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16 September 2021
Georgia Genetic Testing Laboratory to Pay up to $200,000 to Resolve Anti-Kickback Statute ClaimsRead the Press Release
Columbia, South Carolina---- Acting United States Attorney M. Rhett DeHart announced today that his office has resolved claims that Alpha Genomix Laboratories, Inc. paid unlawful kickbacks to Aiken Counseling Group, LLC to induce genetic testing referrals, from April 2015 through December 2016.
The United States alleges that during this time period, Alpha Genomix disguised its kickbacks by paying the salary of an individual who primarily worked for Aiken Counseling Group. Further, the United States alleged most of the referrals were not legitimately ordered by a physician and were medically unnecessary. Medicare and South Carolina Medicaid paid for these fraudulent claims, which violated the Anti-Kickback Statute and the False Claims Act. Alpha Genomix Laboratories, Inc. will pay a $35,000 settlement upfront and a percentage of gross annual revenues up to a total of $200,000 to resolve the claims.
The allegations settled arose from a lawsuit filed by a psychiatrist formerly employed by Aiken Counseling Group, under the whistleblower provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share between 15 and 30% of the recovery.
The owner of the Aiken Counseling Group, Lain Bradford, was sentenced in February 2020 to three years of probation and ordered to pay restitution, after pleading guilty to health care fraud and drug offenses in a related case. Aiken Counseling Group filed for Chapter 7 Bankruptcy in January 2018 and is no longer in business.
Since the allegations, Alpha Genomix Laboratories was sold to new ownership.
The Alpha Genomix Laboratories, Inc. matter was investigated by the Office of the Inspector General of the Department of Health and Human Services, the South Carolina Attorney General’s Medicaid Fraud Control Unit, and Assistant United States Attorney Beth Warren.
“Providers participating in Medicare and Medicaid are expected to uphold the integrity of the programs,” stated Derrick L. Jackson, Special Agent in Charge with the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Companies that seek unmerited payment for unnecessary and illegitimate services abuse the programs and divert funds meant to improve the health and prolong the lives of beneficiaries. HHS-OIG and our partners will actively pursue those who commit health care fraud.”
The litigation and settlement of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The claims resolved by this settlement are allegations only. Alpha Genomix Laboratories, Inc. does not admit wrongdoing or liability.
The case is captioned United States ex rel. Jane Doe, M.D. v. Aiken Counseling Group, LLC and Alpha Genomix Laboratories, Inc.
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Fresno Men Indicted for Being Previously Convicted of Violent Crimes in Possession of Firearm and AmmunitionRead the Press Release
FRESNO, Calif. — A federal grand jury returned an indictment today against two Fresno residents, Edward Page, 32, and Trayvon Smith, 31, charging each with one count of being a felon in possession of a firearm and ammunition, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, in the late-night hours of June 24, 2021, police officers received a tip that two individuals in a parked car were in possession of a firearm. The officers responded to the parking lot and found Smith and Page in the car. Page was quickly detained, but Smith fled, was chased, and eventually was caught and arrested. Inside the car, officers found two loaded semi-automatic firearms, one of the firearms was a privately manufactured weapon, sometimes referred to as a “ghost gun,” with no serial number, but with an extended magazine attached to the firearm. Both Smith and Page have prior violent felony convictions and cannot lawfully possess firearms or ammunition.
This case is the product of an investigation by the Fresno Police Department and the Federal Bureau of Investigation. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Page and Smith face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Fraudster Sentenced to Prison for Long Running Phone Unlocking Scheme that Defrauded AT&TRead the Press Release
Muhammad Fahd, a citizen of Pakistan and Grenada, was sentenced today to 12 years in prison for his leadership role in a seven-year scheme to unlawfully unlock nearly 2 million phones to defraud AT&T Inc. (AT&T), inflicting more than $200 million in losses. At the sentencing hearing U.S. District Judge Robert S. Lasnik for the Western District of Washington noted that Fahd had committed a “terrible cybercrime over an extended period,” even after he was aware that law enforcement was investigating.
Beginning in 2012, Fahd, 35, conspired with others to recruit AT&T employees at a call center located in Bothell, Washington, to unlock large numbers of cellular phones for profit. Fahd recruited and bribed AT&T employees to use their AT&T credentials to unlock phones for ineligible customers. Later in the conspiracy, Fahd had the bribed employees install custom malware and hacking tools that allowed him to unlock phones remotely from Pakistan. In September 2020, he pleaded guilty to conspiracy to commit wire fraud.
Cellular phones such as iPhones cost hundreds of dollars. To make the phones more affordable, during the relevant time, AT&T subsidized the purchase cost of phones or sold phones to customers under installment plans. Unlocking a phone effectively removes it from AT&T’s network, thereby allowing the account holder to avoid having to pay AT&T for service or to make any payments for purchase of the phone.
According to records filed in the case, in approximately June or July of 2012, using the alias “Frank Zhang,” Fahd contacted an AT&T employee through Facebook. Fahd offered the employee significant sums of money if the employee would help Fahd secretly unlock phones at AT&T. Fahd also asked the employee to recruit other AT&T employees to help with the unauthorized unlocks.
Fahd instructed the recruited employees to set up fake businesses and bank accounts for those businesses, to receive payments and to create fictitious invoices for every deposit made into the fake businesses’ bank accounts to create the appearance that the money was payment for genuine services.
In the spring of 2013, AT&T implemented a new unlocking system that made it more difficult for the bribed employees to unlock IMEIs for Fahd. In response, Fahd hired a software developer to design malware that could be installed without authorization on AT&T’s computer system to unlock phones more efficiently and in larger numbers. At Fahd’s request, the employees provided confidential information to Fahd about AT&T’s computer system and unlocking procedures to assist in this process. Fahd also had the employees install malware on AT&T’s computers that captured information about AT&T’s computer system and the network access credentials of other AT&T employees. Fahd provided the information to his malware developer, so the developer could tailor the malware to work on AT&T’s computers.
AT&T’s forensic analysis shows the total number of cellular telephones fraudulently unlocked by members of the scheme was 1,900,033 phones. AT&T has further determined that the loss it suffered because customers, whose cellular phones were illegally unlocked, failed to complete payments for their cellular telephones was $201,497,430.94.
Judge Lasnik ordered restitution of $200,620,698. (The difference between this amount and the total loss reflects restitution ordered against bribed AT&T employees in related prosecutions.)
Fahd was indicted in 2017 and arrested in Hong Kong in 2018. He was extradited and appeared in U.S. District Court in Seattle in August 2019. He pleaded guilty to conspiracy to commit wire fraud in September 2020.
This case is the result of an investigation conducted by the Seattle field office of the U.S. Secret Service, IRS-CI and the U.S. Department of Justice. The Justice Department’s Office of International Affairs provided significant assistance.
This case was prosecuted by Assistant U.S. Attorneys Andrew Friedman and Francis Franze-Nakamura of the Western District of Washington and Senior Counsel Anthony Teelucksingh of the Criminal Division’s Computer Crime and Intellectual Property Section.
Four-Time Convicted Felon Sentenced to 30 Months for Illegally Possessing Firearm AmmunitionRead the Press Release
Benton, Ill. – A Troy, Illinois man will spend more than two years in prison for illegally possessing firearm ammunition. Troy A. Schrage, 37, was sentenced today to 30 months in federal prison for being a Felon in Possession of Ammunition.
The offense occurred in April of 2020, when the United States Marshals Service located Schrage in
Belleville, Illinois, and arrested him for multiple active warrants. The ammunition was found in Schrage’s possession during the arrest. Federal law prohibits convicted felons from possessing firearms and firearm ammunition. A federal grand jury indicted Schrage in June of
2020, and a Benton, Illinois, jury convicted Schrage of the offense after a two-day trial in June
2021.As part of his sentence, Schrage was ordered to serve a three-year term of supervised release after release from prison.
The investigation was conducted by the United States Marshals Service Great Lakes Regional Fugitive
Task Force; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Cahokia Police
Department.
The case was prosecuted by Assistant United States Attorneys John Trippi and Daniel Kapsak.Four Defendants Sentenced to Prison for Red Lake Home Invasion RobberyRead the Press Release
ST. PAUL, Minn. – Four defendants have been sentenced to prison for their roles in a robbery occurring at a residence on the Red Lake Indian Reservation.
According to court documents, on October 1, 2019, Alexander Keith Blue, 30, Dustin Lee Jourdain, 32, Shaleigha Kate Strong, 22, and Delores Silverrain Robinson, 29, traveled in Robinson’s vehicle to a residence on the Red Lake Indian Reservation. Robinson remained in the vehicle while Blue, Jourdain, and Strong forced open the front door using a hammer or pry tool. Once inside, the three defendants stole various items, including a .22 rifle, a 12-gauge shotgun, ammunition, an Xbox gaming system, and a container of change. The defendants fled the scene with the stolen items in Robinson’s vehicle. A minor was present in the house at the time of the robbery. Jourdain later sold the stolen firearms, one of which was recovered by law enforcement during an unrelated narcotics operation in Bemidji, Minnesota.
Blue, Jourdain, and Strong, who each pleaded guilty to one count of aiding and abetting robbery, were sentenced to 66 months, 27 months, and 24 months in prison, respectively. Robinson, who pleaded guilty to one count of aiding and abetting first-degree burglary, was sentenced to six months in prison. As part of their sentence, all four defendants received three years of supervised release and were ordered to pay $1,150 in restitution to the victims.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Eric C. Tostrud sentenced the defendants.
This case was the result of an investigation conducted by the Red Lake Tribal Police Department and the FBI Headwaters Safe Trails Task Force.
This case was prosecuted by Assistant U.S. Attorney Alexander D. Chiquoine.
Former Wilmington Fire Department Union President Sentenced to 60 Months in Prison for Possessing Child PornographyRead the Press Release
WILMINGTON, Del. — David C. Weiss, U.S. Attorney, announced today that Joseph J. Leonetti, Jr., Former Union President of the Wilmington Fire Department, was sentenced yesterday to 60 months in prison followed by 5 years of supervised release. Leonetti pled guilty to one count of possessing child pornography on April 21, 2021. Chief Judge Colm F. Connolly pronounced the sentence.
According to publicly filed documents and statements made in open court, law enforcement officers executed a federal search warrant at Leonetti’s Wilmington residence on June 19, 2020 and seized his personal cellphone. Following a forensic review of that cellphone, investigators found videos and cached images of child pornography. A cache is a reserved storage location that collects temporary data for easy retrieval. Investigators also found that Leonetti had deleted evidence from his phone when he saw law enforcement arrive at his house; namely, Leonetti deleted the Kik application--a messenger and group chat application that Leonetti had used to chat in a group dedicated to pedophilia and onto which Leonetti had uploaded a video of child pornography. Last, in the cellphone’s “Notes” application, investigators found links to folders associated with cloud-based file storage services Dropbox and Mega. The contents of some of these links contained additional child pornography. The child pornography found on the defendant’s cellphone and in the linked folders included depictions of prepubescent minors engaged in various sexual acts and the lascivious exhibition of their genitals.
U.S. Attorney Weiss stated, “The U.S. Attorney’s Office for the District of Delaware is committed to protecting the most vulnerable among us—our children—from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace. This Office fulfills its commitment without regard to the occupation or privilege of the wrongdoer. No one is above the law.”
“Mr. Leonetti, while in a position of trust as a Firefighter and Union President for the Wilmington Fire Department, possessed sexually explicit photographs and videos of prepubescent children,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations, Philadelphia. “Although we are pleased with the sentence handed down today, the lives of these children have been tragically impacted by the defendants’ actions. No sentence will reverse the physical and mental abuse that they have endured. Homeland Security Investigations will continue to aggressively investigate and prosecute any person whose actions fuel a demand for this sexual abuse and exploitation.”
Homeland Security Investigations investigated this case. Assistant U.S. Attorney Graham L. Robinson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Former Union County Postal Employee Admits Conspiring to Commit Bank Fraud and Fraudulently Attempting to Obtain SBA LoansRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, woman today admitted stealing checkbooks and credit cards from the mail while employed as a U.S. Postal Service (USPS) clerk and filing fraudulent applications for loans intended for small businesses experiencing disruptions due to the COVID-19 pandemic, Acting U.S. Attorney Rachael A. Honig announced.
Janel Blackman, 42, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging her with one count of conspiracy to commit bank fraud and one count of making false statements to the U.S. Small Business Administration (SBA).
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Blackman conspired to obtain money from victim financial institutions fraudulently, by, among other things, stealing credit cards and blank checkbooks from a post office in Summit, New Jersey, where she was employed as a clerk, and providing them to conspirators in exchange for cash. Blackman’s conspirators then fraudulently forged the signatures of the accountholders and negotiated the checks by making them payable to individuals, some of whom were New Jersey high school students, and who had given the conspirators access to their accounts, also in exchange for cash. Blackman’s conspirators deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent and could block further withdrawals. Blackman and her conspirators obtained and attempted to obtain approximately $366,000 from victim financial institutions.
From July 2020 to February 2021, Blackman also filed fraudulent applications for Economic Injury Disaster Loans (EIDL), which are intended for small businesses experiencing substantial financial disruption due to the COVID-19 pandemic. The applications were for businesses that did not exist and were intended to induce the SBA to provide funding to Blackman under false pretenses. For example, on Oct. 25, 2020, Blackman filed an EIDL application in the name of Hard Times Café, stating that it was a liquor store in Newark with 10 employees. In fact, no such business existed. Blackman further falsely stated that she, as the listed owner of Hard Times Cafe, was not then presently subject to formal criminal charges in any jurisdiction, even though as of Sept. 17, 2020, she had been arrested and charged by criminal complaint in the District of New Jersey with the bank fraud conspiracy described above. The SBA did not approve the application.
Three of Blackman’s conspirators, Tashon Ragan, 22, of Hillside, New Jersey, Jahaad Flip, 22, of Newark, New Jersey, and Jeffrey Bennett, 27, of Irvington, New Jersey, previously pleaded guilty before Judge Wigenton to conspiracy to commit bank fraud and are awaiting sentencing.
The conspiracy charge and the false statement charge are each punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Jan. 27, 2022.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Raimundo Marrero in Newark; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Former Roanoke-Area EMS Worker Sentenced for Tampering with Fentanyl and HydromorphoneRead the Press Release
ROANOKE, Va. – A former emergency medical services worker for Roanoke County Emergency Medical Services, was sentenced yesterday to 36 months in federal prison for tampering with vials of fentanyl and hydromorphone.
According to court documents, Jeffery Leedy, 32, tampered with at least 50 vials of fentanyl and hydromorphone while working at Centra Lynchburg General Hospital and as an Emergency Medical Services (EMS) worker for Roanoke County Emergency Medical Services.
Leedy pleaded guilty in March 2021 to one count of tampering with a consumer product (fentanyl and hydromorphone) that affects interstate commerce with reckless disregard for the risk that another person will be placed in danger of death or bodily injury.
On May 16, 2019, a Roanoke City EMS ambulance crew member discovered a suspected tampered vial of fentanyl while on an EMS call. When he attempted to administer the vial to a patient, he noticed the vial’s cap was not secured and believed the vial had been tampered with. Further investigation revealed that Leedy had tampered with the vial by removing the fentanyl and replacing it with saline.
A supervisor with the Roanoke County EMS queried the access card database and determined that Leedy had been accessing the rescue squad building at night, while he was not working, to take fentanyl. Further investigation revealed at least 50 vials of fentanyl and hydromorphone had been tampered with.
Acting United States Attorney Daniel P. Bubar made the announcement today.
The investigation of the case was conducted by the Food and Drug Administration – Office of Criminal Investigations and Virginia State Police.
Assistant United States Attorney Randy Ramseyer is prosecuted the case for the United States.
Former Nantucket Bank Employee Charged in Two Fraud SchemesRead the Press Release
BOSTON – A former Nantucket Bank employee was charged today and has agreed to plead guilty to her role in two fraud conspiracies.
Rushell Harris, 32, of Nantucket, agreed to plead guilty to two counts of conspiracy to commit wire fraud. A plea hearing has not yet been scheduled by the court.
According to charging documents, between approximately June 2014 and November 2018, Harris engaged in two separate wire fraud conspiracies. In the first conspiracy, Harris allegedly exploited her position at Nantucket Bank by obtaining personal identifiable information of a customer and surreptitiously taking photographs of the victim’s account information. It is alleged that Harris then shared that information with co-conspirators who attempted to transfer funds out of the customer’s bank account without authorization.
In the second conspiracy, Harris allegedly helped perpetuate a fraudulent lottery scheme targeting at least 13 victims. According to the charging documents, victims were contacted by co-conspirators via phone and were informed they won large prizes, and that in order to receive the funds they needed to pre-pay taxes on their winnings. In reality, no such prizes existed. After victims made an initial payment, they were advised that additional advance payments were required for expenses such as insurance, transportation or other international customs’ fees. It is alleged that Harris and her co-conspirators transferred proceeds of the scheme to associates in Jamaica and in the United States.
The charge of conspiracy to commit wire fraud provide for a sentence of up to 20 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 and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Nantucket Police Department and the Federal Deposit Insurance Corporation. Assistant U.S. Attorney Mackenzie A. Queenin of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the court documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Accounting Coordinator for Non-Profit Organization Sentenced to Prison for Embezzling More than $321KRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, has been sentenced in federal court to 17 months of prison followed by two years of supervised release on her conviction of bank fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge David S. Cercone imposed the sentence on Danielle Strother-Rush, 34, of Columbia Avenue, Pittsburgh, PA 15218.
According to information presented to the court, Strother-Rush was an Accounting Coordinator for the Eastern Minority Supplier Development Council, which is a nonprofit organization that was created to increase business opportunities for minority-owned businesses. From approximately August 2014 until August 2016, Strother-Rush embezzled $321,255.88 in various ways and spent on funds on, among other things, gambling and frivolous purchases. The primary way in which she embezzled funds was by writing checks to herself from the operating accounts and forging her supervisor’s signature on the checks. She also made unauthorized ATM withdrawals, including several at the Rivers Casino. Lastly, she accessed the payroll bank account online and made unauthorized electronic checks payable to herself.
Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Strother-Rush.
Florida Man and Company Plead Guilty to Fraud Conspiracy Involving Dietary SupplementsRead the Press Release
A Florida man pleaded guilty today to his role in a fraud scheme involving the distribution of illegal products falsely labeled as dietary supplements.
According to court documents, Anthony ”Joey” Ventrella, 43, of Boynton Beach, joined several alleged co-conspirators in committing mail and wire fraud, as well as defrauding the U.S. Food and Drug Administration (FDA) by using dishonest methods to prevent the agency from regulating products labeled as dietary supplements. Ventech, a company controlled by Ventrella, also pleaded guilty to the same conspiracy. Ventrella admitted that through a series of companies, including Ventech, he helped co-conspirators manufacture and distribute products to consumers that were labeled as legal dietary supplements. According to court filings, the products actually contained ingredients that made the products unapproved drugs and illegal to distribute. Ventrella admitted to importing raw ingredients from China using fraudulent paperwork that concealed the true contents of the shipments in an effort to hide his and his co-defendants’ activities from the FDA. As part of the plea agreement, Ventech agreed to forfeit the manufacturing equipment used during the alleged scheme.
“Dietary supplements that contain unapproved drugs can be dangerous for consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department will aggressively pursue and prosecute those who fraudulently conceal for profit the true nature of the products they distribute.”
“Products mislabeled as dietary supplements can pose a serious risk to the health of U.S. consumers,” said Special Agent in Charge Justin C. Fielder of the FDA Office of Criminal Investigations (OCI) Miami Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health by selling violative products.”
Ventrella pleaded guilty to conspiracy to commit mail and wire fraud and to defraud the United States in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. He is scheduled to be sentenced on Nov. 29 and faces a maximum penalty of five years in prison.
The FDA OCI investigated the case.
Ventrella, Ventech and six other defendants previously were charged by indictment with conspiracy to obstruct the FDA and to commit mail and wire fraud, distribution of unapproved new drugs and conspiracy to distribute controlled substances. Two other defendants previously pleaded guilty, and the remaining four defendants are set for trial on Oct. 12.
Trial Attorneys Alistair Reader and Steven Gripkey, Senior Litigation Counsel David Frank and Assistant Director John W. Burke of the Justice Department’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
The indictment charging the remaining defendants is merely an allegation, and those defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Final Defendant Pleads Guilty to Federal Charges Related to May 2020 Civil Unrest in Salt Lake CityRead the Press Release
SALT LAKE CITY – Christopher Isidro Rojas, 29, of Salt Lake City, pleaded guilty to one felony count of civil disorder, charged in a felony information, for his role in the burning of a Salt Lake City Police Department patrol car during the civil unrest which occurred in Salt Lake City on May 30, 2020.
In the plea agreement, Rojas admitted that, on May 30, 2020, he was protesting the killing of George Floyd when protesters turned violent and overturned a Salt Lake City Police Department patrol car. Rojas admitted that he participated in the burning of the overturned patrol car with the intent and purpose of interfering with law enforcement officers and that he used a cigarette lighter to ignite a piece of cloth that a co-defendant threw into the interior of the overturned patrol car.
During a previous hearing, prosecutors alleged that Rojas helped others rip a bumper from the overturned police car and then used a cigarette lighter to ignite a large piece of white cloth that was thrown into the police car by a co-defendant. Later that same afternoon, prosecutors alleged that Rojas was captured on video appearing to celebrate and bragging to others that he “put the cop car on fire.”
Rojas remains on home confinement until the date of his sentencing which is currently set for November 24, 2021. Rojas faces a maximum term of imprisonment of five years in prison, a payment of $2,500.000 in agreed upon restitution, and a term of supervised release of three years.
Co-defendant Lateesha Richards has previously been sentenced to 20 months in federal prison along with co-defendant Jackson Patton, who has been sentenced to 24 months federal prison, for their respective roles in the burning of the patrol car. Co-defendants Latroi Devon Newbins and Larry Raynold Williams Jr. have entered pleas of guilty and now await sentencing.
Assistant U.S. Attorneys from the Utah U.S. Attorney’s Office prosecuted the case. Special Agents from the ATF and the FBI, and detectives from the Salt Lake City Police Department, conducted the investigation.
Federal Court Permanently Enjoins Tax Return Preparers in LouisianaRead the Press Release
A federal court in the U.S. District Court for the Eastern District of Louisiana has permanently enjoined two New Orleans-area tax return preparers from preparing returns for others and from owning, operating or franchising any tax return preparation business in the future.
The court entered judgment against Mario Alexander by default; defendant Leroi Jackson consented to entry of the injunction against him. The terms of the orders require that Alexander and Jackson, both individually and doing business as The Taxman Financial Services, send notices of the injunction to each person for whom they prepared federal tax returns and post the injunctions in places where they conduct business, including social media accounts and websites. The orders also provide that the United States may conduct post-judgment discovery to monitor compliance.
The civil complaint filed against Alexander and Jackson alleged that they prepared tax returns claiming fabricated business income and expenses, as well as claiming various false tax deductions and credits, including charitable contributions and education credits. It also alleged that defendants fabricated business income and/or expenses in order to increase claims for earned income tax credits. According to the complaint, Alexander and Jackson significantly underreported their customers’ tax liabilities, obtained fraudulent tax refunds and charged exorbitant fees for their services, often without their customers’ knowledge.
Acting Assistant Attorney General David A. Hubbert of the Justice Department’s Tax Division made the announcement.
Return preparer fraud is one of the IRS’ Dirty Dozen Tax Scams and taxpayers seeking a return preparer should remain vigilant. (More information can also be found here.) The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Federal Contractor Convicted for Stealing over $1.2 Million from the U.S. Postal ServiceRead the Press Release
Michael Rymar, a Rochester Hills based contractor, pleaded guilty today to embezzling over $1 million in government funds from the United States Postal Service announced Acting United States Attorney Saima S. Mohsin.
Mohsin was joined in the announcement by Kenneth Cleevely, Special Agent in Charge of the Contract Fraud Investigations Division, United States Postal Service, Office of Inspector General.
Michael Rymar, 59, of Rochester Hills, stands convicted of embezzling government funds from the United States Postal Service (USPS). From 2015 to 2018, USPS engineers awarded Rymar’s company, Horizons Materials & Management LLC, with over $5 million in contracts for repairs on USPS buildings in Michigan and New York. But the documentation Rymar provided contained false and fraudulent statements, oftentimes dramatically and falsely overstating the amount he paid subcontractors to complete the repairs. Rymar also falsely inflated the amount he paid his own employees and the cost of materials on USPS jobs. Over the course of the three-plus year fraudulent scheme, Rymar stole over $1.2 million from USPS out of the $5 million in contracts he was awarded.
Acting United States Attorney Mohsin stated, “Today’s guilty plea shows our office’s commitment to protecting the public’s funds and to prosecute individuals who steal from government agencies.”
“The Postal Service spends hundreds of millions of dollars on new construction, maintenance, and renovations of facilities each year. Along with the Department of Justice, the USPS Office of Inspector General will aggressively investigate those who would engage in this type of fraud.” said Special Agent in Charge Kenneth Cleevely of the United States Postal Service, Office of Inspector General.
Upon conviction for a violation of Title 18, United States Code, Section 641, theft of government funds, Rymar faces a maximum sentence of ten years in prison and a fine of up to $250,000. The government is also seeking restitution of the stolen funds. The government has also sought forfeiture of a number of financial accounts held by Rymar, including two accounts that are valued over $1.2 million.
The investigation of this case was conducted by the of the United States Postal Service, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Father & Son Moving Company Agrees to Resolve Allegations of Servicemembers Civil Relief Act ViolationsRead the Press Release
BOSTON – The U.S. Attorney’s Office for the District of Massachusetts announced an agreement today with PRTaylor Enterprises LLC, a company doing business as Father & Son Moving & Storage (Father & Son), to resolve allegations that it violated the Servicemembers Civil Relief Act (SCRA) by failing to obtain a court order before auctioning off the contents of a U.S. Air Force Technical Sergeant’s storage units while he was deployed overseas.
According to the complaint, the Technical Sergeant’s possessions sold by Father & Son included military gear and mementos that had belonged to a cousin killed in military action in Afghanistan, his grandfather’s military service medals and all of his household furnishings and personal photographs.
The SCRA provides financial and housing protections and benefits to military members while they are in military service. One of the SCRA’s protections requires anyone holding a lien on the property of a servicemember to obtain a court order prior to auctioning off, selling or otherwise disposing of that property. Under the agreement, which must still be approved by the U.S. District Court for the District of Massachusetts, Father & Son will pay the Technical Sergeant $60,000 in damages and the United States a $5,000 civil penalty. Father & Son must also implement certain new policies to prevent future SCRA violations.
“It is wrong to auction off the possessions of a servicemember who is serving our country overseas,” said Acting United States Attorney Nathaniel R. Mendell. “The law protects servicemembers from this kind of mistreatment – they have more important things to worry about when they are overseas risking their lives to protect our nation. We will enforce the rights of our military members aggressively and hold accountable people who violate the SCRA.”
“The Department of Justice is committed to vigorous enforcement of the Servicemembers Civil Relief Act to protect the rights of those individuals who sacrifice so much for their country,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “This settlement should send a clear message to all storage facility operators that federal law prohibits them from auctioning off a servicemember’s possessions without a court order.”
Acting U.S. Attorney Mendell and AAG Clarke made the announcement today. Valuable assistance was also provided by the U.S. Department of Transportation, Office of Inspector General, Office of Investigations. Assistant U.S. Attorney Torey B. Cummings of Mendell’s Civil Rights Unit and Trial Attorney Tanya Kirwan of the Housing and Civil Enforcement Section of the Civil Rights Division handled the matter.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2016 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
This lawsuit resulted from a referral to the Justice Department from the U.S. Air Force. The Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section in partnership with the 93 U.S. Attorney’s Offices, including the District of Massachusetts. Since 2011, the Department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. For more information about the Department’s SCRA enforcement efforts, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under the SCRA may have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil.
Farm Equipment CEO Sentenced to Prison, Order to Pay $6.3 Million RestitutionRead the Press Release
VALDOSTA, Ga. – A Southwest Georgia businessman and owner of a tractor supply company who pleaded guilty to orchestrating a complicated fraud involving millions of dollars of loans by multiple creditors was sentenced to prison and ordered to pay restitution to his victims for his crime.
Rickey Carter, 60, of Nashville, Georgia, was sentenced to serve 63 months in prison to be followed by five years of supervised release by U.S. District Judge Hugh Lawson on Wednesday, September 15, after he pleaded guilty to bank fraud. The court also sentenced Carter to pay more than $6.3 million in monetary restitution to the banks and creditors who were defrauded, as well as to the U.S. Small Business Administration. There is no parole in the federal system.
“Defrauding banks by lying to obtaining millions of dollars in loans undercuts the integrity of the banking system and puts businesses--and the people they employ--in jeopardy,” said Acting U.S. Attorney Peter D. Leary. “Our office and law enforcement will work to hold fraudsters accountable and protect citizens from fraud.”
“This sentencing recognizes the importance of holding the defendant accountable for orchestrating a fraudulent scheme to obtain millions of dollars in loans from these banks,” said Special Agent in Charge, Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “The FDIC-OIG remains committed to working with our law enforcement partners to investigate financial crimes that threaten the integrity of the banking sector.”
“No matter how elaborate or complicated the fraud scheme, the FBI and our federal partners will uncover and unravel it to protect American citizens and businesses from further damage and work to recoup their losses,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Carter will be held accountable for the damage he has done, sending a message that fraud is a serious crime with serious consequences.”
Carter was the President and CEO of Nashville Tractor (NTI), a business that sold and leased agricultural and construction equipment, attachments and parts. In 2016, he obtained a United States Small Business Administration (SBA) loan with Farmers and Merchants Bank (FMB) in the principal amount of $5,000,000. At the same time, NTI obtained a new line of credit and signed a credit agreement with FMB in the amount of $625,000.
In 2010, Carter had entered into an ongoing Wholesale Financing and Security Agreement with CNH Industrial Capital America, LLC, (CNH) to finance NTI’s purchases of inventory for retail sale or lease. He also entered into a Retail Financing Agreement (RFA) with CNH under which CNH would purchase NTI’s interest in retail installment contracts for the purchase of agricultural and construction equipment with retail customers. The CNH agreement was a primary source of farm and construction equipment inventory for NTI.
Carter was able to continue operations of NTI and other loan arrangements were made with a number of other banks and financing entities. In each instance of a loan with the banks, Carter was required to provide true and complete financial information to the banks and was to provide continuing information for line of credit draws. However, during 2015, NTI began having financial and cash flow issues which made it difficult to make payments due on the loans and to make payroll. During that time, Carter began a practice of selling equipment which it held in trust but not paying the cash over to CNH and other creditors as required. Carter sold at least 88 pieces of equipment valued at more than $1.5 million subject to the security interest of CNH and sold other pieces of equipment securing financing from Kubota Credit Corporation, Ameris Bank, Bank of Alapaha and Diversified Financial Services. As part of the fraudulent scheme, Carter falsified NTI’s financial records in order to inflate the company’s net worth. As a part of falsifying records, on occasion Carter directed NTI employees to generate payments checks on accounts payable but not send the checks, thereby reducing accounts payable but not deducting the checks from NTI’s accounts. In 2016, Carter falsified documents provided to FMB to secure the SBA loan and line of credit.
Carter also created fraudulent retail installment contracts for the sale or lease of numerous items of equipment with CNH using the names of real people whose information was available to Carter. Those fraudulent contracts generated more than $1.2 million in payments to NTI.
Carter continued through the SBA loan period to provide false and fraudulent information. In total, Carter admitted to being accountable for an intended fraud loss totaling more than $3.5 million but not more than $9.5 million. Carter is responsible for restitution for actual monetary losses caused by the fraud to FMB ($1,227,319.66), SBA ($1,500,000), Ameris Bank ($321,934.50), Bank of Alapaha ($150,000), CNH ($2,782,959.99), KCC ($185,993.32) and Diversified Financial Services ($228,399.92).
The case was investigated by the FBI and FDIC-OIG.
Assistant U.S. Attorney Robert McCullers prosecuted the case.
Elizabeth, PA Man Played Low-Level Role in DS-44 Drug Gang’s Distribution SchemeRead the Press Release
PITTSBURGH - A resident of Elizabeth, Pennsylvania, pleaded guilty in federal court to charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Dontae Gilbert, age 20, of Elizabeth, Pennsylvania, pleaded guilty to one count of possession with intent to distribute a quantity of a mixture of heroin and fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime. United States District Judge William S. Stickman, IV. Gilbert is one of 36 defendants charged in the Indictment.
In connection with the guilty plea, the court was advised that in 2017, the Greater Pittsburgh Safe Streets Task Force initiated an investigation primarily targeting the Darccide/Smash 44, or DS44, neighborhood gang, and its drug-trafficking activity in and around the South Side area of Pittsburgh. Gilbert was identified as a low-level distributor of heroin and fentanyl supplied by members of the organization.
The court was further advised that on April 12, 2019, agents searched Gilbert’s residence and found him in possession of 13 stamp bags containing a mixture of heroin and fentanyl, a loaded pistol, and drug packaging and weighing materials.
Judge Stickman scheduled sentencing for February 17, 2022, at 9:30 a.m. The law provides for a total sentence of not less than five (5) years in prison and not more than life, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Gilbert remains detained pending sentencing.
Assistant United States Attorneys Carolyn J. Bloch and Brendan J. McKenna are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
El Paso Man Arrested for Defrauding His EmployerRead the Press Release
EL PASO – An El Paso man was arrested today on criminal charges related to his alleged involvement in a scheme to defraud his employer.
According to court documents, Ricardo Robles, 40, was employed by a company to negotiate and purchase its supplies. Instead, Robles created numerous sham companies and, unbeknownst to his employer, arranged for his employer to purchase those supplies from the bogus companies at an inflated price. Robles is alleged to have then pocketed the profits for his personal use.
Robles is charged with one count of conspiracy to commit wire fraud and 20 counts of wire fraud. If convicted, Robles faces a maximum penalty of 20 years in prison on each count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ashley C. Hoff of the Western District of Texas and FBI Special Agent in Charge Jeffrey Downey, El Paso Division, made the announcement.
The FBI is investigating the case.
Assistant U.S. Attorney Christopher Mangels is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Duck Hunter Sentenced for Violating Hunting LawsRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Kevin M. Berken, 60, of Lake Arthur, Louisiana, has been sentenced by Magistrate Judge Kathleen Kay for violating the Migratory Bird Treaty Act. Berken was sentenced to two years of probation, ordered to pay a fine of $5,000, and all of his hunting, fishing and trapping privileges have been revoked for the two-year term of probation. Berken was also ordered to complete 100 hours of community service.
Berken was charged in a bill of information with one count of violating the Migratory Bird Treaty Act by taking more than the daily bag limit of ducks in any one calendar day. According to evidence presented in court, Berken was an experienced waterfowl hunter, frequently hunted in Jefferson Parish, Louisiana, and participated in two hunts for ducks on December 27, 2018. During the first hunt on December 27, 2018, Berken and other hunters jointly shot, killed, and possessed 10 ducks. In a second hunt later that day, Berken and another hunter shot, killed, and possessed 12 more ducks. Agents with the Louisiana Department of Wildlife and Fisheries Service and the U.S. Fish and Wildlife Service encountered Berken and three other hunters that day and found them to be in possession of 29 various species of ducks. This was a violation of the Migratory Bird Treaty Act in that they exceeded the daily bag limit of six ducks per hunter in one calendar day. Berken pleaded guilty to the charge and admitted to taking more than the daily bag limit of ducks.
The U.S. Fish and Wildlife Service and Louisiana Department of Fish and Wildlife Service conducted the investigation. Assistant U.S. Attorney Danny Siefker prosecuted the case.
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Drug Dealer Sentenced to 27 Months in PrisonRead the Press Release
PITTSBURGH, PA – Bobby Askew was sentenced to 27 months in prison for distributing fentanyl, heroin, and cocaine, including within 1,000 feet of a school in Butler, Pennsylvania, Acting United States Attorney Stephen R. Kaufman announced today.
Askew, age 39, formerlyof Philadelphia, Pennsylvania, was sentenced by United States District Judge Robert J. Colville. Judge Colville ordered that Askew serve six years of supervised release following his prison term.
In 2009, Askew was convicted of crack cocaine trafficking in Philadelphia. He was sentenced to 5 to 10 years in state prison. After being paroled from state prison, he relocated to Butler in Butler County and trafficked fentanyl, heroin, and cocaine as part of a Butler-based drug trafficking crew. Askew dealt these drugs on a regular basis between 2017 and 2020, including within 1,000 feet of multiple schools in Butler.
Assistant United States Attorneys Yvonne M. Saadi and Craig W. Haller prosecuted this case on behalf of the United States.
The Pennsylvania State Police, the Federal Bureau of Investigation, and the Butler County District Attorney’s Drug Task Force led the investigation leading to the conviction and sentence in this case.
Dominican National Sentenced for Social Security Misuse and Making False StatementRead the Press Release
BOSTON – A Dominican national was sentenced today in federal court in Boston for false representation of a Social Security number and making a false statement relating to health care matters.
Ronald Lara Pena, 35, a Dominican national previously residing in Lawrence, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 13 months in prison and three years of supervised release. Lara Pena will be subject to deportation proceedings upon completion of his sentence. On July 21, 2021, Lara Pena pleaded guilty to one count of false representation of a Social Security number and one count of making a false statement relating to health care matters.
Lara Pena used the identity of a Puerto Rican citizen to obtain Massachusetts driver’s licenses and identification cards and used the victim’s identity to apply for and fraudulently receive over $12,600 in federally funded MassHealth benefits between September 2015 and September 2020.
Acting United States Attorney Nathaniel R. Mendell; Jack Jermaine, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip M. Coyne, Special Agent in Charge of U.S. Department of Health & Human Services, Office of the Inspector General, Office of Investigations, Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit prosecuted the case.
Dominican National Pleads Guilty to Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national pleaded guilty today to drug trafficking activities involving fentanyl.
Angel Aybar Carmona, 26, pleaded guilty to one count of distribution of and possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Denise J. Casper scheduled sentencing for Jan. 12, 2022. Carmona was indicted on Jan. 5, 2021.
In December 2020, Carmona provided a sample of fentanyl along with his phone number to an undercover law enforcement officer. In subsequent text message conversations with Carmona, the undercover officer arranged to purchase 120 grams of fentanyl inside a store in Lawrence. After completing the sale, Carmona was arrested.
The charge of distribution and possession with intent to distribute 40 grams or more of fentanyl provides for a sentence of at least five years and up to 40 years in prison, a least four years of supervised release and a fine of up to $5 million. 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 and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement. Valuable assistance was provided by the Lawrence Police Department. Assistant U.S. Attorney Stephen Hassink of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
District Court Orders Puerto Rico Companies to Cease Importation of Dangerous Children’s ProductsRead the Press Release
A federal court permanently enjoined Puerto Rican companies Pharmacare Inc., China District PR LLC, as well as their owner, Juan Reynoso, from importing children’s toys and other consumer products that violate the Consumer Product Safety Act (CPSA) and the Federal Hazardous Substances Act (FHSA) among other laws.
In a complaint filed on Sept. 15, the United States alleged that Pharmacare, China District, and Reynoso violated the CPSA, FHSA and other related statutes and regulations by importing and selling children’s products that contained illegal levels of lead and phthalates.
According to the complaint, which was filed in the U.S. District Court for the District of Puerto Rico, since 2017 the U.S. Consumer Product Safety Commission (CPSC) collected a total of 116 illegal children’s and other consumer products from the defendants’ import shipments and retail locations in Puerto Rico. Those samples, including 32 from Pharmacare and 84 from China District, contained a total of 296 violations of federal law, including children’s products containing illegal levels of lead or phthalates, and products such as bicycle helmets, rattles and pacifiers that failed to meet various safety or labeling requirements. Based on its findings, the CPSC issued 10 notices of violation to Pharmacare and 15 notices to China District, notifying them that their products violated federal law.
“Products sold to consumers – especially those intended for children – must be safe,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to ensuring that companies importing and selling toys and other consumer products comply with CPSC regulations and federal law.”
“I’m delighted to see the settlement of this important case that will protect children from being exposed to dangerous chemicals in their toys,” said Acting Chairman Robert S. Adler of the CPSC. “I thank CPSC and the Justice Department staff for their tireless efforts on behalf of vulnerable children.”
“There is no greater responsibility of the Department of Justice than to protect our children,” said U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico. “Companies cannot be allowed to import hazardous toys and children’s products into Puerto Rico. We take this responsibility very seriously and will take the necessary action to keep unsafe products out of the hands of our children. I appreciate and value the support from and collaboration with the Department of Justice and the U.S. Consumer Product Safety Commission.”
The consent decree, which resolves the case against all defendants, generally requires that the defendants stop importing children’s toys and certain other consumer products until the defendants implement numerous remedial measures to bring their operations into compliance with the law. These requirements include, among other things, hiring an independent product safety coordinator, conducting an audit of all imported merchandise in inventory for compliance with the CPSA, FHSA, and related laws and implementing a written product safety program. The defendants may resume importing children’s and other consumer products only after implementing these measures and demonstrating that their operations fully comply with federal law.
Trial Attorney Lauren M. Elfner of the Justice Department’s Consumer Protection Branch is handling the case with the assistance of Assistant U.S. Attorney David Martorani for the District of Puerto Rico and Renee McCune of the CPSC’s Office of the General Counsel.
Dickinson County Woman Pleads Guilty to Meth ConspiracyRead the Press Release
A Dickinson County woman who conspired to distribute meth pled guilty September 14, 2021, in federal court in Sioux City. Meghan Renken, 29, from Spirit Lake, Iowa, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Renken admitted her involvement in a conspiracy that distributed more than 1500 grams of pure methamphetamine from July 2018 and continuing to on or about March 2020 in the Dickinson County, Iowa area. On March 17, 2020, law enforcement executed a search warrant at a co-conspirators residence and seized 20 pounds of methamphetamine from the residence. During the course of the execution of the search warrant, law enforcement stopped Renken and another co-conspirator leaving the residence in a vehicle. Upon a search of the vehicle, law enforcement seized 3 pounds of pure meth that Renken and her co-conspirator admitted they had plans to distribute to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Renken was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. Renken faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; and the Woodbury County Attorney’s Office, as well as the Iowa State Patrol.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4050. Follow us on Twitter @USAO_NDIA.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Prison for Conspiracy to Advertise Child PornographyRead the Press Release
A dual national of the United States and Ireland was sentenced yesterday to 324 months, or 27 years, in federal prison followed by a lifetime of supervised release for conspiracy to advertise child pornography.
Eric Eoin Marques, 36, of Dublin, Ireland, pleaded guilty on Feb. 6, 2020 to conspiracy to advertise child pornography. According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the dark web, an area of the internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors and violent sexual abuse. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers.
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “This is an egregious case where one individual hosted and helped others to share millions of horrific images and videos of the abuse of children, including more than a million not previously known to law enforcement, and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the internet to perpetuate the cruel and heartless business of the sexual abuse of children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
“Europol is pleased to have played its part in what ranks as one of the most important investigations ever conducted into child sexual abuse,” said Head of the European Cybercrime Centre Edvardas Šileris of Europol. “I applaud the great work of the FBI and our many other law enforcement partners in Europe and beyond for their cooperation on a global scale to tackle this most heinous crime and bring this dangerous individual before court. Ensuring the safety of children by identifying those who have been victimized and educating children to avoid these harms remains a top priority for Europol.”
As described in public documents, this case was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the FBI and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries that deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities, and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána, and Europol. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of CEOS and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Dark Web Child Pornography Facilitator Sentenced to 27 Years in Prison for Conspiracy to Advertise Child PornographyRead the Press Release
A dual national of the United States and Ireland was sentenced today to 324 months, or 27 years, in federal prison followed by a lifetime of supervised release for conspiracy to advertise child pornography.
Eric Eoin Marques, 36, of Dublin, Ireland, pleaded guilty on Feb. 6, 2020 to conspiracy to advertise child pornography. According to court documents, between July 24, 2008 and July 29, 2013, Marques operated a free anonymous hosting service located on the dark web, an area of the internet that is only accessible by means of special software, allowing users and website operators to remain anonymous or untraceable. The hosting service hosted websites that allowed users to view and share images documenting the sexual abuse of children, including the abuse of prepubescent minors and violent sexual abuse. The investigation revealed that the hosting service contained over 200 child exploitation websites that housed millions of images of child exploitation material. Over 1.97 million of these images and/or videos were not previously known by law enforcement. Many of these images involved sadistic abuse of infants and toddlers.
“The defendant’s web service anonymously hosted hundreds of insidious criminal communities dedicated to the sexual exploitation of children, which openly and notoriously spread millions of images of child sexual abuse across the globe,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “This complex, global investigation, lengthy and successful extradition, and substantial jail sentence are proof of the Department’s steadfast and unwavering commitment to identifying and bringing to justice criminals who hide behind anonymous networks to abuse and exploit the world’s children.”
“Eric Marques was one of the largest facilitators of child pornography in the world,” said Acting U.S. Attorney Jonathan F. Lenzner for the District of Maryland. “This is an egregious case where one individual hosted and helped others to share millions of horrific images and videos of the abuse of children, including more than a million not previously known to law enforcement, and attempted to keep the abuse hidden on the dark web. We are grateful to our law enforcement partners here and abroad for helping us to bring Eric Marques to justice. We will continue to do everything we can to find and prosecute those who use the anonymity of the internet to perpetuate the cruel and heartless business of the sexual abuse of children.”
“Today’s sentencing of Eric Marques sends a clear message to perpetrators of this egregious crime that no matter where you are in the world, law enforcement will hold you accountable and bring you to justice,” said Assistant Director Calvin Shivers of the FBI’s Criminal Investigative Division. “The FBI combats crimes against children and stands up for vulnerable children across the globe.”
“Europol is pleased to have played its part in what ranks as one of the most important investigations ever conducted into child sexual abuse,” said Head of the European Cybercrime Centre Edvardas Šileris of Europol. “I applaud the great work of the FBI and our many other law enforcement partners in Europe and beyond for their cooperation on a global scale to tackle this most heinous crime and bring this dangerous individual before court. Ensuring the safety of children by identifying those who have been victimized and educating children to avoid these harms remains a top priority for Europol.”
As described in public documents, this case was a part of a path-marking global investigation that targeted thousands of users of more than 200 websites operating on the Tor network and dedicated to the trade of child pornography. The Criminal Division’s Child Exploitation and Obscenity Section (CEOS), the FBI, and Europol conceived of and executed a globally coordinated criminal investigation of then-unparalleled scope, which pooled resources of over a dozen countries that deployed over 70 law enforcement agents to Europol, which served as the hub for operational support, facilities, and information sharing. Through this investigation, more than 200 child sexual exploitation websites were taken offline (along with hundreds of other sites sponsoring or facilitating criminal activity); the activities of tens of thousands of online child pornographers were disrupted; over four million images and videos of child sexual abuse were seized (including more than 100 previously unknown series of child abuse images and new images from more than 50 existing series); and dozens of offenders were identified and prosecuted throughout the world.
The FBI’s Violent Crime Section, Child Exploitation Operational Unit and the Violent Crimes Against Children International Task Force conducted the investigation with significant assistance from the Legal Attaché London Office, An Garda Síochána, and Europol. The Department of Justice’s Office of International Affairs provided significant assistance in bringing Marques to the United States and procuring foreign evidence during the investigation.
Deputy Chief Keith A. Becker and Trial Attorney Ralph Paradiso of CEOS and Assistant U.S. Attorney Thomas M. Sullivan of the District of Maryland prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Connecticut Man Sentenced for Firearm TraffickingRead the Press Release
BOSTON – A Connecticut man was sentenced today in federal court in Boston in connection with selling two “ghost guns.”
Brian McCarthy, 33, of Bridgeport, Conn., was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 30 months in prison and two years of supervised release. On May 14, 2021, McCarthy pleaded guilty to one count of dealing firearms without a federal license.
Between June 17 and July 31, 2020, McCarthy travelled to Massachusetts and sold an undercover officer two Glock-style Privately Made Firearms (PMF) he had personally fabricated. PMFs are firearms that are not made by firearm manufacturers; instead, firearm manufactures sell individual buyers firearm parts, and the buyer uses various firearm drilling tools to construct and assemble the parts into a functional firearm. PMFs are also known as “ghost guns” because they are not serialized. McCarthy was taken into custody following the sale.
A subsequent search of McCarthy’s apartment resulted in the seizure of two additional Glock-style PMFs, one AR15/M4-type rifle upper receiver, accessories for AR15/M4 rifles, multiple semi-automatic magazines, approximately 250 rounds of ammunition and various firearm construction and assembly tools.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Plymouth County District Attorney Timothy J. Cruz; and Bristol County District Attorney Thomas M. Quinn III made the announcement today. Assistant U.S. Attorney John Dawley of Mendell’s Organized Crime and Gang Unit prosecuted the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Collin County Wedding Planner Sentenced for COVID Relief FraudRead the Press Release
SHERMAN, Texas – A Murphy man has been sentenced to federal prison for perpetrating a scheme to fraudulently obtain more than $3.3 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act in the Eastern District of Texas, announced Nicholas Ganjei, Acting U.S. Attorney of the Eastern District of Texas and Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division today.
Fahad Shah, 45, pleaded guilty on May 19, 2021, to wire fraud and was sentenced to 31 months in federal prison today by U.S. District Judge Amos L. Mazzant, III.
“Stealing limited COVID relief funds is the very definition of stealing from the less fortunate,” said Acting U.S. Attorney Nicholas J. Ganjei. “Every dollar that was stolen and extravagantly spent in this case was one less dollar that went to a struggling business scrambling to meet its payroll obligations to employees. The Department of Justice and its partners will do everything in their power to investigate and prosecute those that would deign to steal these limited funds and stall national recovery efforts.”
According to court documents, Shah sought approximately $3.3 million in PPP funds by claiming that his family’s business, WBF Weddings by Farah Inc. (WBF), employed more than 100 individuals and paid millions of dollars in compensation to those employees. In actuality, WBF had no employees aside from Shah and his wife. Based on Shah’s false representations and forged documents, an SBA-approved lender provided over $1.5 million in PPP loan funds to Shah. Shah used the funds for personal gain contrary to program’s terms. He paid off his home mortgage and purchased two Teslas and a Mercedes, among other items.
Acting U.S. Attorney Nicholas Ganjei for the Eastern District of Texas; Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Special Agent in Charge Christopher J. Altemus, Jr., of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA investigated the case.
This case was prosecuted by Assistant U.S. Attorneys Frank Coan and Bob Wells of the Eastern District of Texas and Trial Attorneys Louis Manzo and Della Sentilles of the Criminal Division’s Fraud Section.
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Cecil County Felon Sentenced to More Than Four Years in Federal Prison for Illegal Possession of Firearm and Narcotics ConspiracyRead the Press Release
Baltimore, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Kenneth Clark, Jr., a/k/a “Man” and “Play,” age 30, of Port Deposit, Maryland, yesterday to 52 months in prison, followed by three years of supervised release, for a narcotics conspiracy and being a felon in possession of a firearm.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; and Cecil County Sheriff Scott Adams.
According to his guilty plea, on February 20, 2020, a Cecil County Sheriff’s deputy saw a vehicle speeding and failing to stop at a stop sign. The deputy initiated a traffic stop, activated his mobile video recorder, capturing video through the windshield of his patrol car as he approached vehicle.
After the vehicle came to a stop, the deputy observed the vehicle shake as the driver and passenger switched seats. The deputy asked both occupants to produce identification documents and vehicle registration. The person in the driver’s seat produced identification while Clark, who was in the passenger seat, informed the officer that he did not have a license. Clark then grabbed the vehicle’s gear shifter and commanded the driver to go. However, the car did not move and the deputy was able to turn off the vehicle. Clark opened the passenger door and ran away. The deputy’s in-car video camera captured Clark holding a black semi-automatic handgun as he exited the passenger side. The driver also ran away, but he and Clark were apprehended by law enforcement.
After his arrest, Clark was searched and officers recovered $1,802 in cash on Clark’s person. The deputy returned to the area where he saw Clark throw the firearm and recovered a .22 LR handgun loaded with 11 hollow-point .22 LR live rounds. The slide of the handgun was pulled back, exposing a chambered .22 LR bullet, and the weapon was jammed. Clark’s vehicle was also searched and the deputy recovered approximately six grams of marijuana inside the passenger’s side door and two cell phones. Clark requested evaluation by Emergency Medical Services. As Clark got out of the patrol car, the deputy recovered a small plastic baggie containing approximately one gram of crack cocaine on the floorboard next to where Clark was seated.
Law enforcement later learned that the firearm in Clark’s possession was reported stolen a few days before it was recovered from Clark. Clark knew that he was prohibited from possessing firearms due to previous felony convictions, including a 2016 conviction for second-degree assault and a 2017 conviction for having an illegal handgun on his person—both in Cecil County Circuit Court. At the time of his arrest, Clark was on supervised probation in Cecil County.
According to Clark’s plea agreement, between the first and second week of February 2020, a concerned citizen contacted Maryland State Police to report possible cocaine transactions in the Port Deposit area of Cecil County by a male nicknamed “Man”. During the investigation of a non-fatal overdose that occurred on January 29, 2020, Maryland State Police (MSP) identified Clark as the likely source of the narcotics supply leading to the overdose. Numerous messages downloaded from the overdose victim’s cellular phone resolved to the phone number assigned to the phone in Clark’s possession at the time of his most recent arrest.
Additionally, MSP found several photos of Clark displaying, brandishing, and discharging firearms on his public social media accounts. For example, on February 18, 2020, Clark posted two public photographs holding a semi-automatic handgun with an extended magazine, which matches the description of the firearm seized after Clark’s arrest during the traffic stop. A subsequent review of Clark’s social media messages revealed conversations regarding the distribution of controlled substances, including cocaine and methamphetamine.
As detailed in his plea agreement, while incarcerated at the Cecil County Detention Center, which records outgoing calls from detainees, Clark made several phone calls to two associates asking them to retrieve several items hidden at his father’s residence. Clark spoke in code terms about what investigators believe were drugs and firearms, while providing specific instructions on where to find the items. On February 28, 2020 Maryland State Police searched the residence of one of the associates and recovered a 9mm semi-automatic handgun, that matched the description of the firearm depicted in Clark’s social media pictures. The associate advised law enforcement that he obtained the firearm from Clark’s father’s residence at Clark’s direction.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Acting United States Attorney Jonathan F. Lenzner commended the Maryland State Police Department and the Cecil County Sheriff’s Office their work in the investigation and thanked Homeland Security Investigations for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Sandra Wilkinson who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Butte County Woman Pleads Guilty to FEMA Fraud in Connection with the Paradise Camp FireRead the Press Release
SACRAMENTO, Calif. —Kristen Canapary, 53, of Butte County, pleaded guilty today to making false statements in an application for FEMA benefits in connection with the 2018 Paradise Camp Fire, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, FEMA provided disaster benefits to certain qualified individuals whose primary residence was damaged or destroyed in the Camp Fire. Canapary filed a claim for FEMA disaster benefits falsely listing a rental home she formerly lived in as her primary residence at the time of the fire in November 2018. According to the property owner, Canapary vacated the home earlier in the year, and the home had remained vacant while undergoing renovations. As a result of Canapary’s claim that her primary residence was damaged by the Camp Fire, she was given money for rental assistance and the replacement of essential personal property purportedly destroyed with her home. She was also provided with approximately 13 months of temporary FEMA housing.
This case is the product of an investigation by the Department of Homeland Security Office of the Inspector General. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
Canapary is scheduled to be sentenced by U.S. District Judge Troy L. Nunley on Dec. 16, 2021. Canapary faces a maximum statutory penalty of 30 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Members of the public who suspect fraud involving disaster relief efforts, including California wildfires or COVID-19 relief efforts, or who believe they have been a victim of fraud from a person or organization soliciting relief funds on behalf of disaster victims, should contact the National Disaster Fraud Hotline toll free at (866) 720-5721. Alternatively, information can be submitted via email to [email protected].
Butler County Man Indicted on Drug and Gun Law ViolationsRead the Press Release
PITTSBURGH, PA - A resident of Boyers, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment, returned on September 14, and unsealed today, named Daniel Dellich, Jr., age 46, of 522 Harrisville Road, Boyers, Pennsylvania, as the sole defendant.
According to the Indictment, on or about August 26, 2021, Dellich possessed with the intent to distribute a mixture and substance containing a detectable amount of methamphetamine. The Indictment also alleges that Dellich, a convicted felon, possessed both a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
As to Count One, the law provides for a term of imprisonment of not more than twenty (20) years, a fine not to exceed $1,000,000 or both. As to Count Two, the law provides for a term of imprisonment of not more than ten years, a fine of not more than $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Brooklyn Gang Member Indicted for Multiple Shootings and Firearms OffensesRead the Press Release
A nine-count superseding indictment was filed today in federal court in Brooklyn charging Darrius Sutton, also known as “Blizz Meecho,” with violent crimes in-aid-of racketeering — including attempted murder and related firearms offenses. Sutton is already in federal custody following his arrest in July 2020 on charges of being a felon in possession of ammunition. He will be arraigned on the superseding indictment at a later date.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the superseding indictment.
“As alleged in the superseding indictment, the defendant terrorized the East New York neighborhood of Brooklyn by engaging in armed warfare with rival gangs, and innocent bystanders were caught in the crossfire,” stated Acting U.S. Attorney Kasulis. “This Office is working tirelessly with our law enforcement partners to take violent gang members off the street and put an end to senseless violence plaguing communities in the district.”
“Members of criminal gangs often don’t fear the consequences of their actions, but Mr. Sutton now faces a long stay in federal prison for his alleged crimes. Our FBI Metro Safe Streets Task Force and law enforcement partners haven’t backed off our pursuit of these groups and stopping the chaos gangs create,” stated FBI Assistant Director-in-Charge Driscoll.
“This case highlights the NYPD’s and our law enforcement partners relentless pursuit of those few individuals who drive the worst kinds of violence and disorder in the city. I want to thank our colleagues at the FBI and the United States Attorney’s Office for the Eastern District of New York for their commitment in bringing this individual to justice,” stated NYPD Commissioner Shea.
As set forth in court filings, Sutton is a member of an East New York-based gang called “Bamalife,” which has ongoing and violent rivalries with other gangs in East New York and elsewhere in Brooklyn. The charges in the superseding indictment relate to three non-fatal shootings in East New York in which four individuals were wounded.
The August 11, 2019 Shooting
As alleged, on August 11, 2019, Sutton attended a party at a rental hall located at 2529 Atlantic Avenue in East New York, Brooklyn. Surveillance video and other evidence established that shortly after Sutton left the party, he confronted a member of a rival gang who was also leaving the party. Sutton demanded to know if the victim was a member of the rival gang; Sutton began shooting and pursuing the intended victim as the victim attempted to flee. In addition to striking his intended victim in the forearms and groin, Sutton’s gunfire also wounded an innocent bystander in the leg.
The April 20, 2020 Shooting
As alleged, on April 20, 2020, Sutton ambushed a victim in the vicinity of 375 Sheffield Avenue in East New York, Brooklyn. Surveillance video shows Sutton approaching the victim undetected from behind, drawing his weapon, firing several shots and striking the male in the chest, thigh and wrist.
The May 16, 2020 Shooting
As alleged, on May 16, 2020, Sutton shot a member of a rival gang in the vicinity of 2211 Pitkin Avenue in East New York, Brooklyn. Surveillance video shows two cars pulling up to a location approximately four blocks from the scene of the shooting. Sutton exited one of the cars and walked to 2211 Pitkin Avenue, where members of a rival gang are known to congregate. Sutton entered the lobby of the building with a firearm in his hand. Moments later, Sutton shot the victim in the courtyard of the building.
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.
The charges in the indictments are allegations, and the defendant is presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Kevin Trowel and Nicholas Axelrod are in charge of the prosecution.
The Defendant:
DARRIUS SUTTON (also known as “Blizz Meecho”)
Age: 24
Brooklyn, New YorkE.D.N.Y. Docket No. 20-CR-323 (AMD)
Bristol, Tennessee Man Sentenced for Healthcare Kickback SchemeRead the Press Release
ABINGDON, Va. – A Bristol, Tennessee man was sentenced today to three months of home confinement for conspiring with another man to pay and receive kickbacks. In addition to home confinement, he will pay $56,000 in monetary penalties and will be permanently excluded from participating in federal healthcare programs.
According to court documents, John Paul Linke, 58, conspired to receive and pay kickbacks to encourage urine drug screen testing performed by a lab in Florida. Some of the testing referred to the lab was paid for by Medicare, Virginia Medicaid, and TennCare. Co-conspirator Michael Olshavasky, of Miami, Florida, will be sentenced on September 22, 2021.
“The defendant’s diversion of critical federal and state funds that were needed to target the opioid crisis for his own greed is unconscionable,” Acting U.S. Attorney Bubar stated today. “We will continue to prioritize prosecuting health care fraud cases, and that we will continue to work closely with the Virginia Attorney General’s Office, and our other critical federal and state partners, to bring such providers to justice.”
“Healthcare providers who use kickback schemes like this one are not only defrauding our healthcare system, but they’re also stealing from Virginia taxpayers just to line their own pockets,” said Attorney General Herring. “Virginians trust their healthcare providers to make the best decisions for their patients without monetary gain or outside influence. I want to thank my Medicaid Fraud Control Unit for their work on this case as well as our local, state, and federal partners for their ongoing collaboration on cases where individuals try and defraud our Medicaid and Medicare systems.”
“Those who seek to profit off the opioid crisis through illegal schemes make the problem worse,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who, through their dishonesty, jeopardize the public health.”
Between November 30, 2015, and May 30, 2016, Linke was employed at an office-based opioid treatment program that used medication-assisted treatment for patients suffering from substance use disorder. In exchange for being paid $5,000 per month, Linke arranged for the clinic to send urine drug screen samples to the laboratory in Florida where Olshavasky worked. These payments were disguised as commissions paid to Linke as an “independent sales representative” for Olshavsky’s company, Encore Holdings LLC. Olshavasky paid Linke at least $16,000 through Encore Holdings to direct WRC’s drug screening business to the Florida lab, although Linke was not actually an independent sales representative for Encore, and he did not act as such.
The Virginia Medicaid Fraud Control Unit, the Drug Enforcement Administration, the Food and Drug Administration Office of Criminal Investigations, the Department of Health and Human Services—Office of Inspector General, the Tennessee Bureau of Investigation, and the Virginia State Police investigated the case.
Special Assistant United States Attorney Janine M. Myatt and Assistant United States Attorneys Randy Ramseyer and Whit Pierce prosecuted the case for the United States.
Bridgeport Gang Member Admits Multiple Gang-Related ShootingsRead the Press Release
UNDREA KIRKLAND, also known as “Spooda,” 25, of Bridgeport, pleaded guilty today before U.S. District Judge Janet Bond Arterton in New Haven to a racketeering offense related to his participation in multiple gang-related shootings.
Today’s announcement was made by Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Joseph T. Corradino, State’s Attorney for the Fairfield Judicial District; Bridgeport Acting Police Chief Rebeca Garcia; James Ferguson, Special Agent in Charge, ATF Boston Field Division; David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, and Acting U.S. Marshal Lawrence Bobnick.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Kirkand has been a member of the “Greene Homes Boyz” (“GHB/Hotz”), a gang based in the Charles F. Greene Homes Housing Complex in Bridgeport’s North End, whose members and associates distributed heroin, crack cocaine, marijuana and Percocet pills; committed numerous acts of violence against rival gang members and other individuals, and celebrated their criminal conduct on social media websites such as Facebook and YouTube. GHB/Hotz members and associates also committed acts of intimidation and made threats to deter potential witnesses to their crimes and to protect gang members and associates from detection and prosecution by law enforcement authorities. Since approximately 2017, GHB/Hotz members have been aligned with members of the “Original North End” (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport, against rival groups in Bridgeport, including the East End, East Side and PT Barnum gangs, as well as 150, which is a geographic gang based on the West Side of Bridgeport.
In pleading guilty, Kirkland admitted that on May 22, 2015, he shot and attempted to kill “KJ,” a member or associate of the 150 gang, at the intersection of Park Street and Shelton Street on Bridgeport’s East Side; on February 27, 2018, he and others shot and attempted to kill “TH,” “RF” and “GS,” members or associates of the East End gang, at 1306 Stratford Avenue in Bridgeport; and on October 4, 2018, he and others shot and attempted to kill “MS,” a member or associate of the East End gang, inside the Greene Homes housing complex.
Kirkland also appears in a YouTube video, surrounded by other GHB/Hotz and O.N.E. members, possessing a firearm with a 50-round drum, discussing acts of violence, and celebrating a jury acquittal in his state trial for attempted murder.
Kirkland pleaded guilty to one count of conspiracy to engage in a pattern of racketeering activity, an offense that carries a maximum term of imprisonment of 20 years. Judge Arterton scheduled sentencing for December 9, 2021, at which time Kirkland faces a maximum term of imprisonment of 20 years.
Kirkland has been detained since April 11, 2019.
This ongoing investigation is being conducted by ATF, the FBI’s Safe Streets and Violent Crimes Task Forces, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Naugatuck Police Department. The case is being prosecuted by Assistant U.S. Attorneys, Jocelyn C. Kaoutzanis, Rahul Kale, Peter D. Markle, Karen L. Peck and Stephanie T. Levick.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs.
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.
Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Boston Man Sentenced for Investment Fraud SchemeRead the Press Release
BOSTON – The owner of several Boston-based investment companies was sentenced yesterday in federal court in Boston for operating a Ponzi-like fraud scheme.
Tanmaya Kabra, 27, was sentenced by U.S. District Court Judge Denise J. Casper to 21 months in prison and one year of supervised release. Kabra was also ordered to pay restitution of $1,842,106 and a fine of $15,000. On April 8, 2021, Kabra pleaded guilty to four counts of wire fraud.
Kabra conducted business through a company called LaunchByte.io LLC and several affiliated entities. He held himself out to investors as a successful serial entrepreneur, venture capitalist and angel investor in start-up companies. Offering lucrative and low or no-risk returns on investments, Kabra lured investors with representations that their funds would be used to foster the growth and development of start-up companies, in order to prepare those companies for sale or for other legitimate business opportunities. In reality, Kabra used the money that he received from investors to pay off existing debts to prior investors in his scheme and to fund his lavish personal expenses, including using more than $200,000 of fraudulently obtained funds to purchase a power boat.
Kabra admitted to victimizing more than 20 individuals who suffered more than $1.8 million in losses as a result of the scheme.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. The Securities & Exchange Commission provided valuable assistance in the investigation. Assistant U.S. Attorneys Christopher Looney and James D. Herbert of Mendell’s Criminal Division prosecuted the case.
Boston Man Sentenced for Fentanyl Trafficking ConspiracyRead the Press Release
BOSTON – A Boston man was sentenced today for his involvement in a drug trafficking conspiracy involving fentanyl and cocaine.
John Rodrigues, 27, was sentenced by U.S. District Court Judge F. Dennis Saylor IV to three months in prison, nine months of home confinement and three years of supervised release. On April 27, 2021, Rodrigues pleaded guilty to conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl and cocaine.
On Nov. 1, 2017 Rodrigues sold approximately 9.8 grams of a mixture containing fentanyl and cocaine to an undercover officer. Rodrigues was charged as part of an investigation into a drug trafficking organization distributing large quantities of fentanyl, cocaine and other controlled substances in the greater Boston area.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorneys Corey Steinberg and John Mulcahy of Mendell’s Criminal Division prosecuted the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berwick Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 14, 2021, Colton Oppel, 30, of Berwick, Pennsylvania, was indicted by a federal grand jury on firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that in January 2020, Oppel, who is prohibited from possessing firearms based on prior convictions, possessed 25 firearms including handguns, rifles and shotguns, including a firearm with an obliterated serial number and a sawed-off shotgun.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Briar Creek Police Department and the Pennsylvania Attorney General’s Office Bureau of Narcotics Investigation. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Baker City Man Sentenced to Federal Prison for Stealing Covid-Relief FundsRead the Press Release
PORTLAND, Ore.—A Baker City, Oregon man was sentenced to federal prison today for fraudulently converting to his own personal use federal money intended to help small businesses during the COVID-19 pandemic.
The parties stipulated to a two-year prison sentence for Jeremy Clawson, 32. At their joint recommendation, however, U.S. District Court Chief Judge Marco A. Hernandez reduced the sentence to ten months to account for the time Clawson had already served in Oregon state custody. Chief Judge Hernandez also ordered Clawson to serve a term of three years’ supervised release following his federal prison term.
“Recent federal relief programs, like those authorized by the CARES Act, were designed to help Americans and American small businesses navigate the economic fallout of the COVID-19 pandemic. Mr. Clawson saw the swift rollout of these programs as an opportunity to enrich himself at the expense of Americans in need. I want to thank the U.S. Secret Service and U.S. Small Business Administration Office of Inspector General for their steadfast partnership and commitment to bringing Mr. Clawson to justice,” said Acting U.S. Attorney Scott Erik Asphaug.
“This case shows the American people that their law enforcement and Attorney’s Office are taking CARES act fraud seriously,” said Justin Bourne, Resident Agent in Charge of the Secret Service Portland Resident Office. “This investigation is a prime example of the Secret Service’s investigative mission; to protect the United States financial infrastructure. This case illustrates the strong partnership between the Secret Service, U.S. Small Business Administration Office of Inspector General, the Baker City Police Department and the U.S. Attorney’s Office.”
“Lying to gain access to economic stimulus funds for personal gain will be met with justice,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “Greed has no place in SBA’s programs that are intended to provide assistance to the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
According to court documents, Clawson stole economic relief funds distributed by the Small Business Administration (SBA) through the Economic Injury Disaster Loan (EIDLs) program, as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
On August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger.
SBA loan documents showed that the EIDL had been extended to the Halperin Manufacturing Company of San Diego, California. Though there is no record of any such company, the loan application listed an actual San Diego resident as the company’s owner and claimed it employed 350 people. Investigators contacted the purported owner, but that person denied owning or being affiliated with any such company and confirmed that the company’s supposed address in San Diego was the individual’s personal residence.
In early September 2020, investigators learned that Clawson had been arrested in late August by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.
On September 11, 2020, federal investigators interviewed Clawson at the Baker County Jail, where he was detained on the state charges. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.
On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money. On June 8, 2021, he pleaded guilty.
During sentencing, Chief Judge Hernandez ordered Clawson to pay $125,200 in restitution to the SBA.
Clawson has been in custody since his arrest in August 2020.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Secret Service in cooperation with the SBA Office of Inspector General and Baker City Police Department. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Anyone with information about fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Armed Beaumont Ice Cream Man Sentenced for Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to prison for a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas Ganjei today.
Jason Bernard Sibley, 21, pleaded guilty on May 28, 2021, to being a prohibited person in possession of a firearm and was sentenced to 33 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to court documents, on Feb. 3, 2021, Sibley began a video live-stream on a social media platform in which he recorded himself in an ice cream truck in a local Beaumont neighborhood serving ice cream to children. He was also observed possessing a firearm in that video. Officers with the Beaumont Police Department who had previous contact with Sibley saw the video and knew Sibley to be a convicted felon and prohibited from owning or possessing firearms or ammunition. Officers eventually arrested Sibley in the ice cream truck and recovered the firearm. Sibley was indicted by a federal grand jury on April 7, 2021 and charged with federal firearms violations.
“The conduct in this case is especially egregious because the firearm was possessed in the presence of children,” said Acting U.S. Attorney Nicholas J. Ganjei. “The United States Attorney’s Office commends the ATF and Beaumont Police Department for their diligent investigation, which removed an appreciable danger to the Beaumont community.”
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Beaumont Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Russell James.
Annapolis Ms-13 Member Sentenced to 35 Years in Federal Prison for Racketeering Conspiracy, Discharging a Firearm Related to a Murder, and Two Attempted MurdersRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Moises Alexis Reyes-Canales, a/k/a “Sicopita”, age 23, of Annapolis, to 35 years in federal prison, followed by five years of supervised release, for conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence, in connection with his MS-13 gang activities, including a murder and two attempted murders.
According to his plea agreement and other court documents, since about March 11, 2016, Reyes-Canales was a member and associate of MS-13, and participated in a racketeering conspiracy that included assaults, murder, attempted murder, robbery, and drug trafficking. Specifically, Reyes-Canales admitted that he participated in the murder of a suspected rival gang member, and conspired and attempted to murder two victims in Annapolis. In addition, between January 2016 and February 2017, Reyes-Canales and other MS-13 members/associates sold marijuana to raise funds for the gang. The drug proceeds were used for, among other purposes, the purchase of more narcotics, weapons, and to send to MS-13 members and associates in other states and in El Salvador.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department’s Criminal Division; Special Agent in Charge James Mancuso of Homeland Security Investigations (HSI) Baltimore Office; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Chief Amal Awad of the Anne Arundel County Police Department; Chief Edward Jackson of the Annapolis Police Department; and State’s Attorney Anne Colt Leitess of the Anne Arundel County State’s Attorney Office.
“Reyes-Canales is a violent gang member who killed and seriously injured multiple victims, and in the process brought horror and despair to the victims and their families as well as chaos and fear to communities in Annapolis. The United States Attorney’s Office would like to thank community members and our international and local law enforcement partners who assisted in this investigation,” said Acting U.S. Attorney Jonathan F. Lenzner. “This sentence of 35 years in federal prison should serve as a warning to those who are in MS-13 and are considering joining the gang that we will be relentless in prosecuting anyone who is involved in violence.”
“Due to the diligent work of our law enforcement partners and the department prosecutors in this case, Reyes-Canales and his MS-13 co-defendants will no longer be able to victimize the Annapolis community. Reyes-Canales and his co-defendants murdered one victim and attempted to murder two others, causing irreparable harm to the victims and their families,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division. “We will never stop pursuing those MS-13 gang members who intimidate and harm our communities."
As part of the racketeering conspiracy, Reyes-Canales admitted that on March 11, 2016, he and other MS-13 members and associates planned and agreed to murder Victim 1, whom the gang suspected of being a rival gang member. Prior to the murder, Reyes-Canales received authorization to commit the murder from MS-13 leadership. Juan Carlos Sandoval-Rodriguez and another MS-13 member/associate lured Victim 1 to Quiet Waters Park in Annapolis, Maryland, and once Victim 1 arrived at the park, members of the gang struck Victim 1 in the head with a branch or stick. Reyes-Canales, co-defendants Marlon Cruz-Flores, Fermin Gomez-Jimenez, and other members and associates of MS-13, then stabbed Victim 1 repeatedly, killing him. Reyes-Canales directed everyone during the murder. While Reyes-Canales and other members of the gang stabbed Victim 1, Co-conspirator 1 and other MS-13 members/associates stood watch outside of the park to ensure no one entered or left the park, and to watch for police presence, so that the gang could complete the murder of Victim 1. During this time, Co-conspirator 1 communicated by phone and through text messages with Reyes-Canales and Cruz-Flores inside the park, to let them know no one entered the park and they could complete the murder. After Victim 1 was killed, Gomez-Jimenez left the park to stand watch, so that other MS-13 associates could enter the park help bury Victim 1 in a shallow grave inside the park, at the direction of Reyes-Canales. Law enforcement did not locate Victim 1’s body until August 28, 2017, when it was exhumed by law enforcement.
As detailed in their plea agreements, on October 23, 2016, Reyes-Canales, Gomez-Jimenez, and other members and associates of the MS-13 Hempstead clique in Annapolis, devised a plan to murder Victim 2, an unlicensed taxi driver. Reyes-Canales, Gomez-Jimenez, Cruz-Flores, co-defendant Manuel Martinez-Aguilar, and other members and associates of MS-13, met at Quiet Waters Park to discuss the plan to murder Victim 2. At the meeting, each member of the conspiracy was assigned a task to complete the murder and dispose of the evidence. The group planned to use machetes, knives, and guns to kill the victim. Reyes-Canales and Cruz-Flores each had a firearm and all the members of the conspiracy were aware that guns would be used in the murder.
A co-conspirator called Victim 2 using another member’s cell phone to arrange for an unlicensed taxi ride. Victim 2 arrived with another passenger, Victim 3. Cruz-Flores asked Victim 2 to drive to the area of the 700 block of Annapolis Neck Road in Annapolis. When they arrived, Reyes-Canales approached the vehicle and pointed a gun at the victims and Cruz-Flores also produced a gun and pointed it at the victims. Victim 3 attempted to run away and Cruz-Flores shot Victim 3 in the leg, while another MS-13 member repeatedly attacked Victim 3 with a machete. Victim 2 also tried to run. Reyes-Canales attempted to shoot Victim 2, but his gun failed to discharge. Co-defendant Martinez-Aguilar and another MS-13 member took Victim 2’s vehicle and attempted unsuccessfully to run him over with the car. Reyes-Canales, Gomez-Jimenez, and other conspirators chased Victim 2 and Gomez-Jimenez repeatedly stabbed Victim 2 with a knife. The conspirators fled when they heard police sirens. A short time later, police arrested Gomez-Jimenez nearby with Victim 2’s blood on his hands and clothes. A surveillance camera in the area captured Gomez-Jimenez assaulting Victim 2 and the attempt to run over Victim 2 with Victim 2’s vehicle. DNA subsequently confirmed that the blood on Gomez-Jimenez’ hands matched Victim 2’s blood. Both victims were transported to the University of Maryland Shock Trauma Center with life threatening injuries. Both victims survived but have permanent injuries as a result of the attack.
Co-defendants Marlon Cruz-Flores, age 25, and Manuel Martinez-Aguilar, a/k/a “El Lunatic” and “Zomb,” age 22, both of Annapolis, Maryland, previously pleaded guilty to the racketeering conspiracy and gun charge. Cruz-Flores was sentenced to 38 years in federal prison and Martinez-Aguilar was sentenced to 24 years in federal prison. Co-defendant Fermin Gomez-Jimenez, age 23, of Annapolis, Maryland pleaded guilty to conspiracy to participate in a racketeering enterprise and to using, carrying, and discharging a firearm during a crime of violence, and David Diaz-Alvarado, age 20, also of Annapolis, pleaded guilty to murder in aid of racketeering in connection with his MS-13 gang activities. Co-defendant, Juan Carlos Sandoval-Rodriguez, age 23, of Annapolis was convicted on October 31, 2019, of murder in aid of racketeering and conspiracy to commit murder in aid of racketeering after a nine-day jury trial for the murder of Victim 1. His sentencing hearing is scheduled for February 10, 2011 at 10 a.m. He faces a mandatory sentence of life in prison. All of the defendants remain detained.
Anyone with information about MS-13 is encouraged to provide their tips to law enforcement. The FBI and Homeland Security Investigations both have nationwide tiplines that you can call to report what you know. You can reach the FBI at 1-866-STP-MS13 (1-866-787-6713), or you can call HSI at 1-866-DHS-2-ICE.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner and commended HSI, the ATF, the Anne Arundel County Police Department, the Annapolis Police Department, and the Anne Arundel State’s Attorney Office for their work in the investigation and prosecution. Mr. Lenzner and Mr. Polite thanked Assistant U.S. Attorney Zachary Stendig, and Trial Attorneys Matthew Hoff and Samantha Mildenberg Loiero of the Criminal Division’s Organized Crime and Gang Section, who prosecuted the case.
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Allegheny County Man Sentenced for Defrauding Social SecurityRead the Press Release
PITTSBURGH - A resident of Allegheny County has been sentenced in federal court to two years of probation and ordered to pay $22,611.62 in restitution on his conviction for theft of government money, Social Security fraud, and Social Security representative payee misuse, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on John Robert Mahoney, 54, of Curtisville Pennsylvania.
Previously, in connection with his guilty plea, the court was advised that Mahoney had applied to the Social Security Administration (SSA) be the representative payee for his minor child and receive Social Security Title II survivor benefits and Title XVI Supplemental Security Income (SSI) benefits on her behalf. As a representative payee, Mahoney was required to report to the SSA if his child left his household and was required to use SSA funds for his child’s benefit or save them.
In October 2015, Mahoney’s child was removed from his custody, and he failed to report the removal to the SSA as required. Mahoney continued to receive Title XVI payments on behalf of the child until December 2017 and Title II payments until April 2018. He also submitted a Representative Payee Report to SSA in which he falsely stated that his child had resided with him the prior year. Mahoney used money he received from SSA to pay his rent rather than for the child’s benefit. The overpayment by the SSA to Mahoney was $22,611.62.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The U.S. Social Security Administration, Office of Inspector General conducted the investigation leading to the successful prosecution of Mahoney.
Alleged Boston Gang Member Sentenced for Drug ConspiracyRead the Press Release
BOSTON – An alleged member of the Franklin Hill street gang in Boston was sentenced today on federal drug charges.
Trevel Brewster, 27, was sentenced by U.S. District Court Judge Denise J. Casper to five years in prison and four years of supervised release. On June 2, 2021, Brewster pleaded guilty to two counts of distribution and possession with intent to distribute cocaine base and one count of distribution and possession with intent to distribute over 28 grams of cocaine base.
According to the indictment, Brewster and his co-defendant distributed and possessed with intent to distribute cocaine base in Boston on Feb. 26, 2020 and March 2, 2020 and conspired to distribute and possess with intent to distribute over 28 grams of cocaine base.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Division; Boston Police Acting Commissioner Gregory Long; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Suffolk County Sheriff Steven W. Tompkins; and Brockton Police Chief Emanuel Gomes made the announcement today. Mendell’s Major Crimes Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Acting U.S. Attorney Announces Major Law Enforcement Initiative to Combat Violence and Drug Distribution from La Nuestra Familia GangRead the Press Release
SAN FRANCISCO – Acting United States Attorney Stephanie M. Hinds held a press conference today to announce the unsealing of federal charges filed against 55 defendants, many of whom were members of, or affiliated with, the Nuestra Familia prison gang and its subservient street gangs. Acting U.S. Attorney Hinds was joined in making the announcement by Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, Drug Enforcement Administration Special Agent in Charge Wade R. Shannon, California Department of Corrections and Rehabilitation Chief Office of Correctional Safety Derrick Marion, Santa Clara Sheriff Laurie Smith, and San Jose Deputy Chief of Police Elle Washburn.
The focus of the press conference was the unsealing of 17 charging documents, including 14 indictments and 7 criminal complaints, setting out a broad array of charges against the defendants.
“No single defendant is responsible for all the conduct I am describing,” said Acting U.S. Attorney Hinds. “The charges against each defendant are described in a charging document that is unique to each defendant. By disrupting gang leadership, we reduce violence on our streets. By removing violent actors and crime drivers from the streets, we make our neighborhoods safer.”
According to the documents unsealed today, La Nuestra Familia – Spanish for “Our Family”– was a prison gang operating in the California state prison system. Falling under the gang’s supervision are Norteño street gangs established in numerous cities and counties, and in jails and prisons, throughout Northern California and elsewhere. Several of the charging documents unsealed today describe various aspects of the gang. For example, one indictment (here (Leadership)) describes the largely-incarcerated leadership, while another (here (SJG)) describes the activities of a street gang called the San Jose Grande and yet another (here (EHP)) describes a group referred to as El Hoyo Palmas Street Gang. The picture that emerges is one of a violent and structured organization that finances its activities through crime and encourages its members to visit violence upon anyone who threatens the gang’s existence, including members who break gang rules, members who attempt to leave the gang, and rival gang members.
According to the documents unsealed today, of the 55 defendants, 28 individuals were charged with racketeering crimes, while the remaining individuals were charged with drug trafficking and firearms offenses. Conspiracies alleged in the indictments include agreements to distribute drugs including heroine, methamphetamine, and cocaine; to commit armed robberies; and to commit murder. Additional defendants were charged with other related crimes ranging from drug distribution to armed robbery.
Acting U.S. Attorney Hinds emphasized the goal to “fish with a spear, not a net.” “Working with our federal and state, local, and tribal law enforcement partners, as well as impacted communities, our law enforcement efforts have focused on addressing violent crime driven by gangs,” said Acting U.S. Attorney Hinds. “We will continue to work with our law enforcement partners, as well as members of our community, to identify and address the drivers of crime in our neighborhoods. We intend to continue to deliver results by focusing on the needs of our communities.”
“Operation Quiet Storm was one of the largest gang takedowns in FBI San Francisco division’s history," said FBI San Francisco Special Agent in Charge Craig D. Fair. "The coordinated efforts of this operation were done with one goal in mind: to disrupt the communications and organizational structure of a criminal network who has terrorized our neighborhoods for far too long.”
“Today’s operation strikes a substantial blow to Nuestra Familia leadership. This investigation revealed the wide-ranging influence of the gang that extends far beyond prison walls. It is clear they have hard and fast rules, and those who run afoul are met with intimidation and violence that spills into our communities,” said DEA Special Agent in Charge Shannon. “We will continue to look at these organizations structurally to disrupt and dismantle them.”
An indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
This case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions) and the DEA, with the assistance of the Santa Clara County Sheriff’s Office, the California Department of Corrections and Rehabilitation, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, the U.S. Marshal Service, the Santa Clara County District Attorney’s Office, and the San Jose Police Department, as well as the support of the Alameda County Sheriff's Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney's Office, Santa Cruz County Sheriff's Office, Modesto Police Department, San Francisco Police Department, and Stanislaus County Sheriff's Department, and Sunnyvale Department of Public Safety.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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.
12 Tribes Selected for Participation in Program Enhancing Tribal Access to National Crime Information DatabasesRead the Press Release
WASHINGTON – The Department of Justice has selected an additional 12 federally recognized tribes to participate in the expansion of the Tribal Access Program for National Crime Information (TAP), a program that provides tribal governments with means to access, enter, and exchange data with national crime information systems, including those maintained by the FBI Criminal Justice Information Services (CJIS) Division and the states. The application period for this recent round of selections opened on July 1, and closed on August 31, 2021.
“Timely access to federal criminal information can help protect domestic violence victims, place foster children in safe conditions, solve crimes, and apprehend fugitives on tribal land, among other important uses,” said Deputy Attorney General Lisa O. Monaco. “Increasing tribal access to criminal databases is a priority of the Justice Department and this Administration, and essential to many tribal government efforts to strengthen public safety in their communities.”
Acting U.S. Attorney Leif M. Johnson said, “We are pleased that the Fort Belknap Indian Community has been selected for expansion of the Tribal Access Program. This program will allow the Fort Belknap tribes to enter and share information about missing persons into the national missing persons database and to enter and exchange various other information with law enforcement across the country to help make the community safer.”
The program provides training as well as software and biometric/biographic kiosk workstations to process fingerprints, take mugshots, and submit information to FBI Criminal Justice Information Services (CJIS) systems. With these additional tribes, there are now 108 federally recognized Tribes participating in TAP.
TAP has been an important resource for the department’s Missing and Murdered Indigenous Persons Initiative and the Presidential Task Force on Missing and Murdered American Indians and Alaska Natives known as Operation Lady Justice. The Department of Justice began TAP in 2015 in response to concerns raised by tribal leaders about the need to have direct access to federal systems.
Using TAP, tribes have shared information about missing persons; registered convicted sex offenders; entered domestic violence orders of protection for nationwide enforcement; run criminal histories; identified and arrested fugitives; entered bookings and convictions; and completed fingerprint-based record checks for non-criminal justice purposes such as screening employees or volunteers who work with children.
The following tribes have been newly selected for participation in TAP:
- Confederated Tribes of the Warm Springs Reservation
- Cow Creek Band of Umpqua
- Fort Belknap Indian Community
- Grand Traverse Band of Ottawa and Chippewa
- Havasupai Tribe
- Lower Brule Sioux Tribe
- Menominee Tribe
- Mille Lacs Band of Ojibwe
- Muckleshoot Tribe
- Passamaquoddy Tribe
- Shingle Springs Band of Miwok
- United Keetoowah Band of Cherokee
TAP is managed by the Justice Department’s Office of the Chief Information Officer and the Office of Tribal Justice. It is funded by the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART), the Office of Community Oriented Policing Services (COPS), the Office for Victims of Crime (OVC), and the Office on Violence Against Women (OVW).
For more information on TAP, visit www.justice.gov/tribal/tribal-access-program-tap.
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12 Alleged Members of Two San Jose-Based Norteño Street Gangs Charged with Racketeering-Related CrimesRead the Press Release
SAN FRANCISCO - A federal grand jury indicted twelve California residents, charging each with joining criminal conspiracies as part of their alleged membership in San Jose-based Norteño street gangs. The crimes were set out in two separate indictments, both of which were unsealed today. The indictments describe defendants’ alleged membership in or affiliation with one of two gangs, known as El Hoyo Palmas and San Jose Grande, both of which fall under the prison gang, the Nuestra Familia. The announcement was made by Acting United States Attorney Stephanie Hinds, Federal Bureau of Investigation Special Agent in Charge Craig D. Fair, and Drug Enforcement Administration Special Agent in Charge Wade R. Shannon at a press conference held earlier today. Appearing at the press conference were Chief of the Office of Correctional Safety for the California Department of Corrections and Rehabilitation Derrick Marion, Santa Clara Sheriff Laurie Smith, and San Jose Deputy Chief of Police Elle Washburn.
According to the indictments, the Nuestra Familia is a prison gang whose members are housed in various California state prisons but whose power and authority extends well beyond the prison walls. Outside of custodial settings, the Nuestra Familia organizes geographic territories throughout Northern California into groups known as “street regiments.” The indictments further describe how street regiments are divided into smaller subsets, or “hoods,” based on the local neighborhoods where their members reside or where the gangs operate. Street regiments then collect money from these “hoods,” typically in the form of monthly “dues” or taxes on profits from illegal activities, such as drug dealing, some of which is then to be provided to the Nuestra Familia.
“These two indictments represent a major law enforcement effort to curb street gang violence,” said Acting U.S. Attorney Hinds. “ A principal objective of San Jose Grande and El Hoyo Palmas street gangs was to generate profits through narcotics trafficking, robbery, and other criminal activities. The operation demonstrates that this office, in coordination with our law enforcement partners, will use all the tools at our disposal to quell the violence in our streets.”
"The arrests made yesterday, most significantly the arrests of the Nuestra Familia leadership, will severely cripple the ability of this criminal enterprise to continue to facilitate crimes in communities throughout the state and help break a decades-old cycle of violence," said FBI San Francisco Special Agent in Charge Fair.
“The intersection of drug trafficking and violence perpetuated by gangs is all too common, it is a continual cycle of lawlessness that plagues many of our Bay Area communities. It is unacceptable.” said DEA Special Agent in Charge Shannon. “By putting together our collective authorities we are in a better position to systematically target and bring to justice those responsible for violent crime on our streets.”
The first indictment, filed August 12, 2021, addresses the San Jose-based street gang known as El Hoyo Palmas. The six defendants in that indictment are Jose Garcia, aka “Bones,” 33; Juan Gonzalez, aka “Crazy Indian,” aka “Trigger,” 48; Paul Valenzuela, aka “One Eye,” 41; Caleb Eller, aka “Chuckles,” aka “Shank,” 33; Kyle Leonis, aka “Little Green,” 26; and Juan Dominguez, aka “Green Eyes,” aka “Nito,” 38. The indictment alleges that El Hoyo Palmas is a multi-generational Norteño gang that is a sub-group of the Santa Clara County Regiment and operates in and around the San Jose area. According to the indictment, El Hoyo Palmas derives profits from illicit activity and its members provide monthly “dues” or “contributions” to the Santa Clara County Regiment for distribution to the Nuestra Familia. The indictment alleges defendants conspired to commit crimes, including acts of violence, to make money, benefit El Hoyo Palmas, and increase their status within the gang.
The El Hoyo Palmas indictment has three counts. Count one of the indictment charges Garcia, Gonzalez, Valenzuela, Eller, and Leonis, with conspiracy to commit Hobbs Act robbery, in violation of 18 U.S.C. § 1951(a). According to the indictment, these five defendants conspired in September and October of 2018 to commit a robbery that would have obstructed, delayed, and affected interstate commerce. Counts two and three of the indictment allege that in October of 2018, Garcia, Gonzalez, Valenzuela, Leonis, and Dominguez conspired to commit murder and assault. Count two alleges that the defendants conspired to commit murder in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(5), while count three alleges the defendants conspired to commit assault with a dangerous weapon in aid of racketeering, in violation of 18 U.S.C. § 1959(a)(6).
If convicted, the defendants charged with (1) conspiracy to commit Hobbs Act robbery face a statutory maximum of 20 years in prison, (2) conspiracy to commit murder face a statutory maximum of 10 years in prison, and (3) conspiracy to commit assault face a statutory maximum of 3 years in prison. The court also may order additional terms of supervised release, fines, and restitution. Nevertheless, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The second indictment, also filed August 12, 2021, addresses the street gang known as San Jose Grande. The defendants in the San Jose Grande indictment are Joshua Hernandez, aka “Sleepy G,” 39; Giovanni Coria, aka “Gio,” 24; Andrew Anchondo, aka “Indo,” aka “Lil Indo,” 23; Charles Pineda, aka “Taco,” 43; Eliseo Martinez, aka “Snow,” aka “Snowman,” 27; and Nicholas Mendez, aka “Prime Time,” 45. Like the El Hoyo Palmas indictment, this indictment alleges that San Jose Grande is a multi-generational Norteño street gang that is a sub-group of the Santa Clara County Regiment to which its members pay “dues” or “contributions.” At the center of the indictment is a list of more than two dozen transactions in which one or more of the defendants allegedly engaged in activities to promote the aims of San Jose Grande. The list includes alleged participation in the sale of narcotics, the sale of firearms, armed robberies, a stabbing, a home invasion robbery, and other acts of violence. The defendants all are charged in a single count of racketeering conspiracy in violation of 18 U.S.C. § 1962(d).
If convicted, the defendants in the second indictment face a maximum statutory sentence of life in prison. In addition, the court may order terms of supervised release, fines, and restitution. Nevertheless, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Regarding the defendants in both indictments, an indictment merely alleges that crimes have been committed, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt.
The defendants are scheduled to make initial federal court appearances before U.S. Magistrate Court Judge Nathanael Cousins today.
This case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by the FBI (San Francisco, Sacramento, and Phoenix Divisions) the DEA, the U.S. Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the U.S. Marshal Service, and with the assistance of the Santa Clara County Sheriff’s Office, the California Department of Corrections and Rehabilitation, ,the Santa Clara County District Attorney’s Office, and the San Jose Police Department, as well as with the support of the Alameda County Sheriff's Office, Antioch Police Department, Campbell Police Department, Fremont Police Department, King’s County Sheriff’s Office, Monterey County Sheriff’s Office, Mountain View Police Department, Sacramento Police Department, Salinas Police Department, Menlo Park Police Department, Santa Clara County Parole Department, Santa Clara County Probation Department, Santa Clara Police Department, Santa Cruz County District Attorney's Office, Santa Cruz County Sheriff's Office, Modesto Police Department, San Francisco Police Department, and Stanislaus County Sheriff's Department, and Sunnyvale Department of Public Safety.
This investigation and prosecution are part of the Organized Crime Drug Enforcement Task Force (“OCDETF”), which 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..
15 September 2021
Worcester Man Pleads Guilty to Fraud and Identity Theft Charges Related to COVID-19 PandemicRead the Press Release
BOSTON – A Worcester man pleaded guilty today to fraudulently applying for business loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and then spending the money on personal expenses.
Richard Oworae, 59, pleaded guilty to three counts of wire fraud and one count of aggravated identity theft. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Jan. 12, 2022. Oworae was arrested and charged on Jan. 21, 2021
Between late July 2020 and late August 2020, Oworae schemed to defraud the Small Business Administration (SBA) by submitting applications through SBA’s website for at least three Economic Injury Disaster Loans (EIDL) totaling approximately $194,700. Oworae fraudulently applied for EIDL, provided false statements on the loan applications using the stolen personal identification information of another person and misappropriated the loan funds for personal use. Oworae also created fictitious companies for the purpose of fraudulently applying for EIDL, and spent funds obtained from that fraud on unauthorized personal expenses and to make money transfers through a money-remitter business based in Tanzania to numerous individuals in Ghana.
EIDL funds were available to eligible individuals and businesses pursuant to the CARES Act. The provisions of the CARES Act allowed for the SBA to offer EIDL funding to business owners negatively affected by the COVID-19 pandemic. The provisions of the EIDL program require that loan proceeds only be used on certain permissible business expenses, which can include payment of fixed business debts, payroll, accounts payable, and other business-related expenses that could have been paid had the COVID-19 disaster not occurred.
The charges of wire fraud provide for a sentence of up to 20 years in prison, three years of supervised release and a fine of up to $1 million or twice the gross gain or loss, whichever is greater. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison, to be served consecutively to any sentence imposed for the wire fraud counts, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General made the announcement today. Assistant U.S. Attorney Danial Bennett of Mendell’s Worcester Branch Office is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Williamsport Man Indicted on Firearms ChargesRead the Press Release
HARRISBURG -The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Harrisburg indicted James Lampley, 29, of Williamsport, Pennsylvania, on firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that in July 2021, Lampley, who is prohibited from possessing firearms based on a prior conviction, possessed a shotgun and a handgun with an obliterated serial number.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Pennsylvania State Police. Assistant U.S. Attorney Geoffrey W. MacArthur is prosecuting the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for each count is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Vero Beach Woman Pleads Guilty to Possessing More Than 500 Grams of MethamphetamineRead the Press Release
Orlando Florida – Amanda Gailene Paul (38, Vero Beach) has pleaded guilty to possessing with the intent to distribute 500 grams or more of methamphetamine. She faces up to life in federal prison. A sentencing date has not yet been scheduled.
According to the plea agreement, on or about November 3, 2020, at the direction of federal agents, a confidential source contacted Paul to purchase three pounds of methamphetamine. Prior to the delivery, investigators located Paul in her vehicle. A subsequent search of Paul’s vehicle revealed three individually packaged plastic bags that contained approximately three pounds of methamphetamine.
This case was investigated by the Federal Bureau of Investigation, the Palm Bay Police Department, the City of Cocoa Police Department, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Terry B. Livanos.
Valdosta Man Indicted on Child Pornography Production Charges, Information Sought by Law EnforcementRead the Press Release
MACON, Ga. – A federal grand jury has returned an indictment charging a Valdosta, Georgia, resident with several child pornography production charges in an ongoing investigation.
Henry Theodore Salmons aka Ted, 48, of Valdosta, is charged with three counts of production of child pornography. If convicted, Salmons faces a maximum sentence of 30 years in prison and a $250,000 fine per count. An indictment is only an allegation of criminal conduct and the defendant is presumed innocent until and unless proven guilty in a court of law beyond a reasonable doubt.
The indictment alleges that the defendant enticed at least two minor children to engage in sexually explicit acts which were filmed or photographed. Parents and guardians of children who may have been in contact with Salmons are encouraged to contact the Lowndes County Sheriff’s Office to share any concerns related to this investigation by calling 229-671-2900.
“It is imperative that parents and guardians of children who may have been in contact with Henry Salmons reach out to investigators at the Lowndes County Sheriff’s Office with any concerns,” said Acting U.S. Attorney Peter D. Leary. “We are thankful for the strong partnership we have with the Lowndes County Sheriff’s Office as we all work relentlessly to protect children across the Middle District of Georgia.”
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
The case is being investigated by the Lowndes County Sheriff’s Office. Assistant U.S. Attorneys Katelyn Semales and Alex Kalim are prosecuting the case for the Government.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Uncasville Business Owner Pleads Guilty to Tax EvasionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, announced that KATHRYN POCOCK, 58, of Uncasville, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of tax evasion.
According to court documents and statements made in court, since 1991, Pocock has operated Sunshine Cleaners, LLC, a home cleaning business. Between 2015 and 2019, Pocock withdrew approximately $855,000 from the business and failed to report those proceeds on the relevant tax forms for the business and on her federal income tax returns. The investigation revealed that Pocock regularly cashed numerous client checks that had been paid to her business, deposited some checks into her personal bank account, and paid her employees “under the table.” Pocock wrote checks payable to cash from her personal and business bank accounts, and paid employees in cash without properly collecting and paying over employment tax to the IRS or sales and use taxes owed to the State of Connecticut.
The investigation also revealed that Pocock provided her tax preparer with false spreadsheets and supporting documentation that significantly understated her income and employee-related expenses.
Judge Meyer scheduled sentencing for December 8, 2021, at which time Pocock faces a maximum term of imprisonment of five years.
Pocock has agreed to pay $213,965 in restitution to the IRS, and $33,514 to the State of Connecticut.
Pocock is released pending sentencing.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.