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3 September 2021
Nigerian National Pleads Guilty to Various Online Fraud SchemesRead the Press Release
BOSTON – A Nigerian national residing in Boston pleaded guilty on Wednesday, Sept. 1, 2021 to his role in online fraud schemes.
Macpherson Osemwegie, 32, pleaded guilty to one count of conspiracy to commit bank and wire fraud before U.S. District Court Judge Denise J. Casper, who scheduled sentencing for Jan. 27, 2022. Osemwegie was charged on July 26, 2021.
Osemwegie conspired with others to participate in a series of romance and other online scams designed to defraud victims into sending money to accounts and debit cards that Osemwegie and others controlled. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim.
To carry out the schemes, Osemwegie and his co-conspirators used false foreign passports in others’ names to open numerous bank accounts, and in turn directed the victims to send money to these accounts.
The charge of conspiracy to commit bank and wire fraud provides for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, restitution and forfeiture. 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; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement. Assistant U.S. Attorneys Sara Miron Bloom and Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit are prosecuting the case.
New Haven Man Pleads Guilty to Federal Firearm OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that TERRENCE COLEMAN, 20, of New Haven, pleaded guilty today in New Haven federal court to a firearm offense.
According to court documents and statements made in court, in September 2020, Coleman, an habitual user of marijuana, possessed a Beretta .22 caliber pistol, which he subsequently traded to another individual in exchange for marijuana.
Coleman, who was arrested on April 16, 2021, pleaded guilty to possession of a firearm by an individual who is an unlawful user of or addicted to a controlled substance.
Coleman is scheduled to be sentenced by U.S. District Judge Janet C. Hall on November 29, 2021, at which time he faces a maximum term of imprisonment of 10 years. He is released on a $10,000 bond pending sentencing.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case is being prosecuted by Assistant U.S. Attorneys Natasha M. Freismuth and Konstantin Lantsman.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Monessen, PA Man Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A resident of Monessen, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on federal narcotics and firearms charges, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on August 25 and unsealed today, named Byron McCrae, age 32, as the sole defendant.
According to Count One of the Indictment, on or about March 3, 2021, McCrae possessed with the intent to distribute 500 grams or more of cocaine and 28 grams or more of cocaine base, in the form commonly known as crack. On or about that same date, McCrae also possessed a firearm and ammunition as a convicted felon (Count Three) and in furtherance of a drug trafficking crime (Count Two).
As to Count 1, the law provides for a minimum of five and up to 40 years in prison, a fine of $5,000,000 or both. The maximum sentence for Count 2 is at least five years and up to life in prison and a fine of up to $250,000. As to Count 3, the minimum sentence is 15 years in prison up to life and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Milwaukee Area Community Support Program Facilities Agree to Pay $390,080 to Resolve False Claims Act AllegationsRead the Press Release
Acting United States Attorney Richard Frohling announced today that Bell Therapy, Inc., and its parent company, Phoenix Care Systems, Inc., agreed to pay $390,080 to resolve allegations that they billed for services at the incorrect rates and billed for services not properly reimbursed, causing false claims for those services to be submitted to the Medicaid Program.
Bell Therapy operated two facilities in the Milwaukee area licensed to administer Community Support Programs (CSPs). CSPs provide services to mentally ill individuals in Wisconsin and are supported by state and federal Medicaid funds. The settlement resolves allegations that Bell Therapy fraudulently submitted claims for services rendered by providers without the requisite credentials or qualifications and/or at an incorrect billing rate as well as claims for group services billed as individual services. It also resolves allegations that Bell Therapy providers improperly billed for non-face-to-face activities.
“The U.S. Attorney’s Office prioritizes efforts to stop healthcare fraud and seeks to protect health care program beneficiaries and the American taxpayers,” said Acting United States Richard Frohling. “This settlement demonstrates our continuing efforts to combat violations of the False Claims Act.”
“Medical providers must ensure that the services they provide and bill for are conducted by personnel with appropriate credentials and qualifications and accurately reflect the service that is actually provided,” said Lamont Pugh III, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG will continue to identify and investigate allegations of potential fraudulent billing to the Medicaid program in order to protect the health and safety of patients and vital taxpayer dollars.”
The settlement resolves a lawsuit filed under the whistleblower provision of the False Claims Act, which permits private parties to file suit on behalf of the United States. Accordingly, the whistleblower will receive a share of the settlement proceeds.
Assistant United States Attorney Lisa Yun represented the government in this matter. The U.S. Department of Health and Human Services Office of Inspector General assisted in the investigation. The claims resolved by the settlement are allegations only; Bell Therapy and Phoenix Care Systems do not admit liability for the allegations.
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For further information contact:
Public Information Officer Kenneth Gales
414-297-1700
Mexican National Who Allegedly Headed International Cocaine Trafficking Organization Extradited from MexicoRead the Press Release
LOS ANGELES – The Mexican leader of a transnational drug trafficking organization arrived here this afternoon after being extradited from Mexico to face federal charges that he conspired to transport cocaine worth hundreds of millions of dollars from South America to the United States.
Angel Humberto Chavez-Gastelum, 47, who was initially arrested by Mexican authorities in November 2018 in Querétaro, Mexico, is scheduled to be arraigned Tuesday afternoon on charges contained in a 22-count indictment that accuses him of being the principal manager of a narcotics enterprise.
Chavez-Gastelum – who has been designated by the United States government as one of the world’s most-wanted drug traffickers – allegedly controlled a drug distribution network with supply routes that brought cocaine from Colombia into Central America, then to Mexico, with a final destination of the United States. During the investigation into the organization, law enforcement authorities around the world seized approximately 7,700 pounds of cocaine, with a potential U.S. street value of $500 million.
The indictment charges Chavez-Gastelum with 12 offenses, including drug trafficking, drug importation and money laundering. He is also charged with being the principal leader of a continuing criminal enterprise, an offense that carries a mandatory sentence of life in federal prison.
Chavez-Gastelum is also charged with two murders on July 7, 2017, committed in connection with the alleged continuing criminal enterprise and related drug offenses.
The investigation in this case has led to the arrests of co-conspirators on three continents. The alleged Colombian leader of the organization, Victor Hugo Cuellar-Silva, was captured and extradited to the United States in September 2018.
Chavez-Gastelum is the lead defendant in the indictment that charges a total of 47 defendants. With Chavez-Gastelum’s expected court appearance, a total of 22 defendants will have been arraigned in this case. A trial in this case was previously scheduled for March 15, 2022.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proved guilty in court.
This indictment is the result of a coordinated effort of multiple law enforcement agencies, including the Drug Enforcement Administration, Homeland Security Investigations and IRS Criminal Investigation.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF. The Justice Department’s Office of International Affairs of the Department’s Criminal Division provided substantial assistance in this matter.
Assistant United States Attorneys Brittney M. Harris, J. Mark Childs, Matthew J. Rosenbaum, and Jehan M. Pernas of the International Narcotics, Money Laundering, and Racketeering Section are prosecuting this case.
Mexican National Sentenced for Trafficking in WildlifeRead the Press Release
A citizen of Mexico was sentenced today to three years in prison to be followed by three years of supervised release for his role in a conspiracy to smuggle protected reptiles from Mexico to the United States.
According to court documents, Jorge Alonso Gutierrez pleaded guilty on April 28 to a two-count information charging him with one count of conspiracy to traffic wildlife and one count of smuggling. Gutierrez admitted to being part of a conspiracy to smuggle wildlife from Mexico into the United States via El Paso, Texas. The reptiles included a Central American river turtle (Dermatemys mawaii), a species that is protected under the Convention on International Trade in Endangered Species (CITES) and is also listed as endangered under the Endangered Species Act.
Gutierrez was the middleman between several Mexico-based suppliers of wildlife and their U.S.-based customers. Gutierrez’s role as middleman was to coordinate and receive wildlife at the Jaurez, Mexico airport and deliver them to a co-conspirator in Juarez who smuggled them in his car into the United States through an El Paso border crossing. Once in the United States, the wildlife was shipped via Fed Ex or U.S. Postal Service to U.S.-based customers. On many occasions, animals died during transport.
Between April 2015 and February 2020, Gutierrez either illegally transported or caused to be illegally transported wildlife across the U.S.-Mexico border with a market value in excess of $3,500,000. Gutierrez was paid by Mexican suppliers to facilitate the smuggling of wildlife into the United States.
On Sept. 22, 2016, Gutierrez received wildlife from the Juarez airport and transported and delivered the wildlife to a co-conspirator who smuggled the wildlife into the United States and an El Paso, Texas, border crossing. The wildlife was ultimately repackaged and sent by Fed-Ex to buyers in the United States. Neither Guiterrez nor the co-conspirator had a CITES import permit for any of the smuggled animals, nor were permits issued in the name of any of the suppliers.
The sentencing was announced by Assistant Attorney General Todd Kim for the Environment and Natural Resources Division and Assistant Director for Law Enforcement Edward Grace of the U.S. Fish and Wildlife Service (USFWS).
The investigation was handled by the U.S. Fish & Wildlife Service’s Office of Law Enforcement, and the Environmental and Natural Resources Division’s Environmental Crimes Section. The government is represented by Trial Attorneys Mary Dee Carraway and Gary Donner of the Justice Department’s Environmental Crimes Section of the Environment and Natural Resources Division.
Mescalero man charged with federal firearms violationRead the Press Release
ALBUQUERQUE, N.M. – Wallace Reid Rice, 29, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, appeared in federal court today for a preliminary hearing where he was charged with being a felon in possession of a firearm and ammunition. Rice will remain detained pending trial.
According to a criminal complaint, on July 25, Rice allegedly was found in possession of a loaded 9mm handgun on the Mescalero Apache Reservation. In 2016, Rice was convicted of possession with intent to distribute a substance containing methamphetamine. As a previously convicted felon, Rice cannot legally possess a firearm or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Rice faces up to 10 years in prison.
The Mescalero Agency of the Bureau of Indian Affairs is investigating this case with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Matilda McCarthy Villalobos is prosecuting the case.
Martinsville Man Sentenced on Child Pornography Charges, Possession of a Firearm by a Convicted FelonRead the Press Release
DANVILLE, Va. – A Martinsville, Virginia man was sentenced last month to 140 months in prison for possessing child pornography and possessing a firearm after having been previously convicted of a felony.
According to court documents, Terrance Antwain Penn, 38, came to the attention of law enforcement in December 2019 after a minor female reported having sexual contact with him on several occasions. The minor told police Penn used a phone to record this sexual activity and provided descriptions of two cell phones Penn possessed.
On December 7, 2019, authorities initiated a traffic stop on a car being driven by Penn. A subsequent search of the vehicle revealed two cell phones matching the descriptions given by the minor, as well as a loaded Taurus, model G2C, 9mm semi-automatic pistol in the center counsel.
Investigators obtained search warrants for Penn’s phones, which contained videos of the defendant having sexual contact with the minor female.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia and Special Agent in Charge Charlie J. Patterson for the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) made the announcement.
The investigation of the case was conducted by ATF, with the assistance of Homeland Security Investigations and the Martinsville Police Department. Assistant U.S. Attorney Kristin B. Johnson prosecuted the case for the United States.
Marine Corps Colonel Pleads Guilty in International Navy Bribery and Fraud ScandalRead the Press Release
SAN DIEGO – U.S. Marine Corps Colonel Enrico DeGuzman pleaded guilty to a bribery charge today, admitting that he accepted more than $67,000 in extravagant meals, drinks, entertainment and hotel stays in Hong Kong, Singapore, and Tokyo from foreign defense contractor Leonard Glenn Francis.
DeGuzman admitted that in return for this and other things of value, he corruptly used his official position to assist Francis, the owner and CEO of Singapore-based Glenn Defense Marine Asia, a ship husbanding company that serviced U.S. Navy ships in the Asia Pacific region. DeGuzman admitted that he endeavored to influence Navy ships into ports serviced by GDMA; he shared confidential Navy information with Francis in order to help GDMA; and he helped with evaluating and indoctrinating potential new Navy members into Francis’s cabal.
In one instance, DeGuzman joined Francis and others for a $40,000 meal that featured foie gras terrine, duck leg confit, ox-tail soup, and roasted Chilean sea bass, paired with expensive wine and champagne, followed by digestifs, cigars and overnights at the Shangri La - all at Francis’s expense.
DeGuzman was one of nine members of the U.S. Navy’s Seventh Fleet indicted by a federal grand jury in March 2017 for conspiring with Francis and for receiving bribes. DeGuzman is the second of the Seventh Fleet defendants to plead guilty. The trial of the remaining defendants was scheduled to begin November 1, 2021, but yesterday it was postponed until February 7, 2022. The remaining defendants - who are accused of trading military secrets and substantial influence for sex parties with prostitutes and luxurious dinners and travel - include U.S. Navy Rear Admiral Bruce Loveless; Captains David Newland, James Dolan, Donald Hornbeck and David Lausman; Commander Stephen Shedd; and Commander Mario Herrera.
The overarching fraud and bribery case has resulted in federal criminal charges against 34 U.S. Navy officials, defense contractors and the GDMA corporation. So far, 27 of those have pleaded guilty, admitting collectively that they accepted millions of dollars in luxury travel and accommodations, meals, or services of prostitutes, among many other things of value, from Francis in exchange for helping GDMA win and maintain contracts and overbill the Navy by over $35 million.
DeGuzman served on the Seventh Fleet Staff as the Fleet Marine Officer from July 2004 to July 2007. In this role, DeGuzman was responsible for coordinating the mission of the U.S. Marine Corps within the Seventh Fleet area of responsibility. From July 2007 to January 1, 2011, DeGuzman served as the Assistant Chief of Staff of Operations for U.S. Marine Corps Forces, Pacific, and thereafter, DeGuzman served in a civilian capacity as the Deputy Chief of Staff of Operations for U.S. Marine Corps Forces, Pacific.
The U.S. Navy’s Seventh Fleet represents a vital piece of the United States military’s projection of power as well as American foreign policy and national security. The largest numbered fleet in the U.S. Navy, the Seventh Fleet is comprised of 60-70 ships, 200-300 aircraft and approximately 40,000 Sailors and Marines. The Seventh Fleet is responsible for U.S. Navy ships and subordinate commands that operate in the Western Pacific throughout Southeast Asia, Pacific Islands, Australia, and Russia and the Indian Ocean territories, as well ships and personnel from other U.S. Navy Fleets that enter the Seventh Fleet’s area of responsibility.
“With every extravagant meal, Enrico DeGuzman violated his duty to serve the United States with honor and integrity,” said Acting U.S. Attorney Randy Grossman. “Today those choices have caught up to him, and he has been held accountable.” Grossman commended the federal prosecutors and agents who diligently pursued this case.
“Mr. DeGuzman knowingly misused his position of trust as a senior U.S. Marine Corps officer to actively work with, and advocate for, a corrupt U.S. Navy contractor, while expecting and receiving lavish gifts in return, all at the expense of the U.S. Navy and the national security interests of the United States,” said Kelly P. Mayo, the Director of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS). “As this case underscores, DCIS will work tirelessly with its partners to root out corruption within the Department of Defense and its components in order to maintain the trust, faith, and precious resources of the American taxpayer.”
“Colonel DeGuzman put his personal interests ahead of protecting the nation,” said NCIS Director Omar Lopez. “NCIS and our law enforcement partners will continue to aggressively pursue any act of bribery and corruption involving Mr. Francis and GDMA or otherwise as these reprehensible acts diminish the operational readiness of the fleet and warfighter superiority of the USMC and U.S. Navy.”
According to his plea agreement, DeGuzman admitted to receiving the following bribes from Francis:
- On February 17, 2006, during the U.S.S. Blue Ridge's port visit to Hong Kong, DeGuzman and others dined and drank at Francis’s expense at the Petrus Restaurant at a cost of more than $20,000. To conceal and cover up their corrupt relationship, Francis created fraudulent receipts for the Petrus dinner that DeGuzman knew represented a small fraction of the actual cost of the dinner. While in Hong Kong, DeGuzman and others also stayed at the Shangri-La Hotel paid for, in part, by Francis.
- On March 9, 2006, during the U.S.S. Blue Ridge’s port visit to Singapore, DeGuzman and others dined with Francis at the Jaan Restaurant in Singapore. Prior to dinner, DeGuzman and others enjoyed entertainment and cocktails on the exclusive rooftop helipad. At dinner, enjoyed foie gras terrine, duck leg confit, ox-tail soup, and roasted Chilean sea bass, paired with expensive wine and champagne, followed by digestifs and cigars. The estimated cost to Francis was $40,000.
- On September 9, 2006, DeGuzman and others dined at Francis's expense at the New York Grill in Tokyo, Japan, and stayed at Francis's expense at the Park Hyatt Hotel, all at a total cost to Francis of approximately $30,000.
- During the U.S.S. Blue Ridge's port visit to Singapore from about February 22-27, 2007, Francis paid for the hotel expenses for DeGuzman and others at the Shangri-La Hotel, Singapore at a total cost to Francis of approximately $50,000. As part of this port visit, DeGuzman and others dined with Francis at Francis's expense on multiple occasions, including at the Blu Restaurant within the Shangri-La Hotel, and at the Jaan Restaurant atop the Shangri-La Hotel.
- On March 24, 2007, DeGuzman and others attended a multi-course dinner hosted by Francis at the Oak Door in Tokyo, Japan, during which was served, at Francis's expense, foie gras, Lobster Thermidor, and Sendai Tenderloin, and for dessert, “Liberté Sauvage,” the winning cake of the 10th Coupe du Monde de la Patisserie 2007, followed by cognac and cigars. During the event, the attendees posed for a photograph wearing custom-made GDMA neckties.
In a moment of candor encapsulating these corrupt relationships, just before DeGuzman departed Seventh Fleet assignment, he warned Francis in an email dated July 7 2007, “[U]nfortunately, I don't think I'll be able to influence people [in my next assignment] like I did there at 7th Fleet.”
DEFENDANT Case Number: 17-CR-0623-JLS
Enrico DeGuzman Age: 63 Las Vegas, Nevada
SUMMARY OF CHARGES
Bribery of a Public Official, in violation of 18 U.S.C. § 201(b)(2)
Maximum Penalty: Fifteen years in prison, $250,000 fine
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Lockport Man Pleads Guilty to Cocaine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Robert Jones, 48, of Lockport, NY, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to possessing with intent to distribute cocaine. The charge carries carry a maximum penalty of 20 years in prison.
Assistant U.S. Attorney Joshua A. Violanti, who is handling the case, stated that on November 29 and December 20, 2017, the Drug Enforcement Administration conducted controlled purchases of cocaine from the defendant. On February 23, 2018, investigators executed a search warrant at Jones’ Gooding Avenue residence and recovered a box of sandwich bags consistent with narcotics distribution, plastic bags containing cocaine residue, three digital scales containing cocaine residue, 207 grams of cocaine, approximately 33 grams of marijuana, and $12,000 in United States currency.
The plea is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
Sentencing is scheduled for January 18, 2022, before Judge Vilardo.
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Las Vegas Business Owner Sentenced to 12 Years in Federal Prison for Participation in Multi-Million Dollar Fraud Upon the North Carolina MedicaidRead the Press Release
WILMINGTON, N.C. – Timothy Mark Harron, a Las Vegas resident, was sentenced today to 144 months in federal prison and ordered to pay $4,321,590.39 in restitution to the North Carolina Medicaid Program on charges of Conspiracy to Commit Health Care Fraud and Wire Fraud, in violation of Title 18, United States Code, Section 1349; Aggravated Identity Theft, in violation of Title 18, United States Code, Section 1028A; and Conspiracy to Commit Money Laundering, in violation of Title 18, United States Code, Section 1956(h). The court also sentenced Harron to forfeit various assets as a part of his case. Court documents reflect that forfeitable items include up to $13,396,921.64 in cash, a British Aerospace Bae 125-800A Aircraft, a 2017 Aston Martin DB 11 sports car; a 2016 Ford F-150 Super-Crew pickup truck; real property held in the name of Assured Healthcare Systems in Hertford County, North Carolina; as well as various other items of designer jewelry and luxury items seized from the defendant’s penthouse condominium in Las Vegas.
According to court documents, Timothy Mark Harron, 52, of Las Vegas, Nevada, admitted to conspiring with his wife, Latisha Harron, to carry out a massive fraud upon the North Carolina Medicaid Program (“NC Medicaid”) by billing the government for fictitious home health services. Harron admitted to working with his wife to launder the proceeds of the fraud into, among other things, a private jet, luxury jewelry and clothing, and properties in Ahoskie and Rich Square, North Carolina.
According to the charges, Latisha Harron created, and was operating, Agape Healthcare Systems, Inc. (“Agape”) a Medicaid home health provider, in Roanoke Rapids, North Carolina. As charged, to enroll Agape as a Medicaid provider, Latisha Harron fraudulently concealed her prior felony conviction for Identity Theft. In 2012, she moved out of North Carolina to Maryland. Despite that move, Latisha Harron continued to bill NC Medicaid as though Agape was providing home health services to North Carolina recipients.
In May of 2017, Latisha Harron moved to Las Vegas, Nevada to live with Harron, and the two were married in 2018. Together they formed Assured Health Care Systems (“Assured”), a company purportedly operated by Harron, its president. Although Harron publicly portrayed Assured as a successful healthcare company, in reality it was funded entirely by Agape’s fraudulent Medicaid claims. The indictment alleges that the Harrons also registered Assured as a Medicaid provider. In so doing, it is charged that Harron’s own prior felony fraud conviction was concealed from the NC Medicaid on enrollment documents. Harron and his wife worked together to expand the Agape fraud upon NC Medicaid -- fraudulently billing the program for more than $10 million, just in the period between 2017 and 2019.
Harron admitted that he and his wife carried out the fraud by exploiting an eligibility tool that was entrusted only to NC Medicaid providers. Specifically, Harron and his wife searched publicly available sources, such as obituary postings on the internet by North Carolina funeral homes, to locate recently deceased North Carolinians. Harron admitted that the two would then extract from the obituary postings certain personal information for the deceased, including their name, date of birth, and date of death. Then, utilizing the extracted information, the defendants would then query the NC Medicaid eligibility tool to determine whether the deceased individual had a Medicaid Identification Number. If the deceased North Carolinian had a valid Medicaid Identification Number and was otherwise eligible for Medicaid coverage during their life, the defendants would use that individual’s identity to “back-bill” NC Medicaid, through Agape, for up to one year of fictitious home health services that were allegedly rendered prior to the death of the individual. NC Medicaid then disbursed millions to Agape, all of which flowed into accounts controlled by Harron and her husband.
Harron admitted that he and his wife carried out the fraud via the internet from locations around the globe, including their corporate office building in Las Vegas, their penthouse condominium in Las Vegas, a corporate office in North Carolina, and from various hotels and luxury resorts in and outside of the United States.
Harron further pled guilty to conspiring with his wife to launder the proceeds of the Agape fraud, often through Assured’s bank accounts, into various luxury items. These expenses included a $900,000 wire for the purchase of a British Aerospace Bae 125-800A private jet, hundreds of thousands of dollars in Tiffany & Co. and Brioni clothing and jewelry, thousands of dollars on Eastern North Carolina business properties, and thousands of dollars in gym equipment.
On May 18, 2021, Latisha Harron was sentenced to 14 years in federal prison for her role in the fraud.
Acting United States Attorney G. Norman Acker, III stated, “This case is purely about greed and an insatiable desire to live a life of luxury. Stealing millions from Medicaid through lies, the defendant and his wife achieved their life of luxury – at least for a while. But there is a serious price to be paid when you purchase your private jet, resort stays, jewelry, and fine dining on the backs of the poorest and most vulnerable in our society. The defendant and his wife will pay that price by spending more than a decade of their lives in prison. I wish to thank our many state and federal counterparts in Las Vegas and beyond for their work in bringing these partners in crime to justice.”
The Harrons targeted the Medicaid program in North Carolina which the most vulnerable North Carolinians depend on in their time of need.” Said FBI Special Agent in Charge Robert R. Wells. “Our agents and law enforcement partners stand ready to work together to make sure those who attack the most vulnerable pay greatly for their crimes.”
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina, made the announcement after U.S. District Judge Richard E. Myers II announced the sentence. The Federal Bureau of Investigation, the United States Department of Health and Human Services Office of the Inspector General, the Internal Revenue Service Criminal Investigation, and the North Carolina Attorney General’s Office Medicaid Investigations Division, all investigated the case. Assistant U.S. Attorney William M. Gilmore served as the prosecutor. Assistant U.S. Attorney John Harris represented the United States with respect to forfeiture aspects of the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-cr-00005-M.
Justice Department Settles Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in PennsylvaniaRead the Press Release
PITTSBURGH - The Justice Department announced today that it has reached an agreement to resolve a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.
Under the consent decree, which still must be approved by the U.S. District Court for the Western District of Pennsylvania, defendants are required to pay a total of $13,000 in monetary damages to the woman who was harmed as a result of the sexual harassment. The consent decree also bars future discrimination, prevents Allen Woodcock from participating in the rental or management of residential properties in the future, mandates Fair Housing Act training and requires monitoring and reporting regarding property management activities and compliance with the terms of the consent decree.
“This resolution demonstrates the commitment of our office to swiftly enforce the Fair Housing Act, especially when it comes to discrimination in housing,” said Acting U.S. Attorney Steve Kaufman. “Sexual harassment in housing will not be tolerated.”
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers, or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 22 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination should call the Justice Department’s Housing Discrimination Tip Line at 1-833-591-0291, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting the Department of Housing and Urban Development at 1-800-669-9777 or by filing a HUD complaint online.
Inmate Sentenced for Possessing Weapon at FCI BeckleyRead the Press Release
BECKLEY, W.Va. - An inmate at the Federal Correctional Institution (FCI) at Beckley was sentenced today for possessing a weapon at the correctional facility. Jerry Stewart, 31, was sentenced to 18 months in prison, which will run consecutively to the sentence he currently is serving.
According to court documents, Stewart possessed a handcrafted weapon, commonly referred to as a “shank,” on February 13, 2020, while an inmate at the FCI Beckley. A staff member recovered the weapon after seeing Stewart place the shank on the ground in the compound at the prison after an incident with another inmate. The weapon was a piece of metal about six inches long, sharpened to a point on one end with a cloth handle on the other end.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Prisons. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
United States District Judge Frank W. Volk imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:20-cr-00204.
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Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on Sept. 2 was:
Rachell Sheree Abbott, 34, of Great Falls, on charges of conspiracy to commit wire fraud, wire fraud and aggravated identity theft. If convicted of the most serious crime, Abbott faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the fraud crimes and a mandatory minimum two years in prison, a $250,000 fine and one year of supervised release consecutive to any other sentence on the aggravated identity theft crime. Abbott was detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-58.
Kent James Fox, 48, of Great Falls, conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, distribution of controlled substances resulting in death and drug user in possession of firearms and ammunition. If convicted of the most serious crime, Fox faces a mandatory minimum 20 years to life in prison, a $1 million fine and three years of supervised release. Fox was detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-63.
Brandie Rae Fulbright, 39, of Great Falls, on charges of conspiracy to distribute and possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and distribution of controlled substances resulting in death. If convicted of the most serious crime, Fulbright faces a mandatory minimum 20 years to life in prison, a $1 million fine and three years of supervised release. Fulbright was detained pending further proceedings. The FBI and Great Falls Police Department investigated the case. PACER case reference. 21-63.
Appearing on Aug. 31 was:
David Jay Pando, 33, of Glendive, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances, conspiracy involving firearm and drug trafficking crime and using and carrying a firearm during and in relation to a drug trafficking offense. If convicted of the most serious crime, Pando faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release on the drug crime and a mandatory minimum five years in prison, a $250,000 fine and three years of supervised release on the firearms crime. Pando was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives, Great Falls Police Department, Cascade County Sheriff’s Office, Teton County Sheriff’s Office and Montana Highway Patrol investigated the case. PACER case reference. 21-55.
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on
Sept. 3 was:
John Michael Perault, 48, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Perault faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Perault was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-62.
Appearing on Sept. 2 was:
Nicole Marie Bezjon, 42, a transient, on charges of conspiracy to possess with intent to distribute meth, possession with intent to distribute meth and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Bezjon faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison, a $250,000 fine and at least five years of supervised release on the firearms count. Bezjon was detained pending further proceedings. The Eastern Montana High Intensity Drug Trafficking Area Task Force investigated the case. PACER case reference. 21-57.
Mark Jay Albrecht, 64, of Gillette, Wyoming, on charges of false statement. If convicted of the most serious crime, Albrecht faces a maximum five years in prison, a $250,000 fine and three years of supervised release. Albrecht was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-41.
Dakota James Calendrillo, 30, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Calendrillo faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Calendrillo was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-48.
Appearing on Aug. 31 was:
Brian Pretty Weasel, 31, of Crow Agency, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Pretty Weasel faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Pretty Weasel was detained pending further proceedings. The FBI and Bureau of Indian Affairs investigated the case. PACER case reference. 21-63.
Amir Burhan Mallak, 41, of Billings, on charges of possession with intent to distribute controlled substances, distribution of controlled substances, prohibited person in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious crime, Mallak faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release on the drug crime and a mandatory minimum five years to life in prison consecutive to any other sentence, a $250,000 fine and five years of supervised release on possessing a firearm in furtherance of a drug trafficking crime. Mallak was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-53.
Appearing in Missoula before U.S. Magistrate Judge Kathleen L. DeSoto and pleading not guilty on Aug. 30 was:
Tina Rae Wood, 49, of Thompson Falls, on charges of wire fraud and aggravated identity theft. If convicted of the most serious crime, Wood faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release. Wood was released pending further proceedings. The FBI investigated the case. PACER case reference. 21-31.
Noah Alexander Van Pelt, 28, of Missoula, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Van Pelt faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Van Pelt was released pending further proceedings. The Missoula Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-34.
Andrew David Golie, 34, of Hamilton, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Golie faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Golie was detained pending further proceedings. The FBI, FBI’s Safe Streets Task Force, Bureau of Alcohol, Tobacco, Firearms and Explosives and Missoula Police Department investigated the case. PACER case reference. 21-27.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Glen Burnie Man Sentenced for Federal Charge of False Personation of a U.S. MarshalRead the Press Release
Baltimore, Maryland – U.S. District Judge Catherine C. Blake today sentenced Renul Forbes a/k/a “Michael Renul,”, age 32, of Glen Burnie, Maryland, to 12 months of home confinement as part of three years of probation for false personation of a U.S. Marshal, an officer of the United States. Judge Blake also ordered Forbes to perform 100 hours of community service.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; U.S. Marshal for the District of Maryland Johnny Hughes; and Chief Amal Awad of the Anne Arundel County Police Department (AAPD).
According to his guilty plea, from January 2019 to September 26, 2020, Forbes falsely pretended to be a “Supervisory Deputy” of the United States Marshals Service and possessed a fraudulent seal of the United States Marshals Service.
“Members of our Maryland law enforcement community serve a critical role when it comes to public safety and community relations,” said Acting U.S. Attorney Jonathan Lenzner. By impersonating a federal agent, Renul Forbes not only deceived the public, he also undermined the credibility of the many legitimate law enforcement personnel who diligently and bravely serve their communities throughout the state.”
As detailed in his plea agreement, on September 26, 2020, an Anne Arundel County police officer witnessed Forbes arrive at a Glen Burnie retail store in a vehicle equipped with police lights. Forbes was carrying a firearm on his hip.
Shortly after Forbes exited his vehicle, Forbes approached the AAPD officer and asked whether he worked in the Northern District of the Anne Arundel County Police Department and whether he knew a particular police officer, who Forbes identified by name.
While Forbes entered the store, the AAPD officer determined that the rear tag affixed to Forbes’s vehicle belonged to a different vehicle, the windows were tinted, and the vehicle lacked a front tag. The AAPD officer subsequently asked Forbes to identify himself. Forbes provided a false name and refused to present an official driver’s license telling the officer that he was “not qualified” to ask for Forbes’ credentials. Forbes not only possessed a fraudulent U.S. Marshals badge pinned to his belt next to his firearm, but also possessed two magazines in a magazine carrier on the right side of his waist.
Forbes attempted to avoid identification by claiming to be a U.S. Marshal working out of Greenbelt and provided the name and contact information of a purported U.S. Marshals Service supervisor. In fact, that individual was not a U.S. Marshal. Officers later contacted a legitimate U.S. Marshals Service Supervisory Deputy who confirmed that Forbes was not employed with the U.S. Marshals Service in any capacity and that the badge Forbes possessed was not a legitimate badge or seal of the U.S. Marshals Service.
A search of Forbes’s person revealed that he carried three loaded magazines, with several rounds each, and a black Glock-style airsoft gun. Additionally, Forbes’s vehicle was equipped with three USB powered red and blue police lights that were controlled by a control panel on the driver’s seat visor. Within a brown backpack located in the vehicle, authorities discovered loose ammunition and a handgun that was not registered to Forbes. Furthermore, a search of the vehicle’s VIN number was determined to be associated with a New Jersey tag, which was located in the trunk of the vehicle.
Officers contacted the registered owner of the handgun and discovered the owner met with Forbes on several occasions. The registered handgun owner believed Forbes was a legitimate U.S. Marshal as he openly carried a firearm and a U.S. Marshals badge.
As detailed in his plea agreement, it was later determined that Forbes had previously identified himself as a U.S. Marshal to another Anne Arundel County police officer within a text message and in person on multiple occasions, in order to obtain information about police responses to his apartment complex, as well as the Anne Arundel County Police Department in general. Forbes also falsely claimed to be a U.S. Marshal to a Metropolitan police officer in order to learn about rules and regulations, policy and discipline within the police department.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, U.S. Marshals Service, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary W. Setzer who prosecuted the case.
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Galesburg Area Man Sentenced to 20 Years in Prison for Possession of Controlled Substance with Intent to DistributeRead the Press Release
ROCK ISLAND, Ill. – A Galesburg, Illinois, man, Forest “Woody” Norville, 47, was sentenced to twenty years in prison, to be followed by five years of supervised release, on August 10, 2021, for possession with intent to deliver methamphetamine.
On March 31, 2021, a federal jury found Norville guilty of possession with intent to deliver at least 50 grams of methamphetamine. The evidence at trial and during his recent sentencing hearing showed that while conducting a traffic stop on April 17, 2019, Galesburg Police officers found Norville with two vacuum sealed bags containing 106.2 grams of pure methamphetamine. At the sentencing hearing, U.S. District Judge Sara Darrow noted that Norville, who has previous convictions for burglary and other drug-related offenses, also committed perjury during the trial.
“Methamphetamine distribution and use continues to plague our community,” said Acting U.S. Attorney Douglas J. Quivey. “The United States Attorney’s office, in close collaboration with our State’s Attorney partners, will continue to work with local, state, and federal law enforcement partners to investigate and prosecute large-scale dealers. The sentence imposed by Judge Darrow sends another strong message that methamphetamine dealers will pay a stiff price for the harm they cause.”
The investigation was conducted by the Galesburg Police Department. Valuable assistance was provided by the Knox County Sherriff’s Office and the Drug Enforcement Administration. Assistant U.S. Attorneys Jennifer Mathew and Alyssa Raya represented the government.
Gainesville Man Sentenced to 40 Years in Federal Prison for Production, Receiving, and Possessing Child PornographyRead the Press Release
GAINESVILLE, FLORIDA – John Ernst Tennant, Jr., 71, of Gainesville, Florida, was sentenced Wednesday to 480 months in federal prison for production, receipt, and possession of child pornography. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Tennant’s sentence was the result of a federal jury returning a guilty verdict on June 3, 2021, finding Tennant guilty of production, receipt, and possession of child pornography.
“The Court’s sentence ensures that this defendant will never harm another child and should serve as a significant deterrent to others who would attempt to prey upon our most vulnerable,” stated Acting U.S. Attorney Coody. “Acts of such depravity, committed by a caregiver, are both horrific and incomprehensible. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who engage in such heinous conduct.”
The sentencing court described the crimes as “horrific,” and further stated “too many people are doing these things.” The evidence showed that Tennant sexually victimized toddlers left in his care at a daycare run by his wife in Gainesville, Florida. Tennant photographed the abuse of the children and maintained a large secret collection of child pornography.
The Gainesville Police Department recognizes that child exploitation is the most heinous of crimes that could be committed. “These predators, such as John Tennant, Jr., seek out and perpetrate on the most vulnerable, our children,” said Gainesville Police Chief Tony Jones. “Our detectives, and specifically our ICAC unit, work tirelessly and endure a great deal to ensure that our children are safe from predators like these. We are pleased with today’s conclusion but understand that there are many more out there which we will continue to pursue.”
“This case once again demonstrates the FBI's commitment to pursue those who seek to exploit innocent children,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Together with our law enforcement partners, we will not waver in our efforts to identify these predators and seek justice for their victims.”
Tennant’s prison sentence will be followed by a lifetime of supervised release. He will also be required to register as a sex offender and will be subject to all sex offender conditions.
The case was investigated by the Gainesville Police Department, North Florida Internet Crimes Against Children Taskforce, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorney Frank Williams.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Four Previously Deported Aliens Charged with Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that four previously deported aliens were indicted separately on September 1, 2021, by a federal grand jury for illegal reentry into the United States. These matters arose in counties throughout the District including Dauphin, Franklin, and Lackawanna.
According to Acting United States Attorney Bruce D. Brandler, Luis Mizhirumbay-Taquiri, age 42, was previously deported from the United States to Ecuador in June 2019. He is alleged to have illegally reentered the United States again sometime after June 2019 and was found in the United States in Lackawanna County, Pennsylvania after eluding examination or inspection by immigration officers.
Edwin Jeovany Sanchez-Ordonez, age 37, of Honduras, was charged by a federal grand jury with illegal re-entry into the United States by a previously deported alien. Sanchez-Ordonez was previously deported from the United States to Honduras in June 2014. He is alleged to have illegally reentered the United States again sometime after June 2014 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Hector Bienvenido Amador-Medina, age 34, was indicted by a federal grand jury with illegal re-entry into the United States by a previously deported alien. Amador-Medina was previously deported from the United States to the Dominican Republic in June 2018. He is alleged to have illegally reentered the United States again sometime after June 2018 and was found in the United States in Dauphin County, Pennsylvania after eluding examination or inspection by immigration officers.
Mizhirumbay-Taquiri, Sanchez-Ordonez and Amador-Medina face a maximum penalty of two years of imprisonment, a term of supervised release following imprisonment, and a fine.
Rodrigo Cabrera-Tolentino, age 22, of Mexico, was charged by a federal grand jury with illegal re-entry into the United States by a previously deported alien. Cabrera-Tolentino was previously deported from the United States to Mexico in November 2017. He is alleged to have illegally reentered the United States again sometime after November 2017 and was found in the United States in Franklin County, Pennsylvania after eluding examination or inspection by immigration officers.
Cabrera-Tolentino faces a maximum penalty of 20 years of imprisonment, a term of supervised release following imprisonment, and a fine.
These matters were investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson is prosecuting the case.
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.
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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Fort Dodge Man Sentenced to 16 Years in Federal Prison for Meth and Firearm Convictions Following a Hit and Run AccidentRead the Press Release
A man who conspired to distribute methamphetamine and illegally possessed a firearm was sentenced in federal court in Sioux City, Iowa, on September 2, 2021.
Daniel Moss, age 45, from Fort Dodge, Iowa, pled guilty on April 19, 2021, to conspiracy to distribute methamphetamine and illegal possession of a firearm. Previously, in 2009, Moss was convicted of conspiracy to distribute methamphetamine, distribution of methamphetamine within a protected location, and employment or use of a person under 18 to assist in conspiracy to distribute methamphetamine in the United States District Court for the Northern District of Iowa. While on supervised release for the 2009 offense, Moss was convicted of escape from custody in 2017.
Evidence at hearings in the case showed that from June 2020 through July 5, 2020, while on federal supervised release, Moss conspired to distribute more than 50 grams of pure methamphetamine to others in the Fort Dodge area. On July 5, 2020, Moss was involved in a hit and run accident with another vehicle. After he fled the scene, Fort Dodge police officers pursued Moss and ultimately caught him that same day, at which time Moss picked up a police officer and a loaded firearm fell from his waistband. The firearm was later determined to be stolen. Moss also had approximately $17,000 cash during the incident, drug paraphernalia, baggies with residue, and over 50 grams pure methamphetamine. Moss was previously convicted of a felony offense, and was a drug user, which prohibited him from possessing a gun.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Moss was sentenced to 196 months’ total imprisonment consisting of 150 months for the new offense and an additional 46 months for violating his supervised release. Additionally, Moss must serve a seven-year term of supervised release following imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Patrick T. Greenwood and was investigated by the Fort Dodge Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Iowa Division of Narcotics Enforcement, and the Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3002.
Follow us on Twitter @USAO_NDIA.
Former resident of U.K. convicted of immigration fraud offensesRead the Press Release
Seattle – A federal jury today convicted 38-year-old Harbans Singh, of Kent, Washington, of three federal felonies related to false statements he made on a visa application and during an asylum interview, announced Acting U.S. Attorney Tessa M. Gorman. The jury deliberated for about two hours following the two-day trial. U.S. District Judge Richard A. Jones scheduled sentencing for December 10, 2021.
According to records filed in the case and testimony at trial, Singh was arrested twice in November 2014 in the United Kingdom for three instances of sexually touching young girls while riding on a public bus. Just six days after his second arrest, Singh applied for a visa to travel to the U.S. On his visa application, he stated that he had never been arrested for a crime. Based on that false statement, Singh was granted a visa, and traveled to the United States in January 2015. Singh did not board his return flight to the U.K.
In July of 2015, Singh applied for asylum in the U.S. In his asylum application, Singh failed to disclose anything about the sexual assault charges in the United Kingdom. Then, in a September 2017 interview, Singh again denied, this time under oath, having ever been arrested or charged in the U.K.
While Singh was in the U.S., he was convicted in absentia in the U.K. of the crimes related to illegal touching of minors. He was sentenced, in absentia, to one year in prison.
Singh has been in immigration custody since his arrest in July of 2020.
The jury convicted Singh of False Statement on Immigration Document (Visa Application), Acceptance or Possession of Immigration Document Procured by Fraud, and False Statement – (Asylum Interview).
The charges are punishable by up to 10 years in prison. Judge Jones will determine the appropriate sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Homeland Security Investigations (HSI) within the Department of Homeland Security. The U.S. Attorney’s Office also extends its gratitude to Sergeant Richard Lewington of the Essex Police Department, who arrested Singh in the U.K. in 2014 and traveled to the United States to testify at his trial.
The case is being prosecuted by Assistant United States Attorneys William Dreher and Natalie Walton-Anderson.
Former private-sector seasonal employee sentenced to five years in prison for sexually assaulting another private-sector seasonal employee while working in Glacier National ParkRead the Press Release
MISSOULA — A former private-sector seasonal employee who admitted to sexually assaulting another private-sector seasonal worker in Glacier National Park was sentenced today to five years in prison to be followed by five years of supervised release, said Acting U.S. Attorney Leif M. Johnson.
Eduardo Luis Diaz, 27, of Chicago, Illinois, pleaded guilty on March 3 to sexual abuse.
U.S. District Judge Donald W. Molloy presided. Diaz was allowed to self-surrender.
“Seasonal workers for businesses operating in and around our national parks should be able to work in and enjoy our national parks without the threat of sexual assault and harassment. I hope this prosecution will assure workers and the public that we will hold predators accountable for their conduct. I want to thank Assistant U.S. Attorney Kalah A. Paisley and the National Park Service for investigating and prosecuting this case,” Acting U.S. Attorney Johnson said.
“We thank the U.S. Attorney’s Office for their prosecution of this case and commend the survivor for her courage in stepping forward,” said acting Glacier National Park Superintendent Pete Webster. “The law enforcement community knows that sexual assault is an under-reported crime, and so we encourage park visitors and employees to report these crimes so that perpetrators can be caught and brought to justice.”
The government alleged in court documents that in July 2020, Diaz and the victim, identified as Jane Doe, were both seasonal employees working in Glacier National Park for a private-sector company with a contract to operate in the park and were living in employee housing. Doe became intoxicated at a party. After Doe had passed out, Diaz sexually assaulted Doe. In an interview with a National Park Service ranger, Diaz told the ranger that he had engaged in sex with Doe.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the case, which was investigated by the National Park Service.
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Former Rio Rico Bank Manager Sentenced to 30 Months for Money LaunderingRead the Press Release
TUCSON, Ariz. – On September 1, Carlos Antonio Vasquez, 41, of Nogales, Arizona, was sentenced by U.S. District Judge James A. Soto to 30 months in prison. Vasquez previously pleaded guilty to conspiracy to commit money laundering.
Between February 2017 and August 2019, Vasquez, while branch manager at a bank in Rio Rico, conspired to launder money for a group of individuals to conceal the illegal source of the funds. As part of this conspiracy, the money laundering organization brought Mexican citizens into the bank and Vasquez set up accounts for them for the purpose of sending illegal funds back to Mexico. Once the bank accounts were established, the money laundering organization openly handed cash to the Mexican citizens for deposit into the funnel accounts. The Mexican citizens then wired the funds into Mexican bank accounts under the direction of the money laundering organization.
Vasquez admitted that these funnel bank accounts enabled Vasquez and his branch to appear to have attracted new customers for the bank, improving the bank’s sales performance. Vasquez also admitted to knowing that the head of the money laundering organization was a former customer of the bank and that the funds moving through the accounts were proceeds of unlawful conduct. Vasquez personally authorized 42 wire transfers out of the funnel accounts to bank accounts in Mexico in the amount of $357,883. Over the course of the conspiracy, the money laundering organization allegedly moved over 10 million dollars in drug proceeds through the bank.
U.S. Homeland Security Investigations Nogales and U.S. Internal Revenue Service conducted the investigation in this case. Elizabeth S. Boison and Margaret Moeser, U.S. Department of Justice, Bank Integrity Unit, and Mary Sue Feldmeier, Wallace H. Kleindienst, and Robert A. Fellrath, United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-02741-TUC-JAS (JR)
RELEASE NUMBER: 2021- 058_Vasquez# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Former Prince George’s County Police Lieutenant Facing Federal Indictment for Tax Evasion and Obstruction of JusticeRead the Press Release
Greenbelt, Maryland – A federal grand jury has returned an indictment charging Edward Scott Finn, age 47, of Dunkirk, Maryland, for the federal charges of tax evasion and obstruction of justice. Finn is a former Lieutenant with the Prince George’s County Police Department and owned and operated Edward Finn Inc. (EFI), a private company.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Darrell J. Waldon of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office.
According to the indictment, from approximately December 26, 1995 to April 26, 2021, Finn was a member of the Prince George’s County Police Department (PGPD). Members of the PGPD were allowed to work part-time outside employment in addition to their full-time duties, known as Secondary Law Enforcement Employment (SLEE). SLEE is defined as “[e]mployment in which an employee is compensated by an entity other than the Prince George’s County Police Department for the performance of law enforcement or law enforcement related duties including (but not limited to) security, traffic direction, and parking enforcement.” According to the indictment and court documents, from 2014 to 2021, Finn used EFI and employed off-duty law enforcement officers to provide security services to apartment complexes and other businesses, primarily in Prince George’s and Montgomery Counties, to manage and operate his SLEE business.
The six-count indictment alleges that Finn allegedly underreported a total of more than $1 million of EFI income on his 2015 through 2019 individual income tax returns. During that time frame, the indictment alleges that Finn deposited approximately $1,147,684 of checks payable to EFI into personal bank accounts or non-EFI bank accounts over which Finn had signature authority. Finn also allegedly wrote checks from EFI bank accounts: to relatives for purported services performed for bookkeeping and to create false business expenses for purported security services; and to pay personal expenses, including credit card bills, car payments, and to purchase a boat. This underreported income allegedly resulted in a total tax loss to the government of $312,882.
Further, the indictment alleges that on April 22, 2021, Finn obstructed justice by initiating the erasure and resetting of his cellphone as federal agents executed a search warrant on his residence.
“The indictment alleges that a member of law enforcement with 25 years on the job failed to report more than $1 million in income that he earned through a private business, and then obstructed a federal investigation,” said Acting U.S. Attorney Jonathan Lenzner. “No one is above the law, and this indictment should serve as a stark reminder of that principle.”
“According to the charges, the actions of Edward Finn were not only illegal, but they also interfered with a federal investigation,” said Thomas J. Sobocinski, Special Agent in Charge of the FBI Baltimore Field Office. “The FBI and our law enforcement partners are committed to finding and bringing to justice those who engage in any financial scheme to defraud the American public.”
If convicted, Finn faces a maximum sentence of five years in federal prison for each of five counts of tax evasion and a maximum of 20 years in prison for obstruction of justice. 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. Finn is expected to have an initial appearance in U.S. District Court in Greenbelt at a later date.
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 IRS-CI and the FBI and for their work in the investigation and thanked the Prince George’s County Police Department and the Prince George’s County State’s Attorney’s Office for their assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Thomas M. Sullivan and Thomas P. Windom, who are prosecuting this case.
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Former Postal Worker Sentenced for Stealing MailRead the Press Release
BOSTON – A former U.S. Postal Service (USPS) employee was sentenced yesterday in federal court in Boston for stealing mail, including almost $5,000 in stimulus payments, and making over $16,000 in fraudulent purchases and ATM withdrawals.
Angela Gomez, 40, of Lynn, was sentenced by U.S. District Court Judge Denise J. Casper to three months in prison and three years of supervised release. On May 11, 2021, Gomez pleaded guilty to one count of theft of mail by an employee. As part of the plea agreement, Gomez has agreed to pay $21,387 in restitution to the victims.
In February 2020, investigators received information that customers in Lynn reported missing mail. For example, one USPS customer reported that an expected Lilly Pulitzer gift card never arrived in the mail. Further investigation revealed that USPS City Carrier Assistant Angela Gomez handled that particular customer’s route. Records indicated that the expected gift card was used in January 2020 for purchases delivered to Gomez’s then-home address and that the corresponding email address belonged to Gomez. Subsequent surveillance of Gomez during the performance of her duties revealed that she rifled through and stole mail on 21 separate occasions.
An Eastern Bank fraud investigator, who was investigating multiple unauthorized ATM withdrawals and debit card purchases made using three separate Eastern Bank accounts, contacted federal investigators. The Eastern Bank accounts were owned by individuals who resided on the carrier route Gomez was assigned to prior to when the unauthorized transactions began. Eastern Bank records confirmed three compromised accounts. Security camera video footage related to several of the unauthorized debit card purchases (including at Walmart and Target shopping centers) showed Gomez making unauthorized purchases using debit cards associated with the three compromised Eastern Bank accounts. In addition, ATM and bank security camera videos from Eastern Bank showed Gomez making unauthorized cash withdrawals from the three Eastern Bank accounts. In total, $16,587 was stolen from the three Eastern Bank accounts.
Gomez also stole four U.S. Treasury Economic Impact Payment (EIP) checks, more commonly known as stimulus checks, totaling $4,800, which were intended for delivery to USPS customers who lived on Gomez’s carrier route.
In total, Gomez stole $21,387 in fraudulent debit card purchases, ATM withdrawals and stimulus checks.
Acting United States Attorney Nathaniel R. Mendell; Matthew Modafferi, Special Agent in Charge of the U.S. Postal Service Office of Inspector General, Northeast Area Field Office; and William Kalb, Special Agent in Charge of the U.S. Treasury Inspector General for Tax Administration Office of Investigations, New York Field Office made the announcement. Assistant U.S. Attorney Eugenia M Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, prosecuted the case.
Former Police Officer Indicted for Child Pornography OffensesRead the Press Release
NORFOLK, Va. – A federal grand jury returned an indictment yesterday charging a Virginia Beach man with attempted production of child pornography, receipt of child pornography, and access with intent to view child pornography.
According to court documents, Nathan Allen, Jr., 33, who was employed as a police officer by the Kingsmill Resort in Williamsburg and before that by the Hampton Police Department, allegedly attempted to produce child pornography using a minor on separate dates in 2019 and 2021, when she was then 11 and 12 years old. The indictment alleges that Allen received images of child sexual abuse material on various dates in the spring of 2021, and in May 2021 accessed child pornography on a cell phone.
Allen is charged with two counts of attempted production of child pornography, three counts of receipt of child pornography, and one count of access with intent to view of child pornography. If convicted, he faces a mandatory minimum penalty of 15 years in prison and a maximum penalty of 30 years in prison on the production charges, a mandatory minimum of 5 years in prison and a maximum penalty of 20 years in prison on the receipt charges, and a maximum penalty of 20 years on the access with intent to view charge. 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; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; and Paul Neudigate, Chief of Virginia Beach Police, made the announcement.
Assistant U.S. Attorney Rebecca Gantt and Special Assistant U.S. Attorney Matthew Heck are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:21-cr-107.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Former Payroll Manager of Stratford Home Healthcare Company Charged with Federal Tax OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Joleen D. Simpson, Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a grand jury in Hartford has returned an indictment charging INNIS FREDERICK, 61, of Saint Cloud, Florida, with a federal tax offense stemming from him employment at a Stratford-based home healthcare company.
The indictment was returned on August 10. Frederick appeared today via videoconference before U.S. Magistrate Judge Robert M. Spector and pleaded not guilty. He is released on a $20,000 bond.
As alleged in the indictment, Frederick worked as the payroll manager for Equinox Home Care, LLC (“ECH”), a home healthcare company based in Stratford that was originally established as a partnership between Frederick’s sister, Theresa Foreman, and another individual. In September 2012, the partnership ended, and, by court order, Foreman was obligated to make payments to her partner for the purchase of the partner’s interest in EHC. Between approximately 2012 and 2016, Frederick assisted Foreman by processing payroll that caused checks to be issued to “ghost employees,” who did not actually work for ECH. The money paid to the ghost employees was actually paid to Foreman, who did not report the hundreds of thousands of dollars of income on her tax returns. By submitting false payroll data, Frederick also caused false Forms W-2 and W-3 to be submitted to the Internal Revenue Service.
The indictment charges Frederick with conspiracy to defraud the United States and impede and impair the IRS, an offense that carries a maximum term of imprisonment of five years.
Acting U.S. Attorney Boyle stressed that an indictment is only a charge and is not evidence of guilt. A charge is only an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Foreman was previously charged and convicted in relation to this scheme.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division. This case is being prosecuted by Assistant U.S. Attorneys Jennifer R. Laraia and Peter S. Jongbloed.
Florida Man Guilty in Transnational East Texas Call Center Fraud SchemeRead the Press Release
TYLER, Texas – A Pensacola, Florida man has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Perry Lewis Crenshaw, Jr., 27, pleaded guilty to conspiracy to commit money laundering today before U.S. Magistrate Judge John D. Love. Crenshaw is the fifth indicted defendant to plead guilty in this case.
“Moving money on behalf of scammers helps facilitate the underlying criminal fraud, and ultimately contributes to the victimization of the public. Those that help launder the ill-gotten gains of these fraud schemes are subject to significant criminal penalties,” said Acting U.S. Attorney Nicholas J. Ganjei. “The public needs to know that we will pursue not only the thief directly responsible for the fraud, but also the enablers who help these scammers profit from their predatory behavior.”
“Investigating scammers is a top priority for IRS Criminal Investigation,” said Special Agent in Charge Brian Payne. “Mr. Crenshaw preyed on vulnerable elderly Americans by impersonating the IRS. We found him, and now he and his co-conspirators will be held accountable for their heinous crimes.”
“The Treasury Inspector General for Tax Administration (TIGTA) aggressively investigates allegations of individuals who misrepresent themselves as Internal Revenue Service employees to cheat taxpayers,” said J. Russell George, the Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department of Justice and our law enforcement partners in this effort.”
“This investigation represents our continuing resolve to address instances of fraud involving HUD programs,” said Special Agent in Charge Michael V. Powell, U.S. Department of Housing and Urban Development, Region V. “It is our continuing core mission to work with our law enforcement partners and the United States Attorney’s Office to protect the integrity of our programs and take strong action against those who seek to circumvent the laws meant to protect the most vulnerable in our communities.”
According to information presented in court, in 2015, Crenshaw was contacted by a co-conspirator about partnering in a business venture. As part of the venture, Crenshaw was asked to pick up money from call center sales at money services businesses in the Pensacola area. Crenshaw picked up approximately $40,000 from money services businesses and deposited the funds into a designated bank account. Crenshaw was also directed to create a business called “Network Florida LLC” in June 2015. Crenshaw opened bank accounts in the name of the business and recruited approximately 20-25 individuals as employees of the business. The job responsibilities for these individuals consisted of merely picking up cash or money orders at money services businesses and depositing the funds into the Network Florida bank accounts. Crenshaw was paid 10 percent of the funds collected in this manner. From June 2015 to October 2016, approximately $1,284,649 in fraudulent proceeds was deposited into the Network Florida bank accounts. From February 2016 to July 2016, Crenshaw transferred approximately $266,106 in fraudulent proceeds from the Network Florida bank accounts to a foreign bank account. Crenshaw later admitted that it became apparent the conspiracy was engaging in fraudulent activity and the purpose of the scheme was to conceal and disguise the nature of the fraudulent proceeds generated by the scheme.
Codefendants, Jeremy Christopher Jones, pleaded guilty to conspiracy to commit money laundering in June of this year and Ronnie Duane Booth, Mary Elizabeth Beaman Booth, and Tracey Brookshier, pleaded guilty to aiding and abetting an unlicensed money transmitting business in August.
As part of his plea agreement, Crenshaw has agreed to pay restitution in the amount of $1,284,649 and forfeiture of $32,112.50. Crenshaw faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
This case is being investigated by the Internal Revenue Service-Criminal Investigation, the U.S. Treasury Inspector General for Tax Administration (TIGTA), U.S. Secret Service, and Housing and Urban Development-Office of Inspector General. This case is being prosecuted by Assistant U.S. Attorneys Frank Coan and Alan Jackson.
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Federal Civil Rights Charges Against Former Santa Rosa Correctional Institution OfficerRead the Press Release
PENSACOLA, FLORIDA – Andrew J. Femmer, 29, of Tampa, Florida, has been indicted by a federal grand jury for depriving an inmate his right to be free from cruel and unusual punishment as well as for falsifying official reports, announced Jason R. Coody, Acting United States Attorney for the Northern District of Florida today.
The indictment alleges that on or about July 14, 2019, Femmer “did assault and strike” the inmate, which resulted in “bodily injury.” It is further alleged that Femmer “covered up” his actions by falsely reporting that he only used “the minimum amount of force necessary” when carrying out his duties.
Femmer made his initial appearance on the indictment in Tampa today, and an arraignment is set for September 14, 2021, at the United States Courthouse in Pensacola. If convicted, he faces up to 30 years’ imprisonment.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation and the Office of the Inspector General for the Florida Department of Corrections. The case is being prosecuted by Assistant United States Attorneys David L. Goldberg and Kaitlin Weiss.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Fayette County Man Indicted on Drug ChargeRead the Press Release
PITTSBURGH, PA - A resident of Perryopolis, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment, returned on August 25 and unsealed today, named Larry Diggs, age 67, as the sole defendant.
According to the Indictment, on or about March 3, 2021, Diggs possessed with the intent to distribute 500 grams or more of cocaine.
The law provides for a minimum of five years and a maximum of 40 years in prison, a fine of up to $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
EDTX Reaches Americans with Disabilities Act Resolution with Smith County, Texas Regarding Hearing-Impaired IndividualsRead the Press Release
TYLER, TEXAS – The Eastern District of Texas announced today that it had reached a cooperative resolution agreement under Title II of the Americans with Disabilities Act (ADA) with Smith County, Texas to ensure individuals who are deaf or hearing impaired can communicate as effectively as others.
This matter was initiated upon receipt of a complaint filed with the Civil Rights Division of the U.S. Department of Justice, by an individual who is hearing impaired. The complaint alleged that Smith County, which provides services, programs, and activities in its county courthouse, failed to take appropriate steps to ensure that communications with the deaf and hearing-impaired are as effective as communications between the non-hearing impaired.
The ADA requires that public entities, like Smith County, furnish appropriate auxiliary aids and services, when necessary, to afford individuals with disabilities an equal opportunity to participate in, and enjoy the benefits of, a service, program, or activity, including those in a courthouse.
The U.S. Attorney’s Office for the Eastern District of Texas reviewed Smith County’s courthouse policies, training, and procedures relating to the provision of auxiliary aids and services to individuals who are deaf or hard of hearing and determined they did not fully comply with Title II of the ADA. The United States—along with Smith County—identified the areas of non-compliance and cooperatively implemented the resolution.
Under the Agreement, Smith County is updating its website to ensure the site contains sufficient information to inform persons with impaired vision or hearing how and where to access auxiliary aids or services. Smith County will provide Title II training relating to the provision of auxiliary aids or services to the courthouse staff to ensure all individuals can participate in the services, programs, and activities offered by Smith County; and Smith County will ensure sufficient auxiliary aids or services are available at the courthouse as required by the 2010 ADA Standards.
“Deaf and hearing-impaired individuals are entitled to full and equal opportunities to effectively communicate with, and to benefit from, all services, programs and activities,” said Acting U.S. Attorney Nicholas J. Ganjei. “We commend Smith County for their full cooperation with this investigation, and their commitment to ensuring that deaf and hearing-impaired community members are provided effective communication and auxiliary services.”
For more information about the ADA, please visit http://www.ada.gov or call toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed online at http://www.ada.gov/complaint.
This matter was investigated by the Civil Rights Enforcement Coordinator for the Eastern District of Texas Assistant U.S. Attorney Aimee M. Cooper as well as Assistant U.S. Attorney Betty Young.
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Detroit Man Sentenced to Nine Years in Federal Prison for Drug CrimeRead the Press Release
BECKLEY, W.Va. – A Detroit man was sentenced today to 108 months in federal prison for possession with intent to distribute heroin. Martinis Twone Irving, 44, was previously charged as a result of a joint investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) with the assistance from the Drug Enforcement Administration (DEA) in Michigan, and the Beckley/Raleigh County Drug and Violent Crime Unit.
According to court documents, Martinis Irving, 44, of Detroit Michigan, was stopped on Interstate 77 near Beckley for speeding in a construction zone on December 17, 2020. During the traffic stop, a drug dog alerted to the presence of drugs in the car being driven by Irving. Law enforcement officers then obtained a search warrant for the car and discovered approximately 1,100 grams of heroin hidden in the car. Irving ultimately admitted that the heroin was his and he intended to distribute the heroin within the Southern District of West Virginia.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the cooperative investigative efforts of the ATF, the DEA, and the Beckley/Raleigh County Drug and Violent Crime Unit, which is comprised of officers from the Beckley Police Department, the Raleigh County Sheriff’s Department and the West Virginia State Police.
Assistant United States Attorney Timothy D. Boggess handled the prosecution. United States District Judge Frank W. Volk imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 5:21-cr-00011.
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Crowley Man Involved in Drug Trafficking Conspiracy Sentenced to 20 Years in PrisonRead the Press Release
LAFAYETTE, La. - Acting United States Attorney Alexander C. Van Hook announced that Brandal Moore, 27, of Crowley, Louisiana, was sentenced today by United States District Judge Robert R. Summerhays to 240 months (20 years) in prison, followed by 5 years of supervised release, for being involved in a conspiracy to possess with intent to distribute 500 grams or more of methamphetamine.
A federal grand jury returned an indictment in October 2019 charging Moore and others with being involved in the drug trafficking conspiracy in the Crowley, Louisiana area. Moore pleaded guilty to the charge on May 27, 2021. During their investigation of Moore and his co-conspirators, law enforcement agents learned of Moore’s drug trafficking activities. Their investigation revealed that between April and September 2019, Moore and his co-conspirators used a house in Rayne, Louisiana to store methamphetamine, guns, and cash which they obtained from the distribution of narcotics. Moore sold the methamphetamine that he received from his co-conspirators to other methamphetamine dealers in the Crowley area in quantities ranging from one ounce to multiple ounces per transaction.
A search warrant was obtained by law enforcement agents for the house where the narcotics were being stored by Moore and his co-conspirators. During the search of the house, agents found 5 firearms, approximately 700 grams of methamphetamine, a notebook with drug ledger entries, and other drug paraphernalia. Inside a vehicle located on the property, agents found $15,000 in cash, approximately 350 grams of cocaine, 30 grams of crack cocaine, and approximately 5 kilograms of methamphetamine. Inside another vehicle on the property, agents found approximately 3,555 grams of cocaine located in a hidden compartment.
The FBI and DEA conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
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Citizen of the Dominican Republic Sentenced to 70 Months for Drug Trafficking and Immigration OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOSE PAULINO, 46, a citizen of the Dominican Republic last residing in the Bronx, New York, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 70 months of imprisonment, followed by four years of supervised release, for narcotics trafficking and immigration offenses.
According to court documents and statements made in court, Paulino supplied large quantities of cocaine and counterfeit oxycodone pills to Musa Hill, of New Haven, who also received heroin from a source in New Haven. Hill converted some of the cocaine he received into crack cocaine, sold narcotics to customers, and also provided narcotics to an associate for distribution to a network of customers. During the investigation, investigators made controlled purchases of crack, heroin and hundreds of counterfeit oxycodone pills from Hill. The vast majority of the counterfeit pills contained fentanyl.
Paulino has been deported to the Dominican Republic, and subsequently illegally reentered the U.S., on three occasions.
Paulino has been detained since his arrest on June 25, 2019. On November 20, 2020, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, controlled substances, and one count of illegal reentry of a removed alien.
Hill pleaded guilty to related charges and, on March 4, 2020, was sentenced to 72 months of imprisonment.
This case was investigated by the DEA New Haven Tactical Diversion Squad and was prosecuted by Assistant U.S. Attorney Jennifer R. Laraia.
Charleroi Man Charged with Federal Drug Law ViolationRead the Press Release
PITTSBURGH, PA - A resident of Charleroi, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment, returned on August 25 and unsealed today, named Keith McCrae, age 47, as the sole defendant.
According to the Indictment, on or about March 31, 2021, Keith McCrae possessed with the intent to distribute 28 grams or more of cocaine base, in the form commonly known as crack, and a quantity of cocaine.
The law provides for a minimum of five years and a maximum of 40 years in prison, a fine of up to $5,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorneys Yvonne M. Saadi and Jonathan D. Lusty are prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pennsylvania State Police conducted the investigation leading to the Indictment in this case.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bluffton Man Sentenced to over 20 Years in Federal Prison for Distribution of Heroin, FentanylRead the Press Release
Charleston, South Carolina ---- Acting United States Attorney M. Rhett DeHart announced today that Edwin M. Jenkins, Jr., 33, of Bluffton, was sentenced to over twenty years in federal prison after pleading guilty to one count of distribution of a mixture of heroin and fentanyl, one count of distribution of heroin, and one count of possession with intent to distribute 40 grams or more of fentanyl.
Evidence presented in court showed that Jenkins sold either heroin, fentanyl, or a mixture of heroin and fentanyl to a confidential informant on multiple occasions. On April 12, 2017, Jenkins was arrested when he arrived at a location where he believed he was going to sell drugs to an informant. As law enforcement moved to make an arrest, Jenkins fled on foot and dropped a bag containing over 57 grams of a mixture containing fentanyl, before being apprehended.
Jenkins’ criminal history included multiple prior felony drug convictions, and he was on parole on state charges at the time of his criminal conduct in this case.
United States District Court Judge Bruce H. Hendricks sentenced Jenkins to 250 months in federal prison, to be followed by a 96-month term of supervised release. There is no parole in the federal system.
The case was investigated by agents of the Federal Bureau of Investigation, the Bluffton Police Department, and the Fourteenth Circuit Solicitor’s Office. Assistant United States Attorney Nick Bianchi and Special Assistant United States Attorney Carra Henderson prosecuted the case.
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Bakersfield Resident Pleads Guilty to Trafficking NarcoticsRead the Press Release
FRESNO, Calif. — Jorge Chavez, 36, of Bakersfield, pleaded guilty today to possessing with intent to distribute methamphetamine, heroin, cocaine and marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 12, 2020, Chavez was arrested in Bakersfield and was found to be in possession of approximately 20 pounds of methamphetamine, approximately 23.5 pounds of marijuana, approximately 2 pounds of cocaine, and approximately 66 grams of heroin. Prior to that date, on three separate occasions between Feb. 18, 2020, and April 27, 2020, Chavez sold to a purchaser a total of five firearms – including four rifles with high capacity magazines – and approximately 2 pounds of methamphetamine. On June 4, 2020, Chavez offered to sell to the same purchaser 1 pound of methamphetamine for $3,400, and 1 ounce of heroin for $750. In his plea agreement, Chavez agreed to forfeit to the United States more than $25,000.
This case is the product of an investigation by Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, the Bakersfield Police Department, the Kern County Sheriff’s Office, the Kern County Probation Department, and the California Highway Patrol. Assistant U.S. Attorney Christopher D. Baker is prosecuting the case.
Chavez is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Dec. 3, 2021. Chavez faces a maximum term of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Bakersfield Gang Member Sentenced to Prison for Unlawfully Possessing FirearmRead the Press Release
FRESNO, Calif. — Miguel Alberto Burgos, 28, of Bakersfield, was sentenced today to three years in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Jan. 18, 2021, a law enforcement officer stopped Burgos for committing traffic infractions while driving a vehicle in Bakersfield. Burgos yielded his vehicle but fled on foot. The officer gave chase and eventually secured Burgos on the ground, but he broke free and continued flight. Shortly afterwards, officers caught and arrested Burgos. During the chase, Burgos discarded a Ruger LCP .380‑caliber handgun loaded with a high-capacity magazine. Burgos cannot lawfully possess firearms because he was convicted in 2013 of second-degree robbery. Burgos is a long-time member of Bakersfield’s Varrio Bakers criminal street gang.
This case was the product of an investigation by the Federal Bureau of Investigation, the California Highway Patrol, and the Kern County Fire Department. Assistant U.S. Attorney Christopher D. Baker prosecuted 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.
A Pair of Felons from Denver Sentenced for Illegal Firearms PossessionRead the Press Release
Acting United States Attorney Bob Murray announced today that JUSTIN EUGENE JAMESON, a/k/a Justin Brown, age 38, and NATHANIEL TSOSIE, 34, both from Denver, were sentenced for felony possession of a firearm. Jameson received a sentence of 78 months, to be followed by three years of supervised release, and was ordered to pay a special assessment in the amount of $100. Although the government argued for a sentence of 96 to 105 months for Tsosie, he received a sentence of 78 months to run concurrent with any sentence that is imposed in a criminal case out of Johnson County, Wyoming. Tsosie will also pay a $100 special assessment, and his sentence will be followed by three years supervised release.
On or around February 12, 2021, Tsosie was being pursued by law enforcement out of Colorado. Law enforcement lost track of Tsosie but then relocated him near Buffalo, Wyoming. Law enforcement deployed spike strips and rammed his car to get him to stop and surrender. Tsosie, a felon, had firearms in the car. He also had his dog, which was placed in a shelter following Tsosie’s arrest. Tsosie called his friend, Justin Jameson, and asked him to pick up his dog from the shelter.
Jameson drove to Buffalo, Wyoming from Denver, Colorado to pick up the dog. Jameson contacted the Johnson County Sheriff’s Office to request assistance, and, upon arrival, an officer learned that Jameson was a previously convicted felon on probation, that he was driving a stolen car with a suspended license, and that he was in possession of two firearms.
"Not only is it illegal for convicted felons to possess firearms, but these two felons had extensive records," said Acting United States Attorney Bob Murray. "In this case, our office worked closely with ATF and local and state law enforcement partners to stop these men from committing further crimes and placing the public in danger."
2 September 2021
York County Man Charged with Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2021, Stanley Bobula, age 63, of Dillsburg, Pennsylvania, was indicted by a federal grand jury for possession of child pornography.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that Bobula was in possession of images containing sexual exploitation of children on January 23, 2021, in York County. The indictment further alleges that Bobula possessed the child pornography images using a computer or cell phone.
The case was investigated by the Federal Bureau of Investigation and the United States Probation Office. Assistant United States Attorney Paul J. Miovas, Jr. is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab.
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 the offense charged in the indictment is 20 years’ imprisonment, a lifetime term of supervised release following imprisonment, and a fine. There is also a mandatory minimum sentence of 10 years’ imprisonment for the defendant if convicted. 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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Yolo County Insurance Broker Charged with Defrauding ClientRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a 13-count indictment today against Robert Kirby Wells, 62, of Woodland, charging him with 10 counts of wire fraud and three counts of aggravated identity theft, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Wells served as an insurance broker for a company located in Denver, Colorado, that owned multifamily and commercial properties throughout the United States. As the company’s broker, Wells was responsible for obtaining several types of insurance coverage for the company’s properties, including umbrella liability coverage. As part of his fraudulent scheme, Wells represented to the company that he obtained umbrella coverage for properties when, in fact, he did not. Although Wells did not obtain the coverage, he invoiced and was paid for purported premiums associated with adding the properties to umbrella liability policies.
At times, after he received full payment for premiums associated with coverage he obtained for the company, as well as umbrella coverage he did not obtain, Wells secured loans purportedly to pay for the same premiums. He did so by falsely representing that he was financing the premiums on the company’s behalf and using the identities of a managing principal and employee of the company without their authorization.
This case is the product of an investigation by the Federal Housing Finance Agency Office of Inspector General, the Department of Housing and Urban Development Office of Inspector General, and the U.S. Postal Inspection Service. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
If convicted, Wells faces maximum statutory penalties of 20 years in prison for each wire fraud count and a mandatory term of two years in prison for each aggravated identity theft count. He also faces a fine of up to $250,000 or twice the gross gain or loss for each charge. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Worcester Man Convicted of Cocaine DistributionRead the Press Release
BOSTON – A Worcester man was convicted by a federal jury today of distributing nearly one kilogram of cocaine.
Julio Rivera, 47, was convicted following a three-day jury trial of distribution and possession with intent to distribute 500 grams or more of cocaine. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Dec. 16, 2021.
In October 2018, a federal investigation into co-conspirator Melvin Burgos intercepted numerous communications between Burgos and co-conspirator William Torres arranging to obtain one kilogram of cocaine from Rivera. On Nov. 1, 2018, Rivera led Burgos to his storage unit in Worcester where he distributed 900 grams of cocaine to Burgos. Agents subsequently stopped both Rivera and Burgos and a search of Rivera’s vehicle recovered the phone he used to communicate with Torres and Burgos, which he had attempted to destroy. A search of Burgos’ vehicle resulted in the seizure of the 900 grams of cocaine.
Torres and Burgos each pleaded guilty to their role in the conspiracy. On Feb. 26, 2021, Torres was sentenced to five years in prison and four years of supervised release. Burgos is scheduled to be sentenced on Sept. 30, 2021.
The charge of distribution and possession with intent to distribute 500 grams or more of cocaine provides for a sentence of up to 40 years in prison, at least four years and up to a lifetime of supervised release and a fine of $5 million. 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 Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division; and Colonel Christopher Mason, Superintendent of the Massachusetts State Police made the announcement today. Assistant U.S. Attorneys John T. Mulcahy and Mackenzie A. Queenin of Mendell’s Criminal Division and William F. Abely, Chief of Mendell’s Criminal Division, prosecuted the case.
Woman sentenced for tax fraud on behalf of herself and many othersRead the Press Release
HOUSTON – A Texas tax preparer has been ordered to federal prison for aiding and assisting in the preparation of a false U.S. Individual Income Tax Return, announced Acting U.S. Attorney Jennifer B. Lowery.
Tiffany Phenix pleaded guilty April 22.
Judge Morales sentenced her to 15 months in prison to be followed by one year of supervised release. She was further ordered to pay $284,826 in restitution.
“Today’s sentencing is a reminder that honest taxpayers need to be careful when choosing a tax return preparer,” said Special Agent in Charge Richard Goss of IRS - Criminal Investigation (CI). “Phenix Tax Service was in the business of exploiting their clients’ tax returns to defraud the IRS and by extension the tax paying public. Putting abusive return preparers out of business is a top priority for IRS-CI.”
Phenix prepared income tax returns for others at Phenix Tax Service in Alice. As part of her plea, she stipulated she prepared a total of 37 false income tax returns for clients and four false income tax returns for herself, resulting in an intended tax harm to the IRS of over $284,000.
Specifically, Phenix admitted preparing a false 2015 income tax return for a taxpayer which included creating a false form W-2. She also claimed on the return false wage amounts, a false Earned income Tax Credit and a false income tax refund.
Phenix was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
IRS-Criminal Investigation conducted the investigation. Assistant U.S. Attorney Charles J. Escher prosecuted the case.
Wilkinsburg Felon Sentenced to Prison for Illegally Possessing a Loaded HandgunRead the Press Release
PITTSBURGH, PA - A resident of Wilkinsburg has been sentenced in federal court to 21 months imprisonment with 2 years’ supervised release on his conviction of possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Cathy Bissoon imposed the sentence on Jacque Butler, age 25 formerly of Pittsburgh, Pennsylvania 15221.
According to information presented to the Court, on September 8, 2020, an officer of the City of Duquesne Police Department observed a vehicle with two inoperable brake lights, stop at an intersection obstructing both lanes of traffic. The officer conducted a traffic stop on this vehicle and detected the odor of marijuana. After learning that the driver’s license was suspended as well as the vehicle’s registration, the officer informed the driver that the vehicle would have to be towed. During a search of the vehicle, the officer discovered that Butler, who was in the rear passenger seat of the vehicle, had a backpack at his feet. This backpack contained a loaded Taurus 9mm handgun with 15 rounds contained in the magazine along with a second magazine containing an additional 15 rounds, digital scales, small amounts of marijuana, and four tablets of ecstasy. Butler waived his Miranda rights and admitted that the gun was his. As a convicted felon, Butler is prohibited from possessing firearms.
Prior to imposing sentence, Judge Bissoon denied the Defendant’s request for a downward variance on the basis of the COVID-19 pandemic. The Court also acknowledged Butler’s significant criminal history which has showed no signs of slowing down.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
United States Attorney Kaufman commended the Bureau of Alcohol, Tobacco, Firearms and Explosives and the City of Duquesne Police Department for the investigation leading to the successful prosecution of Butler.
This case was prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Webster City Man to Federal Prison for Firearm ConvictionRead the Press Release
Martin Fye, age 58, from Webster City, Iowa, was sentenced August 31, 2021, to more than five years’ imprisonment. On April 14, 2021, Fye pled guilty in federal court to illegally possessing a firearm. Fye was previously convicted of burglary third degree in 2008 and 2014, and a felony controlled substance violation in 2008.
Evidence at the hearing showed that, on June 26, 2020, while searching Fye’s residence, law enforcement located Fye with several .22 caliber rounds in his pocket and a loaded .22 handgun in his bedroom nightstand. Fye disobeyed law enforcement instructions and resisted detention. The court also found Fye fired the firearm on June 4, 2020, at a former girlfriend in anger after an argument when she left his residence. Additional evidence established that Fye had another person hide several firearms in a cornfield before law enforcement searched his home. A few days later, law enforcement seized seven firearms from a third-party custodian who had retrieved them for Fye. Law enforcement also seized several items of drug paraphernalia in two search warrants at Fye’s residence. Fye further admitted to being an unlawful drug user.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Fye remains in custody of the United States Marshal until he can be transported to a federal prison. Fye was sentenced to 63 months’ imprisonment and he must serve three years of supervised release following the imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Hamilton County Sheriff’s Office, Webster County Sheriff’s Office, Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Hardin County Sheriff’s Office, Calhoun County Sheriff’s Office and Boone County Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3024. Follow us on Twitter @USAO_NDIA.
Valley couple admits to smuggling nearly 100 peopleRead the Press Release
McALLEN, Texas – A San Juan man and woman man have entered a guilty plea to conspiring to harbor nearly 100 individuals illegally in the country, announced Acting U.S. Attorney Jennifer B. Lowery.
The investigation revealed Isaac Livan Martinez, 23, and Gina Alexandria Guzman, 26, had rented rooms at the Krystal Hotel in Pharr.
On May 13, authorities came to the location for an unrelated investigation. However, hotel staff informed them that they suspected several non-citizens were being housed in various hotel rooms.
Upon investigation, law enforcement discovered 50 illegal aliens, some of whom were unaccompanied minors. Authorities later reviewed hotel surveillance footage and observed Martinez and Guzman picking up and dropping off the non-citizens at the hotel in a stolen U-Haul truck.
On June 28, authorities apprehended Martinez after a traffic stop. At that time, they observed bulk food and water commonly used during smuggling activity. Martinez provided consent to search his residence in San Juan where authorities discovered 45 undocumented aliens in the residence, also including several unaccompanied minors.
Some of the harbored individuals identified both Martinez and Guzman as caretakers at the Pharr hotel and the house in San Juan.
U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Nov. 30. At that time, Martinez and Guzman face up to 10 years in prison and a possible $250,000 maximum fine. Both have been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of police departments in Pharr and San Juan. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
United States Files Suit Against UPMC, Its Physician Practice Group, and the Chair of Its Department of Cardiothoracic Surgery for Violating the False Claims ActRead the Press Release
PITTSBURGH, PA – The United States has filed a complaint under the False Claims Act against the University of Pittsburgh Medical Center (UPMC), University of Pittsburgh Physicians, and James Luketich, M.D., in the U.S. District Court for the Western District of Pennsylvania, Acting U.S. Attorney Stephen R. Kaufman announced today. The United States’ complaint – which was based on a two-year investigation into allegations originally brought by a former UPMC physician under the False Claims Act’s whistleblower provisions – alleges that the defendants knowingly submitted hundreds of materially false claims for payment to Medicare, Medicaid, and other government health benefit programs over the past six years.
More specifically, the complaint alleges that Dr. Luketich – the longtime chair of UPMC’s Department of Cardiothoracic Surgery – regularly performs as many as three, complex surgical procedures at the same time, fails to participate in all of the “key and critical” portions of his surgeries, and forces his patients to endure hours of medically unnecessary anesthesia time, as he moves between operating rooms and attends to other patients or matters. According to the United States’ complaint, these practices violate the statutes and regulations governing the defendants, including those that prohibit “teaching physicians” (like Dr. Luketich) from performing and billing the United States for “concurrent surgeries.” As importantly, the United States’ complaint alleges that Dr. Luketich’s practices violate the standard of care and the patients’ trust, and heighten the risk of serious complications.
“The laws prohibiting ‘concurrent surgeries’ are in place for a reason: to protect patients and ensure they receive appropriate and focused medical care,” said Acting U.S. Attorney Kaufman. “Our office will take decisive action against any medical providers who violate those laws, and risk harm to Medicare and Medicaid beneficiaries.”
“When physicians and other healthcare providers put financial gain above patient well-being and honest billing of government healthcare programs, they violate the basic trust the public extends to medical professionals,” said Special Agent in Charge Maureen R. Dixon of the HHS-OIG Philadelphia Regional Office. “Our agency, working closely with our law enforcement partners, will continue to thoroughly investigate such healthcare fraud allegations to protect the health of patients and the integrity of taxpayer-supported programs serving them.”
“Doctors take an oath to uphold the highest levels of ethical standards and care,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “The allegations set forth today violate those ethics, painting a picture of fraud and deception. The FBI will continue to investigate fraud in our health care system and hold those accountable to face the consequences of their actions.”
The False Claims Act is one of the most powerful tools in the United States’ continued efforts to combat healthcare fraud. The Act’s whistleblower (or “qui tam”) provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery, and permit the United States to intervene and take over the lawsuit, either in its entirety, or in part (as it did here). 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 investigated by the U.S. Attorney’s Office for the Western District of Pennsylvania, the U.S. Department of Health and Human Services Office of Inspector General, and the Federal Bureau of Investigation, in conjunction with the Department of Defense Office of Inspector General, the Drug Enforcement Administration, Internal Revenue Service – Criminal Investigation, Department of Veterans Affairs Office of Inspector General, and the Pennsylvania’s Office of the Attorney General.
The case is captioned United States of America ex rel. Jonathan D’Cunha, M.D. v. James Luketich. et al., No. 19-cv-495 (W.D. Pa.). The claims asserted against defendants are allegations only and there has been no determination of liability.
Ulster County Man Pleads Guilty to Conspiring to Commit COVID-19 Relief FraudRead the Press Release
ALBANY, NEW YORK – Jean R. Lavanture, a/k/a “JR,” a/k/a “Rudy Lavanture,” age 48, of Saugerties, New York, pled guilty today to conspiring to commit bank fraud and conspiring to commit wire fraud, and admitted to fraudulently obtaining $4,870,781 in government-backed loans meant for businesses struggling with the financial effects of the coronavirus pandemic. Lavanture is the third person to plead guilty in this case.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Acting United States Attorney Antoinette T. Bacon stated: “Mr. Lavanture and his co-conspirator Sean M. Andre took millions from COVID-19 relief programs, to the detriment of lenders, the U.S. Small Business Administration, and the legitimate businesses that could have put this money to good use. With our law enforcement partners, we will continue to investigate and prosecute fraudsters who prey upon government-backed loan programs meant to stabilize legitimate businesses during an unprecedented pandemic.”
FBI Special Agent in Charge Janeen DiGuiseppi stated: “Mr. Lavanture stole over $4.5 million from a government program designed to help small businesses struggling to stay afloat during the coronavirus pandemic. Mr. Lavanture and his co-conspirator’s fraud scheme impacted the ability of an untold number of businesses, while selfishly lining their own pockets. The FBI, together with our partners, will continue to seek out and investigate these callous fraudsters who target hardworking Americans.”
In pleading guilty, Lavanture admitted to conspiring with Andre to obtain $4,309,581 in Paycheck Protection Program (PPP) loans between June and August 2020, by submitting fraudulent loan applications in the names of four companies that Lavanture controlled. Each loan application grossly misrepresented each company’s employees and payroll. Each application also included false corporate tax documents that Andre created as part of the scheme. Lavanture admitted that none of his companies actually had a payroll or employees.
Lavanture also admitted that, on his own, he fraudulently obtained $561,200 in Economic Injury Disaster Loans (“EIDLs”) from the U.S. Small Business Administration (SBA).
Lavanture agreed to pay restitution in the amount of $4,870,781, and to forfeit proceeds of the fraud, including a motel property he purchased in Rockaway Beach, Missouri; $476,253.25 in U.S. currency; a 2007 Bentley Continental; a 2013 BMW X5; and the balances of 19 bank accounts at a total of 9 banks, into which he deposited fraud proceeds.
Lavanture faces up to 30 years in prison for bank fraud conspiracy, and up to 20 years in prison for wire fraud conspiracy, when he is sentenced on January 6, 2022 by Chief United States District Judge Glenn T. Suddaby. 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.
Lavanture, a citizen of Haiti, has been in custody since September 17, 2020, when FBI agents arrested him on a criminal complaint.
Andre, age 31, of Brooklyn, New York, pled guilty on May 26, 2021 to conspiring to commit bank fraud and conspiring to commit wire fraud. Andre’s sentencing is scheduled for January 6, 2022.
Jamur Pharmes, age 43, of Hampton, Georgia, pled guilty on July 1, 2021 to conspiring to commit wire fraud. He admitted that he and Lavanture conspired to submit fraudulent EIDL applications in the names of two companies connected to Pharmes. Pharmes obtained approximately $159,900 as a result of the scheme, and paid a $10,000 fee to Lavanture. Pharmes is scheduled to be sentenced on December 9, 2021.
This case was investigated by the FBI, Internal Revenue Service (IRS)-Criminal Investigation, and the SBA Office of Inspector General, and is being prosecuted by Assistant U.S. Attorneys Michael Barnett and Joshua R. Rosenthal.
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.
Two Rochester Men Arrested on Cocaine Charges Following Chase with PoliceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Brian Cintron, 37, and Edwin Junior Gallardo-Ortiz, 35, both of Rochester, NY, were arrested and charged by criminal complaint with conspiring and attempting to possess with intent to distribute five kilograms or more of cocaine. The charges carry a mandatory minimum penalty of 10 years in prison, a maximum of life in prison, and a $10,000,000 fine.
Assistant U.S. Attorney Sean C. Eldridge stated that according to the criminal complaint, a search warrant was executed on a U.S Postal Express Mail Parcel sent from Puerto Rico and addressed to defendant Cintron at a Waverly Place residence. The parcel contained approximately eight kilograms of cocaine. The contents were replaced with “sham” and the parcel was delivered. A law enforcement officer, dressed as a letter carrier, approached the residence, and identified Clinton who stated that he had been waiting a while for the parcel. Cintron took the parcel and left the area about a short time later in a vehicle driven by defendant Gallardo-Ortiz, who had been driving around the area of the Waverly Place residence for at least an hour prior to the delivery of the parcel.
Investigators followed the vehicle, which began traveling at higher rates of speed, passing cars over double yellow lines, failing to use turn signals, using the center turn lane to pass vehicles, running red lights and passing stop signs at intersections. After losing sight of the vehicle for a period of time, the vehicle was observed driving with a flat tire and at a normal speed rate. Investigators again followed the vehicle, which once again sped up. As law enforcement attempted to contain the vehicle, defendant Gallardo-Ortiz attempted to evade one law enforcement vehicle and struck another law enforcement vehicle. The vehicle was stopped, where both Gallardo-Ortiz and Cintron were taken into custody.
Video footage from the area of the vehicle chase showed defendant Cintron getting out of the vehicle and attempting to throw the drug parcel into a dumpster. The parcel didn’t fit in the dumpster, so defendant Cintron went back to the vehicle and spoke with defendant Gallardo-Ortiz, after which he walked around the dumpster and placed the parcel behind the dumpster, where it was later recovered.
The eight kilograms of cocaine seized has an approximate street value in Rochester of between $500,000 and $800,000.
Cintron and Gallardo-Ortiz made an initial appearance before U.S. Magistrate Judge Marian W. Payson Magistrate and are being held pending detention hearings on September 8, 2021.
The criminal complaint is the result of an investigation by the United States Postal Inspection Service, under the direction of Acting Inspector-in-Charge Joshua W. McCallister of the Boston Division; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Two Columbia Residents Plead Guilty to Meth TraffickingRead the Press Release
JEFFERSON CITY, Mo. – Two Columbia, Missouri, residents have pleaded guilty in federal court to methamphetamine trafficking after they received a large package of methamphetamine shipped from California to distribute locally.
Bryan Patton Tullous, 39, pleaded guilty today before U.S. Magistrate Judge Willie J. Epps, Jr., to participating in a conspiracy to distribute methamphetamine.
Co-defendant Cassiopeia Marie Blaise, 36, pleaded guilty on Tuesday, Aug. 31, to possessing methamphetamine with the intent to distribute.
On April 26, 2019, law enforcement officers intercepted a package from California that had been shipped to the residence shared by Tullous and Blaise. The package contained approximately 5.6 pounds of methamphetamine in five individual packages that weighed approximately one pound (453 grams) each, for a total of 2.209 kilograms of methamphetamine. Officers conducted surveillance of the residence as the package was delivered to the front porch. Both Tullous and Blaise were outside; Blaise retrieved the package and took it inside the residence while Tullous was in a neighbor’s yard. Officers took both of them into custody and executed a search warrant of the residence. Officers found the opened package hidden under clothing at the foot of the bed in the master bedroom.
Officers also found a dozen firearms in various areas of the residence, including a loaded Smith & Wesson .380-caliber pistol laying near the package in the bedroom. In a safe in the garage, officers found a Mossberg .22-caliber rifle, a Snake Charmer 410 shotgun, a Browning .223-caliber rifle, a Bear River .38-caliber revolver, and a Charter Arms .38-caliber revolver. The Snake Charmer 410 shotgun had the stock cut off, making it useable as a pistol grip-type weapon.
Tullous admitted that he ordered the package and paid $12,000 for the methamphetamine.
Under federal statutes, Tullous is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. Blaise is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Supervisory Assistant U.S. Attorney Michael S. Oliver. It was investigated by the East Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol and the Columbia, Mo., Police Department.
Troy Businessman Sentenced for Hoarding and Price Gouging FacemasksRead the Press Release
ALBANY, NEW YORK – Imran Selcuk, age 35, of Troy, New York, was sentenced today to 3 years of probation for hoarding and price gouging in violation of the Defense Production Act of 1950 (DPA).
The announcement was made by Acting U.S. Attorney Antoinette T. Bacon and Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI).
As part of his March 5, 2021 misdemeanor guilty plea, Selcuk admitted that, in March 2020, he purchased approximately 100,000 KN95 facemasks and 25,000 surgical-style facemasks for $1 per mask and 50 cents per mask, respectively. Selcuk then offered these masks for sale at his Troy pizza restaurant and through a website for as much as ten times his acquisition cost. Selcuk also admitted that his website falsely represented that the KN95 masks he offered for sale were certified by the U.S. Food & Drug Administration (FDA). In fact, the FDA does not “certify” facemasks.
United States Magistrate Judge Christian F. Hummel also ordered Selcuk to pay a $2,500 fine.
This case was investigated by HSI, with assistance from the U.S. Postal Inspection Service, and was prosecuted by Assistant U.S. Attorneys Michael D. Gadarian and Joshua R. Rosenthal.
This case was brought in coordination with the Department of Justice’s COVID-19 Hoarding and Price Gouging Task Force, which organizes efforts among the Antitrust Division and U.S. Attorney’s offices across the country to address illegal activity involving personal protective equipment.