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15 September 2021
Two Bel Air Men Facing Federal Indictment for $13 Million Scheme to Defraud Their Employer, Including Money Laundering and Tax EvasionRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Eugene Andrew DiNoto, age 50, and Elliott Dennis Kleinman, age 67, both of Bel Air, Maryland, for the federal charges of conspiracy to commit wire fraud, wire fraud, mail fraud, money laundering, illegal monetary transactions and tax evasion, related to a $13 million scheme to defraud their employer. The indictment was returned on September 1, 2021, and unsealed today upon the arrest of the defendants. Elliott Kleiman has an initial appearance scheduled today at 3:45 pm, in U.S. District Court in Baltimore before U.S. Magistrate Judge Copperthite. Eugene DiNoto’s initial appearance in the Middle District of Florida where he was arrested has not yet been scheduled.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office.
According to the 22-count indictment, Company A was a global business headquartered in New York that formulated and produced oils and extracts used in the food industry. Its affiliate, Company B, produced flavoring ingredients and seasonings for the food industry. Company A and Company B (the “Companies”) had manufacturing facilities in Belcamp and Abingdon, Maryland. To ship their products, the companies used large plastic, metal, or fiber drums, which they purchased from vendors located in various states. Kleinman was employed as the facility manager for the Companies until approximately 2012, when DiNoto took over his position, remaining in that position until approximately January 2020. As facility managers, Kleinman and DiNoto arranged and negotiated the prepurchase, transportation and storage of the drums needed to ship the Companies’ products from Business A and its affiliate, Business B, (the “drum vendors”), located in Carlstadt, New Jersey, then reviewed and authorized the payment of drum invoices submitted by drum suppliers doing business with the Companies. Once approved, the drum invoices were sent to the accounting department at the Companies’ headquarters to pay. Kleinman continued to maintain a relationship with the drum vendors after leaving his employment with the Companies.
The indictment alleges that from January 2015 until about January 2020, Kleinman and DiNoto, devised and executed a scheme to defraud the Companies, without the Companies’ knowledge or consent, by making a secret arrangement with the drum vendors to receive kickbacks for intentionally overlooking inflated charges that the drum vendors included on invoices submitted to the Companies. Specifically, the defendants approved the drum vendors’ false and inflated purchase invoices and submitted those fraudulent invoices to the Companies for payment. In exchange, the drum vendors paid the defendants approximately 50 percent of the inflated invoice amounts, which DiNoto and Kleinman split approximately 75/25, respectively.
For example, the indictment alleges that when asked by Company representatives to review the accuracy of the drum vendor invoices, DiNoto intentionally ignored false and inflated charges for tens of thousands of drums that the vendors never sent to the Companies, certified the accuracy of the invoices, and authorized their payment, submitting them to the Companies’ accounting department in New York for payment.
To conceal the nature and purpose of the payments from the drum vendors, DiNoto and Kleinman had the drum vendors issue checks payable to businesses that they established, with the notation “drums” written on the front. DiNoto registered the tradename “Sandpiper Enterprises” in the state of Maryland and opened and maintained a commercial bank account in that name. The address of record for Sandpiper Enterprises was DiNoto’s residence. Kleinman was the owner and sole shareholder of EDK Management Ltd. (EDK). EDK’s business address was the same as Kleinman’s residence. Kleinman opened two commercial bank accounts for EDK, one in the name “EDK Management Ltd” and the other in the name “EDK Management Ltd t/a Main Street Cigars. Main Street Cigars was a retail store located in Bel Air, Maryland.
As detailed in the indictment, the drum vendors sent checks to the defendants’ residences using a commercial interstate mail carrier. The indictment alleges that DiNoto then deposited the checks into the Sandpiper bank account, then transferred all or part of the funds into personal bank accounts, eventually withdrawing the funds as cash or spending them on personal expenses. Kleinman allegedly deposited the drum vendor checks into EDK’s business account, where it was withdrawn as cash, spent on personal expenses, or transferred to the EDK/Main Street Cigars account.
For example, the indictment alleges that on February 19, 2019, Kleinman transferred $7,500, which were proceeds from mail fraud, from the EDK commercial bank account to the EDK/Main Street Cigars account, in order to disguise the nature, source, ownership, and control of the illegal proceeds. In addition, the indictment alleges that DiNoto illegally transferred $26,000 derived from wire fraud from the Sandpiper account to other accounts he controlled.
Finally, the indictment alleges that for the 2017 through 2019 tax years the defendants underreported their taxable income on their Individual Income Tax Return, Form 1040, resulting in thousands of dollars in taxes due and owing. For example, for tax year 2017 DiNoto and Kleinman allegedly reported that their taxable income for the year was $3,153 and $58,365, respectively. According to the indictment, in fact, DiNoto’s taxable income in 2017 was $1,214,557, with tax owing of approximately $430,395, and Kleinman’s taxable income was $421,829, with tax owing of approximately $106,623.
If the defendants are convicted, the indictment seeks the forfeiture of a money judgment in the amount of $13,000,000; a 2016 BMW 6 Series coupe; a recreational vehicle; a bank account; and Kleinman’s residence, as property involved in the offenses of conviction or traceable to the criminal activity.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for conspiracy to commit wire fraud; a maximum sentence of 20 years in federal prison or each of five counts of wire fraud; a maximum of 20 years in federal prison for each of six counts of mail fraud; and a maximum of five years in federal prison for each of three counts charging each defendant with tax evasion. Kleinman faces a maximum of 20 years in federal prison for money laundering. DiNoto also faces a maximum of 10 years in federal prison for each of three counts of engaging in an illegal monetary transaction. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and IRS – CI for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Martin J. Clarke and Harry M. Gruber, who are prosecuting the federal 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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Three medical professionals charged with distributing 'massive quantities' of controlled substances from 'pill mill'Read the Press Release
WAYCROSS, GA: Three healthcare professionals have been charged in a 52-count federal indictment unsealed Wednesday, Sept. 15, 2021, in the U.S. District Court for the Southern District of Georgia.
The indictment describes an alleged conspiracy to distribute “massive quantities” of controlled substances, including highly addictive opioids, in violation of federal law, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The charges include one count of Distribution and Dispensation of Controlled Substances Resulting in Death by Dr. Wallace Steven Anderson, 67, of Douglas, Ga., a charge that carries a minimum statutory sentence of 20 years in prison, up to life. There is no parole in the federal system.
“Our efforts to eradicate the illegal distribution of dangerous and addictive drugs in our neighborhoods target both the shadowy street dealers and white-coated prescribers alike,” said Acting U.S. Attorney Estes. “With our law enforcement partners, we will continue to bring to justice those who would spread poison in our communities.”
Named in the indictment are:
- Dr. Anderson, charged with Conspiracy; Distribution and Dispensation of Controlled Substances Resulting in Death; 48 counts of Unlawful Distribution and Dispensation of Controlled Substances; Conspiracy to Commit Healthcare Fraud; and Conspiracy to Launder Monetary Instruments;
- Bridgett Stephanie Taylor, 55, of Broxton, Ga., a Nurse Practitioner working under Anderson, charged with Conspiracy; eight counts of Unlawful Distribution and Dispensation of Controlled Substances; Conspiracy to Commit Healthcare Fraud; and Conspiracy to Launder Monetary Instruments; and,
- Wandle Keith Butler, 57, of Douglas, a Physician Assistant working under Anderson, charged with Conspiracy; three counts of Unlawful Distribution and Dispensation of Controlled Substances; Conspiracy to Commit Healthcare Fraud; and Conspiracy to Launder Monetary Instruments.
As described in the Indictment, Anderson is the owner of Steve Anderson, PC, and Steve Anderson Behavioral Health, both located in Douglas, Ga. Taylor and Butler worked for Anderson. The indictment alleges that from February 1, 2016, to September 30, 2020, the three operated or assisted in operating “nominal pain management and addiction facilities which dispensed controlled substances without any legitimate medical purpose.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The investigation is being conducted by the U.S. Drug Enforcement Administration’s Savannah Resident Office; the Internal Revenue Service Criminal Investigations; and Health and Human Services Office of the Inspector General, and prosecuted for the United States by Assistant U.S. Attorneys Matthew A. Josephson and Bradford C. Patrick.
Three Texas Residents Charged with Fraud and Money Laundering Conspiracies Targeting Federally Funded Meal Programs for Underprivileged YouthRead the Press Release
PITTSBURGH, PA - Three residents of Texas have been indicted by a federal grand jury in Pittsburgh on charges of mail and wire fraud conspiracy, money laundering conspiracy, and obstruction of justice, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25, 2021 and unsealed yesterday, names Charles Simpson, 43, of Southlake, Texas, Tanisha Jackson, 49, and Paige Jackson, 29, both of Lancaster, Texas, as defendants. Charles Simpson and Paige Jackson were arrested yesterday in the Dallas area and will have their initial appearances today in the Northern District of Texas. Tanisha Jackson remains at large.
According to the Indictment, Simpson, Tanisha Jackson, and Paige Jackson controlled and operated HOIN, Inc. (“HOIN”), a Texas-based non-profit organization. The defendants allegedly caused HOIN (a/k/a “Helping Others In Need”) to enroll as a “sponsor” in two programs funded by the United States Department of Agriculture (“USDA”) for the purpose of providing meals to underprivileged youth—the Child and Adult Care Feeding Program (“CACFP”) and the Summer Food Service Program (“SFSP”) (collectively, “the feeding programs”). CACFP funded after-school meal service during the school year, while SFSP operated in the summer months. In Pennsylvania, the Pennsylvania Department of Education (“PADOE”) administered the USDA-funded feeding programs.
As alleged, the defendants, each of whom was previously excluded from participating in the feeding programs in other states, caused the submission of false enrollment documentation to PADOE on behalf of HOIN in connection with its participation in CACFP and SFSP between 2015 and 2019. The Indictment alleges that, among other misrepresentations, HOIN’s applications to PADOE used aliases for Charles Simpson and Tanisha Jackson as a means to obscure their involvement and falsely certified that none of its principals had been excluded from the feeding programs. The Indictment further alleges that the defendants caused HOIN to submit reimbursement claims for hundreds of thousands of meals that were never served to eligible children by either inflating the number of meals that, in fact, were served or by seeking reimbursements for meals purportedly served on days on which the identified feeding site was not operating at all. To conceal their fraudulent conduct and justify HOIN’s claimed meal service, the defendants allegedly submitted fabricated documents to PADOE in connection with periodic program reviews, and on certain occasions Tanisha Jackson impersonated Paige Jackson, her daughter, in interactions with PADOE. In total, PADOE issued reimbursement payments to HOIN in excess of approximately $4 million between 2015 and 2019.
The Indictment further alleges that Simpson and Tanisha Jackson engaged in numerous financial transactions involving the proceeds of their alleged fraud. Specifically, Simpson and Tanisha Jackson allegedly spent hundreds of thousands of dollars in HOIN reimbursements on shopping sprees at high-end apparel stores, personal air travel and lodging, and the acquisition of at least nine luxury vehicles, including a Bentley, two Land Rovers, two Maseratis, two Mercedes, a Hummer, and a Porsche. The defendants also allegedly withdrew cash from HOIN bank accounts in excess of $10,000 on more than a dozen occasions.
In addition, Simpson is charged with obstruction of justice based on multiple lies he allegedly told federal law enforcement officers during a voluntary interview.
“The defendants allegedly created a nonprofit to provide meals to underprivileged children in our area, but instead billed and were reimbursed for services they never provided; they then used those ill-gotten funds for extravagant personal luxury purchases,” said Acting U.S. Attorney Kaufman. “Submitting fraudulent claims equals stealing, and those who perpetrate financial fraud against the government will be vigorously prosecuted.”
USDA Office of Inspector General, Special Agent-in-Charge Bethanne M. Dinkins stated, “The Child and Adult Care Food Program and Summer Food Service Program were created to provide food and nutrition to those who truly need this assistance. Those who are involved in fraud and abuse of USDA feeding programs will be investigated by our office to the fullest extent. Our joint investigation with the Internal Revenue Service, Criminal Investigation and Federal Bureau of Investigation identified those who sought to profit from the CACFP through illegal schemes. The USDA Office of Inspector General will continue to dedicate investigative resources, working with our law enforcement and prosecutorial partners, in order to protect the integrity of these programs and bring to justice those who commit fraud.”
“It is a crime to knowingly engage in monetary transactions involving criminally derived property of a value greater than $10,000 that is derived from a specified unlawful activity, such as mail fraud or wire fraud,” said Yury Kruty, Acting Special Agent in Charge of IRS-Criminalp Investigation. “IRS-CI is adept at tracing complex financial transactions and my office is committed to working with our law enforcement partners to help unravel schemes such as this.”
“It’s very disappointing when greed and selfishness take over and deprive our youth of much needed funding to provide them with nutritious meals,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “To use a non-profit organization as a means to engage in fraud targeting USDA-funded feeding programs is unacceptable. It’s also insulting to the teachers and educators working every day to make a better future for our children.”
All three defendants are charged with conspiracy to commit mail and wire fraud, which imposes a maximum term of imprisonment of twenty years and a fine not more than the greater of $250,000 or an alternative fine in an amount not more than the greater of twice the gross pecuniary gain to any person or twice the pecuniary loss to any person other than the defendant. Simpson and Tanisha Jackson are charged with money laundering conspiracy, which imposes a maximum term of imprisonment of ten years and a fine of not more than $250,000 or an alternative fine of not more than twice the amount of the criminally derived property involved in the transaction. Finally, the obstruction of justice charge as to Simpson imposes a maximum term of imprisonment of ten years and a fine of not more than $250,000. 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 defendants.
Assistant United States Attorneys Eric G. Olshan and Nicole Vasquez Schmitt are prosecuting this case on behalf of the government.
The United States Department of Agriculture – Office of Inspector General, The Internal Revenue Service – Criminal Investigation, and the Federal Bureau of Investigation 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.
Indictment- Indictment
Texas Cocaine Trafficker GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that a federal jury in New Haven has found RAUL CHAVEZ, 62, of El Paso, Texas, guilty of conspiracy to possess with intent to distribute five kilograms or more of cocaine.
The trial before U.S. District Judge Jeffrey A. Meyer began on September 7 and the jury returned its verdict this morning.
According to the evidence and testimony at trial, Chavez headed a cocaine trafficking operation that smuggled cocaine from Mexico into El Paso, Texas, and then transported the drug to Connecticut and elsewhere. The investigation revealed that the Chavez organization supplied multiple kilograms of cocaine to Hartford-area distributors for approximately 10 years. The shipments, which would typically be in the range of 30 to 40 kilograms, were sent regularly from El Paso multiple times per year.
In 2014, the Chavez organization attempted to find an additional source of supply for its Hartford area cocaine customers. In July 2014, a DEA confidential source met Andrew Duron, also known as “Chavo,” in North Carolina. During the meeting, Duron told the confidential source that he wanted to purchase up to 50 kilograms of cocaine for $28,000 per kilogram. In August 2014, Duron, the confidential source and an undercover DEA agent met in New Jersey where Duron agreed to purchase 25 kilograms of cocaine for $700,000.
The investigation revealed that this cocaine shipment was destined for Tyshawn Welborn, also known as “Black,” of Bloomfield, and Todd Vernon of Hartford, the latter of whom prepaid for approximately 13 kilograms of cocaine.
On August 22, 2014, Chavez and others met with Welborn at a restaurant in East Windsor where they discussed the pick-up of money from Welborn the following day and its delivery to a location to be determined.
On August 23, 2014, Duron met the undercover DEA agent at a location in Wethersfield. Duron told the undercover agent that his associates were in Connecticut and that Duron and the undercover agent would need to travel to a location near Bradley International Airport to verify that the money was in place. Duron and the undercover agent then drove in separate vehicles to a store parking lot on Kennedy Road in Windsor. Duron met with Chavez and another associate in the store. A short time later, a third associate arrived in a Jeep Wrangler, met the undercover agent in the parking lot, showed him a duffel bag and said it contained “half” of the money. Shortly thereafter, investigators arrived at the scene and arrested Duron, Chavez and his associates.
Investigators recovered from the Jeep a duffel bag containing approximately $284,000 in cash, and a loaded .38 caliber revolver. The cash had been picked up from Welborn earlier that day.
After word reached Chavez’s son, Christopher Chavez, that his father and others had been arrested, Christopher Chavez coordinated the diversion of a shipment of 34 kilograms of cocaine, which was en route to Connecticut, to a high-level drug distributor in Cleveland, Ohio.
Chavez has been detained since his arrest. Judge Meyer scheduled sentencing for December 8, 2021, at which time Chavez faces a mandatory minimum term of imprisonment of 10 years and a maximum term of imprisonment of life.
Chavez initially admitted his role in this conspiracy and pleaded guilty to the charge in March 2016. In January 2017, shortly before Chavez was scheduled to be sentenced, he moved to withdraw his guilty plea. Judge Meyer denied the motion and sentenced Chavez to 12 years of imprisonment and ordered him to pay a $250,000 fine. Chavez successfully appealed the decision, the conviction and sentenced were vacated, and the case proceeded to trial.
Duron, Welborn, Vernon and Christopher Chavez were convicted of related charges.
This investigation was conducted by the Drug Enforcement Administration’s Hartford Task Force, including officers from the Wethersfield, Bristol, Hartford, Manchester, New Britain and Newington Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys Brian P. Leaming and A. Reed Durham through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. 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.
Taunton Man Indicted on Child Exploitation OffensesRead the Press Release
BOSTON – A Taunton man was indicted today by a federal grand jury in connection with sexual exploitation of children and distribution of child pornography.
Cody Mercure, 24, was charged with one count of sexual exploitation of children and one count of distribution of child pornography. Mercure is currently in state custody and will appear in federal court at a later date.
According to the indictment, between Dec. 29, 2020 and April 3, 2021, Mercure engaged in and recorded sexually explicit conduct with a toddler. On Jan. 16, 2021, Mercure allegedly distributed child pornography.
The charge of sexual exploitation of children provides a sentence of at least 15 years and up to 30 years in prison, at least five years and up to a lifetime of supervised release and a fine of up to $250,000. The charge of distribution of child pornography provides for a sentence of at least five years and up to 20 years in prison, at least five years and up to a lifetime 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 and Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Valuable assistance was also provided by the Rhode Island State Police and the Taunton Police Department. Assistant U.S. Attorney Elianna J. Nuzum of Mendell’s Major Crimes Unit is prosecuting the case.
The case was brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Smith County Lawyer Sentenced for Federal Employment Tax ViolationsRead the Press Release
TYLER, Texas – A Tyler attorney has been sentenced to prison for federal employment tax violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
John Bennett White IV, 61, pleaded guilty on Feb. 1, 2021, to failure to pay employment taxes and was sentenced to 18 months in federal prison today by U.S. District Judge J. Campbell Barker.
“Although Mr. White withheld payroll taxes from his employees’ paychecks, he spent the money on himself rather than pay it forward to the government,” said Acting U.S. Attorney Nicholas J. Ganjei. “Mr. White also concealed assets in the names of other people and altered the law firm’s books to hide his fraud, all to the detriment of his honest, tax-paying, fellow Americans.”
According to court documents and statements made in court, White was an attorney and firm manager for a Tyler law firm, J. Bennett White, P.C., where White had significant control over the finances of the firm and had a duty to account for and pay over the employment taxes on behalf of the firm’s employees to the IRS.
Between the second quarter of 2007 and the fourth quarter of 2015, White made sporadic and partial efforts to pay his firm’s employment tax liabilities. For multiple quarters during the same period White caused employment taxes to be withheld from the law firm’s employees’ wages, but willfully failed to fully pay those trust fund taxes of to the IRS. White filed Forms 941 reporting the law firm’s employment taxes for each of these quarters. White paid the full amount owed the IRS for 24 of those 38 quarters. White made partial payments on 10 occasions and no payment for seven quarters. In total, White caused a tax loss of over $300,000. Instead of paying employment taxes, White paid other creditors and his own personal expenses.
This case was investigated by IRS Criminal Investigation and prosecuted by Assistant U.S. Attorney Ryan Locker.
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Schuylkill County Man Charged with Drug Trafficking and Firearm OffensesRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Aaron Walter Gray, age 36, of Frackville, Pennsylvania, was indicted yesterday by a federal grand jury for drug trafficking and firearms offenses.
According to Acting United States Attorney Bruce D. Brandler, the indictment charges Gray with possessing with the intent to distribute quantities of methamphetamine, heroin, and fentanyl, and possessing a pistol with an obliterated serial number in furtherance of trafficking heroin. The indictment further charges Gray with possessing two additional firearms and a quantity of ammunition while knowing that he had previously been convicted of a felony.
The matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the United States Marshals Service, the Pennsylvania State Police, the Schuylkill County District Attorney’s Office, the Snyder County District Attorney’s Office, the Schuylkill County Drug Task Force, and the Frackville Borough Police Department. Assistant United States Attorney James M. Buchanan 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.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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 these offenses is life 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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Saugus Man Pleads Guilty to Drug and Firearm OffensesRead the Press Release
BOSTON – A Saugus man pleaded guilty yesterday to drug and firearm offenses.
Vinicius Teixeira, a/k/a “Vinny,” 31, pleaded guilty to possession with intent to distribute controlled substances, including marijuana and psilocyn, and being a user of controlled substances in possession of a firearm and ammunition. U.S. District Court Chief Judge F. Dennis Saylor IV scheduled sentencing for Oct. 25, 2021. Teixeira was indicted in April 2019.
In March 2019, a search of Teixeira’s residence recovered at least one kilogram of marijuana, over 400 grams of mushrooms (dry) containing psilocyn, drug trafficking paraphernalia and an American Tactical 9mm semiautomatic pistol containing 11 rounds of 9mm ammunition.
The charge of possession with intent to distribute controlled substances provides for a sentence of up to 20 years in prison, at least three years and up to a lifetime of supervised release and a fine of up to $1 million. The charge of being a user of controlled substances in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement. The Suffolk County Sheriff’s Department and the Revere, Everett and Chelsea Police Departments provided assistance with the investigation. Assistant U.S. Attorneys Corey Steinberg and Kaitlin R. O’Donnell of Mendell’s Organized Crime and Gang Unit are prosecuting the case.
Saratoga County Sex Offender Pleads Guilty to Child Pornography ChargesRead the Press Release
ALBANY, NEW YORK – Zachary L. Duchesne, age 25, of Stillwater, New York, pled guilty today to seven counts of transportation of child pornography and one count of possessing child pornography.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Matthew Scarpino, Acting Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
Duchesne admitted to using a Dropbox account to store, possess and view images and videos depicting the sexual abuse of children, between December 26, 2017 and June 23, 2019. He admitted to periodically transferring child pornography videos into his Dropbox account, and to using the stored child pornography as a form of “currency” to trade with other people.
Duchesne has been in custody since his arrest on July 15, 2020.
Duchesne, who has a prior conviction relating to the possession of child pornography, faces at least 15 years and up to 40 years in prison, and at least 5 years of post-imprisonment supervised release, when Senior United States District Judge Thomas J. McAvoy sentences him on January 11, 2022. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors. Duchesne would also have to register as a sex offender upon his release from prison.
This case was investigated by HSI, with assistance from the Stillwater Police Department, and is being prosecuted by Assistant U.S. Attorney Michael Barnett as part of Project Safe Childhood.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and is designed to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Richmond Assisted Living Facility Owner Pleads Guilty to Health Care FraudRead the Press Release
RICHMOND, Va. –The former owner of a Richmond-based assisted living facility pleaded guilty today to health care fraud after diverting over $800,000 in federal and state benefits that were intended to pay for the care of the facility’s residents.
“For more than three years, the defendant stole essential benefits entrusted to her facility for the care of its elderly and infirm residents,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While the vulnerable residents of her facility suffered through dreadful living conditions, the defendant selfishly used their benefits to pay for her own debts, travel, and gambling expenses in Atlantic City and Las Vegas. Today’s guilty plea demonstrates that those who abuse the trust placed in them to care for our elderly and infirm will be held accountable for their egregious crimes.”
“Representative payees for elderly and incapacitated adults who are legally incapable of managing their own funds fulfill a critical role in ensuring that the Social Security benefits are used to provide for the needs of this vulnerable community,” said Gail S. Ennis, Inspector General for the Social Security Administration. “We will aggressively pursue those who knowingly game the system for personal gain, and we will work to recover funds for SSA and all taxpayers. I want to thank our law enforcement partners for working with us and the U.S. Attorney’s Office for prosecuting this individual.”
According to court documents, Mable B. Jones, 78, of Richmond, owned and operated Jones & Jones, an assisted living facility complex that served primarily elderly and incapacitated adults. For residents who were legally incapable of managing their own funds, Jones & Jones served as a representative payee and regularly received state and federal benefit payments on behalf of those residents. Representative payees are required to use Social Security benefits to provide for the beneficiary’s needs, including food, clothing, housing, and medical care. Representative payees, moreover, are specifically prohibited from using Social Security benefits for anything other than the beneficiary’s needs. Similar requirements also apply to auxiliary grants issued by the Commonwealth of Virginia’s Department for Aging and Rehabilitative Services.
Beginning around December 2015 and continuing through the facility’s closure in the spring of 2019, Jones converted more than $800,000 of the residents’ federal and state benefits for her own personal use. Jones used the residents’ benefits to satisfy her personal debts, including her mortgage and bankruptcy payments, and to fund her personal travel, retail purchases, and gambling expenses, including at casinos in Atlantic City, New Jersey, and Las Vegas, Nevada.
Jones’s diversion of resident benefits led to significant and persistent deficiencies in the facilities, care, and services provided to Jones & Jones residents, including deficiencies that endangered residents’ health and safety. These conditions ultimately prompted state and federal audits of the facility before its closure, during which Jones made false statements about her conversion and use of resident funds.
Jones is scheduled to be sentenced on Jan. 11, 2022. She faces a maximum penalty of 10 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Michael McGill, Special Agent-in-Charge, Social Security Administration Office of the Inspector General, Philadelphia Field Division, made the announcement after U.S. District Judge M. Hannah Lauck accepted the plea.
Assistant U.S. Attorneys Kaitlin G. Cooke and Shea Gibbons prosecuted the case.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse is an intentional or negligent act by any person that causes harm or a serious risk of harm to an older adult. It is a term used to describe five subtypes of elder abuse: physical abuse, financial fraud, scams and exploitation, caregiver neglect and abandonment, psychological abuse, and sexual abuse. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10 percent of older Americans every year. Together with our federal, state, local, and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness. This holistic and robust response demonstrates the Department’s unwavering dedication to fighting for justice for older Americans.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:21-cr-30.
Registered Sex Offender Admits Possessing Child PornographyRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man admitted possessing multiple images and videos of child sexual abuse, Acting U.S. Attorney Rachael A. Honig announced today.
Robert Klemt, 34, of Wayne, New Jersey, pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden on Sept. 14, 2021, to an information charging him with one count of possession of child pornography.
According to documents filed in this case and statements made in court:
In June 2020, agents with the Department of Homeland Security – Homeland Security Investigations approached Klemt at his residence after receiving information that Klemt had accessed a website containing child pornography. Law enforcement subsequently discovered over 70 images and videos depicting child sexual abuse on Klemt’s laptop computer.
Klemt was previously convicted of endangering the welfare of a child/distribution of child pornography in Essex County in 2014.
The charge of possession of child pornography, for a repeat offender, carries a mandatory minimum term of 10 years in prison, a maximum of 20 years in prison, and a $250,000 fine. Sentencing is scheduled for Jan. 19, 2022.
Acting U.S. Attorney Honig credited special agents with the DHS-HSI, under the direction of Special Agent in Charge Jason J. Molina in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
Recidivist Child Sex Offender from Philadelphia Sentenced to 55 Years for Exploiting Two Young ToddlersRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Justyn Perez-Colon, 27, of Philadelphia, PA, was sentenced today to 55 years in prison, and lifetime supervised release by United States District Judge E.K. Pratter for his sexual abuse and exploitation of two young toddlers in his care, his production and distribution of child pornography involving those same toddlers, and his collection of hundreds of images of child pornography that he obtained from the internet. At the time he committed these federal crimes, the defendant was a recidivist child sex offender, having previously sexually abused a young family member for more than eight years, beginning when the child was just seven years of age.
In September 2019, the defendant pleaded guilty to a federal Indictment, which charged him with two counts of production of child pornography, distribution of child pornography, five counts of attempted distribution of child pornography, and possession of child pornography.
This federal investigation began in February 2018, when Perez-Colon posted an advertisement on Craigslist seeking to connect with other child sex offenders to trade stories and child pornography. An undercover FBI agent responded to his posting. During their communications over the next few days, the defendant admitted to sexually abusing a young family member for years, and also confessed that he was currently sexually abusing a young girl in his care. The defendant sent photographs and video of him sexually abusing the one-year old girl, including images of his horrific abuse of this child was she was sleeping.
On February 14, 2018, within 24-hours of receiving the pornographic images of Perez-Colon’s abuse of the child, the Federal Bureau of Investigation identified and arrested him. His cell phone was also seized and examined, and found to contain additional videos of Perez-Colon sexually abusing the 1-year-old girl, in addition to evidence that he was also sexually exploiting a different toddler with whom the defendant had a personal relationship.
The subsequent investigation by the FBI revealed that the defendant not only sexually abused and exploited the two toddler victims, but he also distributed their images and videos out over the Internet to other child sex offenders for their sexual gratification. The FBI identified Timothy O’Connell, a Villanova University Campus Minister, and Michael Meacham, a West Chester University student, both of whom communicated online with the defendant, and requested and received sexually explicit images from him. Both of these child sex offenders were prosecuted and pleaded guilty to federal charges of receipt of child pornography. O’Connell was sentenced in November 2019 to 6 ½ years in prison. Meacham is awaiting the imposition of his sentence.
In September 2019, defendant Perez-Colon pleaded guilty to the federal Indictment, which charged him with two counts of production of child pornography, distribution of child pornography, five counts of attempted distribution of child pornography, and possession of child pornography.
“Child pornography and exploitation offenses are among the most horrific crimes prosecuted by this Office,” said Acting U.S. Attorney Williams. “But this case is particularly disturbing due to Perez-Colon’s history as a previously convicted sex offender and the very young ages of his victims. I have no doubt that our community is safer with Perez-Colon and his criminal associates behind bars, and my heartfelt thanks goes out to the fast-acting agents at the FBI who worked quickly to identify and arrest the defendant so he could no longer hurt anyone else.”
“The criminal acts to which Justyn Perez-Colon admitted are stomach-churning,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “He sexually abused two toddlers, documenting and sharing images of that exploitation. It was imperative that the FBI swiftly take him off the street. Unequivocally, our community is safer with Perez-Colon behind bars, locked away where he can’t victimize anyone else’s child.”
The case was investigated by the Federal Bureau of Investigation, with assistance from the Horsham Police Department and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Priya T. De Souza.
Reality TV star sentenced for PPP fraud and for operating a multimillion-dollar Ponzi schemeRead the Press Release
ATLANTA - Maurice Fayne, who starred in Love & Hip Hop: Atlanta, has been sentenced to more than 17 years in federal prison for conspiracy and wire fraud related to a Ponzi scheme, and for bank fraud, and making false statements to a financial institution related a fraudulent Paycheck Protection Program (PPP) loan application.
“Fayne planned to use the PPP program as a cover for his long-running Ponzi scheme,” said Acting U.S. Attorney Kurt R. Erskine. “The funds the program supplies serve as a lifeline to many businesses desperately trying to stay afloat during the pandemic, and unfortunately his fraud helped deplete those precious dollars.”
“This sentence should serve notice that the FBI and our federal partners will investigate anyone who misdirects federal emergency assistance earmarked for businesses who need it to stay afloat,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “We won’t tolerate anyone driven by personal greed to pocket American taxpayer money that should be going to those who need it.”
“Lying to gain access to SBA’s pandemic response programs is not without consequence,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with the pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: From March 2013 through May 2020, Fayne ran a multistate Ponzi scheme that defrauded more than 20 people who invested in his trucking business. Fayne promised that he would use the investors’ money to operate the business. Instead, he used the money to pay his personal debts and expenses and to fund an extravagant lifestyle for himself. During the scheme, Fayne spent more than $5 million at a casino in Oklahoma.
In April 2020, Fayne submitted a $3.7 million PPP loan application to United Community Bank, falsely claiming that his trucking business had 107 employees and an average monthly payroll of $1,490,200. Fayne promised to use the PPP loan proceeds to retain workers and maintain payroll or make mortgage interest payments, lease payments, and utility payments related to his trucking business. Instead, Fayne used the PPP loan proceeds for improper purposes, including the following:
• $40,000 for past-due child support; • $50,000 for restitution owed in a previous fraud case; • $65,000 in cash withdrawals; • $85,000 for custom-made jewelry; • $136,000 to lease a Rolls-Royce; • $230,000 to associates who helped him run a Ponzi scheme; • $907,000 to start a new business in Arkansas.
Maurice Fayne, a/k/a Arkansas Mo, 38, of Dacula, Georgia, was sentenced by U.S. District Judge Mark H. Cohen to 17 years, six months in prison to be followed by five years of supervised release and ordered to pay restitution in the amount of $4,465,865.55 to the victims. Fayne was convicted on these charges on May 11, 2021, after he pleaded guilty.
This case was investigated by the Federal Bureau of Investigation and the Small Business Administration-Office of Inspector General.
Assistant U.S. Attorneys Russell Phillips and Bernita Malloy prosecuted 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.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Randolph County man admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Billy Ray Shamblin, II, of Elkins, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Shamblin, 37, pleaded guilty today to one count of “Distribution of Methamphetamine.” Shamblin admitted to selling methamphetamine, also known as “crystal meth” and “ice,” in February 2020 in Randolph County.
Shamblin faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug Task Force investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Quebec Resident Sentenced to 30 Months in Prison for Multimillion Dollar Telemarketing SchemeRead the Press Release
SAN FRANCISCO – Athanasios Vouloukos was sentenced yesterday to imprisonment for 30 months for his role in a five year conspiracy to commit mail fraud that deceived thousands of United States businesses, announced Acting United States Attorney Stephanie M. Hinds, U.S. Postal Inspection Service Inspector in Charge Rafael Nunez, and Internal Revenue Service, Criminal Investigation Special Agent in Charge Michael Daniels. As part of his sentence, Vouloukos will be ordered to pay at least $1.4 million in restitution to his victims. The sentence was handed down by the Honorable Susan Illston, United States District Judge.
Vouloukos, 48, of Ville St. Laurent, Quebec, Canada, pleaded guilty to the mail fraud conspiracy charge on January 28, 2020. According to his plea agreement, Vouloukos admitted that he and others took part in a Canada-based telemarketing scheme over a five year period to defraud small United States businesses into paying for a service that purported to enhance their online profile. The service was variously described as “business listing optimization,” “business profile optimization” and “online business listing optimization.” In reality, no such service existed.
As described in his plea agreement, Vouloukos operated a call center in Canada with his co-conspirator. United States businesses were cold-called from Canada in conjunction with sending them bogus invoices. The telemarketing scheme involved calling the businesses about the fraudulent invoices and falsely asserting that the businesses had ordered the “business listing optimization” service or other phony service and therefore owed the invoice amount. Over the five year period, thousands of small United States businesses paid approximately $500 each for these non-existent services. Victims were directed to mail their checks to addresses in the United States. These addresses were United Parcel Service (UPS) mailboxes or virtual offices, including one at a San Francisco UPS store, which were instructed to forward the mail to Canada. The majority of the proceeds were ultimately deposited into Canadian bank accounts.
According to a memo filed by the government for sentencing, Vouloukos and others collected more than $3 million in victim deposits. While Vouloukos agreed in his plea agreement to pay at least $1.4 million in restitution, the Court ordered a restitution hearing on October 8, 2021, to determine the full amount of restitution to be paid.
In addition to his 30 month prison sentence for mail fraud conspiracy in violation of 18 USC § 1349, United States District Judge Illston sentenced Vouloukos to a three-year period of supervision following his release from prison.
Vouloukos was ordered to surrender immediately into custody.
The case is being prosecuted by the Corporate and Securities Fraud section of the U.S. Attorney’s Office. The prosecution is the result of an investigation by the United States Postal Inspection Service and IRS Criminal Investigation.
Previously Deported Alien Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today a federal grand jury in Harrisburg charged Joel Luis-Aguilar, age 53, with illegal re-entry into the United States by a previously deported alien.
According to Acting United States Attorney Bruce D. Brandler, Luis-Aguilar was previously deported from the United States to Mexico in April 2014. He is alleged to have illegally reentered the United States again sometime after April 2014 and was found in the United States in Adams County, Pennsylvania after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant United States Attorney Joanne M. Sanderson.
Indictments and Criminal Informations 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.
Luis-Aguilar faces a maximum penalty of 2 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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Philadelphia Man Sentenced for Possession of Twenty Automatic Machineguns with Counterfeit After-Market Parts Making Them Capable of Firing 1,200 Rounds in 60 SecondsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Ayende Alvarado, 40, of Philadelphia, PA, was sentenced today to 6 years and 6 months in prison without the possibility of parole, and three years of supervised release by United States District Court Judge Juan R. Sánchez for multiple firearms offenses including possession of a machinegun.
In May 2021, Alvarado pleaded guilty to a Superseding Indictment charging offenses including possession of a machinegun, possession of a firearm by a felon, and possession of a firearm not registered in the National Firearms Registration and Transfer Record. The charges stem from an incident in July 2019, during which Customs and Border Protection (CBP) officers at JFK International Airport intercepted a package from China containing 20 counterfeit Glock auto-switches addressed to defendant’s home in Pennsylvania. The auto-switches are essentially conversion devices designed and created for the sole purpose of converting semi-automatic Glock pistols into fully automatic machineguns. When properly installed on a semi-automatic Glock pistol, these devices allow the firearm to expel more than one projectile by a single pull of the trigger, at a staggering rate of approximately 1,200 rounds per minute.
Following that discovery, agents with the Department of Homeland Security, Philadelphia Police detectives and members of the Philadelphia Police Department S.W.A.T Unit, executed a federal search and seizure warrant on the 3000 block of North 7th Street in Philadelphia. A search of a residence there revealed the presence of numerous firearms and ammunition, including the 20 counterfeit Glock auto-switches manufactured in China.
“The defendant had the supplies to put large-capacity, automatic weapons on the streets of Philadelphia, significantly contributing to the violent crime problem in our city,” said Acting U.S. Attorney Williams. “We are nearly six months into our ‘All Hands On Deck’ initiative; six months of working with our law enforcement partners nearly around the clock to put criminals like Alvarado behind bars where they can no longer contribute to the violence on the streets of our city.”
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. 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.
The case was investigated by the Department of Homeland Security, United States Customs and Border Protection, United States Postal Inspection Service, the Bureau of Alcohol Tobacco, Firearms and Explosives, and the Philadelphia Police Department, and is being prosecuted by Assistant United States Attorney José R. Arteaga.
Pembroke Man Sentenced to 10 Years for Distributing and Possessing Child Sexual Abuse MaterialRead the Press Release
CONCORD - Erik Bjork, 38, of Pembroke, was sentenced on Tuesday to 10 years in federal prison for distribution and possession of child sexual abuse material, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in May of 2019, officers with the New Hampshire Internet Crimes Against Children Task Force were conducting online investigations into individuals utilizing peer-to-peer networks (P2P) to share known images of child sexual abuse material on the internet. On May 10, 2019, a detective with the Portsmouth Police Department was able to download five files from a target IP address. Additional monitoring of the target IP address showed more files, all indicative of child sexual abuse material available for download.
The IP address was traced to Bjork’s address in Pembroke. A search warrant was executed and a laptop was seized that contained over 1,600 files of child sexual abuse material, many involving infants and toddlers. Bjork admitted to using P2P networks to obtain and share child sexual abuse material.
Bjork previously pleaded guilty on May 27, 2021. In addition to his prison sentence, Bjork was ordered to pay $15,000 in restitution and over $5,000 in special assessments.
“Child sexual abuse crimes exploit vulnerable young children,” said Acting U.S. Attorney Farley. “By distributing and possessing troubling images of infants and toddlers, this defendant further victimized the children in these images. Such conduct is unacceptable. As this case demonstrates, we will not hesitate to seek substantial prison sentences for those who commit child sexual abuse crimes.”
“The possession and distribution of child exploitation images perpetuates horrific crimes against children,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office. “We are grateful to our task force partners for the assistance and expertise that make cases like this possible and allow us to remove perpetrators from our communities.”
“The New Hampshire Internet Crimes Against Children Task Force will continue to be vigilant with both reactive and proactive investigations in an effort to ensure the safety of the children of New Hampshire,” said Eric Kinsman, Commander of the New Hampshire Internet Crimes Against Children Task Force. “NH ICAC is proud to partner with our local and federal law enforcement partners and is thankful for the tireless efforts of the Department of Justice and the US Attorney’s Office.”
This matter was investigated by the New Hampshire Internet Crimes Against Children Task Force, Homeland Security Investigations, the New Hampshire State Police, and Pembroke Police Department. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Passaic County Man Admits Illegal Possession of Firearm and AmmunitionRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man with a previous felony conviction today admitted illegally possessing a firearm and ammunition, Acting U.S. Attorney Rachael A. Honig announced.
Jamir Clark, 27, of Paterson, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi to an indictment charging him with one count of possession of a firearm and ammunition by a convicted felon.
According to documents filed in this case and statements made in court:
On June 7, 2020, Clark possessed a firearm capable of accepting a large capacity magazine, which was loaded with 14 rounds of .45 caliber ammunition. Clark has previously been convicted of possession of controlled substances within 1,000 feet of a school, a felony offense.
The firearms offense to which Clark pleaded guilty carries a maximum sentence of 10 years in prison and a fine of up to $250,000. Sentencing is scheduled for Feb. 22, 2022.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Jeffrey L. Matthews in Newark, and members of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora with the investigation leading to today’s guilty plea.
This case is part of the Violent Crime Initiative (VCI), which was formed in 2020 by the U.S. Attorney’s Office for the District of New Jersey, the Passaic County Prosecutor’s Office, and the City of Paterson’s Department of Public Safety for the purpose of combatting violent crime in and around Paterson. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the DEA, the U.S. Marshals, the Paterson Department of Public Safety, the Paterson Police Department, the Passaic County Prosecutor’s Office, the Passaic County Sheriff’s Office, N.J. State Parole, Passaic County Jail, N.J. State Police Regional Operations and Intelligence Center/Real Time Crime Center, and N.J. Department of Corrections.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the U.S. Attorney’s Office Organized Crime and Gangs Unit in Newark.
Orlando Cardiologist Pays $6.75 Million to Resolve Allegations of Performing Unnecessary Medical ProceduresRead the Press Release
Orlando, FL – Dr. Ashish Pal, a cardiologist based in Orlando, Florida, has paid $6.75 million to resolve allegations that he violated the False Claims Act by performing medically unnecessary ablations and vein stent procedures, the Justice Department announced today.
The settlement resolves allegations that, from Jan. 1, 2013, to Dec. 31, 2019, Dr. Pal knowingly submitted false claims to federal health care programs for medically unnecessary ablations and vein stent procedures. The government alleged that Dr. Pal performed the ablations and stent procedures on veins that did not qualify for treatment under accepted standards of medical practice. Additionally, the government alleged that Dr. Pal made misrepresentations in patient medical records to justify the procedures, including overstating the degree of reflux and diameter of veins, and falsely documenting patient symptoms. The United States also alleged that, in many instances, the ablations were performed either exclusively or primarily by one or more ultrasound technicians outside their scope of practice.
“Physicians are expected to perform procedures only when they have a legitimate medical basis to do so,” said Acting Assistant Attorney General Brian M. Boynton for Justice Department’s Civil Division. “The department will pursue those who waste taxpayer funds and subject patients to unwarranted medical care.”
“Our office is committed to protecting vulnerable patients from those who put financial gain ahead of patients’ needs,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We will continue to hold accountable those who abuse the nation’s healthcare programs at the expense of the taxpayers.”
“The Department of Defense Office of Inspector General, Defense Criminal Investigative Service will continue to lead the way in the dogged pursuit of unethical providers who risk patient health for profit,” stated Acting IG Sean O’Donnell. “Ensuring Force readiness and proper care of our military members and their families are among our top priorities.”
“When physicians enrich themselves by performing medically unnecessary procedures on Medicare and Medicaid beneficiaries, they threaten their patients’ health and divert taxpayer funds meant to pay for necessary care,” said Special Agent in Charge Omar Pérez Aybar of U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG). “We will continue to work hard with our law enforcement partners to ensure that health care providers who engage in such abusive behavior are held accountable.”
“The healthcare providers within the Military Health System are committed to patient satisfaction and take seriously their obligation to ensure great outcomes by providing the highest-quality care,” said Director Lt. Gen. Ronald J. Place, M.D. of the Defense Health Agency (DHA). “We are grateful to the U.S. Department of Justice for working to maintain that trust by ensuring medical providers continue to put their patients’ needs and safety first.”
“The Office of Personnel Management’s Office of the Inspector General (OPM-OIG) is dedicated to investigating providers that prioritize profits over patient well-being,” said Deputy Inspector General Performing the Duties of the Inspector General Norbert E. Vint for the OPM-OIG. “We will continue to work with our law enforcement partners and colleagues at the Department of Justice to safeguard the federal health care programs from fraud.”
To help ensure the alleged abuses outlined in this case do not reoccur, Dr. Pal and Interventional Cardiology & Vascular Consultants, PLC entered a detailed, multi-year integrity agreement with HHS-OIG. This integrity agreement contains training and reporting requirements as well as a quarterly claims review conducted by an Independent Review Organization, with the requirement that the review team includes at least one interventional cardiologist who is board certified. It also contains provisions for stipulated penalties and, possibly, the exclusion from federal health programs such as Medicare and Medicaid in the event of a breach of its terms.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Department of Defense Office of Inspector General, the Federal Bureau of Investigation, the U.S. Department of Health & Human Services Office of Inspector General and the Office of Personnel Management Office of Inspector General.
The government’s pursuit of this matter illustrates its 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).
This matter was handled by Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Michael R. Kenneth of the U.S. Attorney’s Office for the Middle District of Florida.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Orlando Cardiologist Pays $6.75 Million to Resolve Allegations of Performing Unnecessary Medical ProceduresRead the Press Release
Dr. Ashish Pal, a cardiologist based in Orlando, Florida, has paid $6.75 million to resolve allegations that he violated the False Claims Act by performing medically unnecessary ablations and vein stent procedures.
The settlement resolves allegations that, from Jan. 1, 2013 to Dec. 31, 2019, Dr. Pal knowingly submitted false claims to federal health care programs for medically unnecessary ablations and vein stent procedures. The government alleged that Dr. Pal performed the ablations and stent procedures on veins that did not qualify for treatment under accepted standards of medical practice. Additionally, the government alleged that Dr. Pal made misrepresentations in patient medical records to justify the procedures, including overstating the degree of reflux and diameter of veins, and falsely documenting patient symptoms. The United States also alleged that, in many instances, the ablations were performed either exclusively or primarily by one or more ultrasound technicians outside their scope of practice.
“Physicians are expected to perform procedures only when they have a legitimate medical basis to do so,” said Acting Assistant Attorney General Brian M. Boynton for Justice Department’s Civil Division. “The department will pursue those who waste taxpayer funds and subject patients to unwarranted medical care.”
“Our office is committed to protecting vulnerable patients from those who put financial gain ahead of patients’ needs,” said Acting U.S. Attorney Karin Hoppmann of the Middle District of Florida. “We will continue to hold accountable those who abuse the nation’s healthcare programs at the expense of the taxpayers.”
“The Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS) will continue to lead the way in the dogged pursuit of unethical providers who risk patient health for profit,” said Acting Inspector General Sean O’Donnell for the Department of Defense Office of Inspector General. “Ensuring Force readiness and proper care of our military members and their families are among our top priorities.”
“When physicians enrich themselves by performing medically unnecessary procedures on Medicare and Medicaid beneficiaries, they threaten their patients’ health and divert taxpayer funds meant to pay for necessary care,” said Special Agent in Charge Omar Pérez Aybar of U.S. Department of Health & Human Services Office of Inspector General (HHS-OIG). “We will continue to work hard with our law enforcement partners to ensure that health care providers who engage in such abusive behavior are held accountable.”
“The healthcare providers within the Military Health System are committed to patient satisfaction and take seriously their obligation to ensure great outcomes by providing the highest-quality care,” said Director Lt. Gen. Ronald J. Place, M.D. of the Defense Health Agency (DHA). “We are grateful to the U.S. Department of Justice for working to maintain that trust by ensuring medical providers continue to put their patients’ needs and safety first.”
“The Office of Personnel Management’s Office of the Inspector General (OPM-OIG) is dedicated to investigating providers that prioritize profits over patient well-being,” said Deputy Inspector General Performing the Duties of the Inspector General Norbert E. Vint for the OPM-OIG. “We will continue to work with our law enforcement partners and colleagues at the Department of Justice to safeguard the federal health care programs from fraud.”
To help ensure the alleged abuses outlined in this case do not reoccur, Dr. Pal and Interventional Cardiology & Vascular Consultants, PLC entered a detailed, multi-year integrity agreement with HHS-OIG. This integrity agreement contains training and reporting requirements as well as a quarterly claims review conducted by an Independent Review Organization, with the requirement that the review team includes at least one interventional cardiologist who is board certified. It also contains provisions for stipulated penalties and, possibly, the exclusion from federal health programs such as Medicare and Medicaid in the event of a breach of its terms.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the Department of Defense Office of Inspector General - DCIS, the FBI, the U.S. Department of Health & Human Services Office of Inspector General and the Office of Personnel Management Office of Inspector General.
The government’s pursuit of this matter illustrates its 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).
This matter was handled by Nicholas C. Perros of the Civil Division’s Commercial Litigation Branch, Fraud Section, and Assistant U.S. Attorney Michael R. Kenneth of the U.S. Attorney’s Office for the Middle District of Florida.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Orange Park Man Sentenced to 10 Years in Federal Prison for Attempting to Entice A 14-Year-Old to Produce Child Sex Abuse Images and to Meet for SexRead the Press Release
Jacksonville, Florida – Chief U.S. District Judge Timothy J. Corrigan has sentenced Darryl Gray Smith (31, Orange Park) to 10 years in federal prison for attempting to entice a minor to engage in sexual activity and to produce child sex abuse images. Smith was also ordered to serve a 10-year term of supervised release and to register as a sex offender.
Smith was found guilty on February 5, 2020, following a jury trial.
According to testimony and evidence introduced during the trial, from February 6 through February 13, 2019, Smith engaged in a series of online text conversations over the internet with a person whom he believed to be a 14-year-old child. Unbeknownst to Smith, this “child” was an undercover agent from Homeland Security Investigations (HSI). During the course of these conversations, Smith discussed in detail his desire to meet and sexually abuse the “child.” He made several requests for the “child” to produce and send him images of the “child” engaging in sexually explicit conduct.
On February 13, 2019, Smith went to a local restaurant in Orange Park to meet the 14-year-old child. He was arrested at the meeting location by HSI agents and officers with the Clay County Sheriff’s Office.
“We are witnessing an epidemic of the sexual exploitation of children in our society,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips. “It’s imperative that parents, caregivers and children understand the dangers of online predators and take every step possible to safely navigate Internet and social media activities.”
This case was investigated by the Clay County Sheriff’s Office and Homeland Security Investigations. It was prosecuted by Assistant United States Attorneys Ashley Washington and Kelly Karase.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Omaha Man Sentenced for Possession of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced the Corey J. Collmann, 38, of Omaha, Nebraska, was sentenced today in federal court in Omaha for possession of child pornography. Chief United States District Judge Robert F. Rossiter, Jr. sentenced Collmann to 48 months’ imprisonment. There is no parole in the federal system. After his release from prison, Collmann will begin a 5-year term of supervised release and will be required to register as a sex offender.
An investigation conducted by the Omaha FBI's Child Exploitation and Human Trafficking Task Force determined that between September 30, 2017 and October 2, 2017, Yahoo! Inc., a company located outside the State of Nebraska, identified multiple images of minors engaged in sexually explicit conduct that were uploaded using one of their services, known as Flickr.
Yahoo! Inc. provided to law enforcement the account, an email address, and IP address, of the user who uploaded the images of the minors engaged in sexually explicit conduct. The FBI obtained information related to the IP addresses, which ultimately identified Collmann’s residence in Omaha, Nebraska.
On February 23, 2018, the FBI executed a search warrant of Collmann’s residence and seized his cellular phone and a tablet. Forensic analysis of the devices identified approximately 50 images of minors, at least one as young as 3 years old, engaging in sexually explicit conduct.
At the time of the search warrant, Collmann admitted to law enforcement that he used the Yahoo! Inc. Flickr application and that he had viewed child exploitive images.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
New York Man Admits Role in KidnappingRead the Press Release
NEWARK, N.J. – A Bronx, New York, man today admitted his role in a Paterson, New Jersey, kidnapping, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Cottman, 41, pleaded guilty before U.S. District Judge Stanley R. Chesler in Newark federal court to an information charging him with one count of kidnapping.
According to documents filed in this case and statements made in court:
On Oct. 8, 2020, Cottman and his conspirator, Reginald Law, entered a retail store in Paterson and assaulted the Victim, who was working in the store. Cottman and Law dragged the victim from the store, threw him into the back of a U-Haul truck and drove to New York. Cottman and Law pistol-whipped the victim in the head and face. Cottman called the victim’s family and demanded $200,000 for his return.
That afternoon, law enforcement officers went to Harlem, New York, where they saw the U-Haul parked on the street. When the officers approached, Cottman and Law fled in the U-Haul and a motor-vehicle pursuit ensued. After some distance, the U-Haul crashed, and a foot pursuit ensued. Cottman was arrested, but Law got away. The officers opened the U-Haul and rescued the victim. Law was arrested on May 26, 2021.
The kidnapping charge to which Cottman pleaded guilty is punishable by a maximum penalty of life in prison and a $250,000 fine. Sentencing is scheduled for Feb. 2, 2022.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s guilty plea. She also thanked the FBI New York Field Office and the Paterson Police Department for their assistance.
The government is represented by Assistant U.S. Attorney Shontae D. Gray of the Violent Crimes Unit.
The charges against Law remain pending, and he is presumed innocent unless and until proven guilty.
New York City Man Sentenced to 11 Years in Federal Prison for Distributing Child Sex Abuse Images over the InternetRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza has sentenced Andre Dwayne Blagrove (35, New York City) to 11 years in federal prison for distribution of child pornography. Blagrove was also ordered to serve 10 years of supervised release and register as a sex offender.
Blagrove had pleaded guilty on June 14, 2021.
According to court documents, in June 2019, an FBI agent who was acting in an undercover capacity encountered Blagrove in an internet chat room. The undercover agent was posing as a father of two minor children, whom he purportedly sexually abused. Blagrove expressed great interest in the undercover agent’s sexual abuse of his children, and asked whether he (Blagrove) could join in. Blagrove also described the sexual acts he wanted to perform on one of the children and requested that the agent take and send naked pictures of his daughters for Blagrove’s sexual gratification. Blagrove also used the internet to send the agent two videos that depicted the sexual exploitation of children.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Emily C. L. Chang.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
New Haven Woman Sentenced to Federal Prison for Drug-Related OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that KEILAH BORIA, 40, of New Haven, was sentenced yesterday by U.S. District Judge Michael P. Shea in Hartford to nine months of imprisonment, followed by three years of supervised release, for narcotics trafficking and money laundering offenses.
According to court documents and statements made in court, in 2019, the DEA New Haven Task Force began an investigation into a New Haven-based drug trafficking network headed by Michael Smith, also known as “Head.” The investigation, which included court-authorized wiretaps, revealed that Smith and others were distributing heroin and crack cocaine throughout the New Haven area, and that Boria maintained bank accounts that Smith used to launder the cash proceeds of his drug trafficking activity. From 2016 to 2019, Boria deposited more than $200,000 in cash into the bank accounts. Smith spent some of the drug proceeds to pay for rental cars that he used to transport narcotics and to travel to meet his drug customers.
In December 2019, Smith was intercepted on a wiretap describing having shot at a rival drug dealer. New Haven Police collected 31 shell casings from a location in the Fair Haven neighborhood where the shooting occurred. Smith was arrested on December 23, 2019.
Boria was arrested on September 16, 2020. On April 14, 2021, she pleaded guilty to one count of conspiracy to possess and distribute heroin and cocaine base (“crack”), and one count of conspiracy to launder monetary instruments.
Boria, who is released on a $150,000 bond, is required to report to prison on November 12, 2021.
Smith, who has been detained since his arrest, pleaded guilty to drug, firearm and money laundering charges on April 15, 2021. He awaits sentencing.
This investigation is being conducted by the DEA New Haven Task Force, the Internal Revenue Service – Criminal Investigation Division, and the New Haven, West Haven, Hamden, East Haven, North Haven, Ansonia, Meriden and Derby Police Departments.
The case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and Elena L. Coronado through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. 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.
Multi-Agency Investigation Results in Indictment and Arrest of "Drug Kingpin" Associated with the Sinaloa Cartel Operating in Sonora, MexicoRead the Press Release
ANCHORAGE – Miguel Baez Guevara, 38, a United States citizen living in Mexico, was indicted by a federal grand jury on 17 counts related to his leadership role in trafficking narcotics directly from Mexico to Alaska. Guevara was arrested by Mexican immigration authorities from the Instituto Nacional de Migración in Sonora, Mexico, on Friday, September 10, and deported to the United States. U.S. Law Enforcement arrested Guevara upon his arrival in Arizona. He pleaded not guilty Tuesday in federal court in Phoenix, Arizona. He will remain detained pending his transfer to Alaska.
According to the recently unsealed indictment, beginning in 2016 Guevara’s organization operated to import heroin, methamphetamine, and cocaine directly from Mexico to Alaska. Guevara claimed membership in, and association with, the Sinaloa Cartel. Guevara’s network specifically targeted Alaska because they received higher profits for the illegal drugs due to Alaska’s significant distance from the Mexican sources of supply.
Using social media and encrypted messaging applications, Guevara’s network recruited drug couriers who lived in Alaska. The couriers were promised money or drugs in exchange for traveling to Mexico to collect the narcotics for transport back to Alaska. Couriers were required to submit photos of their driver’s license and other personal information. Guevara made it known he was associated with the Sinaloa Cartel and there were serious and violent repercussions for couriers who stole narcotics or provided information to law enforcement. The couriers often traveled in small groups with an assigned team leader. Couriers typically carried about 250 grams of narcotics on each trip. Once the couriers arrived in Alaska a member of Guevara’s network, who was stationed in Alaska, paid them and collected the narcotics. Street level dealers in Alaska contacted Guevara who coordinated the sale between his Alaska workers and the local dealer. Guevara did not cross into the United States due to outstanding federal and state arrest warrants but conducted all operations from Mexico.
The Continuing Criminal Enterprise statute 21 U.S.C. § 848 is often referred to as the “Kingpin Statute.” The statute is designed to reach the top brass in drug trafficking organizations, and not the lieutenants and foot soldiers. The statute was enacted to target large-scale profit-making enterprises engaged in the illegal importation, manufacture and distribution of controlled substances. A conviction carries a mandatory life sentence.
The indictment and arrest are part of an ongoing, large scale drug trafficking investigation dubbed “Operation Albondiga” which has resulted in the arrest and criminal charges of 23 individuals since 2016.
The defendants (in alphabetical order) are as follows:
- Jason Alto, 25, pleaded guilty to Possession with Intent to Distribute Methamphetamine, sentenced January 18, 2017 to 20 months imprisonment.
- Chinaya Begay, 26, pleaded guilty to Possession with Intent to Distribute a Controlled Substance, sentenced August 12, 2021 to time served (13 months).
- Mario Burgueno, 36, pleaded guilty in the District of Arizona to Conspiracy to Possess with Intent to Distribute Heroin, sentenced June 12, 2019 to 120 months imprisonment.
- Dana Dwyer, 45, pleaded guilty to Felon in Possession of Firearms, sentencing scheduled for January 10, 2022.
- Travon Grays, 28, pleaded guilty to Conspiracy to Distribute Controlled Substances, sentenced March 2, 2021 to 37 months imprisonment.
- Jessica Hannah, 26, pleaded guilty to Attempted Possession with Intent to Distribute Controlled Substances, sentenced June 7, 2021 to time served (7 months).
- Zanders Herndon, 39, pleaded guilty to Felon in Possession of Firearm and Ammunition, sentenced August 6, 2018 to 54 months imprisonment.
- Eva Houser, 38, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, sentenced January 3, 2019 to 36 months imprisonment.
- David Garcia Johnson, 29, pleaded guilty to Distribution of a Controlled Substance, sentenced January 11, 2021 to 46 months imprisonment.
- April Krause, 36, pleaded guilty in the District of Arizona to Conspiracy to Possess Counterfeit Obligations and Sureties of the United States and Bringing in Counterfeit Obligations, sentenced October 18, 2018 to 13 months imprisonment.
- Katrina Lundy, 41, pleaded guilty to Attempted Possession with Intent to Distribute Controlled Substances, sentenced March 6, 2019 to 21 months imprisonment.
- Jarese Martinez, 28, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, sentenced November 2, 2018 to 120 months imprisonment.
- Victor Mizugay-Gallego, 24, pleaded guilty to Attempted Possession of a Controlled Substance with Intent to Distribute, sentencing scheduled for October 6, 2021.
- Alicia Norvell, 33, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, sentenced September 12, 2018 to time served (10 months).
- Mykki Orth, 55, pleaded guilty to Distribution of Controlled Substances, sentenced October 23, 2018 to 15 months imprisonment.
- Frances Pelch, 66, pleaded guilty to Attempted Possession with Intent to Distribute Controlled Substances, sentenced January 15, 2021 to 36 months imprisonment.
- Alicia Pierce, 27, pleaded guilty in the District of Arizona to Conspiracy to Possess with Intent to Distribute Heroin, sentenced May 23, 2019 to time served (10 months).
- Jackie Polzel, 34, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, sentenced September 12, 2018 to 36 months imprisonment.
- Kelly Pretty, 35, pleaded guilty to Conspiracy to Distribute and Possess with Intent to Distribute Controlled Substances, sentenced May 2, 2018 to 16 months imprisonment.
- Jody Schuyler, 55, pleaded guilty in the District of Arizona to Conspiracy to Possess with Intent to Distribute Heroin, sentenced May 21, 2019 to 12 months imprisonment.
- Audriel Soto, 25, pleaded guilty to Possession with Intent to Distribute a Controlled Substance, sentenced February 17, 2021 to 36 months imprisonment.
- Nicole Villa, 33, pleaded guilty in the District of Arizona to Conspiracy to Possess with Intent to Distribute Heroin, sentenced April 3, 2019 to time served (10 months).
- Casey Wells, 39, pleaded guilty in the District of Arizona to Conspiracy to Possess with Intent to Distribute Heroin, sentenced April 2, 2019 to time served (10 months).
The Federal Bureau of Investigation (FBI), the U.S. Coast Guard Investigative Service (CGIS) and the Drug Enforcement Administration (DEA) are leading the investigation with investigative support provided by Anchorage Police Department (APD), Homeland Security Investigations Sells, Arizona, Office (HSI), U.S. Customs & Border Patrol, the Alaska State Troopers (AST), Ted Stevens International Airport Police and the Alaska National Guard. We also want to thank the U.S. Attorney’s Office, District of Arizona and law enforcement agencies in the State of Arizona for their invaluable help with this case and “Operation Albondiga.”
Assistant U.S. Attorneys William Taylor, Allison O’Leary, and Chris Schroeder are prosecuting the case.
Operation Albondiga is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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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Montville Man Sentenced to 52 Months in Prison for Robbing Norwich Bank While on Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that ANTHONY HALL, 60, of Montville, was sentenced yesterday by U.S. District Judge Janet C. Hall in New Haven to 52 months of imprisonment, followed by three years of supervised release, for robbing a Norwich bank while he was on supervised release for a prior federal bank robbery conviction.
According to court documents and statements made in court, in April 2011, Anthony Hall was sentenced in Hartford federal court to 87 months of imprisonment, followed by five years of supervised release, for robbing four Connecticut banks in 2008 and 2009. He was released from federal custody in January 2016. On September 13, 2019, while on federal supervised release, Hall robbed the Eastern Savings Bank, located at 666 West Main Street in Norwich, of approximately $2,400.
Hall has been detained since his arrest on related state charges on October 28, 2019. On April 13, 2021, he pleaded guilty in federal court to one count of bank robbery.
Judge Hall sentenced Anthony Hall to 40 months of imprisonment for the bank robbery, and an additional 12 months of imprisonment for violating the conditions of his supervised release.
This matter was investigated by the Federal Bureau of Investigation and the Norwich Police Department. The case was prosecuted by Assistant U.S. Attorney Kenneth L. Gresham.
Middlesex County Man Charged with $1.3 Million in Paycheck Protection Program and Economic Injury Disaster Loan Fraud SchemeRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man was arrested today on charges related to his role in fraudulently obtaining $1.3 million in federal Paycheck Protection Program (PPP) loans and Economic Injury Disaster Loans (EIDL), Acting U.S. Attorney Rachael A. Honig announced today.
Jordan C. Larkins, 31, of Edison, New Jersey, is charged by complaint with three counts of bank fraud, seven counts of wire fraud, and two counts of money laundering. Larkins is scheduled to have his initial appearance by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen.
According to documents filed in this case and statements made in court:
Larkins submitted three fraudulent PPP loan applications to two different lenders on behalf of three purported businesses and a total of seven EIDL applications to the Small Business Association (SBA) on behalf of four purported businesses.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1 percent. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The applications Larkins submitted allegedly contained fraudulent representations to the participating lenders and the SBA, including bogus federal tax return documentation. According to Social Security Administration records, there were no wages or Forms W-2 processed for any of the entities between 2018 and 2020. Larkins also fabricated bank statements, the identities of certain individuals listed on the applications, and driver’s licenses of purported applicants.
Lenders and the SBA approved Larkins’s PPP loan applications, EIDL SBA loan applications, and EIDL advance payments, and provided Larkins’s purported businesses with approximately $1.3 million in federal COVID-19 emergency relief funds meant for distressed small businesses.
The three counts of bank fraud each carry a maximum penalty of 30 years in prison and a $1 million fine; the seven counts of wire fraud each carry a maximum penalty of 20 years, and the two counts of money laundering each carry a maximum penalty of 10 years in prison. Both the wire fraud and money laundering counts carry a maximum fine of $250,000 or twice the gross gain to the defendant or gross loss to the victim, whichever is greatest.
Acting U.S. Attorney Rachael Honig credited postal inspectors of U.S. Postal Inspection Service, Newark Division, under the direction of Acting Inspector in Charge Raimundo Marrero; special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents of the Social Security Administration Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John Grasso, with the investigation leading to the charges.
The government is represented by Assistant U.S. Attorney Fatime Meka Cano of the U.S. Attorney’s Office’s Government Fraud Unit in Newark.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Massachusetts Man Convicted of Sending Threatening Emails to Police CommissionerRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that that Peter Fratus, 39, of West Dennis, MA, was convicted today at trial of sending threatening email messages to City of Philadelphia Police Commissioner Danielle Outlaw.
In August 2020, Fratus was charged by Indictment with transmitting threatening communications in interstate commerce. According to the Indictment, on June 6, 2020, the defendant sent two emails to the Philadelphia Police Commissioner’s City of Philadelphia email address. Both emails allegedly contained racist, offensive, and threatening language, with one communication asking about where the Commissioner lives.
“It is a federal felony to threaten another person online, whether the victim is a private citizen or a public figure,” said Acting U.S. Attorney Williams. “The public can rest assured that our Office, together with our law enforcement partners, will work tirelessly to identify anyone who does this and ensure they’re held accountable for their actions.”
“The perceived anonymity offered by the internet has emboldened many people into thinking they can post or send anything they want,” said Bradley S. Benavides, Acting Special Agent in Charge of the FBI’s Philadelphia Division. “Today, a jury proved that’s not the case, holding Peter Fratus accountable for his violent threats. This was not free speech. This was a crime. Know that the FBI will continue to investigate and bring to justice people like Fratus who clearly cross that line.”
The case was investigated by the Federal Bureau of Investigation with assistance from the Philadelphia Police Department and the Dennis Police Department, and is being prosecuted by Assistant United States Attorneys Robert J. Livermore and Sarah M. Wolfe.
Manchester Man Sentenced to 77 Months for Drug TraffickingRead the Press Release
CONCORD - Efrain Perez, 48, of Manchester, was sentenced on Tuesday to 77 months in federal prison for attempted possession of MDMA with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the spring of 2019, the United States Postal Inspection Service (USPIS) seized a package shipped from the Netherlands that contained over 500 grams of MDMA. MDMA is an illegal drug that is also known as “Ecstasy” or “Molly.” The package was addressed to an employee at a store in New Hampshire.
On April 3, 2019, a member of the USPIS, disguised as a mail carrier, delivered the package to the employee and learned that Perez had asked him to receive the package.
At the request of law enforcement officers, the employee advised Perez that the package was available at a post office. Perez went to the post office and signed for the package. After leaving the post office, Perez was approached by law enforcement officers while in possession of the package. A later search of Perez's cellular phone showed that he had made multiple inquiries to check on the delivery status of the package.
“Drug trafficking endangers public health and safety,” said Acting U.S. Attorney Farley. “Shipping dangerous drugs through the mail can create an additional public health hazard. We are working hard to stop the flow of drugs into New Hampshire. As this case demonstrates, those who use the mail for drug trafficking will face substantial consequences for their unlawful conduct.”
“HSI is committed to preventing trafficked drugs from reaching the streets. With the assistance of our partners at the U.S. Postal Inspection Service, we’re working together to keep dangerous substances out of the mail system and out of the hands of traffickers,” said Matthew Millhollin, Special Agent in Charge for the Homeland Security Investigations’ Boston Field Office.
This matter was investigated by the Homeland Security Investigations and the United States Postal Inspection Service. The case was prosecuted by Assistant U.S. Attorney Seth Aframe.
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Manchester Man Sentenced to 22 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Larry Woods, 41, of Manchester, was sentenced on Tuesday to 22 months in federal prison for aiding and abetting the distribution of fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on April 18, 2019, a confidential source (CS) working with Manchester police detectives engaged in a series of calls with Woods to arrange the purchase of fentanyl. The CS then obtained the fentanyl at a Manchester residence.
“Fentanyl trafficking has caused great damage to communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “We continue to work closely with our law enforcement partners to identify and prosecute those who distribute this deadly drug in the Granite State.”
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Manchester Man Indicted for Possessing a Firearm by a Prohibited PersonRead the Press Release
CONCORD –Michael Francis, 34, of Manchester, was indicted by a federal grand jury on Monday and charged with unlawfully possessing a firearm, Acting United States Attorney John J. Farley announced today.
According to court documents and statements in court, Francis was arrested on September 1, 2021, for parole violations. At the time of his arrest, there was a holster under the driver’s seat of his vehicle. Law enforcement agents later obtained a warrant to search Francis’ residence on Thornton Street in Manchester and recovered four loaded handguns, two of which were stolen. Law enforcement officers also recovered over 400 grams of suspected fentanyl and over 400 grams of suspected methamphetamine. The charges allege that Francis is prohibited from possessing firearms due to at least one prior felony conviction.
Francis is being detained pending trial. The criminal investigation into his conduct is ongoing.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Manchester Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant U.S. Attorneys Joachim Barth and Aaron Gingrande.
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Man and Woman Involved in Drug Robbery and Murder Sentenced in Federal CourtRead the Press Release
A man and woman who were responsible for participating in a robbery that led to the murder of another man were sentenced today to federal prison.
Danielle Busch, age 31, from Cedar Rapids, Iowa, received a decade in prison after an April 13, 2020 guilty plea to conspiracy to commit robbery affecting interstate commerce and using and discharging a firearm during a crime of violence resulting in murder.
William Leo Yancey, age 46, also from Cedar Rapids, received over 30 years in prison after a May 13, 2021 guilty plea to robbery affecting interstate commerce and using and discharging a firearm during a crime of violence resulting in murder.
Evidence during the case established that, in May 2014, Busch, Yancey, and Matthew Robbins, who will be sentenced at a later date, conspired to rob a local drug dealer, and then robbed the dealer on May 31, 2014. During the robbery, Robbins possessed a firearm which was discharged, murdering the victim.
Busch and Yancey were sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand, who described the case as an “horrific offense.” Busch was sentenced to 120 months’ and one day imprisonment. She must also serve a five-year term of supervised release after the prison term. Yancey was sentenced to 400 months’ imprisonment. Judge Strand noted that Yancey has been a drain on the criminal justice system who has engaged in criminal conduct throughout his adult life. Yancey is currently serving a 188-month prison term for conspiring to manufacture methamphetamine and will begin serving this sentence once he finishes serving that term of imprisonment. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
“The volatile combination of drugs and guns resulted in a man’s tragic death,” said Acting United States Attorney Sean R. Berry. “Today’s sentences hold accountable two of the individuals who participated in a plan to rob that man of drugs and money. Our office is committed to vigorously prosecuting those who mix drugs, guns, and violence.”
Busch and Yancey are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorneys Lisa C. Williams and Emily K. Nydle and was investigated by the Marion Police Department, the Iowa Department of Criminal Investigation, the Linn County Sheriff’s Office, the Drug Enforcement Administration, the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Iowa City Police Department, the United States Marshals Service, the Davenport Police Department, the Iowa Division of Narcotics Enforcement, the Benton County Sheriff’s Office, the Cedar County Sheriff’s Office, the Madison County Sheriff’s Office, and the Daytona Beach Shores Florida Police Department. Assistance was also provided by the Waypoint Services Survivor's Program in Cedar Rapids, Iowa.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-53.
Follow us on Twitter @USAO_NDIA.
Man Sentenced to 20 Years in Prison for Abusive Sexual Contact with a Child Under 12Read the Press Release
A man who sexually abused a young child was sentenced Wednesday in federal court.
U.S. District Judge Gregory K. Frizzell sentenced Travis Dray Stewart, 41, to 240 months in federal prison followed by 10 years of supervised release.
Stewart pleaded guilty on May 24, 2021, to abusive sexual contact in Indian Country.
In his plea agreement, Stewart admitted to making sexual contact with a child under 12 years of age between June 2003 and September 2005. The U.S. Attorney’s Office charged Stewart after his May 2015 conviction in Tulsa County District Court was overturned due to lack of jurisdiction following the Supreme Court’s McGirt v Oklahoma decision.
“Travis Dray Stewart will spend 20 years in federal prison for harming a young child,” said Acting U.S. Attorney Clint Johnson. “The resulting trauma associated with child sexual abuse is life altering and long lasting. I encourage anyone who is struggling with the trauma of abuse to seek community resources to help in their recovery. No victim should suffer in silence.”
Resources are available to assist in recovery. You can start your search for assistance by contacting:
-Oklahoma’s SafeLine at 1-800-522-SAFE (7233).
-National Center for Missing and Exploited Children at 1-800-THE-LOST (1-800-843-5678). Information on reporting and recovery can be found on NCMEC’s site https://www.missingkids.org/gethelpnow/csam-resources.
Suspected child neglect and abuse can be reported to the Oklahoma Child Abuse Hotline at 1-800-522-3511 and/or to local law enforcement.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger is prosecuting the case.
Local residents arrested in large-scale poly-drug caseRead the Press Release
McALLEN, Texas - A total of 16 Starr County residents are now in custody following the return of two separate and unrelated indictments alleging the distribution of large quantities of meth, cocaine and marijuana, announced Acting U.S. Attorney Jennifer B. Lowery.
Among those taken into custody were Rio Grande City residents, Roel Valadez, 31, Jose Diaz, 43, Isidoro Garza, 53, Jeronimo Morin, 34, Tomas Martinez-Talamantes, 30, Noel Avila, 46, Samuel Torres, 33, Hugo Canales, 63, Jose Ortiz, 46, Ignacio Garza, 49, Diego Reyes, 40, Marcos Barrientos, 38, Janella Chavarria, 32; and David Gomez, 22, Mission. Abel Reyes, 33, Mission, turned himself in a short time ago. With the exception of Diaz, who will make his initial appearance in Austin, the remaining defendants are expected to appear before U.S. Magistrate Judge Scott Hacker tomorrow at 9 a.m.
A federal grand jury returned a 10-count indictment under seal Sept. 7, charging Garza, Reyes, Barrientos, Chavarria, Valadez, Vela, Gomez, Garza, Diaz, Ortiz, Canales, Morin, Avila and Torres. It alleges they conspired from July 2020 to September 2021 to possess with intent to distribute more than 500 grams or more of meth, five kilograms or more of cocaine and 1000 kilograms of marijuana. Some are also charged with substantive counts on varying dates of possession with intent to distribute one or more of the narcotics and maintaining a stash house.
A separate two-count sealed indictment was also returned Sept. 7. It charges Martinez-Talamantes beginning in June of 2020 and continuing until August of 2020 conspired to possess 500 grams or more of methamphetamine. They are also charged with the substantive count of possession of 193 kilograms of methamphetamine.
All face a minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine upon conviction. Those charged in the substantive possession counts could also face additional terms from five to 40 years and/or a maximum of 20-year-term of imprisonment. .
This investigation was an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation dubbed Operation IceRiver. OCDETF is the largest anti-crime task force in the country. Its mission is to disrupt and dismantle the most significant drug trafficking and transnational criminal organizations that threaten the United States through prosecutor-led, intelligence-driven, multi-agency task forces that leverage the authorities and expertise of federal, state and local law enforcement. Additional information about the OCDETF Program can be found on the Department of Justice’s OCDETF webpage.
The Drug Enforcement Administration, FBI and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of IRS-Criminal Investigations; U.S. Marshals Service; Hidalgo County District Attorney’s Office; Bureau of Alcohol Tobacco, Firearms and Explosives, police departments in Pharr, Edinburg and University of Texas; sheriff’s offices in Brooks, Jim Wells County, Live Oak, Cameron and Hidalgo Counties; Border Patrol; Customs and Border Protection, Texas Department of Public Safety, Texas Rangers and National Guard.
Assistant U.S. Attorneys Patricia Cook Profit and Jongwoo Chung are prosecuting the cases.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lincoln Man Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Ian Michael Ivey, 24, of Lincoln, Nebraska, was sentenced today in federal court in Lincoln for conspiracy to distribute/possess with intent to distribute 500 grams or more of methamphetamine mixture. United States District Judge John M. Gerrard sentenced Ivey to 151 months in prison followed by a 5-year term of supervised release. There is no parole in the federal system.
Starting around February 1, 2018 and continuing until April 23, 2020, Ivey conspired with at least nine others to distribute methamphetamine in the Lincoln area. During that time, Ivey purchased up to pound quantities of methamphetamine to be distributed to others, and he sold methamphetamine to others in quantities ranging from a quarter ounce to two ounces of methamphetamine. On April 23, 2020, an undercover law enforcement officer purchased about 5 grams of methamphetamine from Ivey. In total, Ivey participated in the purchase and distribution of at least 3 kilograms of methamphetamine during the conspiracy.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force.
Latvian National Sentenced to More Than 4 Years in Federal Prison, Ordered to Pay over $4.5M in Restitution after Defrauding Millions from Patent and Trademark Mail Fraud SchemeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Viktors Suhorukovs, 37, a citizen of Latvia, was sentenced to more than four years in federal prison and ordered to pay over $4.5 million in restitution, after pleading guilty to mail fraud in a multi-million-dollar scheme, carried out over a nearly three-year period, that defrauded holders of United States trademark registrations.
“Our office will always seek out and utilize all means available to bring justice towards those who defraud United States citizens and businesses in efforts to steal millions of dollars,” said Acting U.S. Attorney DeHart. “Our office also appreciates the collaborative effort with the United States Patent and Trademark Office, the United States Postal Inspection Service, Homeland Security Investigations, and the Greenville Police Department to ensure justice was served.”
“On behalf of the United States Patent and Trademark Office, we are grateful for the work of the U.S. Attorney’s Office in South Carolina, Homeland Security, and the Greenville Police Department in bringing Mr. Suhorukovs to justice," said David S. Gooder, Commissioner for Trademarks. "Trademark filing scams are a growing international problem, with foreign entities increasingly targeting U.S. citizens with misleading solicitations. We are committed to the rigorous protection of all users of our world-class trademark register and are pleased to work with law enforcement to achieve a result like the one in this case.”
Evidence presented to the court showed that Suhorukovs established and operated Patent and Trademark Office, LLC, a limited liability company registered in the District of Columbia, and Patent and Trademark Bureau, LLC, a limited liability company registered in New York. These names closely resemble the official name of the United States Patent and Trademark Office (USPTO), which helped conceal the true source of trademark registration renewal notices Suhorukovs’ companies were mailing to registrants.
Suhorukovs’ renewal notices misrepresented the trademark registration’s expiration date. The renewal notices also contained a QR Code which linked the trademark holder directly to the official government USPTO website. The notices directed the victim to sign and return the notice. Once the victim signed and returned the renewal notice, Suhorukovs sent the victim an invoice for the renewal service and charged inflated prices for the renewal of the trademark. Victims would then, unknowingly, send renewal fees to Suhorukovs’ businesses, believing they were dealing with the USPTO.
In the notices and invoices, Suhorukovs represented he would renew the trademark registration, when in fact, he did not or could not renew the registration at the time he represented to the victims that he would because, under applicable law, those trademarks were not yet eligible for renewal. In addition, under the USPTO’s rules, Suhorukovs could not lawfully file renewal documents on behalf of registrants because he was not a licensed U.S. attorney.
Over 2,900 victims of the scheme have been identified.
United States District Judge Donald C. Coggins, Jr. sentenced Suhorukovs to 52 months in federal prison and 24 months of supervised release. There is no parole in the federal system. Suhorukovs was also ordered to pay $4,521,593.27 in restitution.
This case was investigated by the United States Postal Inspection Service, Homeland Security Investigations, and the Greenville Police Department. Assistant U.S. Attorney Winston Marosek prosecuted the case.
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Information on how the USPTO protects owners of United States trademark registrations from theft and scams can be viewed at: https://www.uspto.gov/trademarks/protect/scam-awareness.
Justice Department and EPA Reach Clean Air Act Settlement with Xtreme Diesel Performance, Ending Sale of Defeat DevicesRead the Press Release
Xtreme Diesel Performance (XDP), an automotive parts manufacturer and retailer based in Wall Township, New Jersey, with a sales distribution center in Las Vegas, Nevada, has agreed to stop manufacturing and selling parts for diesel pickup trucks that, when installed, bypass, defeat or render inoperative EPA-approved emission controls and harm air quality, as part of an agreement to resolve alleged Clean Air Act violations. The company will pay a $1,125,000 penalty, which was reduced due to XDP’s limited financial ability to pay a higher penalty.
The complaint, filed simultaneously with the settlement, alleges that the parts described above are “defeat devices” prohibited by the Clean Air Act. XDP manufactured and/or sold over 27,000 aftermarket defeat devices between January 2015 and May 2017. XDP suspended sales of the defeat devices in September 2019 in an effort to resolve this matter.
“Defeat devices do an end run around decades-old Clean Air Act emissions requirements that protect public health and the environment,” said Assistant Attorney General Todd Kim of the Justice Department’s Environment and Natural Resources Division (ENRD). “As part of the Department of Justice’s national efforts to ensure that the aftermarket automotive parts industry complies with anti-pollution laws and focuses on legal products, this settlement ensures that XDP will eliminate defeat devices from its product line.”
“As a result of XDP’s actions, thousands of diesel pickup trucks now operate without filters, catalysts, and other essential emissions controls harming our nation’s air quality,” said Acting Assistant Administrator Larry Starfield for EPA’s Office of Enforcement and Compliance Assurance. “This action will stop the sale of these illegal products, preventing additional excess pollution caused by illegal aftermarket defeat devices and keeping the air we breathe clean.”
“Today’s settlement will prevent the future sale of approximately 11,000 illegal products per year,” said Acting Regional Administrator Deborah Jordan for the EPA Pacific Southwest. “The increased nitrogen oxides and particulate matter pollution stemming from defeat devices threatens the health of everyone, especially those with pre-existing health conditions, children, and older adults. EPA will continue to vigorously enforce the Clean Air Act’s defeat device prohibition to protect vulnerable communities located near highways that face a disproportionate amount of exposure from vehicle emissions.”
In addition to requiring XDP to pay a penalty of $1,125,000, the settlement requires XDP to destroy any violative products still in its inventory, cease providing technical support or honoring warranty claims for previously-sold violative products, revise its marketing materials, notify the customers that purchased the subject parts that the products at issue violate the Clean Air Act and conduct compliance training for its employees and contractors.
EPA estimates that the products XDP sold may result in more than 12 million pounds of excess nitrogen oxides emissions and 115,000 pounds of excess particulate matter emissions over the anticipated remaining life of the diesel pickup trucks equipped with those products. This enforcement action will prevent additional excess emissions that would have resulted from the continued sale of these illegal products.
Tampering with diesel-powered vehicles by installing defeat devices can cause large amounts of nitrogen oxide and particulate matter emissions, both of which contribute to serious public health problems. These include premature death, aggravation of respiratory and cardiovascular disease, aggravation of existing asthma, acute respiratory symptoms, chronic bronchitis and decreased lung function. Numerous studies also link diesel exhaust to increased incidence of lung cancer. Respiratory issues disproportionately affect families, especially children, living in underserved communities overburdened by pollution. Stopping the sale and use of defeat devices will help reduce harmful air pollution that exacerbates the health effects of pollutant exposures.
Stopping the manufacture, sale, and installation of defeat devices on vehicles and engines used on public roads as well as on nonroad vehicles and engines is a priority for EPA. To learn more, visit: https://www.epa.gov/enforcement/national-compliance-initiative-stopping-aftermarket-defeat-devices-vehicles-and-engines.
The consent decree for this settlement was lodged in the U.S. District Court for the District of New Jersey and is subject to final court approval.
For more information on this settlement: https://www.epa.gov/enforcement/xtreme-diesel-performance-llc-clean-air-act-settlement.
If you suspect someone is manufacturing, selling, or installing illegal defeat devices, or is tampering with emission controls, tell the EPA by writing to [email protected].
Justice Department Settles with Medical Parts Manufacturing Company to Resolve Immigration-Related Discrimination ClaimsRead the Press Release
The Department of Justice announced today that it reached a settlement with DC Precision Machining Inc., which manufactures parts for medical devices and is based in Morgan Hill, California.
The settlement resolves claims that the company discriminated against workers by requiring them to present specific work authorization documents depending on each worker’s citizenship status. The settlement also resolves a claim that the company rescinded a worker’s job offer when she refused to provide an additional document to prove she could work in the United States, even though she had already provided sufficient documentation.
The department’s investigation began when a U.S. citizen filed a discrimination charge with the Civil Rights Division against DC Precision Machining. Based on its investigation, the department determined that the company rejected the worker’s unrestricted Social Security card to prove her work authorization, required her to provide an additional unnecessary document before she could start work and then withdrew her job offer when she was unwilling to comply with the company’s demand. The department’s investigation also found that the company routinely requested unnecessary and specific work authorization documents from all new employees, limiting each new hire’s choice of documents based on the worker’s citizenship status. In particular, U.S. citizens were required to show a U.S. Passport or birth certificate, while non-U.S. citizens were required to present an immigration document to prove their work authorization — even when the new hire had already given DC Precision Machining another acceptable document that showed they were authorized to work.
“Employers must give workers the opportunity to present any acceptable document when verifying that they are authorized to work in the United States,” said Assistant Attorney General Kristen Clarke of the Civil Rights Division. “An employer that requires new employees to present particular documents based on their citizenship or immigration status has committed unlawful discrimination. The Justice Department looks forward to working with DC Precision Machining to ensure it meets its obligations to avoid employment discrimination in the future.”
Federal law allows all work-authorized individuals, regardless of citizenship or immigration status, to choose which valid, legally acceptable documentation to present to demonstrate their identity and authorization to work in the United States. The Immigration and Nationality Act (INA)'s anti-discrimination provision prohibits employers from requesting more or different documents than necessary or limiting employees’ choice of documents to prove work authorization based on the employees’ citizenship, immigration status or national origin.
Under the terms of the settlement agreement, DC Precision Machining will pay a civil penalty of $13,400 to the United States and $21,360.55 to the affected worker. Additionally, DC Precision Machining will train its employees on the requirements of the INA’s anti-discrimination provision, including an IER-provided training and be subject to monitoring for a two-year period to ensure the company is complying with the agreement.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits citizenship status and national origin discrimination in hiring, firing or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, can file a charge. The public also can contact IER’s worker hotline at 1-800-255-7688; call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER. View the Spanish translation of this press release here.
Justice Department Issues Statement on the Vertical Merger GuidelinesRead the Press Release
Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division issued the following statement today after the Federal Trade Commission (FTC) voted to withdraw from the 2020 Vertical Merger Guidelines, which had been issued jointly with, and remain in place at, the Department of Justice:
“The Department of Justice is conducting a careful review of the Horizontal Merger Guidelines and the Vertical Merger Guidelines to ensure they are appropriately skeptical of harmful mergers. Both documents are designed to provide increased transparency and guidance to the public on how the department makes law enforcement decisions. The department’s review has already identified several aspects of the guidelines that deserve close scrutiny, and we will work closely with the FTC to update them as appropriate.
“The department continues to collaborate with the FTC on a robust public engagement process to seek comment on ways the Vertical Merger Guidelines could be improved. Public comment, which has not yet been sought on the substantial changes made to the published version of the Vertical Merger Guidelines, will be helpful in considering a range of questions, including the following areas that staff has identified warrant consideration:
- Whether the Vertical Merger Guidelines create confusion as to the merging parties’ burden to establish that the elimination of double marginalization is verifiable, merger specific and will likely be passed through to consumers.
- Whether the Vertical Merger Guidelines unduly emphasize the quantification of price effects, which is not the only means to determine that a vertical merger is unlawful.[1]
- Whether the Vertical Merger Guidelines appropriately account for the traditional burden shifting framework applied by U.S. courts in their review of mergers.[2] For example, some have suggested that descriptions of how the department may consider offsetting incentives in determining the net effect of a transaction suggests a deviation from the prevailing legal framework in which the department may establish in court a prima facie case based on evidence of harm alone.[3]
- Whether the Vertical Merger Guidelines should more fully explain, as some have suggested would be appropriate, the range of circumstances that can lead to a concern that a merger may have anticompetitive effects.[4]
- Whether the Vertical Merger Guidelines would benefit from further elaboration of the circumstances in which mergers raise concerns of harm related to the evasion of regulation.
“The Justice Department recognizes the substantial benefit of providing transparency on these and all of the other issues touched on by the Vertical Merger Guidelines, and will work closely with the FTC as this process continues.”
[1] See United States v. AT&T, Inc., 916 F.3d 1029, 1045 (2019) (“Preliminarily, the court does not hold that quantitative evidence of price increase is required in order to prevail on a Section 7 challenge. Vertical mergers can create harms beyond higher prices for consumers, including decreased product quality and reduced innovation.”)
[2] See United States v. Baker Hughes, 908 F.2d 981, 982-83 (D.C. Cir. 1990) (cited in AT&T, 916 F.3d at 1032).
[3] See Carl Shapiro, Vertical Mergers and Input Foreclosure Lessons from the AT&T/Time Warner Case, 59 Rev. of Indus. Org. 303 (2021) (noting risks associated with requiring quantification of net harm as part of the government’s prima facie case, and benefits of the sequencing in the Baker Hughes framework in the context of vertical mergers).
[4] See Steven S. Salop, The 2020 Vertical Merger Guidelines: A Suggested Revision, Geo. L. Fac. Publications & Other Works (2021), available at https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3839768.
Justice Department Awards over $425,000 to State of Maine to Aid Victims of Sexual AssaultRead the Press Release
PORTLAND, Maine: The Department of Justice’s Office of Violence Against Women (OVW) has awarded $428,498 to the Maine Department of Health and Human Services to assist victims of sexual assault, Acting U.S. Attorney Donald E. Clark announced.
Nationwide, OVW is making 56 awards totaling $28.2 million through the Fiscal Year 2021 Sexual Assault Services Formula Program.
The SAS Formula Program directs grant dollars to states and territories to assist them in supporting rape crisis centers (including governmental rape crisis centers not in territories and tribal governmental programs) and nonprofit, nongovernmental organizations that provide core services, direct intervention, and related assistance to victims of sexual assault, regardless of age. Funds provided through the SAS Formula Program are designed to supplement other funding sources directed at addressing sexual assault on the state and territorial levels. Rape crisis centers and other nonprofit organizations, such as dual programs providing both domestic violence and sexual assault intervention services, play a vital role in assisting sexual assault victims through the healing process, as well as assisting victims through the medical, criminal justice, and other social support systems.
For more information about the SAS Formula Program, please visit this fact sheet.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Justice Department Awards over $1 Million to State of Maine to Address Violence Against WomenRead the Press Release
PORTLAND, Maine: The Department of Justice’s Office of Violence Against Women (OVW) has awarded over $1 million to the Maine Department of Public Safety to combat violent crimes against women, Acting U.S. Attorney Donald E. Clark announced.
Nationwide, OVW is making 56 awards totaling $153.1 million through the Fiscal Year 2021 STOP (Services, Training, Officers, Prosecutors) Violence Against Women Formula Grant Program.
The STOP Formula Grant Program encourages partnerships between law enforcement, prosecution, courts, and victim services organizations to enhance victim safety and hold offenders accountable in cases of domestic violence, dating violence, sexual assault, and stalking. The goal of the grant program is to develop and strengthen law enforcement, prosecution, and court strategies to combat violent crimes against women and to develop and strengthen victim services, including community-based, culturally specific services, in cases involving domestic violence, dating violence, sexual assault, and stalking. For more information about the STOP Formula Grant Program, please visit this fact sheet.
OVW provides leadership in developing the nation’s capacity to reduce violence through the implementation of the Violence Against Women Act and subsequent legislation. Created in 1995, OVW administers financial and technical assistance to communities across the country that are developing programs, policies and practices aimed at ending domestic violence, dating violence, sexual assault, and stalking. In addition to overseeing federal grant programs, OVW undertakes initiatives in response to special needs identified by communities facing acute challenges. Learn more at www.justice.gov/ovw.
Judge sentences Marston man for being a felon in possession of a firearmRead the Press Release
The United States Attorney's Office announced that MARCO M. DEBOSE, age 39, of Marston, Missouri, was sentenced today to serve 90 months in federal prison following his guilty plea to being a previously convicted felon in possession of a firearm. The sentence was imposed by United States District Judge Rodney W. Sippel at the federal courthouse in Cape Girardeau, Missouri.
According to court documents, law enforcement officials executed a search warrant at Debose’s residence in September 2020. Among other things, officers discovered three firearms and various drug paraphernalia items inside the residence. During a guilty plea hearing earlier this summer, Debose admitted the firearms belonged to him. Debose was prohibited from possessing firearms under federal law because of his previous felony convictions, including convictions for domestic assault and stealing-related offenses. After serving the 90-month sentence, Debose will be placed on supervised release for three years.
This case was investigated by the Southeast Missouri Drug Task Force and the New Madrid County Sheriff’s Department. Assistant United States Attorney Jack Koester handled the prosecution for the government.
Jefferson County Man Sentenced to 8 Months in PrisonRead the Press Release
BIRMINGHAM, Ala. – A Jefferson County man was sentenced today for aiming a laser pointer at an aircraft, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Johnnie Sharp, Jr.
United States District Judge Anna M. Manasco sentenced Gabriel Lopez Mathews, 27, to 8 months in prison for aiming a laser pointer at an aircraft. Mathews pleaded guilty to the charge in April.
On April 11, 2020, the Jefferson County Sheriff’s Office Star One helicopter was assisting the Alabama Law Enforcement Agency in a nighttime operation to recover stolen firearms. While flying below an approach path for the Birmingham-Shuttlesworth International Airport, the helicopter received numerous laser strikes from a residence below. The helicopter’s tactical officer was able to determine the street location of the source of the laser strikes, which was relayed to the Birmingham Police Department. Birmingham officers responded to the scene but could not locate a suspect. However, they gathered information that later assisted the Federal Bureau of Investigation in tracking down Mathews and obtaining a confession.
“Pointing a laser at an aircraft can disorient the pilot and cause the aircraft to crash,” said U.S. Attorney Escalona. “Laser strikes can be deadly, and individuals who put pilots and residents in the path of the aircraft in danger will be prosecuted to the fullest extent of the law.”
“Aiming a laser pointer at an aircraft is a serious matter and a violation of federal law. It is important that people understand that this is a criminal act with potentially deadly repercussions,” SAC Sharp said. “We also want to encourage people to come forward when they see someone committing this felony—one that could have terrible consequences for pilots and their passengers.”
The FBI investigated the case, along with the Jefferson County Sheriff’s Office and the Birmingham Police Department. Assistant U.S. Attorney Alan Baty prosecuted the case.
Inmate who Orchestrated Two Separate Drug Conspiracies from Prison SentencedRead the Press Release
A man who orchestrated two major drug conspiracies while he was an inmate at an Oklahoma Department of Corrections facility was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Tymalk Quane Love, 31, to a total of 10 years in federal prison followed by three years of supervised release. The defendant received five years for drug conspiracy and five years for possession of a firearm in furtherance of a drug trafficking crime, which will be served consecutively.
“Using contraband cell phones, Tymalk Love directed the trafficking of methamphetamine, heroin, and fentanyl from behind prison walls. This lethal drug operation posed a continued threat in our communities but was shut down thanks to the work local, state and federal law enforcement,” said Acting U.S. Attorney Clint Johnson. “The U.S. Attorney’s Office is committed to protecting Oklahomans and stands ready to prosecute any individual, living in our communities or behind bars, who directs the sale of illicit drugs in northern Oklahoma.”
In a written plea agreement, Love admitted that from January 2018 to February 2019, he conspired with Anthony Ward Irving, Casey Joe Eastwood, and others, including a Tulsa “Facilitator,” to distribute and to possess with intent to distribute 500 grams or more of methamphetamine and an unknown quantity of heroin.
While incarcerated, the defendant organized the other members’ activities and coordinated shipments, payments, and the distribution of methamphetamine and heroin. Love did so using contraband cell phones.
Anthony Irving lived in Arizona at the time of the conspiracy and helped provide large quantities of drugs to be redistributed. Casey Eastwood lived in Arkansas and helped redistribute the drugs to end-users. Love coordinated with both men and further instructed a Tulsa Facilitator on when and where to obtain, pay for, and distribute the drugs.
Love also admitted that the Facilitator possessed a firearm to protect the methamphetamine and drug proceeds from possible theft, and that the Facilitator’s gun possession in furtherance of the drug trafficking operation was reasonably foreseeable to him.
Love further admitted that from January to February 2019, he conspired with the same Tulsa Facilitator to distribute and to possess with intent to distribute fentanyl. Love again used contraband cell phones to communicate with the Facilitator from prison about when and in what manner pills laced with fentanyl and shipped from Mexico would be sent to the Facilitator’s house in Tulsa. The fentanyl pills, often referred to as “Mexican Oxys,” are illicitly manufactured in Mexico to look like prescription oxycodone tablets. Users frequently believe they are taking oxycodone or a comparable opioid, but the fentanyl laced pills, which are much stronger than oxycodone, often lead to overdose and death.
Love admitted that the proceeds from his drug conspiracies totaled $201,800.
The Oklahoma Bureau of Narcotics and Dangerous Drugs, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, and Tulsa County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Thomas E. Duncombe and Kevin C. Leitch prosecuted the case.
Havre man sentenced to nine years in prison for receiving child pornographyRead the Press Release
GREAT FALLS — A Havre man who admitted to receiving child pornography on his cell phone was sentenced today to nine years in prison to be followed by eight years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Joshua Daniel Kaupang, 38, pleaded guilty on June 3 to receipt of child pornography.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris also ordered $27,000 restitution to victims.
In court documents filed in the case, the government alleged that in January 2019 in Havre, law enforcement executed a search warrant on Kaupang’s cell phone looking for evidence in a theft case. While searching the phone, agents observed child pornography files. An agent applied for a second search warrant and located child pornography. The investigation determined that Kaupang used his phone to view “sets” of child pornography that were available for download.
Assistant U.S. Attorney Cyndee L. Peterson prosecuted the case, which was investigated by the Internet Crimes Against Children Task Force, the Montana Department of Justice’s Division of Criminal Investigation and the Havre Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Greenbush Man Pleads Guilty to Possessing Short-Barreled ShotgunRead the Press Release
BANGOR, Maine: A Greenbush man pleaded guilty today in federal court to possessing an unregistered firearm, Acting U.S. Attorney Donald E. Clark announced.
According to court records, on November 10, 2019, Lawrence Shirland, 52, was involved in an altercation at his home in Greenbush, during which he fired a warning shot from a sawed-off shotgun. The shot hit a truck windshield. When police arrived, Shirland admitted that he had fired the shotgun and provided it to officers. He explained that he had modified the shotgun himself. Specifically, he cut the barrel with a hack saw, and cut and sanded the stock and wrapped it in tape.
Shirland’s shotgun was not registered to him in the National Firearms Registration and Transfer Record (NFRTR). Federal law prohibits the possession of a weapon made from a shotgun, if the modified weapon has a barrel less than 18 inches in length or an overall length of less than 26 inches, unless that weapon is registered to the possessor in the NFRTR.
Shirland faces up to 10 years in prison and a $250,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Penobscot County Sheriff’s Office investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Grayson County Woman Sentenced to Federal Prison for Possession and Use of Protected Health InformationRead the Press Release
PLANO, Texas – A Denison woman has been sentenced to prison for federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Lydia Henslee, 29, pleaded guilty on March 25, 2021, to conspiring to possess and use means of identification in connection with various offenses and was sentenced to 24 months in federal prison today by U.S. District Judge Sean D. Jordan.
“Not only did the defendants’ actions in this scheme compromise sensitive information, but they also stole the peace of mind of their victims,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s sentence represents the serious consequences of identity theft and should serve as a warning to others who seek to profit from it.”
According to information presented in court, Henslee, Amanda Lowry, and Demetrius Cervantes, were named in a federal indictment on Sept. 11, 2019 charging them with conspiracy to obtain information from a protected computer and conspiracy to unlawfully possess and use a means of identification. They are alleged to have breached a health care provider’s electronic health record (EHR) system in order to steal protected health information and personally identifiable information belonging to patients. This stolen information was then “repackaged” in the form of false and fraudulent physician orders and subsequently sold to durable medical equipment (DME) providers and contractors. The defendants obtained more than $1.4 million in proceeds from the sale of the stolen information. The defendants then used those proceeds to purchase items such as sport utility vehicles, off-road vehicles, and jet skis.
Cervantes was sentenced to 48 months in federal prison on July 8, 2021. Lowry was sentenced to 30 months in federal prison on July 22, 2021.
This case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; U.S. Department of the Treasury, Internal Revenue Service, Criminal Investigation; and the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service. The matter was prosecuted by Assistant U.S. Attorneys Nathaniel Kummerfeld and Adrian Garcia.
Grant County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Wesley Allen Rohrbaugh, of Petersburg, West Virginia, has admitted to a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Rohrbaugh, 47, pleaded guilty today to one count of “Possession with Intent to Distribute of Methamphetamine.” Rohrbaugh admitted to having methamphetamine, also known as “crystal meth” and “ice,” in August 2019 in Grant County.
Rohrbaugh faces up to 20 years of incarceration and fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Grant County Sheriff’s Office investigated.
U.S. Magistrate Judge Michael John Aloi presided.