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2 September 2021
Three South Florida Men Guilty of Conspiring to Launder Fraudulently Obtained Covid-19 Relief Money and Proceeds from Business Email Compromise SchemesRead the Press Release
Miami, Florida – Yesterday, Broward County residents Jimpcy One, 35, Gousman Lemy, 42, and Frantz Guillaume, Jr. a/k/a Sandro Saintfloeur, 44, pled guilty in federal district court to conspiring with each other to launder proceeds obtained from business email compromise schemes and fraudulently obtained Covid-19 relief loans. Each defendant admitted to laundering close to $2 million dollars to disguise the nature and source of the illicit funds.
A business email compromise scheme is a type of computer intrusion that occurs when an employee of a company is fooled into interacting with an email message that appears to be, but is not, legitimate. The bogus email usually contains either an attachment or a link to a malicious website or program. When an unwitting user clicks on either the link or the attachment, it releases some form of malware (i.e., a virus, spyware, or other program application) that subsequently infects the employee’s email and/or computer. The malware may affect an employee’s individual account or spread throughout the computer network. The malware, once executed, can harvest information including but not limited to credentials and passwords, thereby giving the intruder access to sensitive company information.
According to court documents, in July of 2017, Lemy and Guillaume laundered a little over $425,000 obtained from a business email compromise of a Texas based university. Then, in 2019, One joined Lemy, and Guillaume in laundering over $900,000 obtained from a business email compromise of another U.S. based victim company. In each business email compromise scheme, co-conspirators sent false and fraudulent emails from a hacked account which tricked the victims into wiring money into accounts controlled by the defendants and their co-conspirators. One, Gousman, and Lemy then sought to conceal the origin of this fraudulently obtained money by transferring it among the bank accounts of various shell companies that One, Gousman, and Lemy controlled.
When the coronavirus pandemic hit the United States in 2020, One, Gousman, and Lemy allegedly initiated a new fraud scheme using existing shell companies from the email compromise scheme, as well as newly created and reactivated shell companies. Defendants allegedly submitted false and fraudulent loan applications under two U.S. government relief programs authorized by the CARES Act to help small businesses and their employees survive the Covid-19 economic crisis: the Paycheck Protection Program (“PPP”) and the Economic Injury Disaster Loan Program (“EIDL”). In June and July 2020, through false submissions in the names of their shell companies, One, Gousman, and Lemy fraudulently applied for and received close to $2 million in PPP and EIDL funds, which was laundered amongst the co-conspirators.
U.S. District Judge Rodolfo A. Ruiz, who sits in Ft. Lauderdale, will sentence these defendants on November 18, 2021, at 9:30 a.m. Each defendant faces up to 20 years in federal prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida; George L. Piro, Special Agent in Charge, FBI Miami; Kyle A. Myles, Special Agent in Charge, Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG), Atlanta Region; and Amaleka McCall-Brathwaite, U.S. Small Business Administration, Investigations Division (SBA-OIG), Eastern Regional Office made the announcement.
FBI Miami, FDIC-OIG, and SBA-OIG handled the investigation, with assistance from the United States Secret Service Miami Field Office and the Treasury Inspector General for Tax Administration Cybercrimes Division. Assistant U.S. Attorney Brooke Watson is prosecuting the case.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-cr-60126.
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Three Associated with Columbia Gangs, Including Local Gang Leader, Sentenced to a Total of 19 Years in Federal PrisonRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three defendants associated with violent Columbia street gangs – Daisean Montez Skeeters, 27, of Elgin; Trenton Jermaine Portee, 26, of Columbia; and Zykese Demar Trevon Howell, 20, of Columbia – were sentenced in total to more than 19 years in federal prison after pleading guilty to federal firearms violations.
According to evidence presented in court, Skeeters and Portee are validated gang members, and Howell is a gang associate. Skeeters is also the leader of a local hybrid gang known to engage in violence and other criminal conduct, according to evidence presented in court by law enforcement.
“Gang violence and violence associated with drug distribution will not be tolerated in South Carolina,” said Acting U.S. Attorney DeHart. “The results from these cases were only possible because of tremendous partnerships with federal, state, and local partners who continue to prioritize an aggressive response to violent crime. We will continue to work together to make communities safer across South Carolina.”
Skeeters pled guilty to being a felon in possession of a firearm and ammunition. Evidence presented in court showed that, around 10:30 PM on October 18, 2019, a Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) task force officer observed an Instagram story with Skeeters brandishing a tan firearm with a high-capacity magazine. The officer, who knew Skeeters was a felon and affiliated with various street gangs, notified the Midlands Gang Task Force. Hours later, the officer observed another Instagram story showing Skeeters with a group of associates, including one on GPS ankle monitor known to have active bench warrants. That associate has since been the victim of a homicide by gunshot. Orangeburg County Sheriff’s Office deputies were able to detain the associate, as well as stop a vehicle in which Skeeters was a passenger. When searching the vehicle, law enforcement located the tan firearm with an extended magazine loaded with 28 rounds of ammunition. Federal law prohibits Skeeters from possessing firearms and ammunition based on prior felony convictions, including five firearm convictions, numerous drug convictions, and two failure to stop for blue lights convictions, among others, in 2013, 2015, 2017, and 2018.
Portee also pled guilty to being a felon in possession of a firearm and ammunition. Evidence presented in court showed that on September 3, 2019, Portee was pulled over by a Columbia Police Department officer. After stopping his car, Portee fled on foot. During the chase, the officer observed a black pistol in Portee’s right hand and gave Portee loud verbal commands to stop and drop the firearm. Portee then tripped over a fence and was apprehended by the officer. After Portee was placed in handcuffs and rolled over, a loaded .40 caliber pistol was located on the ground under Portee. The pistol was stolen in Richland County a year prior. Additionally, through ballistics testing by ATF and the South Carolina Law Enforcement Division (SLED), it was determined that the gun was preliminary linked to two local attempted homicides – one in which the victim was shot in the back of the head. Portee was also prohibited from possessing firearms and ammunition based on prior felony convictions, including three firearm convictions, numerous drug convictions, and convictions criminal domestic violence, Assault & Battery, and Strong Arm Robbery in 2013, 2014, 2015, and 2016.
Howell pled guilty to the distribution of marijuana and possession of a firearm in furtherance of a drug trafficking crime. Evidence presented in court showed that between January and February 2020, Howell and a co-defendant, who is a validated gang member, sold an ATF undercover agent 11 firearms, 5 of which were loaded with a total of 81 rounds of ammunition, and approximately 242 grams of marijuana. Four of the firearms had been previously stolen and ballistics testing by ATF and SLED determined that two of the firearms were previously used in shootings in Richland County.
The ballistics analysis used in the Portee and Howell cases was through the National Integrated Ballistic Information Network (NIBIN), the only national network that allows for the capture and comparison of ballistic evidence to aid in solving and preventing violent crimes involving firearms. NIBIN is a proven investigative and intelligence tool that can link firearms from multiple crime scenes, allowing law enforcement to quickly disrupt shooting cycles. More information on NIBIN can be found at: https://www.atf.gov/firearms/national-integrated-ballistic-information-network-nibin.
United States District Court Judge J. Michelle Childs sentenced Skeeters to 84 months in federal prison, to be followed by a 3-year term of court-ordered supervision. Judge Childs sentenced Portee to 86 months in federal prison, to be followed by a three-year term of court-ordered supervision; and Judge Childs sentenced Howell to 61 months in federal prison, to be followed by a three-year term of court-ordered supervision. There is no parole in the federal system.
The cases were investigated by the ATF, Columbia Police Department, Richland County Sheriff’s Department, Lexington County Sheriff’s Department, Orangeburg County Sheriff’s Office, the Midlands Gang Task Force, and SLED. Assistant United States Attorney Elliott B. Daniels prosecuted the cases.
The cases were 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.
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Third Madera Defendant Added in Superseding Indictment for Trafficking Fentanyl and MethamphetamineRead the Press Release
FRESNO, Calif. — A federal grand jury returned a six-count superseding indictment today adding Josue Morales, 23, to an April 29, 2021, indictment, that charged Madera residents Emilio Hernandez Yesca, 27, and Jorge Perez, 24, with trafficking fentanyl and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, the charges arose out of a months-long investigation into a drug trafficking organization. Between October 2020 and March 2021, the three conspired to distribute pounds of methamphetamine and thousands of fentanyl pills. These fentanyl pills are clandestinely manufactured pills that are made to resemble pharmaceutical oxycodone pills, but instead contain fentanyl, a synthetic opioid that is 100 times stronger than morphine. Morales is alleged to have supplied thousands of fentanyl pills and several pounds of methamphetamine to Hernandez and Perez on two occasions. Hernandez and Perez are alleged to have then distributed some of those narcotics and possessed the remainder with intent to distribute them.
Associates of the trafficking ring, Madera residents Eli Quiroz Hernandez, 26, and Jorge Luis Hernandez Gonzalez, 30, were indicted in related cases in April 2021.
This case is the product of an investigation by Homeland Security Investigations, the Drug Enforcement Administration, the Madera County Sheriff’s Office, the California Highway Patrol, the California Department of Corrections and Rehabilitation, the Chowchilla Police Department, the Madera Police Department, and the Madera Narcotics Enforcement Team. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted of the charged offenses, Hernandez, Perez, and Morales each face a statutory mandatory minimum penalty of 10 years in prison up to a maximum of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
This 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.
This case is part of Operation Synthetic Opioid Surge (S.O.S.) a program designed to reduce the supply of deadly synthetic opioids in high impact areas as well as identifying wholesale distribution networks and international and domestic suppliers. In July 2018, the Justice Department announced the creation of S.O.S., which is being implemented in the Eastern District of California and nine other federal districts.
Third Brother Sentenced for Conspiring to Steal FirearmsRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, Pennsylvania, has been sentenced to 12 months and 1 day of imprisonment with 3 years’ supervised release on a charge of conspiracy, United States Attorney Stephen R. Kaufman announced today.
United States District Judge W. Scott Hardy imposed the sentence on Jamir Atkins, age 22, formerly of Buente Street, Pittsburgh, PA 15212.
In connection with the guilty plea of brothers Jerwahn Atkins, Jamir Atkins, and Jerquay Atkins, the court was advised that on May 31, 2020, the Atkins brothers conspired to steal firearms from federal firearm licensee, Allegheny Arms and Gun Works. The Atkins’s used a crowbar in an attempt to gain entry to the gun store which triggered a burglary alarm. This alarmed caused the brothers to run away to which Jerquay and Jerwahn left the scene in the same vehicle while Jamir departed in a separate vehicle, not arriving at the next crime scene. Jerquay Atkins and Jerwahn Atkins then drove to the National Armory in Moon Township, also a federal firearm licensee. A crowbar was again used to pry open the door triggering the burglary alarm causing the two brothers to flee once more.
Assistant United States Attorney Brendan J. McKenna prosecuted this case on behalf of the government.
The Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Jerwahn Atkins, Jamir Atkins, and Jerquay Atkins.
Texas man admits to sending obscene material to a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Marcus Moreno, of LaVilla, Texas, has admitted to sending inappropriate pictures to a minor, Acting U.S. Attorney Randolph J. Bernard announced.
Moreno, 27, pleaded guilty today to one count of “Transfer of Obscenity to Minor.” Moreno began communicating with a minor located in Berkeley County, West Virginia, via social media applications such as Snapchat, KIK, WhatsApp, and the minor’s school email accounts. The victim’s parents turned over her phone to investigators. Forensics revealed thousands of text messages, chats, and video communications between the victim and Moreno, dating from October 2018 to January 2019, when the victim was 15 years old. The investigation further revealed thousands of images of child pornography of the victim and obscene pornographic images of Moreno.
In May 2019, during execution of a search warrant Moreno gave a voluntary statement to agents saying he met the victim online in a chat room when she had just turned 14. Three weeks after that first conversation, they began online dating. Though never meeting in person, he told investigators he planned to marry the victim when she turned 18. He admitted to sending obscene images of himself to the victim. During the search of his home, the FBI found thousands of other graphic files and video files of the victim on several flash drives and devices.
Moreno faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Assistant U.S. Attorney Kimberley D. Crockett is prosecuting the case on behalf of the government. The FBI and the West Virginia State Police investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Texas Man Sentenced to over 12 Years in Federal Prison for Meth Trafficking Spanning Five StatesRead the Press Release
Robert Board, age 45, originally from Brownsville, Texas, more recently living in Medalia, Minnesota, pled guilty on April 15, 2021, to conspiracy to distribute methamphetamine. He was sentenced to over a dozen years in prison at a sentencing hearing held on September 2, 2021. At the hearings, evidence showed that from March 2019 through June 2020, Board was involved in the distribution of more than 12 kilograms of methamphetamine. In July and August 2019, Board was the leader of a small group in the distribution of over one pound of pure methamphetamine to a confidential informant in four controlled drug operations with law enforcement. Board later admitted to obtaining at least 12 kilograms of methamphetamine and at least 73 pounds of marijuana from sources in California, Washington, and Texas, and transporting it all to Minnesota and Iowa for further distribution. Board also admitted to the interstate transport of a number of firearms for additional transactions.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Board was sentenced to 159 months’ imprisonment and must serve a term of 5 years supervised release following imprisonment. Board is held in United States Marshal custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and the Woodbury County Attorney’s Office; and the Worthington (MN) Police Department and the Nobles County (MN) Sheriff’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4065.
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T&A Crips member who killed rival gang member, shot at potential witness sentenced to 30 years in prisonRead the Press Release
COLUMBUS, Ohio – One of 19 defendants charged in a Columbus gang-related racketeering conspiracy was sentenced in U.S. District Court today to 30 years in prison for his part in furthering the violence of the local Crips gang.
Jonathan Dantzler, 29, murdered a rival gang member and shot at a potential witness in 2012. He is one of 19 defendants charged in 2018 as part of the local gang T&A Crips.
T&A Crips derived its name from Trevitt and Atcheson streets in the King-Lincoln District of Columbus, where its members predominantly reside. T&A controlled the neighborhood through intimidation, fear and violence. Gang members were expected to retaliate with acts of violence when their members and associates were disrespected, threatened, intimidated or subjected to acts of violence.
Specifically, the co-conspirators in this case are charged with five murders:
the murder of Franky Tention on July 1, 2012, in the area of 431 Ellison Street;
the murder of William Moore on March 15, 2013;
the murder of Marvin Ector on December 23, 2013, on East 5th Avenue;
the murder of Quincy Story on January 24, 2015; and
the murder of Deonte Fisher on March 4, 2016.
As part of his guilty plea in May 2021, Dantzler admitted to shooting Franky Tention in 2012. According to court documents, Dantzler shot at the victim because he was a member of the rival “Milo Bloods” gang and was driving into T&A territory in a “sign of disrespect.”
Dantzler also discharged a firearm into the residence of a potential witness to intimidate her from cooperating with law enforcement authorities.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Dan Leeper, Acting Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Columbus Police Chief Elaine Bryant; and United States Marshal Pete Tobin announced the sentence imposed today by U.S. District Judge Michael H. Watson. Assistant United States Attorneys Kevin W. Kelley and Noah R. Litton are representing the United States in this case.
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Statement of Acting U.S. Attorney Raj Parekh on Alexanda Kotey’s Guilty PleaRead the Press Release
Acting United States Attorney Raj Parekh, who is also one of the prosecutors on the case, issued the following statement on Alexanda Kotey’s guilty plea entered this evening in the U.S. District Court for the Eastern District of Virginia:
“Alexanda Kotey, an avowed member of ISIS, pleaded guilty today to all charges that were brought against him in the United States for his participation in a horrific hostage-taking scheme that resulted in the deaths of four U.S. citizens, as well as the deaths of British and Japanese nationals, in Syria. He has agreed to spend the rest of his life in prison.
“The four American victims in this case—James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig—were journalists and humanitarian aid workers, pillars of courage and kindness on the front lines of a perilous conflict. They risked their lives to shine a light on the darkest corners of the globe and to help others most in need. The values that they personified to the very end are the antithesis of those embodied by the terrorist organization that murdered them.
“Contrary to the propaganda perpetuated by ISIS, we have given Alexanda Kotey the opportunity to face justice. Kotey has been afforded due process and, in the face of overwhelming evidence, he made the independent decision to plead guilty to his crimes. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused.
“Today is also a painful anniversary. Seven years ago, the world was devastated by images depicting the death of Steven Sotloff. It is our hope that we can not only remember the heartbreaking loss of Steven, Kayla, Jim, Peter, and all of the other victims who suffered at the hands of the Islamic State, but also begin to bring a measure of comfort and healing for their loved ones.
“This case has always been focused on the victims and their families. Their resilience, courage, and perseverance have ensured that terror will never have the last word. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
St. Croix Man Charged with Illegal Possession of a Firearm at the Frederiksted Post OfficeRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced that Moises Figueroa, Jr., age 45, of St. Croix, was charged today with Possession of a Firearm on U.S. Postal Service Property and Illegal Possession of a Firearm.
According to court documents, on May 26, 2021, federal law enforcement agents conducted a controlled delivery of two parcels suspected of containing firearms. Figueroa was detained in the parking lot of the Frederiksted Post Office after picking up the parcels. The agents confiscated a loaded Taurus Millennium Pro semiautomatic pistol from Figueroa’s waistband.
If convicted, Figueroa faces up to 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Postal Inspection Service (USPIS), Homeland Security Investigations (HSI), and the Bureau of Alcohol, Tobacco, and Firearms (ATF) are investigating the case.
Assistant U.S. Attorney Daniel H. Huston is prosecuting the case.
This case is part of the Department of Justice’s Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, and community leaders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. For more information on the Department of Justice’s Project Safe Neighborhoods, please see: https://www.justice.gov/psn.
A complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South Carolina Medical Provider Pleads Guilty to Federal Health Care FraudRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Joseph Benjamin Barton, 47, of Mount Pleasant, the owner and operator of Midlands Physical Medicine LLC in Richland County, has pleaded guilty to a felony count of health care fraud for billing Medicare for $194,000 that was not due.
Evidence presented in court showed that, from June 2016 until February 2017, Barton, through Midlands Physical Medicine, fraudulently submitted false claims to Medicare Part B for implantable neuro-stimulator pulse generators that beneficiaries did not receive and submitted “approvals” for such devices by a doctor no longer affiliated with the practice.
While Barton submitted claims to Medicare stating that another affiliated physician rendered the procedure, that physician was not a part of the practice, was living in Florida at the time, and was unaware that Barton submitted these claims using his identifiers as the provider that rendered the services. In actuality, a physician’s assistant was providing Medicare beneficiaries an auricular electrical nerve stimulation device not covered by Medicare, in place of an implantable stimulator device, to provide relief from pain and/or headaches.
United States District Judge J. Michelle Childs accepted Barton’s guilty plea and will sentence Barton at a later date. The maximum penalties Barton faces include ten years of imprisonment, a $250,000 fine, and three years of supervised release.
The Office of the Inspector General for United States Department of Health and Human Services is investigating the case, and Assistant United States Attorney Winston Holliday is prosecuting the case.
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Sioux City Woman Off to Federal Prison for Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced on September 2, 2021, in federal court in Sioux City, Iowa.
Jennie Kazena, 38, from Sioux City, pled guilty on February 18, 2021, to conspiracy to distribute methamphetamine. Kazena was previously convicted in federal court of conspiracy to distribute and possession with intent to distribute methamphetamine on February 19, 2010.
Evidence at hearings in the case showed that between January 2019 and October 2019, Kazena and others distributed more than 150 grams of actual (pure) methamphetamine and more than 10 pounds of mixed methamphetamine overall in the Sioux City area. On March 1, 2019, agents seized ½ ounce of methamphetamine from Kazena in two separate law enforcement operations. On October 3, 2019, in a controlled operation by law enforcement, Kazena distributed ¼ pound of methamphetamine to a confidential informant. On October 21, 2019, in a traffic stop, Kazena was found to possess ½ ounce of methamphetamine and admitted to agents her involvement in the distribution of at least two pounds of methamphetamine in the Sioux City area for a large source.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Kazena was sentenced to 126 months’ imprisonment and must serve a term of seven years of supervised release following imprisonment.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4037.
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San Fernando Valley Man Pleads Guilty to Federal Charge for Starting Fire in Santa Monica Restaurant During Last Year’s Civil UnrestRead the Press Release
LOS ANGELES – A West Hills man who started a fire that caused substantial damage to a Santa Monica restaurant during the civil disturbances that erupted during the spring of 2020 pleaded guilty today to a federal criminal charge.
Micah Tillmon, 20, pleaded guilty to one count of possession of an unregistered destructive device.
According to his plea agreement, on May 31, 2020, Tillmon entered Sake House by Hikari, a Japanese restaurant located in downtown Santa Monica, without authorization and while the business was closed because of the civil unrest occurring in the city at that time.
While inside the restaurant, Tillmon possessed and used an incendiary device to ignite a fire that rapidly grew, enveloped the entire restaurant space and spread to other areas of the building adjacent to the restaurant.
According to the affidavit in support of the criminal complaint previously filed in this case, security video from the restaurant shows Tillmon removing “a red tube-shaped object from his jacket, which he placed behind the reception desk area of the restaurant before walking away. Within seconds of that action, smoke and fire appeared from the area….”
The Santa Monica Fire Department (SMFD) responded to the fire and extinguished the flames using several fire trucks and numerous personnel. Due to safety concerns that accompanied the city’s civil unrest, SMFD prematurely abandoned the scene. As a result, SMFD needed to return to the scene several times throughout the night to extinguish additional flare-ups. The restaurant has since permanently closed.
Tillmon was identified by detectives with the Santa Monica Police Department, who reviewed numerous security videos and social media posts. Tillmon was also linked to the fire when investigators uncovered a video showing his white Ford Explorer parking next to the Sake House four minutes before the fire started and then reversing across the street soon after the fire started, according to court documents.
In his plea agreement, Tillmon admitted to knowingly possessing an incendiary device that had not been registered with the National Firearms Registration and Transfer Record, the central federal registry for all items regulated under the National Firearms Act.
United States District Judge Michael W. Fitzgerald has scheduled a December 6 sentencing hearing, at which time Tillmon will face a statutory maximum sentence of 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Santa Monica Police Department investigated this matter.
Assistant United States Attorney Shawn T. Andrews of the Violent and Organized Crime Section is prosecuting this case.
San Diego Doctor Pays $200,000 to Resolve Allegations that He Wrote Illegitimate Opioid PrescriptionsRead the Press Release
Assistant U.S. Attorney Dylan M. Aste (619) 546-7621
NEWS RELEASE SUMMARY – September 2, 2021
SAN DIEGO – San Diego area pain clinic doctor Brenton Wynn, M.D., has paid $200,000 to resolve allegations that he illegally prescribed opioids and other dangerous drugs to his patients, according to a settlement agreement signed by Dr. Wynn and the United States. The settlement stems from the United States’ continued efforts to combat the opioid epidemic on all fronts, including this investigation of whether Dr. Wynn illegally prescribed opioids to his patients in violation of the Controlled Substances Act.
The Controlled Substances Act provides that doctors may write prescriptions for opioids only for a legitimate medical purpose while acting in the usual course of their professional practice. The United States alleged that Dr. Wynn wrote opioid prescriptions to patients without a legitimate medical purpose and/or outside the usual course of his professional practice for more than five years. Dr. Wynn wrote prescriptions for fentanyl, oxycodone, hydromorphone, methadone, oxymorphone, and morphine.
The United States further alleged that Dr. Wynn prescribed at the same time a dangerous combination of opioids and benzodiazepines such as Xanax and Valium. Of even more concern, Dr. Wynn allegedly prescribed to some patients a combination of at least one opioid, one benzodiazepine and one muscle relaxant such as Soma. Drug abusers colloquially refer to the opioid, benzodiazepine, and muscle relaxant combination as the “Trinity” or “Holy Trinity” because of its rapid euphoric effects. These drug combinations are known to significantly increase the risk of addiction, abuse, and overdose.
The investigation exemplifies the Department of Justice’s willingness to investigate doctors who may be overprescribing opioids while treating patients who suffer painful conditions. Such doctors must still only prescribe opioids in accordance with recognized and accepted medical standards. Indeed, public health experts have long warned health care providers that overdose risk is elevated in patients receiving medically prescribed opioids, particularly those receiving high dosages. Doctors and other health care providers should carefully track the potency of opioids prescribed to patients by noting the Morphine Milligram Equivalent (MME, also commonly referred to as Morphine Equivalent Dose or MED) of prescribed opioids. Among other things, tracking MMEs advances better practices for pain management by reinforcing the need for providers to consider alternatives to using high-dosage opioids to treat pain and to appropriately justify decisions to use opioids at dosages that place patients at high risk of addiction, abuse, and overdose. Furthermore, prescribing high dosages increases the risk that patients will divert opioids.
Based on its investigation, the United States alleged that Dr. Wynn prescribed large quantities of opioids to his patients that reached high daily MME levels, often even exceeding 120 MME. The United States further alleged that Dr. Wynn sometimes continued to prescribe dangerous opioids even when his patients’ urine drug test results showed that they were not taking the drugs Dr. Wynn prescribed.
“Even in our climate of heightened awareness of the dangers of opioids, some doctors continue to overprescribe opioids,” said Acting U.S. Attorney Randy Grossman. “This office will pursue those overprescribing doctors and bring them to justice. And as we have consistently demonstrated, we will continue to use all available tools to combat the serious opioid epidemic.” Grossman commended Assistant U.S. Attorney Dylan Aste and the Drug Enforcement Administration for their work on the investigation.
The DEA has a pending administrative action against Dr. Wynn (Docket No. 20-10) to revoke his ability to prescribe opioids and other controlled substances.
“While the vast amount of medical professionals prescribe opioids legitimately and are meeting their patients’ standard of care, DEA will vigorously pursue information from the public about the doctors who are not,” said DEA Special Agent in Charge John W. Callery. “DEA will always protect the public from doctors who put their patients in harm’s way.”
To report a tip directly to a DEA representative regarding medical personnel writing suspicious opioid prescriptions and pharmacies dispensing large amounts of opioids, call (571) 324-6499, or visit the DEA’s website (https://www.deadiversion.usdoj.gov/) and click on “Report Illicit Pharmaceutical Activities.”
Assistant U.S. Attorney Dylan M. Aste of the U.S. Attorney’s Office for the Southern District of California handled this matter along with DEA investigators.
The claims resolved by this settlement are allegations only and there has been no determination of liability.
Rochester Woman Pleads Guilty to Accessory After the Fact to St. Paul ArsonsRead the Press Release
MINNEAPOLIS – A Rochester woman pleaded guilty today to being an accessory after the fact to arson of multiple St. Paul businesses, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on May 28, 2020, Mena Dhaya Yousif, 23, and her husband, co-defendant Jose Angel Felan Jr., 35, went to several businesses located on University Avenue in St. Paul. Felan allegedly set fire to the Goodwill retail store, the Gordon Parks High School, and the 7 Mile Sportswear store. Over the course of the following week, Yousif aided and abetted Felan as he fled from Minnesota to Texas, before crossing the border into Mexico. Yousif traveled with Felan and assisted his escape by destroying evidence and providing false information to law enforcement.
In February 2021, Felan and Yousif were arrested by Mexican law enforcement authorities and returned to the United States to face prosecution.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, the St. Paul Fire Department, and the Minnesota State Fire Marshal Division. The fugitive apprehension efforts were led by the U.S. Marshals Service.
Assistant U.S. Attorneys Melinda A. Williams and Emily Polachek are prosecuting the case.
Rochester Man Pleads Guilty to His Role in Burning of RPD Car During May 2020 Violent Protests in RochesterRead 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 Miguel Ramos, 20, of Rochester, NY, pleaded guilty before U.S. District Judge Charles J. Siragusa to rioting for his role in violent protests held in the City of Rochester in May 2020. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Cassie M. Kocher, who is handling the case stated that on May 30, 2020, Rochester Police Department (RPD) officers were assigned to assist with crowd control during protests scheduled at the Public Safety Building (PSB) on Exchange Boulevard. During the late-afternoon/early evening, those protests, being held in response to the death of George Floyd in Minneapolis, Minnesota, turned violent and resulted in vandalism, damaged property, looting, and fires.
During the course of the protests, the defendant and others used an aerosol can and an open flame to set fire to a marked Rochester Police Department patrol vehicle parked in front of the Public Safety Building. The burning of the RPD car, which was completely destroyed, was broadcast and recorded on Facebook Live, which streamed the burning online in real time. Ramos also took photographs of himself at the riot and sent those photographs to others via text message to encourage them to participate in the riot.
The plea is are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Barry Chase; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Robert Hill; and the Rochester Fire Department, under the direction of Fire Chief Felipe Hernandez Jr. 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.
Sentencing is scheduled for December 2, 2021, at 9:15 a.m. before Judge Siragusa.
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Rhode Island Man Sentenced to 30 Months’ Imprisonment for Automobile Warranty Fraud SchemeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Matthew Gershkoff, age 64, of North Providence, Rhode Island was sentenced to 30 months’ imprisonment and three years of supervised release by United States District Court Judge Malachy E. Mannion, for conspiring to commit wire fraud, and for aggravated identity theft offenses. Judge Mannion also ordered Gershkoff to pay restitution of $385,352.19 to the victim of his crime.
According to Acting United States Attorney Bruce D. Brandler, Gershkoff was convicted of preparing false invoices for nonexistent automobile repairs at multiple automobile repair shops located in Rhode Island and in Massachusetts, and for forging policy owners’ signatures. The invoices were sent to and paid by an automobile warranty company in Wilkes-Barre, Pennsylvania. Gershkoff pleaded guilty on May 18, 2020, to causing between $250,000 and $550,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company.
Three of Gershkoff’s coconspirators were convicted in this investigation:
- Brian Larry, age 59, of Clark’s Summit, Pennsylvania, was convicted on May 10, 2021, following a jury trial, of mail fraud, wire fraud, aggravated identity theft, and false statement offenses. Larry was convicted of defrauding his former employer, the Wilkes-Barre based automobile warranty company, from approximately January 2014 through October 2018. Larry also was convicted of stealing the personal information of warranty policy owners and providing it to his coconspirators, who created false invoices for nonexistent automobile repair work supposedly performed at various garages in Rhode Island, Massachusetts, and Pennsylvania, including by forging the policy owners’ signatures on the paperwork. The false and forged documentation was then sent to the warranty company, where Larry approved payment of the invoices. During the course of the scheme, Larry and his coconspirators obtained approximately $400,000 paid out by the warranty company pursuant to the false invoices, including thousands of dollars in repair work for Larry’s personal vehicle that he charged to other policy owners. The evidence at trial showed that Larry then falsified internal warranty company documents in an attempt to conceal his crimes.
- Herman Cabral, age 62, of Cranston, Rhode Island, pleaded guilty to conspiring to commit wire fraud, and was sentenced to 10 months of imprisonment and three years of supervised release. Cabral was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, A Plus Auto Services. Cabral pleaded guilty on July 23, 2019, to causing between $150,000 and $250,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and was ordered to pay over $211,644.03 in restitution.
- Jason Pannone, age 40, of North Providence, Rhode Island pleaded guilty to conspiring to commit wire and mail fraud, and to aggravated identity theft, and was sentenced to 18 months of imprisonment and two years of supervised release. Pannone was convicted of processing false invoices for nonexistent automobile repairs through his Providence, Rhode Island automobile detailing shop, Platinum Auto Services, and through Ultra Auto Services, where he was employed. Pannone pleaded guilty on March 23, 2021, to causing between $95,000 and $150,000 of fraudulent loss to the Wilkes-Barre based automobile warranty company, and was ordered to pay restitution of $128,667.16 to the victim of his crime
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorneys Phillip J. Caraballo and Jeffrey St John prosecuted the case.
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Retail Ready Owner to Forfeit $72M for VA Tuition FraudRead the Press Release
The owner of a for-profit trade school convicted of bilking the U.S. Department of Veterans Affairs will forfeit $72 million to the federal government, Acting U.S. Attorney Prerak Shah announced today.
In an order handed down Wednesday, U.S. District Judge Brantley Starr ruled that Jonathan Dean Davis, the 43-year-old owner of Retail Ready Career Center, will forfeit $72,480,225.03 – the total amount the VA paid him for military veterans’ student tuitions – to the government. The order included the specific forfeiture of more than $4.7 million in cash; numerous luxury vehicles, including a Lamborghini, a Ferrari, a Bentley, two Mercedes-Benzes, and a BMW; and real estate in Dallas and Utah worth more than $2.5 million.
Mr. Davis was found guilty of seven counts of wire fraud and four counts of money laundering following a six-day trial in April.
“This defendant attempted to argue that because the proceeds of his fraud were in his business account, rather than in a personal bank account, he should not have to give it all back. But neither the American taxpayer nor the Court recognize such a distinction. We are proud to say that $72 million in fraudulently-obtained money is headed back into U.S. coffers,” said Acting U.S. Attorney Prerak Shah.
According to evidence presented at trial, Mr. Davis marketed Retail Ready’s six-week HVAC training course to veterans whose tuition and fees would be covered by the Veteran’s Educational Assistance Act of 2008, also known as the post-9/11 GI Bill. The defendant, who was essentially broke at the time of the crime, realized that he could charge $18,000 to $21,000 per student for the six-week course, if only he could get approval from the VA to accept GI Bill payments for tuition – which required prior approvals from the Texas Workforce Commission (TWC) and the Texas Veterans Commission (TVC).
These agencies required applicants to certify that they were not personally facing any criminal or civil actions, and to prove that their schools were established educational institutions in stable financial condition. Knowing he could not meet these requirements, Mr. Davis repeatedly lied and concealed information from these agencies.
“Several decisions lie ahead that will ultimately make the difference if I succeed or if I fail. More gut-wrenching conversations, more humiliating experiences, more lying is in order,” Mr. Davis wrote in an electronic journal he kept on his computer, which was recovered by federal agents during a search of Retail Ready. The journal became a key piece of evidence at trial.
Mr. Davis assured the TWC that he was not subject to any civil actions, when, in fact, he was facing numerous civil judgments over unpaid debts. He also told the TWC that he was not facing any criminal charges, when, in fact, he had a pending felony charge for theft of services.
Mr. Davis told the TVC that Retail Ready had been operating as a school for two years, when, in fact, the company had only existed for a few months and had never trained any students. He claimed that Retail Ready was fully prepared to train veterans, when, in fact, the company lacked a building and basic supplies. He even lied to an independent accountant about the school’s financial condition, and then submitted false financial statements to both the TWC and the TVC.
Eventually, based upon Mr. Davis’ lies to the TWC and TVC, the VA accepted Retail Ready’s application, allowing Mr. Davis to charge veterans’ tuition and fees to the VA under the GI Bill.
In 2014, he began recruiting student veterans, promising to prepare them for lucrative careers in the heating and air conditioning industry. Upon entering the workforce, however, many of these veterans discovered that Retail Ready had failed to teach them many of the basic skills necessary for entry-level technician jobs.
Several veterans testified at trial that they had relied on the Retail Ready’s fraudulently obtained VA endorsement and were sorely disappointed about their post- Retail Ready career prospects and pay. They were also shocked to learn of the rate at which Retail Ready’s six-week course had drained their GI Bill benefits, testifying that they felt “used,” “taken advantage of,” “deceived,” and “bamboozled.”
Mr. Davis is set to be sentenced on Wednesday, Sept. 22. He faces up to 180 years in federal prison.
The VA’s Office of Inspector General conducted the investigation with the assistance of the Federal Bureau of Investigation’s Dallas Field Office and the United States Postal Inspection Service’s Fort Worth Field Office. Assistant U.S. Attorney Dimitri Rocha is handling forfeiture. Assistant U.S. Attorneys Douglas Brasher and Fabio Leonardi are prosecuting the case.
Repeat Offender Sentenced for Federal Firearms ChargesRead the Press Release
GREENEVILLE, Tenn. – On September 2, 2021, Brandon Royce Clark, 32, of Morristown, Tennessee, was sentenced to serve 117 months in the Federal Bureau of Prisons, followed by four years of supervised release by the Honorable Clifton L. Corker, in the United States District Court for the Eastern District of Tennessee at Greeneville. The sentence reflects a 96-month term of imprisonment followed by three years on supervised release for instant case to be run consecutively to a 21-month term of imprisonment with one year of supervised release to follow based on a revocation of supervised release for a prior conviction.
As part of the plea agreement filed with the court, Clark pled guilty to one count of being a convicted felon in the unlawful possession of a firearm.
According to the filed plea agreement, on July 13, 2019, less than two months after being released from federal prison, Clark was involved in an incident that led to his shooting two individuals near Boatsman Mountain Road in Morristown, Tennessee. Clark was traffic stopped the following day by a member of the Hamblen County Sheriff’s Office Narcotics Unit who was looking for the vehicle involved in the shooting and Clark was found to be in possession of a .380 semi-automatic pistol.
Court records reflect that Clark was previously convicted of being a felon in possession of a firearm in the Eastern District of Tennessee following a December 2010 event in which he fired shots into an occupied vehicle. Clark was sentenced to 100 months in Federal Bureau of Prisons with three years of supervised release to follow in that case. Clark was released from prison in that case on May 24, 2019.
The prosecution resulted from an investigation by the Hamblen County Sheriff’s Office Detectives and Narcotics Units, and with the assistance of the 3rd Judicial District Attorney’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant United States Attorney J. Christian Lampe represented the United States.
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.
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Registered Sex Offender in Fresno Charged with Child Sexual Exploitation OffensesRead the Press Release
FRESNO, Calif. – A federal grand jury has returned a three-count indictment against Andrew Michael Alonso, 31, of Fresno, charging him with sexual exploitation of a minor, receipt of a visual depiction of a minor engaged in sexually explicit conduct, and committing a felony offense involving a minor while being a registered sex offender, Acting U.S. Attorney Phillip A. Talbert announced today.
According to court documents, Alonso is a registered sex offender who was on California parole supervision with GPS location monitoring. He contacted a 13-year-old victim on Instagram and then communicated with the victim through text messages in May and June 2021. Alonso repeatedly asked the victim to create and send to him images of the minor victim engaged in sexually explicit conduct. Alonso received still and video images of the minor engaged in sexually explicit conduct. He has been ordered detained as a danger to the community and risk of flight.
This case is the product of an investigation by the Central California Internet Crimes Against Children Task Force, which includes the Fresno Police Department and the Fresno office of Homeland Security Investigations. Assistant U.S. Attorney David L. Gappa is prosecuting the case.
If convicted of sexual exploitation of a minor, Alonso faces a statutory penalty of 15 to 30 years in prison, a potential $250,000 fine, and a possible lifetime term of supervised release. If convicted of being a registered sex offender who is convicted for sexual exploitation of a minor, Alonso faces a mandatory 10-year consecutive sentence in prison. If convicted of receipt of a visual depiction of a minor engaged in sexually explicit conduct, Alonso faces five to 20 years in prison, a potential $250,000 fine, and a possible lifetime term of supervised release. 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.
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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Readout of Meeting between the U.S. Department of Justice and EU CommissionRead the Press Release
U.S. Attorney General Merrick B. Garland met today with European Commissioner for Home Affairs Ylva Johansson in Washington, D.C., to further strengthen the partnership between the United States and the European Union on fighting transnational crime and terrorism.
In their inaugural meeting, the leaders reaffirmed their shared commitment to strengthen bilateral cooperation on law enforcement matters and to counter common threats, including those posed by foreign terrorism, domestic violent extremism, cybercrime, online child sexual exploitation and abuse, and the trafficking of humans, drugs, and firearms.
They additionally discussed the need for continued cooperation to combat transborder ransomware attacks, and to address the public safety challenges posed by the use of encryption technology to further criminal activity. The Attorney General and Commissioner committed to further dialogues between the United States and the European Union to help ensure the protection and security of the citizens of both jurisdictions.
Parkersburg Man Sentenced to More than 10 Years in Prison for Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Shaun Price, 41, of Parkersburg, was sentenced today to 123 months in prison for federal drug and gun crimes. Price previously pleaded guilty to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents, an officer with the South Charleston Police Department attempted a traffic stop on Price’s vehicle in Cross Lanes on December 7, 2020. Price fled and led law enforcement in a high speed pursuit. The pursuit began in Cross Lanes and ended in South Charleston where officers were able to stop Price’s vehicle by using spike-strips. Officers recovered approximately 7.85 grams of meth and a loaded 9mm Taurus PT111 handgun from the vehicle. Price admitted that he intended to sell the methamphetamine and that he possessed the firearm to protect his drugs and money.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the South Charleston Police Department.
Assistant United States Attorney Nick Miller is handling the prosecution. Senior United States District Court Judge John T. Copenhaver, Jr. 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. 2:21-cr-00051.
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Oxford Man Indicted for Drug TraffickingRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2021, Jeffrey Christopher Cerrato, age 21, of Oxford, Pennsylvania, was indicted by a federal grand jury for drug trafficking offenses.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that on January 14, 2021, in York County, Pennsylvania, Cerrato possessed with the intent to distribute approximately one pound of methamphetamine.
The matter was investigated by the York City Police Department, along with the Drug Enforcement Administration. Assistant U.S. Attorney Paul J. Miovas, Jr. is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the distribution of a controlled substance offense is life imprisonment, with a mandatory minimum sentence of 10 years of incarceration, a term of at least 5 years of supervised release following imprisonment, and a $10,000,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Owner of Purported Sports Marketing Agency Facing Federal Charges in Ponzi SchemeRead the Press Release
NASHVILLE –Katie Lynn Mancuso, 40, of Nashville, was charged today with bank fraud and wire fraud, resulting from a fraudulent scheme in which she received more than $2.8 million from investors, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
According to the charging document, Mancuso owned and operated Gray Area Marketing in Nashville, which was purportedly a sports marketing agency representing various famous athletes. As part of the fraudulent scheme and beginning in June 2017, Mancuso solicited funds from investors and falsely represented that Gray Area had been awarded contracts to perform marketing services for professional athletes. Mancuso overstated Gray Area’s assets and receivables and promised to repay investor’s funds within 90 days and with a rate of return usually between 15%-25%. Mancuso also provided investors with fake invoices that falsely reflected money owed to Gray Area by vendors such as Nike, Oakley, and Under Armour for services rendered.
During the course of the scheme, Mancuso generated fraudulent invoices and emails to make her business appear legitimate. She also forged the signature of an attorney on a fraudulent attorney-client representation and forged the signatures of another individual on a purported contract.
Between June 2017 and February 2021, Mancuso solicited funds from at least 26 investors and received more than $2.8 million. Although she repaid some investors, using funds from others, the total loss to investors was more than $1.1 million. Mancuso used the investment funds to pay her living expenses and at hotels, bars, and to obtain plastic surgery.
If convicted, Mancuso faces up to 20 years in prison for wire fraud and up to 30 years in prison for bank fraud.
This case was investigated by the FBI. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
The charges are merely accusations. The defendant is presumed innocent until proven guilty in a court of law.
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Oswego County Woman Charged with Misusing Social Security Numbers and Aggravated Identity TheftRead the Press Release
SYRACUSE, NEW YORK – Tammy Tilton-Gajewski, age 48, of Fulton, New York, was arrested yesterday on an indictment charging her with 32 counts of misuse of a social security number and two counts of aggravated identity theft related to her use of the names of other people and social security numbers not assigned to her to obtain credit cards and loans. The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration, Office of the Inspector General, New York Field Office.
Tilton-Gajewski was arraigned on the indictment yesterday in United States District Court in Syracuse, New York and released pending trial on a date to be scheduled in the future.
If convicted of misuse of a social security number, Powell faces a maximum term of imprisonment of five years, a fine of up to $250,000, and a term of supervised of up to three years. If convicted of aggravated identity theft, Tilton-Gajewski faces a mandatory minimum sentence of two years on each aggravated identity theft count. 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.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by the Social Security Administration Office of the Inspector General and the New York State Police and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
Nigerian hacker and a repeat offender sentenced to federal prison for unemployment fraud and tax fraud schemeRead the Press Release
ATLANTA – Bamidele Muraina, a Nigerian national who hacked into tax preparation firms and filed fraudulent unemployment benefit claims and tax returns using stolen personally identifiable information, and Gabriel Kalembo, a previously convicted fraudster who laundered the fraudulent assets, have been sentenced to federal prison.
“These defendants stole funds from programs meant to assist American workers and families seeking to make ends meet during the COVID-19 pandemic,” said Acting U.S. Attorney Kurt R. Erskine. “The collaborative efforts of our law enforcement partners were essential to disrupting a sophisticated network of criminals and bringing their leaders to justice.”
“The COVID-19 pandemic has had a devastating effect on us all. The enterprise created by these serial criminals further victimized our citizenry by robbing them of financial resources that were intended to help them,” said Special Agent in Charge Steven Baisel, U.S. Secret Service Atlanta Field Office. “Thanks to our judicial system, justice has been served.”
“Bamidele Muraina engaged in a conspiracy to defraud the Employment Security Department of Washington State (“ESD-WA”) by filing dozens of fraudulent unemployment insurance (UI) claims in the names of identity theft victims who were not entitled to such benefits. As part of the same conspiracy, Gabriel Kalembo and his conspirators laundered the unlawfully obtained UI benefits from ESD-WA by purchasing and then later negotiating hundreds of money orders. We will continue to work with our law enforcement partners and state workforce agencies to protect the integrity of unemployment insurance benefit programs,” said Rafiq Ahmad, Special Agent in Charge, Atlanta Region, U.S. Department of Labor Office of Inspector General.
“The sentencing of the defendants should serve as a deterrent to all who intend to exploit the COVID-relief programs that were designated to assist those in need during the pandemic,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division of the United States Postal Inspection Service. “Postal Inspectors will continue to work with our law enforcement partners to investigate anyone that steals federal funds to enrich themselves and have them held accountable under the law.”
“The conspirators not only stole from the government but also victimized individuals and private businesses in this case,” said IRS Criminal Investigation Special Agent in Charge James E. Dorsey. “Recovering from ID theft often costs time, money, and stress for all parties involved. Thanks to successful partnerships with our agency counterparts and leveraging our financial expertise to serve and protect our communities from further harm.”
“These criminals shamelessly stole people’s hard-earned tax returns and money meant to help families during the pandemic, but thankfully they were exposed and are now facing justice,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “HSI and its law enforcement partners will continue to aggressively pursue those that seek to profit from these activities.”
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: Bamidele Muraina was a Nigerian national residing in the metro Atlanta area at the time of his offenses. Between at least January 29, 2018 and continuing through approximately April 2020, Muraina hacked into multiple tax preparation and accounting firms located in several states, including a Brunswick, Georgia-based accounting firm. Muraina obtained access to the firms’ accounts with a national tax preparation program, stole personally identifiable information from their clients, and filed more than 275 fraudulent individual income tax returns in their names via the Internet. In total, Muraina’s fraudulent tax returns using stolen identities sought refunds from the IRS exceeding $2.6 million from 2018 through 2020.
Between May 9, 2020 and May 16, 2020, Muraina used stolen personally identifiable information from Washington residents to submit false claims for unemployment insurance benefits in Washington. Muraina’s false claims exploited a federal COVID-19 pandemic relief program created by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which expanded eligibility for unemployment benefits and provided an additional unemployment benefit of $600 per week. Based on Muraina’s fraudulent claims submitted in the names of approximately fifty Washington residents over a one-week span, the State of Washington issued more than $280,000 in unemployment benefits.
Muraina directed fraudulent funds from his unemployment benefits scheme and tax fraud scheme to be deposited into bank accounts set up by co-conspirators, including Gabriel Kalembo, who was convicted in 2017 of conspiracy to commit wire and bank fraud in the Northern District of Georgia. Kalembo recruited Zambian nationals to travel to the United States on tourist visas to incorporate sham corporations in Georgia and open business bank accounts in the names of those corporations. After the fraudulent funds were deposited into those accounts, Kalembo laundered the funds by cashing money orders purchased with debit cards linked to the accounts.
Bamidele Muraina, 35, of Oyo, Nigeria was sentenced by U.S. District Judge William M. Ray II to five years and ten months in prison to be followed by three years of supervised release, and he ordered Muraina to pay $561,125.62 in restitution.
Gabriel Kalembo, 33, of Atlanta, Georgia was sentenced by Judge Ray to four years and two months in prison to be followed by two years of supervised release, and he ordered Kalembo to pay $298,008.71 in restitution.
This case was investigated by the U.S. Secret Service, the Department of Labor Office of Inspector General, the Internal Revenue Service Criminal Investigation, the Department of Homeland Security-Homeland Security Investigations, and the United States Postal Inspection Service.
Assistant U.S. Attorneys Nathan P. Kitchens, Chief of the Public Integrity and Special Matters Section, Sarah E. Klapman, and Lauren T. Macon are prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
New Haven Man Admits Possessing Gun and Drugs While on Federal Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that RONNELL ROGERS, 28, of New Haven, pleaded guilty today via videoconference before U.S. District Judge Janet C. Hall to narcotics distribution and firearm possession offenses.
In July 2019, Rogers was released from federal prison after serving approximately 17 months for unlawful possession of ammunition by a felon. On January 17, 2021, while he was on federal supervised release, Rogers was arrested in New Haven on related state charges after officers searched his car and found distribution quantities of fentanyl and crack cocaine, and a loaded Smith & Wesson .45 caliber semi-automatic pistol. The firearm had been reported stolen in Virginia.
In addition to his prior federal conviction, Rogers’ criminal history includes state convictions for firearm, larceny and risk of injury offenses.
Rogers pleaded guilty to one count of possession with intent to distribute controlled substances, which carries a maximum term of imprisonment of 20 years, and one count of possession of a firearm by a convicted felon, which carries a maximum term of imprisonment of 10 years. He also faces additional penalties for violating the conditions of his federal supervised release. Judge Hall scheduled sentencing for December 1, 2021.
Rogers has been detained since his federal arrest on January 28, 2021.
This matter has been investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Haven Police Department. This case is being prosecuted by Assistant U.S. Attorney Sarah P. Karwan.
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.
Montgomery County Man Sentenced to 30 Months for Unlawfully Selling “Ghost Guns”Read the Press Release
ALBANY, NEW YORK – Michael Castelluccio, age 43, of Fultonville, New York, was sentenced today to serve 30 months in prison, to be followed by 2 years of supervised release, for unlawfully transferring an unregistered short-barreled rifle that had machinegun capability.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
On November 5, 2020, Castelluccio pled guilty to one count of unlawful transfer of unregistered firearms. As part of his guilty plea, Castelluccio admitted that over the course of four transactions between August and September 2019, he built, sold and transferred 19 firearms from component parts ordered online. These firearms are commonly known as “ghost guns” because they do not have serial numbers, which makes them difficult for law enforcement to trace.
Castelluccio admitted to building, selling, and transferring short-barreled rifles, which are rifles with barrels less than 16 inches long. Castelluccio admitted to doing so without having filed an application with or received approval from the Secretary of the Department of the Treasury, or paying the tax required by federal law. He also admitted that one of the firearms he sold was modified to allow it to automatically shoot more than one shot by a single function of its trigger.
Castelluccio also forfeited a pickup truck that he used to transport the firearms.
This case was investigated by the ATF and Homeland Security Investigations, as well as the Schenectady County and Montgomery County Sheriff’s Offices. The case was prosecuted by Assistant United States Attorney Alexander Wentworth-Ping.
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.
Monongahela Man Sentenced for Possessing Videos and Images of Child PornographyRead the Press Release
PITTSBURGH - A resident of Monongahela, Pennsylvania, has been sentenced in federal court to 24 months’ imprisonment followed by 10 years of supervised release on his conviction for possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence on Eric Allard, 50.
According to information presented to the court, on November 27, 2017, investigators with Homeland Security Investigations executed a search and seizure warrant at Allard’s residence and seized numerous electronic devices. Investigators searched the electronic devices and found approximately 12,088 images and approximately 16 videos depicting child pornography. Prior to imposing the sentence, Judge Ambrose referenced the seriousness of the offense and the victims in this case.
Assistant United States Attorney Mark V. Gurzo prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended Homeland Security Investigations and the Monongahela Police Department for the investigation leading to the successful prosecution of Allard.
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.justice.gov/psc.
Monmouth Woman Pleads Guilty to Firearms ChargeRead the Press Release
BANGOR, Maine: A Monmouth woman pleaded guilty in federal court yesterday to making false statements to a firearms dealer during the purchase of a firearm, Acting U.S. Attorney Donald E. Clark announced.
According to court records, in April 2019, Laura Love, 43, purchased a 9 mm pistol from a federally licensed firearms dealer in Windsor. When completing the sale, Love filled out a Firearms Transaction Record form in which she falsely reported that she was the actual purchaser of the firearm. She was actually purchasing the firearm for someone else.
Love faces up to 10 years in prison, a $250,000 fine and three years of supervised release. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Augusta Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case as part of the Department of Justice’s Project Safe Neighborhoods (PSN) initiative.
PSN is a nationwide initiative that brings together federal, state, local and tribal law enforcement officials, prosecutors, community leaders and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories. PSN is customized to account for local violent crime problems and resources. Across all districts, PSN follows four key design elements of successful violent crime reduction initiatives: community engagement, prevention and intervention, focused and strategic enforcement, and accountability.
Man Pleads Guilty to Committing 2015 Rape near OSU-Tulsa CampusRead the Press Release
A Tulsa man pleaded guilty in federal court to a 2015 rape he committed within the Cherokee Nation near the OSU-Tulsa campus, announced Acting U.S. Attorney Clint Johnson.
Eugene Todd Nunley, 48, pleaded guilty to aggravated sexual abuse by force and threat in Indian Country on Aug. 26. As stipulated in his plea agreement, Nunley faces 14 years in federal prison followed by a lifetime of supervised release. U.S. District Judge Claire V. Eagan will make the final sentencing determination on Jan. 5, 2022.
The defendant admitted that he forced the female victim into a wooded area and raped her on Aug. 13, 2015. The victim was walking on the Osage Prairie Trail near 900 North Greenwood Avenue when Nunley attacked her from behind. Following the rape, the defendant told the victim she was “lucky” then ran away.
The victim reported the crime and told officers she did not know her attacker. In early September 2015, DNA testing revealed Nunley was the perpetrator. Officers located the defendant in the Creek County jail, where he was being held on unrelated charges.
Nunley, a Muscogee Nation citizen, was previously convicted of the 2015 rape in Tulsa County District Court. His conviction was overturned after the Cherokee Nation reservation was recognized as having never been disestablished by Congress. He was indicted in federal court in June 2021.
“My hope is that the victim in this case sees herself as a survivor and a protector of other women. Her willingness to again confront a life-altering trauma and defendant Eugene Nunley was crucial to ensuring this predator faced justice,” said Acting U.S. Attorney Clint Johnson.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Chantelle D. Dial is prosecuting the case.
Luzerne County Man Sentenced to Forty-Six Months’ Imprisonment for Illegal Drug Trafficking and Firearms OffensesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that Bruce Redmond, age 32, of Dallas, Pennsylvania, was sentenced on September 1, 2021, to 46 months’ imprisonment by United States District Court Judge Malachy E. Mannion for illegal possession of firearms and methamphetamine trafficking.
According to Acting United States Attorney Bruce D. Brandler, Redmond previously entered a guilty plea before Judge Mannion and admitted to being an illegal user of controlled substances in possession of firearms and to the possession of methamphetamine for further distribution. The charges stem from an incident in which law enforcement authorities served search warrants at Redmond’s residence in Dallas and business office in Kingston and seized approximately 58 firearms, 6,664 rounds of ammunition and a quantity of methamphetamine.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kingston Police Department, and the Pennsylvania State Police. Assistant U.S. Attorney Robert J. O’Hara prosecuted the case.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Local repeat felon headed to prison for firearms convictionRead the Press Release
CORPUS CHRISTI, Texas – A 39-year-old Corpus Christi resident has been ordered to federal prison for being a felon in possession of a firearm, announced Acting U.S. Attorney Jennifer B. Lowery.
Francisco Campos pleaded guilty July 21.
Today, U.S. District Judge David S. Morales ordered him to serve a 65-month sentence to be immediately followed by three years of supervised release. At the hearing, the court heard additional evidence that Campos was found in possession of meth, scales and $900 cash at the time of his arrest.
Campos apologized for “wasting everyone’s time,” explaining that he has spent most of his adult life behind bars. He added that he did not want to be locked up any longer and did not understand why it is illegal for a felon to possess firearms to protect themselves against non-felons who have firearms.
In handing down the sentence, Judge Morales noted his eight felony convictions, 13 misdemeanors and 10 additional arrests. The court further commented that Campos will eventually get out of prison and it would be up to him to better himself and get the help he needs while incarcerated.
As a convicted felon, Campos is prohibited from possessing firearms or ammunition per federal law.
However, on Aug. 3, 2020, Campos accidentally shot himself with a firearm while cleaning it at his dining room table. Law enforcement responded to the scene and noted blood splatter on the carpet, walls and curtains of the room. They also saw a gunshot hole that went through a curtain, blinds and a window.
Campos was found with a 2nd firearm as the result of a traffic stop that occurred Aug. 22, 2020. This incident also involved the seizure of meth, morphine sulfate pills, meth pipes containing residue, two electronic scales and a butane torch.
He was found again Sept. 24, 2020, in a stolen vehicle. Authorities discovered a firearm under Campos in the passenger seat. It had one round loaded in the chamber.
Campos has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Texas Department of Public Safety and the Corpus Christi Police Department. Assistant U.S. Attorney Amanda L. Gould prosecuted the case.
The case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In late 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Lehigh Acres Couple Indicted for COVID Relief FraudRead the Press Release
Fort Myers, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Amber Rewis Bruey (34) and Anthony James Bruey (35), a married couple from Lehigh Acres, with conspiracy to commit wire fraud, wire fraud, conspiracy to commit money laundering, and illegal monetary transactions. The indictment also notifies the Brueys that the United States intends to forfeit a 2019 GMC Yukon XL, 2021 Chevrolet Spark LS, 2020 Honda Talon, 2020 Polaris RZR, real property in North Carolina, and $881,058.35, which are alleged to be traceable to proceeds of the offense.
Defendant
Charge
Maximum Penalty per Count
Amber Rewis Bruey
Conspiracy to Commit Wire Fraud
30 years in federal prison
Wire Fraud (10 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (4 Counts)
10 years in federal prison
Anthony James Bruey
Conspiracy to Commit Wire Fraud
30 years in federal prison
Wire Fraud (2 Counts)
30 years in federal prison
Conspiracy to Commit Money Laundering
10 years in federal prison
Illegal Monetary Transactions (2 Counts)
10 years in federal prison
According to the
indictment , beginning in or around April 2020, and while they were both on probation for state criminal charges, the Brueys conspired to submit false and fraudulent Economic Injury Disaster Loan (EIDL) and Paycheck Protection Program (PPP) applications to the Small Business Administration (SBA) and PPP loan servicers and lenders. The loan applications contained numerous false representations, including the criminal history, dates of operation, number of employees, and gross revenues of the applicant. In support of their fraudulent EIDL and PPP loan applications, the Brueys submitted false and fictitious federal income tax documents.The Brueys’ materially false, fraudulent, and misleading representations caused the SBA and PPP lenders to approve and fund six EIDL and six PPP loans, totaling $881,058.35. The Brueys then unlawfully used the funds to purchase a $211,457 residence in North Carolina, a 2019 GMC Yukon SUV, a 2020 Honda Talon, and to make a $23,566 restitution payment as a condition of probation in a criminal court case for Amber Bruey.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted March 2020. It is designed to provide emergency financial assistance to millions of Americans who are suffering the economic effects resulting from the COVID-19 pandemic. One source of relief provided by the CARES Act is the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses must use PPP loan proceeds for payroll costs, interest on mortgages, rent and utilities. The PPP allows the interest and principal to be forgiven if the business spends the proceeds on these expenses within a set time period and uses at least a certain percentage of the loan toward payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities, and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used for the same purpose as the PPP funds.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Secret Service. It will be prosecuted by Assistant United States Attorneys Trent Reichling and Suzanne Nebesky.
Justice Department Requires Divestitures in BancorpSouth Bank’s Merger with Cadence BankRead the Press Release
The Department of Justice announced today that BancorpSouth Bank and Cadence Bank have agreed to sell seven branches in northeastern Mississippi, with more than $446 million in deposits, to resolve antitrust concerns arising from BancorpSouth’s planned acquisition of Cadence Bank.
“Today’s settlement underscores that all Americans, including those in rural communities and small towns, are entitled to access competitively priced banking products and services close to where they live and work,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “Banks are the anchors of many communities. Families and small businesses rely on banks to keep their money safe and obtain credit for important expenses and investments in their lives.”
Under the agreement with the department, the parties will divest seven branches located in Aberdeen, West Point, and Starkville, Mississippi. The assets that must be divested include all the deposits and loans associated with the seven branches, as well as all physical assets. The companies also have agreed to suspend existing non-compete agreements with branch managers and loan officers located in Aberdeen, West Point, and Starkville, Mississippi and will not enter into new non-compete agreements with those managers and officers. Further, the companies have agreed that any branches located in any of these markets that are closed within three years of the merger’s closing will be sold or leased to an insured depository institution that offers deposit and credit services to small businesses. As a result of the merger, BancorpSouth will become the 10th largest bank, based on assets, in its nine-state region in the southeastern United States and the 46th largest bank in the country.
The proposed merger is subject to the final approval of the Federal Deposit Insurance Corporation (FDIC). The department’s role when reviewing a proposed bank merger necessarily focuses on the merger’s competitive effects. Here, the department has advised the FDIC that the department will not challenge the merger provided that the parties divest branches in certain areas of overlap and agree to the commitments described above. The parties’ commitments to the department will be included as a condition that the parties’ make to the FDIC’s order allowing this transaction.
BancorpSouth Bank, headquartered in Tupelo, Mississippi, has approximately $25.8 billion in assets, $21.2 billion in deposits and 325 full-service branches across nine states in the southeastern United States. It provides a wide range of banking and other financial services to consumers, businesses, agricultural customers and wealth management customers.
Cadence Bank N.A., headquartered in Atlanta, Georgia, has approximately $18.8 billion in assets and $16.1 billion in deposits. Cadence Bank has 98 branches across the southeastern U.S. with 11 of those branches in Mississippi. Cadence also offers a full range of products and services to retail, small business and middle market customers as well as investment and trust services.
A list of the branches to be divested is below.
Branch
Address
City
County
State
Zip Code
Aberdeen Main
128 E. Commerce Street
Aberdeen
Monroe
MS
39730
Aberdeen Hwy 45
302 Hwy 145 North
Aberdeen
Monroe
MS
39730
West Point Main
657 Commerce Street
West Point
Clay
MS
39773
West Point Hwy 45
215 Hwy 45 South
West Point
Clay
MS
39773
Starkville Crossing
818 Hwy 12 West
Starkville
Oktibbeha
MS
39759
Starkville Russell St
793 Russell Street
Starkville
Oktibbeha
MS
39759
Starkville University
606 Hwy 12 East
Starkville
Oktibbeha
MS
39759
Justice Department Files Second Civil Contempt Claim Against CenturyLinkRead the Press Release
CenturyLink Inc., now known as Lumen Technologies Inc., has agreed to pay $275,000 to resolve a civil contempt claim by the Department of Justice arising from CenturyLink’s violations of the Amended Final Judgment that was designed to preserve competition following CenturyLink’s 2018 acquisition of Level 3 Communications Inc.
The Justice Department's Antitrust Division today filed a petition in federal court in Washington, D.C., asking the court to find CenturyLink in civil contempt of the Amended Final Judgment. At the same time, the department filed a settlement agreement and order that, if approved by the court, would resolve the claim.
“CenturyLink is a repeat offender,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The request for a finding of civil contempt is appropriate because the company violated its amended obligations immediately after the court imposed them. When companies fail to comply with court-ordered obligations, the Antitrust Division will take action to enforce them.”
CenturyLink previously violated the 2018 Final Judgment entered by the court to resolve the department’s competitive concerns arising from CenturyLink’s acquisition of Level 3. The August 2020 settlement relating to these violations led to a more stringent Amended Final Judgment and imposition of costs against CenturyLink. Among the additional requirements in the Amended Final Judgment was a two-year extension of the ban on CenturyLink’s initiating contact with customers in the Boise-Nampa, Idaho, metropolitan area who had switched their business to the acquirer of the assets divested under the original Final Judgment.
In the petition filed today, the department alleges that CenturyLink violated the non-solicitation provision by sending more than 100 marketing emails to Boise-area customers who had switched their business away from CenturyLink. The accompanying settlement agreement and order requires CenturyLink to make a $275,000 payment to the United States. That payment includes reimbursement to the government for the cost of its investigation into CenturyLink’s alleged violations.
In September 2020, CenturyLink changed its name to Lumen Technologies Inc. Lumen is incorporated and headquartered in Louisiana and is one of the largest wireline telecommunications providers in the United States. In 2020, Lumen had revenues of approximately $20.7 billion.
Jacksonville man sentenced to 33 months in prison for defrauding a religious organization and filing false income tax returnsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Charles Jon David (58, Jacksonville) to 33 months in federal prison for wire fraud and tax fraud. The court also ordered David to forfeit $273,500, representing the proceeds of the wire fraud, and to pay $273,000 in restitution to the victim of the wire fraud and approximately $111,000 in restitution to the Internal Revenue Service. David had pleaded guilty on April 9, 2021.
According to court documents, from February 2008 until July 2019, David was employed as the Director of Building and Construction by a Jacksonville-area religious organization. David’s role and responsibilities included overseeing sales of land belonging to the religious organization. David had a fiduciary duty to the religious organization to act in its financial best interests and to protect its assets in conducting these land sales. He understood that it would be a conflict of interest for him to receive compensation from a third-party in connection with these land sales.
Beginning in 2013, David engaged in a scheme to defraud the religious organization by offering the organization’s land for sale exclusively to two individuals, excluding other potential purchasers. In exchange for giving that preference to those individuals, they paid David kickbacks totaling $229,500. After the two individuals purchased the land, they resold it at a significant profit. David admitted that he sold the religious organization’s land for at least $229,500 less than it was worth. David did not disclose the kickbacks to the religious organization and used at least $72,000 of the kickbacks to fund mortgage payments and settlement costs associated with real property owned by his wife.
On another occasion involving a different individual, David arranged the sale of a piece of the religious organization’s property to a buyer by representing the buyer was a bona fide purchaser when, in reality, David had already arranged for a second buyer to purchase the same property at a significantly higher price on the same day. As a result, the religious organization sold the land to the first buyer for $150,000 and, later the same day, the first buyer sold it to the second buyer for $250,000. The first buyer then transferred to David $44,000 of the proceeds from the second sale.
In 2014, David falsely told his Certified Public Accountant that $216,000 in consulting income he had received in 2013 was not income, resulting in the filing of a fraudulent tax return. In tax years 2015, 2016, and 2018, David falsely underreported his income to the IRS by not reporting the kickbacks on his tax returns. The resulting tax loss was $110,956.
“This case demonstrates the FBI's commitment to hold accountable those who use illegal means and criminal behavior to take advantage of others,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “Fraud of any kind poses a fundamental threat to our national security and our way of life. In this case, the defendant prioritized his own personal gain by siphoning away money that could have otherwise been used to support members of our community in need. We appreciate the partnership of the IRS-CI and the St. Johns County Sheriff's Office to find justice in this case. Together, the FBI and all of our law enforcement partners will continue to investigate these crimes and prosecute those who are intent on defrauding the American public.”
“We appreciate the partnership with the FBI and IRS-CI which ensured justice was served in this case. Any person who attempts to defraud an individual or organization in St. Johns County will be held accountable,” said Sheriff Robert Hardwick.
This case was investigated by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the St. Johns County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Laura Cofer Taylor.
ISIS Militant Pleads Guilty to Role in Deaths of Four Americans in SyriaRead the Press Release
A militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, pleaded guilty today to all charges that were pending against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to court records, from in or around November 2012 through on or about Feb. 7, 2015, former British citizen Alexanda Amon Kotey, 37, served as an ISIS fighter and participated in the captivity of American and European hostages in Syria. Kotey specifically participated in the seizure, detention and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Kotey participated in hostage operations involving British, Italian, Danish and German nationals, among others.
“This guilty plea ensures that Kotey will spend the rest of his life in prison for the horrific crimes he has committed,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Although there remains much work to be done in this case, we hope today’s events provide some measure of justice for Kotey’s victims and their families as they continue to grieve the loss of their loved ones. I want to thank all of the agents, analysts and prosecutors who worked tirelessly on this investigation and prosecution – their efforts are proof that the National Security Division and our partners will not rest in our commitment to hold accountable terrorists who target and attack U.S. citizens anywhere in the world.”
“This case has always been focused on the victims and their families,” said Acting U.S. Attorney Raj Parekh for the Eastern District of Virginia. “Their resilience, courage, and perseverance have ensured that terror will never have the last word. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
“Years ago, Alexanda Kotey’s actions played out on the world stage, and those brutal crimes against Americans James Foley, Steven Sotloff, Peter Kassig and Kayla Mueller, as well as two British and two Japanese hostages are forever burned into the eyes of the American people,” said Assistant Director Steven M. D’Antuono of the FBI’s Washington Field Office. “This guilty plea will not lessen the suffering of those affected by his cruelty, but I hope it reminds the world of the FBI’s unwavering dedication to finding and prosecuting all individuals who inflict harm on U.S. citizens, no matter their location.”
“Today we take a moment to remember all of the victims who perished at the hands of the Islamic State of Iraq and al-Sham (ISIS) in Syria, and our thoughts are especially with the Sotloff, Kassig, Foley and Mueller families,” said Executive Assistant Director Jill Sanborn of the FBI’s National Security Branch. “Alexanda Kotey’s admission of guilt does not lessen the pain suffered by these families and others whose loved ones were taken from them by this heinous terror group, but we hope that this announcement will bring them closer to the justice that they deserve. I am proud of the unwavering dedication and tireless efforts of the men and women of the FBI and all of our partners – both domestic and international – to see justice served for these acts of terrorism.”
According to court records, Kotey and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held and were responsible for transferring hostages between detention facilities. Kotey and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to control the hostages. These actions were also intended to compel the victims’ family members and the U.S. government to pay large monetary ransoms for their release, in addition to compelling the U.S. government to agree to other terms and conditions for the victims’ return.
In addition to physically and psychologically abusing the hostages, Kotey and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed on or about April 25, 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Kotey and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about Feb. 7, 2015, Kayla Mueller’s family received an email from ISIS fighters confirming Mueller’s death in Syria.
Kotey was part of a group of four ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” Kotey and alleged co-conspirator El Shafee Elsheikh, 33, whose case remains pending in the U.S. District Court for the Eastern District of Virginia, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohamed Emwazi, who conducted the videotaped beheadings referenced above, was killed in November 2015 in a U.S. military airstrike in Syria.
Kotey pleaded guilty to all of the offenses charged in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff and Peter Edward Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British and Japanese nationals.
Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on March 4, 2022 by Senior U.S. District Judge T. S. Ellis, III.
The plea agreement entered in the case ensures that the defendant will serve the rest of his life in prison. Per the agreement, after 15 years of the defendant’s imprisonment in the United States, if the defendant has complied with all terms of the plea agreement and requests a transfer to the United Kingdom, the U.S. Attorney’s Office for the Eastern District of Virginia has agreed to take all reasonable measures under the law to support the transfer of Kotey to the United Kingdom. As part of the plea agreement, Kotey has agreed that, prior to any such transfer, he would plead guilty in a U.K. prosecution, accept responsibility for relevant violations of U.K. law, and face a sentence in the U.K. of life in prison without parole – a sentence which he has agreed would be a fair and proper punishment. If the actual sentence he serves in the U.K. is less than life for any reason, Kotey has agreed to serve the remainder of his U.S.-imposed life sentence in the U.K., if that is legally available, or to be transferred back to the United States to serve the remainder of his sentence.
Pursuant to the plea agreement, the U.S. Attorney’s Office for the Eastern District of Virginia and Kotey understand and agree that – even if all of the necessary preconditions are met – the acceptance of any such requested transfer would be subject to the discretion of the United Kingdom. As indicated in the plea agreement, should the U.K. government deny any such requested transfer, Kotey will serve his mandatory life sentence in the United States.
The Department of Justice expresses its profound appreciation to our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
This case is being investigated by the FBI’s Washington Field Office.
Assistant U.S. Attorney Dennis M. Fitzpatrick, Acting U.S. Attorney Raj Parekh, and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia, and Trial Attorney Alicia H. Cook of the National Security Division‘s Counterterrorism Section are prosecuting the case.
The Justice Department’s Office of International Affairs provided invaluable assistance.
ISIS Militant Pleads Guilty to Role in Deaths of Four Americans in SyriaRead the Press Release
ALEXANDRIA, Va. – A militant fighter for the Islamic State of Iraq and al-Sham (ISIS), a foreign terrorist organization, pleaded guilty today to all charges that were brought against him in the United States relating to his participation in a brutal hostage-taking scheme that resulted in the deaths of four American citizens, as well as the deaths of British and Japanese nationals, in Syria.
According to court records, from in or around November 2012 through on or about February 7, 2015, former British citizen Alexanda Amon Kotey, 37, served as an ISIS fighter and participated in the captivity of American and European hostages in Syria. Kotey specifically participated in the seizure, detention, and hostage negotiations for four American citizens – James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig – each of whom died as hostages in ISIS custody. In addition, Kotey participated in hostage operations involving British, Italian, Danish, and German nationals, among others.
“This case has always been focused on the victims and their families,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Their resilience, courage, and perseverance have ensured that terror will never have the last word. The justice, fairness, and humanity that this defendant received in the United States stand in stark contrast to the cruelty, inhumanity, and indiscriminate violence touted by the terrorist organization he espoused. Today, through the voices and lives of the victims, Justice spoke, and it is those words that will resonate through history.”
“This guilty plea ensures that Kotey will spend the rest of his life in prison for the horrific crimes he has committed,” said Acting Assistant Attorney General Mark J. Lesko for the Justice Department’s National Security Division. “Although there remains much work to be done in this case, we hope today’s events provide some measure of justice for Kotey’s victims and their families as they continue to grieve the loss of their loved ones. I want to thank all of the agents, analysts and prosecutors who worked tirelessly on this investigation and prosecution – their efforts are proof that the National Security Division and our partners will not rest in our commitment to hold accountable terrorists who target and attack U.S. citizens anywhere in the world.”
“Years ago, Alexanda Kotey’s actions played out on the world stage, and those brutal crimes against Americans James Foley, Steven Sotloff, Peter Kassig, and Kayla Mueller, as well as two British and two Japanese hostages are forever burned into the eyes of the American people,” said Steven M. D’Antuono, Assistant Director in Charge of the FBI’s Washington Field Office. “This guilty plea will not lessen the suffering of those affected by his cruelty, but I hope it reminds the world of the FBI’s unwavering dedication to finding and prosecuting all individuals who inflict harm on U.S. citizens, no matter their location.”
According to court records, Kotey and two other ISIS members supervised the terrorist organization’s jails and detention facilities at which the hostages were held and were responsible for transferring hostages between detention facilities. Kotey and his co-conspirators engaged in a prolonged pattern of physical and psychological violence against hostages that was meant as an effort to control the hostages. These actions were also intended to compel the victims’ family members and the U.S. government to pay large monetary ransoms for their release, in addition to compelling the U.S. government to agree to other terms and conditions for the victims’ return.
In addition to physically and psychologically abusing the hostages, Kotey and his co-conspirators participated in forcibly exposing the hostages to the murder of other hostages held by ISIS, including a Russian hostage who was killed in or about February 2014 and a Syrian prisoner who was executed on or about April 25, 2014. After a group of European hostages were forced to witness the execution of the Syrian prisoner, Kotey and his co-conspirators returned the hostages to the prison where they were being held with American and British hostages.
From August 2014 through October 2014, ISIS released videos depicting the beheadings of James Foley, Steven Sotloff, and British citizens David Haines and Alan Henning. In November 2014, ISIS released a video depicting the decapitated head of Peter Kassig. In January 2015, ISIS released videos depicting the decapitated body of Japanese citizen Haruna Yukawa and the beheading of Japanese citizen Kenji Goto. On or about February 7, 2015, Kayla Mueller’s family received an email from ISIS fighters confirming Mueller’s death in Syria.
Kotey was part of a group of four ISIS members who spoke with British accents and were referred to by the hostages as the “Beatles.” Kotey and alleged co-conspirator El Shafee Elsheikh, 33, whose case remains pending in the U.S. District Court for the Eastern District of Virginia, were captured together in January 2018 by the Syrian Democratic Forces as they attempted to escape Syria for Turkey. Mohamed Emwazi, who conducted the videotaped beheadings referenced above, was killed in November 2015 in a U.S. military airstrike in Syria.
Kotey pleaded guilty to all of the offenses charged by the U.S. Attorney’s Office for the Eastern District of Virginia in the eight-count indictment, consisting of one count of conspiracy to commit hostage taking resulting in death; four counts of hostage taking resulting in the deaths of the four Americans (James Wright Foley, Kayla Jean Mueller, Steven Joel Sotloff, and Peter Edward Kassig); one count of conspiracy to murder U.S. citizens outside of the United States; one count of conspiracy to provide material support or resources to terrorists resulting in the deaths of U.S., British, and Japanese nationals; and one count of conspiracy to provide material support or resources to a designated foreign terrorist organization resulting in the deaths of U.S., British, and Japanese nationals.
Kotey faces a mandatory sentence of life in prison and is scheduled to be sentenced on March 22, 2022 by Senior U.S. District Judge T. S. Ellis, III.
The plea agreement entered in the case ensures that the defendant will serve the rest of his life in prison. Per the agreement, after 15 years of the defendant’s imprisonment in the United States, if the defendant has complied with all terms of the plea agreement and requests a transfer to the United Kingdom, the U.S. Attorney‘s Office for the Eastern District of Virginia has agreed to take all reasonable measures under the law to seek the transfer of Kotey to the United Kingdom. As part of the plea agreement, Kotey has agreed that, prior to any such transfer, he would plead guilty in a U.K. prosecution, accept responsibility for relevant violations of U.K. law, and face a sentence in the U.K. of life in prison without parole – a sentence which he has agreed would be a fair and proper punishment. If the actual sentence he serves in the U.K. is less than life for any reason, Kotey has agreed to serve the remainder of his U.S.-imposed life sentence in the U.K., if that is legally available, or to be transferred back to the United States to serve the remainder of his sentence. Pursuant to the plea agreement, the U.S. Attorney’s Office for the Eastern District of Virginia and Kotey understand and agree that – even if all of the necessary preconditions are met – the acceptance of any such requested transfer would be subject to the sole discretion of the United Kingdom. As indicated in the plea agreement, should the U.K. government deny any such requested transfer, Kotey will serve his mandatory life sentence in the United States.
The U.S. Attorney’s Office for the Eastern District of Virginia expresses its profound appreciation to our many foreign partners for their dedicated commitment to assist the United States in seeking justice for all the victims of these crimes.
This case is being investigated by the FBI’s Washington Field Office. Assistant U.S. Attorney Dennis M. Fitzpatrick; Acting United States Attorney Raj Parekh; and Assistant U.S. Attorneys John T. Gibbs and Aidan Taft Grano-Mickelson, all of the U.S. Attorney’s Office for the Eastern District of Virginia; and Trial Attorney Alicia H. Cook of the Justice Department are prosecuting the case. The Justice Department’s Office of International Affairs provided valuable assistance.
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. 1:20-cr-239.
Harrisburg Man Indicted for Drug Trafficking and Firearms OffensesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on September 1, 2021, Omar Tollinchi-Torres, age 42, of Harrisburg, Pennsylvania, was indicted by a federal grand jury for drug trafficking and firearms offenses.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment alleges that on March 30, 2021, in Dauphin County, Pennsylvania, Tollinchi-Torres attempted to possess with the intent to distribute more than 500 grams of cocaine. The indictment further alleges that Tollinchi-Torres was in possession of a Glock model 23 .40 caliber semiautomatic pistol during and in relation to the attempted drug trafficking offense.
The matter was investigated by the Pennsylvania State Police, along with United States Postal Inspectors. Assistant U.S. Attorney Paul J. Miovas, Jr. is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty for the attempted distribution possession with the intent to distribute of a controlled substance offense as charged in the indictment is 40 years of imprisonment, a term of at least 4 years of supervised release following imprisonment, and a $5,000,000 fine. The maximum penalty for the possession of a firearm during and in relation to a drug trafficking crime is life imprisonment, a term of 5 years of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Ft. Thomas Man Sentenced to 33 Months for Wire Fraud and Tax EvasionRead the Press Release
COVINGTON, Ky. — A Fort Thomas, Ky., man, Kevin R. Welsch, 48, was sentenced on Thursday, by Chief U.S. District Judge Danny C. Reeves, to 33 months, after previously pleading guilty to federal charges of wire fraud and tax evasion.
In his guilty plea, Welsch admitted defrauding clients of the debt collection business he owned and operated, RCC Services, Inc. Specifically, he admitted to collecting debts on behalf of creditors and keeping the money for his own use. He also admitted to collecting more than debtors owed (sometimes making multiple, unauthorized debits from their accounts) and charging his clients for fees/expenses that he never actually incurred. Finally, Welsch admitted evading taxes in the process.
Welsch pleaded guilty in May 2021.
Under federal law, Welsch must serve 85 percent of his prison sentence; and upon his release from prison, he will be under the supervision of the U.S. Probation Office for three years. Restitution has yet to be determined.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Bryant Jackson, Special Agent in Charge, IRS – Criminal Investigation; Edward J. Gray., Acting Special Agent in Charge, FBI Louisville Field Office and Casey Kilgore, Chief of Police, Ft. Thomas Police Department, announced the sentencing.
The investigation was conducted by the IRS CI, the FBI, and the Ft. Thomas Police Department. The United States was represented in the case by Assistant United States Attorney Elaine K. Leonhard.
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Former South Bay Executive Found Guilty of Federal Criminal Charges for Insider Trading and Securities Fraud SchemeRead the Press Release
LOS ANGELES – A former executive at a Hawthorne-based company was found guilty by a federal jury today of criminal charges that he traded in options contracts using inside information and illegally purchased shares of a company his employer had targeted for acquisition.
Mark A. Loman, 60, of Hermosa Beach, was found guilty of four counts of securities fraud and four counts of insider trading.
According to the evidence presented at his 10-day trial, Loman was a vice president of finance and the corporate controller for OSI Systems Inc., a publicly traded security, health care and electronics manufacturing company, from 2006 until 2018. In these roles, Loman had advance knowledge of OSI’s revenue and earnings and, as corporate controller, was responsible for compiling and internally reporting the company’s confidential financial results.
In December 2015, Loman received confidential information that OSI was financially underperforming and would fall far short of their earnings and revenue forecast for its second quarter of its fiscal year 2016. Acting on this information in December 2015, Loman purchased a series of options contracts with the intent of profiting when OSI’s stock price fell.
On January 27, 2016, OSI announced its disappointing second-quarter earnings, and lowered its sales and earnings guidance for the remainder of its fiscal year. On the day of this announcement, OSI shares plunged approximately 30 percent in value from their previous closing day price. As a result, Loman gained approximately $355,000 in illegal profits from this scheme.
In March 2016, Loman misused nonpublic information by purchasing stock of American Science & Engineering Inc., a Billerica, Massachusetts-based manufacturer of security screening equipment that OSI had targeted for acquisition. Once OSI publicly announced in June 2016 its agreement to acquire AS&E, Loman immediately sold his shares in AS&E and made approximately $120,000 in illegal gains. In September 2016, OSI formally acquired AS&E for approximately $270 million.
Loman made a total of approximately $475,000 in illicit gains through this scheme.
In July 2019, the Securities and Exchange Commission filed a lawsuit against Loman, charging him with insider trading. Trial is scheduled for that lawsuit in April 2022.
United States District Judge Dale S. Fischer has scheduled a January 10, 2022 sentencing hearing. Each charge of securities fraud carries a statutory maximum sentence of 25 years in federal prison. The statutory maximum sentence for each count of insider trading is 20 years in federal prison.
The FBI investigated this matter.
Assistant United States Attorneys Scott Paetty and Karen E. Escalante of the Major Frauds Section are prosecuting this case.
Former Member of Springfield Latin Kings Chapter Pleads Guilty to Firearm OffenseRead the Press Release
BOSTON – A former member of the Springfield Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty yesterday to a firearm offense.
Hector Adorno, a/k/a “King Gordo,” 35, pleaded guilty to being a felon in possession of ammunition. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Dec. 15, 2021.
At the time of his arrest in May 2019, Adorno was found in possession of a loaded firearm, located beside him on a bedroom nightstand in his residence. Due to prior felony convictions, Adorno was prohibited from possessing firearms and ammunition.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against dozens of leaders, members and associates of the Latin Kings. Adorno is the 50th defendant to plead guilty in the case.
The charge of being a felon in possession of a firearm provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division are prosecuting the case.
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 details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former East Tennessee Clinic Owner Convicted of Unlawful Opioid DistributionRead the Press Release
A federal jury in the Eastern District of Tennessee convicted a former nurse practitioner yesterday of unlawfully distributing prescription opioids to patients at a clinic he owned in Manchester, Tennessee.
According to court documents and evidence presented at trial, Mark Allen, 64, now of Destin, Florida, distributed oxycodone not for a legitimate medical purpose outside the course of professional practice and used his clinic for unlawful drug distribution. Specifically, the evidence showed that through his clinic, Volunteer Family Medical, he wrote controlled substance prescriptions for more than 15,000 pills to three women with whom he had sexual relationships, and a male patient who later passed away.
Allen was convicted of one count of maintaining a drug-involved premises and six counts of unlawful distribution of a controlled substance outside the scope of professional practice. He is scheduled to be sentenced on Jan. 21, 2022, and faces up to 20 years in prison per count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jones of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Assistant Director Mike Cox of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, and TBI investigated the case.
Trial Attorney Emily Petro of the Criminal Division’s Fraud Section and Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee are prosecuting the case.
Former DOD Subcontractor Sentenced to Federal Prison for Submitting False Claims for Hours WorkedRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell, III sentenced Melissa Heyer, age 46, of Gaithersburg, Maryland to a year and a day in federal prison, followed by three years of supervised release, for submitting false claims to the United States, specifically for claiming to have worked hours on a government contract when she allegedly was not at work. Judge Russell also ordered Heyer to pay $107,300 in restitution.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Elton Howell, Assistant Inspector General for Investigations (Acting), Defense Intelligence Agency (DIA)- Office of Inspector General (OIG); and Special Agent in Charge Christopher Dillard, of the Department of Defense Office of Inspector General, Defense Criminal Investigative Service, Mid-Atlantic Field Office.
According to her plea agreement, Company A was a subcontractor for Company B, providing employees that performed national security duties for the Department of Defense (DOD). From January 2017 until March 2019, Heyer worked for Company A, but was assigned on a day-to-day basis to work for the DOD on national security matters at the National Security Agency (NSA), in Fort Meade, Maryland.
From January 2017 through March 2019, Heyer held a Top Secret-Sensitive Compartmented Information (TS/SCI) security clearance and performed her duties for Company A and the DOD at a sensitive compartmented information facility (SCIF) at the NSA facility where she worked. She used a badge reader to gain access to the SCIF. On at least five occasions between January 2017 and March 2019, Heyer falsely represented to her employer that she had been working at the NSA SCIF when she was actually elsewhere. Heyer caused false claims to be submitted to the DOD that resulted in the government paying more than $100,000 to Company A, Company B, and Heyer, to which they and Heyer were not entitled.
In total, as result Heyer knowingly caused the government to be billed for more than 1,200 hours of her time when she had actually not worked.
Acting United States Attorney Jonathan F. Lenzner praised the DIA OIG and DCIS for their work on the investigation and thanked the U.S. CYBERCOM Office of Inspector General for its assistance. Mr. Lenzner thanked Assistant U.S. Attorney Harry M. Gruber, who prosecuted the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Foley Meth Dealer Sentenced to More Than Ten YearsRead the Press Release
MOBILE, AL – A Foley, Alabama, man was sentenced on September 1, 2021, to 131 months in prison for his participation in a conspiracy to possess with intent to distribute methamphetamine ice.
According to court documents, William Wilson Roberts, 37, distributed methamphetamine ice in furtherance of the conspiracy. Roberts was living with co-defendant Amber White, and they traveled to Pensacola and other places to receive significant amounts of methamphetamine ice for distribution in Baldwin County. As White and Roberts were returning to Foley from one trip to Pensacola, a Baldwin County sheriff’s deputy attempted to stop their vehicle for a traffic violation. White attempted to elude the deputy, reaching speeds in excess of 90 miles per hour on County Road 10. White finally crashed through a fence and drove through a field into another fence. Roberts jumped out of the vehicle and began to run. Deputies recovered 33.9 grams of methamphetamine from White.
United States District Court Judge Callie V.S. Granade imposed the 131-month sentence and ordered that Roberts would also serve ten years on supervised release following his imprisonment. Roberts will also undergo testing and treatment for drug abuse and mental health counseling, and he will be subject to a search of his person and premises upon reasonable suspicion during that time. No fine was imposed but the judge ordered that Roberts pay $100 in special assessments.
The case was investigated by the Baldwin County Sheriff’s Office, the Baldwin County Drug Task Force, the FBI Safe Streets Task Force. Assistant U.S. Attorney Gloria Bedwell prosecuted the case on behalf of the United States.
Florida Man Pleads Guilty to Conspiracy to Defraud FDA in Connection with Dietary SupplementsRead the Press Release
A Florida man pleaded guilty today to conspiring to defraud the U.S. Food and Drug Administration (FDA) by concealing information about illegal products labeled as dietary supplements.
David Winsauer, 35, of Delray Beach, worked from 2014 to 2018 for Blackstone Labs, LLC, a Boca Raton company that sold products labeled as dietary supplements. According to court filings, Winsauer admitted that he and other co-conspirators worked to portray the company to consumers as complying with applicable federal laws, when in fact, the company arranged to manufacture products that were illegal under federal law. Winsauer admitted that members of the conspiracy also coordinated to conceal sales of products labeled as dietary supplements from the FDA, including by removing information about illegal products from online marketing to create the false impression that they were no longer selling those products.
“The FDA regulates dietary supplements to protect the health of American consumers,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will prosecute individuals and companies who undermine that mission by deceiving the FDA.”
“Products mislabeled as dietary supplements can pose a serious risk to the health of U.S. consumers,” said Special Agent in Charge Justin C. Fielder for the FDA Office of Criminal Investigations Miami Field Office. “We will continue to investigate and bring to justice those who jeopardize the public health by selling violative products.”
Winsauer pleaded guilty to conspiracy to defraud the United States in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. He is scheduled to be sentenced on Nov. 12 and faces a maximum penalty of five years in prison.
The FDA’s Office of Criminal Investigations investigated the case.
Blackstone Labs, Winsauer and six other defendants previously were charged by indictment in connection with a conspiracy to defraud the FDA, distribute unapproved new drugs, and conspiracy to distribute controlled substances. One other defendant pleaded guilty in 2019, and the remaining defendants are set for trial in October.
The indictment charging the remaining defendants is merely an allegation, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Trial Attorneys Alistair Reader and Steven Gripkey, Senior Litigation Counsel David Frank, and Assistant Director John W. Burke of the Justice Department’s Consumer Protection Branch are prosecuting the case with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
Federal Jury Convicts Former East Tennessee Clinic Owner of Unlawful Opioid DistributionRead the Press Release
CHATTANOOGA, Tenn. – On September 1, 2021, following a three-day trial in the United States District Court at Chattanooga, a jury convicted Mark Daniel Allen, 64, formerly of Manchester, Tennessee, of unlawfully distributing prescription opioids to patients at a clinic he owned in Manchester, Tennessee. Following the jury’s verdict, Allen was taken into custody. Sentencing is scheduled for January 21, 2022, at 10:00 a.m., before the Honorable Travis R. McDonough. Allen faces up to 20 years in prison for each count of conviction.
According to court documents and evidence presented at trial, Allen was a nurse practitioner who distributed oxycodone not for a legitimate medical purpose outside the course of professional practice and used his clinic for unlawful drug distribution. Specifically, the evidence showed that through his clinic, Volunteer Family Medical, he wrote controlled substance prescriptions for more than 15,000 pills to three women with whom he had sexual relationships, and a male patient who later passed away. Allen was convicted of one count of maintaining a drug-involved premises and six counts of unlawful distribution of a controlled substance outside the scope of professional practice.
Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division; Acting U.S. Attorney Francis M. Hamilton III of the Eastern District of Tennessee; Special Agent in Charge Joseph Carrico of the FBI’s Knoxville Field Office; Special Agent in Charge Derrick Jones of the Department of Health and Human Services, Office of Inspector General (HHS-OIG); and Director David Rausch of the Tennessee Bureau of Investigation (TBI) made the announcement.
The FBI, HHS-OIG, TBI, Manchester Police Department, and Coffee County Sheriff's Office investigated the case.
Assistant U.S. Attorney James Brooks of the Eastern District of Tennessee and Trial Attorney Emily Petro of the Criminal Division’s Fraud Section represented the United States at trial.
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Fayette County man sentenced for drug distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Darrell Ernest Reese, of Robson, West Virginia, was sentenced today to 77 months of incarceration for heroin distribution, Acting United States Attorney Randolph J. Bernard announced.
Reese, age 44, pled guilty in March 2021 to one count of “Aiding and Abetting Possession with Intent to Distribute Heroin.” Reese admitted to working with another to distribute heroin in March 2019 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The West Virginia State Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Ex-President and CEO of Long Beach Substance Abuse Treatment Provider Sentenced to 7 Years in Prison for Health Care FraudRead the Press Release
LOS ANGELES – The former president and chief executive officer of a Long Beach substance abuse treatment provider was sentenced today to 84 months in federal prison for participating in a scheme in which more than $18.5 million in fraudulent claims were submitted to California’s Drug Medi-Cal program for alcohol and drug treatment services for high school and middle school students.
Richard Mark Ciampa, 67, of Commerce, was sentenced by United States District Judge Philip S. Gutierrez, who also ordered him to pay $17,640,325 in restitution. Ciampa pleaded guilty on January 6 to one count of health care fraud.
Ciampa founded the non-profit Atlantic Recovery Services (ARS), later called Atlantic Health Services, in 1996 and served as its president and CEO until its closure in April 2013 following a suspension in payments. ARS provided substance use disorder treatment services to students at local high schools and middle schools through Medi-Cal and its Drug Medi-Cal program.
From March 2009 to April 2013, Ciampa participated in a scheme to defraud Medi-Cal in which ARS billed the Drug Medi-Cal program for services to students who did not medically need alcohol or drug treatment. ARS also billed Drug Medi-Cal for group and individual counseling sessions that were not provided or did not meet the requirements for reimbursement as to size, length or setting. ARS employees falsified documents to support the false claims.
In March 2009, Drug Medi-Cal ordered ARS to repay an overpayment assessed to the organization, which caused a significant amount of financial pressure on Ciampa. Ciampa, in turn, passed along this financial pressure to his employees and threatened the employees that they would lose their jobs with ARS or have their hours reduced to part-time if they did not generate significant billings.
Ciampa was aware or willfully blind to the fact that, in response to his threats, ARS employees were generating false and fraudulent claims for submission to Drug Medi-Cal. He also encouraged ARS employees to engage in fraud, telling them they should “find a way” to enroll more students in ARS’ program despite Drug Medi-Cal’s medical necessity requirement.
The scheme was executed in several ways, including ARS counselors and managers maintaining student caseloads by enrolling students in the ARS substance abuse counseling program even if they had used drugs or alcohol only occasionally or even just once.
For example, in December 2011, ARS fraudulently submitted a claim for Medi-Cal reimbursement for an individual counseling session for a student on November 23, 2011 – a school holiday and the day before Thanksgiving – when the student was absent and the counselor listed on the claim did not provide any counseling.
In total, $18,530,927 in fraudulent claims were submitted because of the scheme, resulting in an actual loss to Medi-Cal of $17,640,325.
Prosecutors have obtained a total of 19 guilty pleas in this case and related cases, including former ARS Program Manager Lori Renee Miller, 60, of Lakewood, multiple former ARS managers and counselors, and Dr. Leland Whitson, 81, of Redondo Beach, the former Medical/Clinical Director of ARS who previously pleaded guilty to making a false statement affecting a health care program.
Gregory Hearns, 65, of Long Beach, the billing supervisor for ARS who compiled the monthly billing and arranged for its submission to Medi-Cal, LaLonnie Egans, 63, of Long Beach, a former manager, and Tina Lynn St. Julian, 57, of Inglewood, a former counselor, are expected to go on trial on January 6. They are charged with multiple counts of health care fraud.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The California Department of Justice, Division of Medi-Cal Fraud and Elder Abuse; the United States Department of Health and Human Services, Office of Inspector General; and IRS Criminal Investigation investigated this matter.
Assistant United States Attorneys Cathy J. Ostiller and Karen E. Escalante of the Major Frauds Section, Nisha Chandran of the General Crimes Section and Victor Rodgers of the Asset Forfeiture Section prosecuted this case.
Eleven More Individuals Plead Guilty to Oxycodone Distribution Offenses Involving Montgomery PhysicianRead the Press Release
Montgomery, Ala. – Over the past several weeks, eleven individuals have appeared in federal court and pleaded guilty to charges of conspiring to unlawfully possess oxycodone with intent to distribute and for illegally distributing the prescription drug, announced Acting United States Attorney Sandra J. Stewart. Information about the defendants and the dates on which they pleaded guilty are as follows:
- July 16, 2021- Joseph Anthony Coleman, 37, of Montgomery, Alabama.
- August 3, 2021- Kambria Symone Robinson, 29, of Atlanta, Georgia.
- August 4, 2021- Rubin Sanders, 30, of Atlanta, Georgia.
- August 5, 2021- Towanna Lorrell Chapman, 36, of Montgomery, Alabama.
- August 5, 2021- Jamal Anthony Thomas, 37, of Montgomery, Alabama.
- August 24, 2021- Maurice Daughtry, 38, of Marietta, Georgia.
- August 26, 2021- Melodie Donne Armer Cheatham, 38, of Savannah, Georgia.
- August 30, 2021- Carlos D’Angelo Jones, 34, of Memphis, Tennessee.
- August 30, 2021- Garren Charles Rogers, 35, of Houston, Texas.
- September 1, 2021- Geniece Chadell Maxon, 33, of Lynwood, Illinois.
- September 1, 2021- Robert Lee Thompson, 32, of Madison, Alabama.
According to court documents, these defendants agreed among themselves and with others to obtain illegitimate and unlawful prescriptions for oxycodone, a Schedule II controlled substance, signed by a Montgomery, Alabama physician, Dr. D’Livro Lemat Beauchamp. In many cases, this was facilitated through a third-party without actually going to the physician’s office. The defendants would then fill those prescriptions at pharmacies located in and around Montgomery, give the oxycodone tablets to organizers of the conspiracy, and collect payment. Additionally, the organizers of the conspiracy and Beauchamp agreed that Beauchamp would receive $350.00 per unlawful prescription he signed. Statements made at the various plea hearings, indicated that defendants Daughtry and Rogers were among the organizers of the conspiracy. The scheme operated from 2012 until April of 2020. However, each defendant did not necessarily participate for all or even most of that period.
In total, these eleven defendants unlawfully obtained, possessed with the intent to distribute, and, in most cases, did distribute, approximately 38,780 30-milligram oxycodone tablets, which is equal to 1,163,400 milligrams of the drug.
For his part in the scheme, on October 20, 2020, Dr. Beauchamp pleaded guilty to the same offense. Likewise, on March 30, 2021, another one of the organizers, Deandre Varnel Gross, entered a guilty plea. Finally, two other defendants in the case, Shayla Denise Moorer and Naaman Rashad Jackson, pleaded guilty earlier this summer. As noted in their press release, Moorer and Jackson each unlawfully received payments for filling oxycodone prescriptions and transferring oxycodone tablets.
In the coming months, United States District Judge Myron H. Thompson will conduct a sentencing hearing for each of the defendants discussed above. At his or her sentencing hearing, each defendant will face a maximum sentence of 20 years of imprisonment, a maximum fine of $1,000,000.00, and other monetary penalties.
Cases against other co-conspirators named in the indictment are still pending. Those defendants are presumed innocent until found guilty beyond a reasonable doubt in a court of law.
“It is disturbing how so many are willing to jeopardize the well-being of the community simply to make a few extra dollars,” stated Acting United States Attorney Stewart. “The drugs distributed through the work of this conspiracy were powerful opioids, capable of destroying lives and families. We will never be able to account for the harm caused by the collective action of this group. I am glad that, after many years and many pills pouring into our communities, these defendants are being held to account for their actions.”
"Those who choose to violate laws designed to ensure the safe and legal dispensation of pharmaceutical drugs will not escape the scrutiny of DEA by attempting to hide criminal activity and placing unbridled greed before health and safety,” said DEA Assistant Special Agent in Charge Towanda Thorne-James.
The Drug Enforcement Administration’s Tactical Diversion Squad investigated this case, assisted by the United States Department of Health and Human Services – Office of Inspector General and the Shelby County, Alabama Sheriff’s Office. Assistant United States Attorneys Jonathan S. Ross and Alice S. LaCour are prosecuting the case.