sentences are imposed by a federal district judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Lynn Acting Police Chief Len Desmarais made the announcement. Assistance was provided by the U.S. Attorney’s Office for the District of Maine; Maine Drug Enforcement Agency; Essex County, Middlesex County and Suffolk County District Attorney’s Offices; Essex County and the Hancock County (Maine) Sheriff’s Departments; and the Malden, Salem, Bangor (Maine), Portland (Maine) and Westbrook (Maine) Police Departments. Assistant U.S. Attorneys Philip A. Mallard and Sarah Hoefle of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
Lowden Man Sentenced to Five Years of Federal Prison After Gun Theft During Home BurglaryRead the Press Release
A man who broke into a house and stole an AR‑15-style rifle and marijuana was sentenced today to five years in federal prison.
John Christopher Jacobson, age 23, from Lowden, Iowa, received the prison term after a February 8, 2021 guilty plea to one count of possessing a stole firearm and one count of possessing a firearm as a drug user.
Court records show that in September 2018 Jacobson and an accomplice kicked in the back door of a residence in Springville, Iowa, and stole a Ruger AR‑15‑style rifle, a DVR security system, and marijuana. Jacobson later claimed he had committed the burglary in retaliation for the man who resided at the home shooting at Jacobson’s truck, which occurred a few days after Jacobson had rear‑ended the man’s vehicle. The rifle, as well as two other firearms, marijuana, and methamphetamine, were found in Jacobson’s residence.
Jacobson was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Jacobson was sentenced to 60 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Jacobson is being held in the United States Marshal’s custody until he can be transported to a federal prison.
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.
The case was investigated by the Jones County Sheriff’s Office and 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 20-CR-00105-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
Long Island Gang Member Pleads Guilty to Firearm-Related Murder in Connection with Shooting Death in RiverheadRead the Press Release
Earlier today, in federal court in Central Islip, Jason Langhorn, a member of the “Lowrider Brims” subset of the Bloods and an associate of the “Red Stone Gorilla” subset of the Bloods, a violent criminal enterprise operating in Riverhead, New York, pleaded guilty to firearm-related murder for his role in the slaying of Thomas Lacolla on November 17, 2015, while attempting to kill another rival of the gang. The proceeding was held before United States Magistrate Judge A. Kathleen Tomlinson.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, announced the guilty plea.
“As a result of the outstanding and tireless work by members of the Federal Bureau of Investigation, Long Island Gang Task Force, the Suffolk County East End Drug Task Force, the Riverhead Police Department and the Suffolk County Police Department, Homicide Squad, Langhorn has been held accountable for his role in an act of senseless gang violence that resulted in a man’s death,” stated Acting United States Attorney Kasulis. “It is our hope that today’s guilty plea brings a measure of closure to the victim’s family.”
According to court filings and facts presented during the plea proceeding, on November 17, 2015, Langhorn, along with two other members of the Bloods, went to a location in the Riverside section of Riverhead looking to kill a rival gang member. They sprayed 39 shots from three firearms, including an assault rifle, into a vehicle they believed was occupied by the rival gang member, but instead was occupied by Lacolla, who was killed in the fusillade.
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 Long Island Criminal Division. Assistant United States Attorneys Nicole Boeckmann and Michael Maffei are in charge of the prosecution.
Defendant:
JASON LANGHORN (also known as “Hov”)
Age: 39
Riverhead, New YorkE.D.N.Y. Docket No. 18-CR-606 (S-2) (JS)
Long Island Contractor Charged with Performing Lead-Based Paint Removal in Violation of the Toxic Substances Control ActRead the Press Release
An indictment was unsealed today in federal court in Central Islip charging Rickey Lynch with violating the Toxic Substances Control Act of 1976 (“TSCA”), making false statements and aggravated identity theft. Lynch is the first person to be charged with a felony violation of TSCA since the statute was amended in 2016 to include enhanced punishments for certain conduct posing a risk of death or serious bodily injury. Lynch was arrested this morning and will be arraigned this afternoon before United States District Judge Gary R. Brown.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, and Tyler Amon, Special Agent-in-Charge of the Environmental Protection Agency’s Criminal Investigation Division, New York (EPA), announced the charges.
“As alleged, the defendant placed a very young child at serious risk of continued exposure to toxic chemical hazards by deliberately disregarding federal standards that ensure the safe remediation of lead-based paint. He then compounded the risk of harm by lying and falsifying documents in a failed effort to establish his purported compliance with those standards,” stated Acting United States Attorney Kasulis. “Today’s arrest serves as a warning that those who circumvent environmental regulations that protect the community from the well-known dangers of lead-based paint will face the consequences.”
“Defendant Lynch knowingly violated the requirements of safely removing lead from a home and in so doing endangered the health of a vulnerable family,” stated EPA Special Agent-in-Charge Amon. “The EPA remains focused on holding accountable companies and individuals that cut corners and fail to put public health and safety first.”
As alleged in the indictment, in January 2020, Lynch’s company, Bright Lights Supreme Cleaning, Inc., was retained by residents of Freeport, Long Island, to remediate hazardous lead-based paint from their home after the family’s two-year-old son was found to have elevated levels of lead in his blood. Federal regulations require that lead-based paint abatement work be performed and supervised by individuals who have been certified by the EPA. The regulations also establish work practice standards to ensure that lead-based paint removal is done safely. Over the course of several days, Lynch remediated the lead-based paint himself, despite lacking the proper certification to either perform or supervise such work. Lynch also failed to comply with various work practice standards and did not use a High Efficiency Particulate Air (“HEPA”) filtration system that would have contained the spread of toxic dust and debris throughout the house. As a result of Lynch’s failure to comply with the regulations, lead dust exceeding legally permissible limits spread throughout the house.
In addition, Lynch faces charges of making false statements and aggravated identity theft related to his responses to an inquiry by the EPA. Specifically, Lynch took steps to obstruct the agency’s investigation by supplying a fake subcontractor agreement, an affidavit and other documents that contained the forged signature of an individual Lynch falsely identified as having supervised the abatement work on the Freeport residence.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. Under TSCA, the maximum sentence for conviction of a violation that places one or more individuals at risk of death or serious bodily injury is 15 years’ imprisonment.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorney Anthony Bagnuola is in charge of the prosecution.
The Defendant:
RICKEY LYNCH
Age: 58
Arverne, New YorkE.D.N.Y. Docket No. 21-CR-405 (GRB)
Lehigh County Man Sentenced to 58 Months’ Imprisonment for Mail Fraud and Money Laundering OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 5, 2021, Anthony Redd, age 65, of Fullerton, Pennsylvania, was sentenced by U.S. District Judge Sylvia H. Rambo to 58 months’ imprisonment to be followed by three years of supervised release for mail fraud and money laundering offenses. Judge Rambo also ordered Redd to pay restitution to the victims in the amount of $240,133.
According to Acting United States Attorney Bruce D. Brandler, Redd participated in a criminal conspiracy to obtain money from victims through fraudulent misrepresentations and then have the proceeds transferred to multiple co-conspirators located in Jamaica, Costa Rica, and throughout the United States. Redd recruited other individuals to participate in the scheme. The investigation in this case identified at least 29 victims of the conspiracy.
The case was investigated by the United States Postal Inspection Service – Harrisburg Office. Assistant U.S. Attorney Christian T. Haugsby prosecuted the case.
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La Crosse Man Sentenced to 9 Years for Armed Robbery & Gun CrimeRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Kenneth J. Lawson, 32, La Crosse, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 9 years in federal prison for armed robbery and possessing a firearm in furtherance of a crime of violence. This prison term will be followed by 3 years of supervised release. Lawson pled guilty to these charges on May 17, 2021.
On June 21, 2020, Lawson and a female associate robbed the occupants of a La Crosse apartment. Lawson carried a loaded 9mm handgun. When the female resident opened the door, Lawson grabbed her by the throat, hit her in the face, and pushed her to the ground. Lawson then attacked the male occupant, punching him multiple times in the face. During this altercation, Lawson’s gun fell from his waistband to the floor. Lawson and the male victim struggled over the gun. Eventually, the male victim returned the gun to Lawson after ensuring that it was unloaded.
Once Lawson regained possession of the gun, he and the female associate fled the apartment. Lawson accidentally left his cellphone and the loaded gun magazine in the apartment. When officers arrived, they found both victims had suffered injuries from the attack and many items inside the apartment were damaged.
La Crosse Police Department officers and the victims identified Lawson after searching the cell phone he’d dropped during the attack and finding his pictures on his Instagram account. The handgun used in the robbery was located by La Crosse police officers a few days later in the apartment where Lawson lived.
At the time of the robbery, Lawson was on Minnesota state supervision. He had multiple prior felony convictions and was prohibited from possessing a firearm.
In sentencing Lawson for the armed robbery and gun possession, Judge Conley noted the severity of the offense – a planned robbery to which Lawson brought a loaded gun and where the victims were brutally attacked, suffering trauma and injuries. Judge Conley noted that the La Crosse robbery was part of Lawson’s long history of violence.
The charges against Lawson were the result of an investigation conducted by the La Crosse Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The La Crosse County District Attorney’s Office also provided assistance in this case. The prosecution of the case was handled by Assistant U.S. Attorney Steven Anderson.
Kodiak Fisherman Sentenced Federal Prison and $1 million Fine for Falsifying Fishing RecordsRead the Press Release
ANCHORAGE – A Kodiak, Alaska, man was sentenced by U.S. District Judge Joshua M. Kindred to six months in federal prison, a $1,000,000 fine, 126 days in a halfway house and 80 hours of community service. He must also make a public service announcement acknowledging his wrongdoing for knowingly submitting false records on halibut and sablefish.
According to court documents, James Aaron Stevens, 47, an experienced commercial fisherman, vessel owner and captain, pled guilty in November 2020 to falsely labeling fish in violation of the Lacey Act.
Stevens, the owner and operator of F/V Alaskan Star and F/V Southern Seas, falsely reported where he harvested 903,208 pounds of individual fishing quota (IFQ) halibut and sablefish. Stevens knowingly falsified numerous documents – IFQ landing reports, Alaska Department of Fish and Game fish tickets and fishing logbooks – to show that he harvested fish in locations and regulatory areas where he did not fish and omitted areas where he actually fished. Stevens committed this offense over the course of 26 fishing trips spanning four IFQ fishing seasons (2014-2017). Taken together, the halibut and sablefish that Stevens falsely reported had an approximate dock value of $4,522,210 and market value of $13,566,630. Stevens sold the falsely labeled fish caught during these trips, which were, or were intended to be, transported in interstate and foreign commerce.
“Fishing is at the heart of Alaska and we must all strive to protect this important resource. Criminals who violate the Lacy Act for their own personal gain harm both the resource itself and those who either depend on it for their livelihood or their subsistence lifestyle,” said Acting U.S. Attorney Bryan Wilson, District of Alaska. “Our office will continue to aggressively prosecute individuals who engage in falsifying fishery records.”
“Alaska is known for its world-class, sustainable fisheries based on science-based management and honest fishermen following the rules,” said Will Ellis, Assistant Director of NOAA's Office of Law Enforcement, Alaska Division. “This sentencing should serve as a reminder that there are serious consequences for those who break the rules, and that NOAA OLE is committed to holding those who cheat the system accountable.”
NOAA’s Office of Law Enforcement conducted the investigation leading to the successful prosecution of the case.
Assistant U.S. Attorney Adam Alexander and Andrea Hattan, Special Assistant U.S. Attorney, NOAA Office of General Counsel Enforcement Section, prosecuted this case.
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Justice Department Settles Sexual Harassment Lawsuit Against Property Manager and Owners of California Apartment BuildingsRead the Press Release
The Justice Department announced today that it has reached an agreement to resolve a lawsuit alleging that Filomeno Hernandez, a property manager of residential apartment buildings near MacArthur Park in Los Angeles, violated the federal Fair Housing Act by sexually harassing female tenants since at least 2006.
Today’s settlement also resolves claims against Ramin Akhavan, Bonnie Brae Investments LLC and Westlake Property Services LLC, which managed or owned the rental properties where the harassment took place.
Under the consent decree, which still must be approved by the U.S. District Court for the Central District of California, defendants are required to pay a total of $105,000, which includes $100,000 in monetary damages to women who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent decree also bars future discrimination, prevents Hernandez from participating in the rental or management of residential properties in the future, requires that Hernandez vacate the premises and leave his post as on-site property manager, mandates Fair Housing Act training and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.
The department’s lawsuit, filed in 2020, alleged that for more than a decade Hernandez subjected female tenants to harassment that included unwanted sexual touching, including sexual assault, frequent unwelcome sexual advances and comments, offers to reduce rent or excuse late or unpaid rent in exchange for sex and unannounced visits to the homes of female tenants without their consent to make sexual advances. The apartment buildings that Hernandez managed are located at 729 South Bonnie Brae Street and 720 Westlake Avenue in Los Angeles, near MacArthur Park.
“Sexual harassment of vulnerable tenants is an egregious violation of the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to pursuing predatory landlords and property managers and to ensuring that no individual is subject to housing discrimination because of their sex.”
“The right to be free from sexual harassment in one’s own home is a vital federal civil right,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “This settlement shows our commitment to vigorously enforcing federal civil rights laws and holding accountable those who discriminate against others in violation of the Fair Housing Act.”
The Justice Department enforces the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.9 million for victims of such harassment.
Individuals may report sexual harassment in housing or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online.
Individuals in the Central District of California also may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by calling (213) 894-2879, emailing [email protected] or completing and submitting this form (English) (Spanish).
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights. View the Spanish translation of this press release here.
Justice Department Settles Sexual Harassment Lawsuit Against Property Manager and Owners of California Apartment BuildingsRead the Press Release
Note: View the Spanish translation of this press release here.
LOS ANGELES – The Justice Department announced today that it has reached an agreement to resolve a lawsuit alleging that Filomeno Hernandez, a property manager of residential apartment buildings near MacArthur Park in Los Angeles, violated the federal Fair Housing Act by sexually harassing female tenants since at least 2006.
Today’s settlement also resolves claims against Ramin Akhavan, Bonnie Brae Investments LLC and Westlake Property Services LLC, which managed or owned the rental properties where the harassment took place.
Under the consent decree, which still must be approved by a federal judge in Los Angeles, the defendants are required to pay a total of $105,000, which includes $100,000 in monetary damages to women who were harmed as a result of the sexual harassment, and a $5,000 civil penalty. The consent decree also bars future discrimination, prevents Hernandez from participating in the rental or management of residential properties in the future, requires that Hernandez vacate the premises and leave his post as on-site property manager, mandates Fair Housing Act training, and requires extensive monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.
The Justice Department’s 2020 lawsuit alleged that, for more than a decade, Hernandez subjected female tenants to harassment that included unwanted sexual touching, including sexual assault; frequent unwelcome sexual advances and comments; offers to reduce rent or excuse late or unpaid rent in exchange for sex; and unannounced visits to the homes of female tenants without their consent to make sexual advances.
“The right to be free from sexual harassment in one’s own home is a vital federal civil right,” said Acting United States Attorney Tracy L. Wilkison. “This settlement shows our commitment to vigorously enforcing federal civil rights laws and holding accountable those who discriminate against others in violation of the Fair Housing Act.”
“Sexual harassment of vulnerable tenants is an egregious violation of the Fair Housing Act,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “The Justice Department is committed to pursuing predatory landlords and property managers and to ensuring that no individual is subject to housing discrimination because of their sex.”
The apartment buildings that Hernandez managed are located at 729 South Bonnie Brae Street and 720 Westlake Avenue in Los Angeles, near MacArthur Park.
The Justice Department enforces the federal Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. The department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the department’s initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the initiative in October 2017, the Department of Justice has filed 21 lawsuits alleging sexual harassment in housing and recovered over $3.9 million for victims of such harassment.
Individuals may report sexual harassment in housing or other forms of housing discrimination by calling the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, e-mailing the Justice Department at [email protected], or submitting a report online.
Individuals in the Central District of California also may file a complaint about housing discrimination or other civil rights violations with the Civil Rights Section, Civil Division of the U.S. Attorney’s Office by calling (213) 894-2879, emailing [email protected] or completing and submitting this form (English) (Spanish).
Reports also may be made by contacting the U.S. Department of Housing and Urban Development at 1-800-669-9777 or by filing a complaint online.
More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt. More information about the Civil Rights Section, Civil Division of the United States Attorney’s Office for the Central District of California is available at https://www.justice.gov/usao-cdca/civil-division/civil-rights.
International Drug Trafficking Organization Member Sentenced for Trafficking Nearly Four Tons of CocaineRead the Press Release
RICHMOND, Va. – A Guatemalan national was sentenced today to 17 and a half years in prison for his role as a transportation manager in a large-scale Guatemalan drug trafficking organization (DTO).
According to court documents, between 2015 and 2016, Edi Barrera-Salguero, 46, conspired to distribute over 1,000 kilograms or more of cocaine. Barrera-Salguero, who was extradited to the United States on February 4, 2021, served as a transportation manager for the DTO. In this leadership role, Barrera-Salguero organized cocaine transportation networks, directed the movement of cocaine loads, and directed the movement of bulk cash.
Operating throughout Central America, Barrera-Salguero orchestrated the movement of 3,586 kilograms of cocaine from Costa Rica to Guatemala. In June 2016, Barrera-Salguero coordinated the transportation of 381 kilograms of cocaine from Costa Rica to Guatemala City, Guatemala. Once the cocaine arrived in Guatemala, the 381 kilograms of cocaine were seized by Guatemalan law enforcement authorities during a traffic stop in the vicinity of Barrera-Salguero’s commercial trucking business, “Importada La Zarza Encendida.”
On July 1, 2020, Luis Pedro Fuentes Amaya, a co-defendant of Barrera-Salguero, was sentenced to 192 months for his role in the cocaine trafficking conspiracy on behalf of the DTO.
This prosecution is part of the Organized Crime and Drug Enforcement Task Force (OCDETF) Operation Go Explorers. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division, made the announcement after sentencing by Senior U.S. District Judge Henry E. Hudson
Assistant U.S. Attorneys Erik S. Siebert and Heather H. Mansfield prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-18.
Institute of Living Settles ADA Complaint, Ensures Access for Deaf and Hard of Hearing IndividualsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that the government has reached a settlement agreement under the Americans with Disabilities Act (“ADA”) with the Institute of Living at Hartford Hospital, on behalf of itself and its professional emergency room and managed mental health center within Hartford Hospital. The Institute of Living is a mental health center that specializes in comprehensive patient care, research and education in the fields of behavioral, psychiatric and addiction disorders whose services are provided to the public.
This matter was initiated upon receipt of a complaint filed with the U.S. Attorney’s Office for the District of Connecticut by Disability Rights Connecticut. Disability Rights Connecticut filed the complaint on behalf of a complainant who is profoundly deaf. It is alleged that the complainant went to the Hartford Hospital Emergency Room and was then transferred to and treated by the medical staff at the Institute. On multiple occasions, the complainant requested a sign language interpreter during her several days of admission to understand treatment options and to attend group therapy sessions, and to understand and sign documents provided to her during her stay. She was not provided with a qualified interpreter and was not able to participate in group therapy sessions to treat her depression and suicidal ideations. The complainant also could not communicate with her treating psychiatrist and did not fully understand why she had been admitted into the hospital.
Title III of the ADA requires places of public accommodation, including hospital facilities, to take steps to ensure that individuals with disabilities are not excluded, segregated or otherwise treated differently due to the absence of auxiliary aids and services, such as qualified interpreters. The regulations to Title III prohibit places of public accommodation from requiring an individual with a disability to bring another individual to interpret for him or her. The regulations to Title III similarly prohibit places of public accommodation from charging a surcharge to individuals with disabilities for measures, including auxiliary aids and services like interpreters that are required to provide the individual with a disability with nondiscriminatory treatment under the ADA.
The settlement agreement resolves the complaint based on the above allegations that the Institute of Living violated Title III of the ADA by failing to provide effective communication to the complainant. The settlement agreement requires the Institute to provide free of charge appropriate auxiliary aids and services, including qualified interpreters, at all of its patient facilities to individuals who are deaf or hard of hearing whenever it is necessary to ensure effective communication for those individuals. The Institute will provide ADA training to all staff members. In addition, the Institute will compensate the complainant in the amount of $10,000.
The ADA authorizes the U.S. Department of Justice to investigate complaints and undertake periodic reviews of compliance of covered entities. The Justice Department is also authorized to commence a civil lawsuit in federal court in any case that involves a pattern or practice of discrimination or that raises issues of general public importance, and to seek injunctive relief, monetary damages, and civil penalties.
“This case demonstrates this office’s commitment to protecting the rights of those who are deaf or hard of hearing, and ensuring that these individuals are able to effectively communicate with health care professionals.” stated Acting U.S. Attorney Boyle. “I thank the Institute of Living at Hartford Hospital for their cooperation during this investigation and for addressing these ADA issues without the need for litigation.”
This matter was handled by Assistant U.S. Attorney Brenda M. Green of the District of Connecticut in coordination with the Disability Rights Section of the U.S. Department of Justice’s Civil Rights Division.
Any member of the public who wishes to file a complaint alleging that the office of a health care provider or any other place of public accommodation or public entity in Connecticut is not accessible to persons with disabilities may contact the U.S. Attorney’s Office at 203-821-3700.
Additional information about the ADA can be found at www.ada.gov, or by calling the Justice Department’s toll-free information line at (800) 514-0301 and (800) 514-0383 (TTY). More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury, criminal complaints or informations. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 3 was:
Vincent Harry Kopacek, 76, of Fredericksburg, Texas, on charges of attempted sexual abuse of a minor, abusive sexual contact, and assault within maritime or territorial jurisdiction. If convicted of the most serious crime, Kopacek faces a maximum 15 years in prison, a $250,000 fine and five years of supervised release. Kopacek was released pending further proceedings. The FBI, Gallatin County Sheriff’s Office and Bozeman Yellowstone International Airport Public Safety Office investigated the case. PACER case reference. 21-26.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on Aug. 6 was:
Raymond G. Fillion, 35, of Billings, on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute meth, possession of a firearm in furtherance of a drug trafficking crime and felon in possession of a firearm. If convicted of the most serious drug crime, Fillion faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release. If convicted of possession of a firearm in furtherance of a drug trafficking crime, Fillion faces a mandatory minimum five years in prison consecutive to any other sentence. Fillion was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-47.
Appearing on Aug. 3 was:
Dew Rex Allenby, 34, of Richland, Washington, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth, possession of firearm in furtherance of a drug trafficking crime and prohibited person in possession of a firearm. If convicted of the most serious drug crime, Allenby faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. If convicted of possession of a firearm in furtherance of a drug trafficking crime, Allenby faces a mandatory minimum five years in prison consecutive to any other sentence. Allenby was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-38.
Rans Ray Carroll, Jr., 38, of Big Timber, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of firearm in furtherance of a drug trafficking crime. If convicted of the most serious drug crime, Carroll faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. If convicted of possession of a firearm in furtherance of a drug trafficking crime, Carroll faces a mandatory minimum five years in prison consecutive to any other sentence. Carroll was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-03.
Shay Austin Dontmix, 24, of Billings, on charges of possession of stolen firearms. If convicted of the most serious crime, Dontmix faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Dontmix was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-49.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Aug. 3 was:
Dejarreh La’kean Talley, aka “DJ” Talley, 23, of Philadelphia, Mississippi, on charges of burglary. If convicted of the most serious crime, Talley faces a maximum 20 years in prison, a $50,000 fine and three years of supervised release. Talley was detained pending further proceedings. The FBI and Fort Peck Law Enforcement investigated the case. PACER case reference. 20-74.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Hospice Facility Owner Indicted for Health Care FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that SHIVA AKULA (“AKULA”), age 65, of New Orleans, Louisiana was charged by a grand jury on August 5, 2021, in a 23-count Indictment for Health Care Fraud.
AKULA owned and oversaw the day-to-day operations of Canon Healthcare, a hospice facility.
According to the Indictment, AKULA unlawfully enriched himself by submitting and causing the submission of false and fraudulent claims to health care benefit programs, including Medicare. AKULA instructed Canon employees to improperly bill for General Inpatient (“GIP”) services to maximize reimbursement from health care benefit programs, knowing that those services were not medically necessary.
Canon routinely billed physician services with Common Procedural Terminology (“CPT”) Code 99233 for beneficiaries who were receiving GIP services, in addition to the daily per diem rate. CPT Code 99233 is an evaluation and management code, which requires two of the three following components: (1) detailed interval history; (2) detailed examination; or (3) medical decision making of a high complexity. Usually, the beneficiary is unstable or has developed a significant complication or a significant new problem.
Canon routinely billed for physician services for CPT Code 99236 for beneficiaries who were admitted into GIP and remained on GIP for more than 24 hours. CPT Code 99236 should only be billed when a patient is admitted to inpatient hospital care for a minimum of 8 hours, but less than 24 hours and discharged on the same calendar day. In addition, when billing for CPT Code 99236, the physician shall identify that he or she was physically present and that he or she performed the initial hospital care service. The physician shall personally document the admission and discharge notes and include the number of hours the beneficiary remained in inpatient hospital status.
From on or about January 1, 2013, to on or about August 25, 2017, Canon submitted approximately 1,053 claims for CPT code 99236 and was paid approximately $223,601 by Medicare. During that same time period, Canon submitted approximately $2,281,251. These physician services reflected in CPT Codes 99236 and 99233 should not have been billed as a separate line item in addition to the GIP services because they were included within the daily per diem rate that Medicare paid for the GIP services.
From on or about January 1, 2013, through on or about August 25, 2017, Canon submitted claims to Medicare for approximately 1,949 home visits using CPT code 99350 that were purported to have been performed by a doctor, when a doctor did not perform home visits. As a result of these 1,949 home visits, Medicare reimbursed Canon approximated $316,384.
From January 2013 to December 2019, Canon billed Medicare approximately $62,833,346.28 and was paid approximately $47,106,838.94.
If convicted, AKULA faces a maximum of 10 years imprisonment, a fine of not more than $250,000, supervised release of up to 3 years, and a mandatory special assessment of $100 as to each count.
U.S. Attorney Evans reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation, the Department of Health and Human Services Office of Inspector General, and the Louisiana Department of Justice, Medicaid Fraud Control Unit. The case is being prosecuted by Assistant U.S. Attorney Kathryn McHugh.
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Gilford Woman Sentenced to 37 Months for Participating in Fentanyl Trafficking ConspiracyRead the Press Release
CONCORD - Sara Zareas, 36, of Gilford, was sentenced to 37 months in federal prison for participating in a conspiracy to distribute, and possess with intent to distribute, fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on June 17, 2020, law enforcement officers received information that Zareas would be traveling to Methuen, Massachusetts to purchase fentanyl. Law enforcement officers followed the truck and observed a hand-to-hand transaction between the occupants of the truck and another vehicle in a parking lot. A New Hampshire state trooper later conducted a traffic stop of the truck as it drove through Windham. The driver of the truck admitted that she drove Zareas to Methuen to buy fentanyl in exchange for a small amount for herself. Zareas consented to a search of her backpack and person which revealed scales, cellophane bags, and opioid kits. Zareas and the driver also had over 41 grams of fentanyl in their possession.
Zareas pleaded guilty on April 7, 2021.
“Fentanyl continues to cause large numbers of overdoses and fatalities throughout New Hampshire,” said Acting U.S. Attorney Farley. “In order to protect our community, we continue to work closely with our law enforcement partners to identify and prosecute the drug dealers who are bringing this dangerous substance into the Granite State.”
This matter was investigated by the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John J. Kennedy.
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Georgia Woman Who Preyed on South Florida Seniors, Stole More Than $1.4 Million, Sentenced to 145 MonthsRead the Press Release
Miami, Florida – Today, a federal district judge in West Palm Beach sentenced a Georgia woman to 145 months in prison for leading a scam that tricked over 250 elderly South Floridians into turning over their credit cards, debit cards, and related personal identification numbers. The defendant and her co-conspirators used the cards and PINs to steal over $1.4 million.
Over approximately four years starting in 2016, Edtronda Simon, 41, of Fayette County, ran an elder fraud scheme that generally operated as follows: Simon would cold-call elderly victims in South Florida, pretend to be from the fraud department of each senior’s bank, and convince the seniors that their accounts had been compromised, which was not true. Once a senior seemed convinced, Simon would offer to send a “bank representative” to the elderly victim’s home to exchange any compromised credit or debit card with a new one. Usually with Simon still on the call trying to persuade the senior to verify a PIN number, a co-conspirator would arrive at the victim’s home, take the victim’s credit or debit card, and promise to return with a new one (which, of course, never happened). The co-conspirators used the seniors’ credit cards, debit cards, and PINs to withdraw cash from ATMs, purchase money orders, and otherwise drain money from the accounts as quickly as possible – before real bank fraud representatives caught on to the illegal activity.
Simon and her co-conspirators convinced over 250 seniors from Broward, Palm Beach, St. Lucie, Indian River and other South Florida counties into turning over debit cards, credit cards, and related information. They defrauded banks of over $1 million.
On May 25, Simon pled guilty to one count of conspiracy to commit bank fraud and one count of aggravated identity theft (case no. 20-cr-80081). In a separate case (20-cr-80037), Simon’s co-conspirators also pled guilty to their roles in the scheme and received the following prison sentences: The co-defendants received the following prison sentences:
- Samuel Charles -- 40 months
- Shaumbrica Stubbs -- 76 months
- Shaquille Robinson – 63 months
- Luclesse Vernesse -- 48 months
- Ian Felder -- 52 months
- Dierdre Dixon -- 83 months
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, Brian Swain, Special Agent in Charge, United States Secret Service (USSS), Miami Field Office, and Sheriff Ric Bradshaw, Palm Beach County Sheriff’s Office (PBSO), made the announcement.
USSS Miami and PBSO handled the investigation, along with federal task force officers from the Coral Springs Police Department, Pembroke Pines Police Department, and Plantation Police Department.
Assistant U.S. Attorney Susan Rhee Osborne is prosecuting the case. Assistant U.S. Attorney Danielle Croke handled asset forfeiture matters.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
Related court documents and information appear on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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Gang Member Pleads Guilty to Federal Firearm ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Raekwon Cortez Ford, 24, of Columbia, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that, in late November 2019, several automobiles were broken into and various items stolen, including an iPhone. One of the victims of the break-ins was able to track their iPhone to a residence in Columbia and notified the Columbia Police Department. Officers responded to the residence and found a number of individuals in the yard, including Ford. Ford, a gang member, was placed under arrest on outstanding warrants and was found to be in possession of the stolen iPhone.
Officers then obtained a search warrant for Ford’s residence, which they executed on December 4, 2019. Within the residence, officers located Ford, who had been released on state bond from the earlier arrest, and found a loaded Ruger .45 caliber handgun concealed in an air vent in Ford’s bedroom. An analysis showed Ford’s DNA on the firearm and that the firearm had been reported stolen from an earlier auto break-in in Columbia in December 2018. A ballistics analysis through the National Integrated Ballistic Information Network (NIBIN) revealed that the firearm had been used in four separate shooting incidents in Richland and Lexington Counties from June through August 2019.
NIBIN is the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. More information on NIBIN can be found at: https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
Ford is prohibited from possessing firearms and ammunition based upon his prior felony convictions. Ford has prior state convictions for unlawful carrying of a weapon, possession of a stolen weapon, breach of peace of an aggravated nature, and breach of trust.
Ford faces a maximum penalty of 10 years in federal prison and a fine of $250,000. United States District Judge J. Michelle Childs accepted the guilty plea and will sentence him after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The charges against Ford were the result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department, as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) program, the centerpiece of the Department of Justice’s violent crime reduction efforts.
Assistant United States Attorney Stacey D. Haynes of the Columbia office is prosecuting the case.
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Freeburg Couple Plead Guilty to Defrauding Elderly Family MemberRead the Press Release
EAST SAINT LOUIS, Ill. – Ronald Speiser, 81, and Jean Speiser, 81, of Freeburg, Illinois, pled
guilty today in federal court to two felony charges after defrauding an elderly family member out
of nearly $200,000.
The Speisers were designated as the victim’s power of attorney and successor power of attorney in
estate documents. In June 2018, they exercised their authority over the victim’s finances by
opening a joint account for Ronald Speiser and the victim at Citizens Community Bank in Mascoutah,
Illinois, and depositing a check for over $250,000 after selling the victim’s home. Starting around
December 2018, and continuing until at least June 2020, the Speisers abused their access to
these funds by spending over $200,000 of the victim’s money without the victim’s knowledge or
permission, and for purposes that did not benefit the victim. Their spending spree included over
$50,000 in personal home renovations, paying over a year’s worth of personal credit card bills,
purchasing a $29,000 camper and $23,000 truck, and making a down payment and thirteen mortgage
payments on a second home.As part of the plea agreement, the Speisers agreed to a sentence including twelve months of home
confinement and full restitution to the victim, including $119,000 that must be paid
before their sentencing hearing. The Speisers’ sentencing is set for November 18, 2021, at 1:30pm
in the federal courthouse in East St. Louis.This case was brought as part of the Department of Justice’s Elder Fraud Initiative. Information
about the Department of Justice’s Elder Fraud Initiative is available at www.justice.gov/elderjustice.If you or someone you know is age 60 or older and has been a victim of financial fraud, help is
standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This
U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by
experienced professionals who provide personalized support to callers by assessing the needs of the
victim, and identifying relevant next steps. Case managers will identify appropriate reporting
agencies, provide information to callers to assist them in reporting, connect callers directly with
appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is
the first step. Reporting can help authorities identify those who commit fraud and reporting
certain financial losses due to fraud as soon as possible can increase the likelihood of recovering
losses. The hotline is staffed 7 days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.The case was investigated by Adult Protective Services, St. Clair County Sheriff’s Department, and
Federal Bureau o Investigation. The case is being prosecuted by Assistant United States Attorney
Luke J. Weissler.