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Friday 16 July 2021
Federal Inmate Found Guilty of Mailing Suspicious Letters to United States SenateRead the Press Release
LAFAYETTE, La. – Clifton Lamar Dodd, 49, a federal inmate, has been found guilty by a jury in Lafayette of mailing a number of hoax letters to United States Senate post office boxes, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge James D. Cain, Jr. presided over the four-day trial.
According to evidence presented at trial, on May 2, 2016, personnel at the United States Senate mail facility received four suspicious mailed envelopes, each containing a white powdery substance. Each envelope bore a return address of FCI Oakdale and each listed a different inmate as the purported sender. The United States Capitol Police’s Hazardous Response Unit responded and confirmed that the white powder was merely talcum powder. In addition to the talcum powder, each letter contained a note scrawled in all caps on a small scrap of paper that stated, “MY BOSS MADE ME DO THIS.” On the back of each note was the name of four different inmates, all of which were housed at FCI Oakdale.
U.S. Capitol Police and agents from the FBI and Bureau of Prisons began an investigation into the origin of the letters. Agents interviewed the inmates whose names were listed as senders of the letters and learned that Dodd had sent one of the inmates threatening notes and bragged about getting the inmate removed from the prison yard. FBI submitted the hoax letters to its crime lab for forensic evaluation and found one of Dodd’s fingerprints on the outside of one of the envelopes.
Dodd faces a penalty of up to five years in prison, a $250,000 fine, or both. Sentencing has been set for October 28, 2021.
The FBI, Bureau of Prisons, and U.S. Capitol Police conducted the investigation. Assistant U.S. Attorney T. Forrest Phillips prosecuted the case.
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Environmental Safety International Inc. and its Agents to Pay $1.66 Million for Telemarketing ViolationsRead the Press Release
The Justice Department, together with the Federal Trade Commission (FTC), today announced that the government will collect $1.66 million in civil penalties as part of a settlement to resolve alleged violations of the FTC Act and the FTC’s Telemarketing Sales Rule (TSR) by New Jersey-based Environmental Safety International Inc. (ESI), as well as its co-owners, Joseph and Sean Carney, and its telemarketer, Raymond Carney, all of whom reside in New Jersey.
In a complaint filed in the U.S. District Court for the District of New Jersey, the United States alleged that the defendants made millions of unlawful telemarketing calls to consumers in an effort to sell septic tank cleaning products. Among other things, the complaint alleges that the defendants violated the TSR by initiating “robocalls” from a seller without the recipient’s consent. The complaint further alleges that the defendants violated the TSR by making telemarketing calls that failed to disclose the seller’s identity, that were directed to numbers on the National Do-Not-Call Registry, and that were initiated to individuals who previously stated that they did not wish to receive calls from the defendants. Lastly, the company and its co-owners are alleged to have violated the FTC Act by falsely representing they would commence legal action or debt collection activities if customers failed to pay for its septic tank products.
“Americans should be protected from unwanted, deceptive telemarketing calls,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice is working together with the FTC to prevent the scourge of robocalls that harass and invade the privacy of millions of people every day.”
As reflected in the stipulated orders entered by the court today, the defendants have agreed to a civil penalty of $10.2 million, all of which will be suspended except for $1.66 million; to forfeit real property worth $774,000; and to forego $164,402 in unpaid customer balances. The orders also require the defendants to take a number of steps to prevent a recurrence of the alleged unlawful conduct. Among other things, ESI must dissolve and the individual defendants must forego activities in its name. Furthermore, the individual defendants are enjoined from engaging in future telemarketing activities and must meet recordkeeping, certification and compliance obligations.
This matter was handled by Assistant Director Lisa K. Hsiao and Trial Attorney Zachary L. Cowan of the Civil Division’s Consumer Protection Branch. Amy C. Hocevar, Christian M. Capece, Derek E. Diaz and Fil M. de Banate represented the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Dominican National Pleads Guilty to Social Security Misuse and Theft of Government FundsRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Boston in connection with misusing another individual’s Social Security number to receive housing and unemployment benefits.
Ramon Hiciano, 59, formerly of Roxbury, pleaded guilty to false representation of a Social Security number and theft of government money. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Oct. 7, 2021. Hiciano was charged in October 2020.
Between January 2016 and August 2020, Hiciano used the identity of a Puerto Rican citizen to apply for and receive MassHealth benefits and Section 8 housing assistance. Specifically, Hiciano fraudulently received over $58,000 in federally-funded MassHealth benefits and approximately $20,780 in Section 8 housing assistance benefits over the four-year period. He also used the stolen identity to receive $5,736 in Pandemic Unemployment Assistance benefits.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of theft of government money provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. 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; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Boston Field Office; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; Phillip M. Coyne, Special Agent in Charge of U.S. Department of Health & Human Services, Office of the Inspector General, Office of Investigations, Boston Regional Office; and Suzanne M. Bump, State Auditor of the Commonwealth of Massachusetts made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit 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.
Dominican National Pleads Guilty to Fentanyl ConspiracyRead the Press Release
BOSTON – A Dominican national previously residing in Lawrence pleaded guilty yesterday to fentanyl distribution charges.
Luis Aybar-Guerrero, 24, pleaded guilty to one count of conspiring to distribute and to possess with intent to distribute 40 grams or more of fentanyl and one count of possession with intent to distribute 40 grams or more of fentanyl. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 18, 2021. In August 2020, Aybar-Guerrero was indicted along with co-conspirator Guillermo Aybar-Guerrero.
According to charging documents, investigators conducted controlled purchases of fentanyl from Guillermo on June 10 and 17, 2020. On June 25, 2020, investigators set up a third controlled purchase, at which time Guillermo was arrested in possession of approximately 30 grams of suspected fentanyl. It is alleged that Guillermo retrieved these 30 grams of fentanyl from his brother, Luis. A search of Luis’ residence resulted in the seizure of an additional 263 grams of fentanyl as well as a scale, baggies and other drug-distribution paraphernalia.
A plea hearing for Guillermo scheduled for July 27, 2021.
The charges of conspiracy to distribute and to possess with intent to distribute 40 grams or more of fentanyl, and possession with intent to distribute of 40 grams or more of fentanyl provide for a mandatory minimum sentence of five years and a maximum of 40 years in prison, at least four years of supervised release and a fine of $5 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division made the announcement today. Assistant U.S. Attorney Lauren Graber of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the indictment are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Doctor Selling COVID-19 “Cure” Pleads GuiltyRead the Press Release
Assistant U. S. Attorneys Nicholas Pilchak (619) 546-9709 and Jaclyn Stahl (619) 546-8456
NEWS RELEASE SUMMARY – July 16, 2021
SAN DIEGO – Jennings Ryan Staley, a physician who attempted to profit from the pandemic by marketing a “miracle cure” for COVID-19, pleaded guilty in federal court today, admitting that he tried to smuggle hydroxychloroquine into the United States to sell in his coronavirus “treatment kits.”
Staley, the former operator of Skinny Beach Med Spas in and around San Diego, also admitted in his plea agreement that he abused his position of trust as a physician in making the extreme claims, and that he lied to the FBI when confronted about it.
The doctor pleaded guilty to one count of importation contrary to law, admitting that he worked with a Chinese supplier to try to smuggle into the United States a barrel that he believed contained over 26 pounds of hydroxychloroquine powder by mislabeling it as “yam extract.” Staley admitted that he intended to sell the hydroxychloroquine powder in capsules as part of his 2020 business venture selling the COVID-19 “treatment kits.”
In his plea agreement, Staley also admitted that he wrote a prescription for hydroxychloroquine for one of his employees and then misused the employee’s name and personal identifying information and answered questions as though he were the employee to fill the prescription, all without the employee’s knowledge or consent. Staley agreed that he engaged in this conduct in order to obtain more of the drug for his enterprise.
In late March and early April 2020, Staley marketed and sold his treatment kits to Skinny Beach customers. According to the plea agreement, he described his products—which included hydroxychloroquine—as a “one hundred percent” cure, a “magic bullet,” an “amazing weapon,” and “almost too good to be true,” and stated that the products would provide at least six weeks of immunity. Staley admitted that these statements were material to his potential customers, and that as a doctor he abused a position of public trust. An undercover agent purchased six of Staley’s treatment packs for $4,000.
Staley also admitted that he willfully impeded and sought to obstruct the federal investigation into his conduct by lying to federal agents. Specifically, he falsely denied ever claiming that his treatment packages were a “one hundred percent effective cure,” adding “that would be foolish.” Staley likewise falsely claimed that his medical practice would “absolutely” get all relevant information about each family member when sending out medications for a family treatment pack, when just a week earlier, he had dispensed a “family pack” of hydroxychloroquine, chloroquine, generic Viagra, Xanax, and azithromycin to the undercover agent without collecting any medical information from the agent or his five supposed family members.
“While healthcare workers around the world selflessly labored on the frontlines of an international pandemic, this doctor used his position of trust to cash in on COVID-19 fears,” said Acting U.S. Attorney Randy Grossman. “We are committed to protecting the American people from such scams and holding the scammers accountable.” Grossman commended the federal agents from FBI and FDA-OCI, and Assistant U.S. Attorneys Nicholas Pilchak and Jaclyn Stahl, who worked hard pursuing justice in this case. He also commended U.S. Customs and Border Protection for its assistance with the investigation.
“Dr. Staley offered a 'magic bullet' - a guaranteed cure for COVID-19 to people gripped in fear during a global pandemic,” said FBI Special Agent in Charge Suzanne Turner. “Today, Dr. Staley admitted it was all a lie as part of a scam to make a quick buck. The FBI will continue to vigorously pursue doctors who abuse their professions to defraud innocent victims with gimmicks of false hope and promises.”
“The FDA continues to work with its law enforcement partners to protect the public health by identifying, investigating and bringing to justice those who attempt to profit from the pandemic by offering and distributing COVID-19 treatments with unproven ‘miracle cure’ claims to American consumers,” said Special Agent in Charge Lisa L. Malinowski, FDA Office of Criminal Investigations Los Angeles Field Office.
Staley’s next court date is October 8, 2021 before U.S. District Judge Gonzalo Curiel.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts.
If you think you are a victim of COVID-19 fraud, immediately report it to the FBI (visit ic3.gov, tips.fbi.gov, or call 1-800-CALL-FBI or the San Diego FBI at 858-320-1800). The public is also urged to report suspected fraud schemes related to COVID-19 by calling the National Center for Disaster Fraud (NCDF) hotline (1-866-720-5721) or by e-mailing the NCDF at [email protected].
DEFENDANT Case Number 20cr1227-GPC
Jennings Ryan Staley, M.D. Age: 46 Residence: San Diego, CA
SUMMARY OF CHARGES
Importation Contrary to Law, in violation of Title 18, United States Code, Section 545
Maximum Penalty: Twenty years in prison; fine; special assessment
AGENCIES
Federal Bureau of Investigation
U.S. Food and Drug Administration, Office of Criminal Investigations
U.S. Customs and Border Protection
Convicted Sex Offender Pleads Guilty to Failure to Register as a Sex Offender in Federal CourtRead the Press Release
A convicted sex offender pled guilty July 15, 2021, to failure to register as a sex offender in federal court in Sioux City.
Duane Levering, age 36, from Fort Dodge, Iowa, was convicted of failure to register as a sex offender.
At the plea hearing, Levering admitted to being convicted of aggravated sexual abuse of a minor in the United States District Court for the District of Nebraska on April 25, 2005. Levering knew he was required to register and continue to update his residence as a sex offender. Levering moved from Nebraska to Sioux City, then again to Fort Dodge, Iowa where he was caught living in the attic of a home from Spring 2020 to the time of his arrest on December 9, 2020. At no time during that period did Levering update his sex offender registration.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Levering in custody of the United States Marshal pending sentencing. Levering faces a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, and up to three years of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Ron Timmons and was investigated by the United States Marshal Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3011.
Chinese National Sentenced to More than Three Years in Federal Prison for Attempting to Illegally Export Maritime Raiding Craft and Engines to ChinaRead the Press Release
A Chinese national was sentenced Wednesday to three years and six months in federal prison for conspiring to submit false export information through the federal government’s Automated Export System and to export maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently in violation of U.S. law. As part of his plea agreement, he agreed to the administrative forfeiture of $114,834.27, the amount caused to be wired to a U.S. manufacturer to purchase the raiding craft and engines.
Ge Songtao, 51, of Nanjing, People’s Republic of China, pleaded guilty on Nov. 2, 2020. According to court documents, Ge was the chairman of Shanghai Breeze Technology Co. Ltd., a company headquartered in Shanghai, China. Beginning in 2018, Ge was interested in identifying a source of supply of U.S.-manufactured combat rubber raiding craft equipped with engines that could operate using gasoline, diesel fuel or jet fuel. These vessels and multi-fuel engines are used by the U.S. military and can be operated after being launched from a submerged submarine or dropped into the ocean by an aircraft. No comparable engine is manufactured in China.
One of Ge's U.S.-based employees, co-defendant Yang Yang, attempted to order seven of the raiding craft equipped with these engines from a U.S. manufacturer. When the U.S. manufacturer suggested that Yang purchase cheaper gasoline-fueled engines, she insisted that she wanted to purchase the military-model multi-fuel engines. To induce the manufacturer to sell this equipment, Yang falsely represented that her customer was an entity called United Vision Limited in Hong Kong, rather than Shanghai Breeze Technology Co. in Shanghai. One of Yang’s Chinese co-workers had told her that American manufacturers would be more likely to sell to an entity in Hong Kong rather than one in mainland China. By misrepresenting what company was buying the equipment and where it was located, Yang caused the entry of false information in the Department of Commerce’s Automated Export System in violation of federal law.
To facilitate the purchase of the raiding craft and engines, Ge arranged for wire transfers to a separate company in Hong Kong, Belt Consulting Company Limited, which in turn wired $114,834.27 to the U.S. manufacturer. He also coordinated plans to send an employee to Hong Kong to receive the raiding craft and engines and transship them to mainland China. The plot failed and authorities arrested Ge and his co-defendants before the raiding craft and engines were shipped overseas.
On Sept. 15, 2020, Yang pleaded guilty to the same two charges to which Ge pleaded guilty, and on Dec. 9, 2020, was sentenced to a time-served sentence or the equivalent of approximately 14 months’ imprisonment. On Aug. 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently in violation of U.S. law, and on March 31, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention. The trial of remaining co-defendant, Fan Yang, is scheduled to begin on August 2.
Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida made the announcement.
The FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Trial Attorney Heather Schmidt of the National Security Division’s Counterintelligence and Export Controls Section and Assistant U.S. Attorney Michael J. Coolican of the Middle District of Florida prosecuted the case.
Chinese National Sentenced to More Than Three Years in Federal Prison for Attempting to Export Maritime Raiding Craft and Engines to China IllegallyRead the Press Release
Jacksonville, Florida – U.S. District Judge Harvey Schlesinger today sentenced Ge Songtao (51, Nanjing, People’s Republic of China) to three years and six months years in federal prison for conspiring to submit false export information through the federal government’s Automated Export System and to export maritime raiding craft and engines to China fraudulently, and attempting to export that equipment fraudulently, in violation of U.S. law. As part of his plea agreement, he agreed to the administrative forfeiture of $114,834.27, the amount caused to be wired to a U.S. manufacturer to purchase the raiding craft and engines.
At the sentencing hearing, Judge Schlesinger found that Ge Songtao intended to buy the engines in order to reverse-engineer them and supply his own version to the Chinese military. In addition, the judge found that, after being charged in this case, Ge Songtao attempted to obstruct the proceedings in multiple ways, including soliciting an associate in China to help him manufacture false documents for use in court.
Ge Songtao had pleaded guilty on November 2, 2020.
According to court documents, Ge Songtao was the chairman of Shanghai Breeze Technology Co. Ltd., a company headquartered in Shanghai, China. Beginning in 2018, Ge Songtao was interested in identifying a source of supply of U.S.-manufactured combat rubber raiding craft equipped with engines that could operate using gasoline, diesel fuel, or jet fuel. These vessels and multi-fuel engines are used by the U.S. military and can be operated after being launched from a submerged submarine or dropped into the ocean by an aircraft. No comparable engine is manufactured in China.
One of Ge Songtao’s U.S.-based employees, co-defendant Yang Yang, attempted to order seven of the raiding craft equipped with these engines from a U.S. manufacturer. When the U.S. manufacturer suggested that Yang Yang purchase cheaper gasoline-fueled engines, she insisted that she wanted to purchase the military-model multi-fuel engines. To induce the manufacturer to sell this equipment, Yang falsely represented that her customer was an entity called United Vision Limited in Hong Kong, rather than Shanghai Breeze Technology Co. in Shanghai. One of Yang’s Chinese co-workers had told her that American manufacturers would be more likely to sell to an entity in Hong Kong rather than one in mainland China. By misrepresenting what company was buying the equipment, and where it was located, Yang caused the entry of false information in the Department of Commerce’s Automated Export System in violation of federal law.
To facilitate the purchase of the raiding craft and engines, Ge Songtao arranged for wire transfers to a separate company in Hong Kong, Belt Consulting Company Limited, which in turn wired $114,834.27 to the U.S. manufacturer. He also coordinated plans to send an employee to Hong Kong to receive the raiding craft and engines and transship them to mainland China. The plot failed and authorities arrested Ge Songtao and his co-defendants before the raiding craft and engines were shipped overseas.
On September 15, 2020, Yang Yang pleaded guilty to the same two charges to which Ge Songtao has pleaded guilty, and on December 9, 2020, was sentenced to a time-served sentence or the equivalent of approximately 14 months’ imprisonment. On August 13, 2020, co-defendant Zheng Yan pleaded guilty to conspiring to submit false export information and to export the raiding craft and engines fraudulently, in violation of U.S. law, and on March 31, 2021, was sentenced to a time-served sentence or the equivalent of approximately 6 months’ imprisonment and 11 months’ home-detention. The trial of remaining co-defendant, Fan Yang, is scheduled to begin on August 2, 2021.
"The illegal exportation of sensitive technology poses a clear, significant threat to our national security,” said Brian Dugan, Special Agent in Charge of the FBI Norfolk Division. “This case proves that the FBI and our law enforcement partners are fully dedicated to preventing the theft of vital technologies, no matter how challenging the work. We will continue to stand up for innovators who create products that protect American lives, and bring to justice anyone who attempts to circumvent the laws that protect these technologies.”
“Ge Songtao deserves to be held fully accountable for his attempts to illegally acquire sensitive U.S. technology that ultimately threatened the operational readiness and safety of our nation’s military,” said Special Agent in Charge Thomas Cannizzo of the NCIS Southeast Field Office. “This sentencing should serve as a warning that NCIS and our law enforcement partners remain committed to rooting out any and all criminal attempts to compromise our nation’s critical technologies and infrastructure. We sincerely thank our partners for their substantial efforts during this investigation to preserve U.S. warfighter superiority.”
“Special Agents of the Bureau of Industry and Security’s Office of Export Enforcement (OEE) are dedicated to ensuring that individuals and companies of concern do not attempt to unlawfully undermine our military’s qualitative technological edge by circumventing applicable export controls,” said Ariel Joshua Leinwand, Special Agent in Charge of OEE’s Miami Field Office. “This significant sentencing represents the results of an intensive and collaborative approach with our law enforcement partners to vigorously enforce our nation’s export control laws.”
“ATF will continue to support our federal partners and provide our firearms expertise in order to protect national security,” said ATF Special Agent in Charge Craig W. Saier.
This case was investigated by the FBI, the U.S. Naval Criminal Investigative Service, the U.S. Department of Commerce – Bureau of Industry and Security, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorney Michael J. Coolican and Heather Schmidt, Senior Trial Attorney, Counterintelligence and Export Section, U.S. Department of Justice.
Chesterland Man Charged with COVID-19 Relief FraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a four-count indictment charging Robert Bearden, 49, of Chesterland, Ohio, with three counts of wire fraud and one count of theft of government funds.
According to the indictment, in July of 2020, the Defendant allegedly devised a scheme to fraudulently obtain Economic Injury Disaster Loans (EIDL) guaranteed by the U.S. Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, including approximately $60,000 in loans identified in the indictment.
The indictment states that the Defendant allegedly carried out the scheme in a number of ways including, submitting EIDL applications through the SBA’s online application portal that contained false information about existing and non-existing businesses; submitting fraudulent EIDL applications in the name of third parties in return for a kickback of a portion of the funds received and by using the personal identifying information of persons interested in obtaining government pandemic assistance to submit loan applications on their behalf that ultimately went into accounts controlled by the Defendant.
Furthermore, the indictment identifies three fraudulent EIDL loans for a total of approximately $60,000 that the Defendant applied for in July of 2020. After receiving a fraudulent loan in his own name, the Defendant recruited a purported third-party borrower only to use the third party’s information to obtain a $12,300 loan issued not to the third party’s account but to the Defendant’s own account. In another instance, the Defendant obtained a $34,800 loan for another third party in exchange for a $6,000 kickback.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the FBI and the IRS – Criminal Investigations. This case is being prosecuted by Assistant U.S. Attorneys Elliot Morrison and Brian M. McDonough.
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 the 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.
Centreville Man Pleads Guilty to Coercion and Enticement of a MinorRead the Press Release
Baltimore, Maryland – William Tyler Beck, age 30, of Centreville, Maryland, pleaded guilty today to coercion and enticement of a minor.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his guilty plea, between 2014 and August 2018, Beck used internet-based communication services to coerce at least six minor females into creating and sending him sexually explicit images and videos of themselves. As part of his scheme to exploit the minors, Beck created fictitious accounts and represented himself as a 16-year old minor.
Specifically, on March 5, 2017, Beck used a cell phone and video streaming application to communicate with Jane Doe, a 9-year-old victim. Beck instructed the victim to perform sexual acts on a live stream video and threatened to call the police if she did not cooperate with his demands. As a result of Beck’s threats, Jane Doe exposed her breast, genitalia, and performed other sexual acts on an open live stream video. The live stream video was viewed by over 100 users, some users immediately reported the conduct to law enforcement. After Jane Doe was banned from the live stream site, Beck instructed Jane Doe to change her username to “Lil Sexy Chica” to stream another video where she performed additional sexual acts. Beck also live streamed a video of himself masturbating during his communication with Jane Doe.
According to Beck’s plea agreement, from approximately 2014 to August 2017, Beck used two social media applications to communicate with minor females who identified themselves as ages 9 to 16 years of age. Beck communicated with more than 24 self-identifying minors during that time. All communications related to sex or requests for photos. During most of the conversations, Beck falsely posed as a 16-year-old or 13-year-old minor.
In at least three instances, Beck threatened to expose the victims by posting pictures, stating that he already posted pictures, or threatening to tell the victims’ parents that they were using the applications.
Beck admits that he caused or attempted to cause at least five minor females between the ages of 13 and 16 years of age to produce images, videos, or live stream videos of their exposed genitalia.
As stated in his plea agreement, investigators executed a search warrant at Beck’s Centerville residence on August 22, 2018. During the execution of the search warrant, agents seized two of Beck’s cell phones. As a result of a forensic analysis, investigators found the communication applications Beck used to communicate with female minors and well as hundreds of pornographic images. On August 22, 2018, Beck admitted to using applications to communicate with minors and admitted to having a sexual interest in children.
Beck faces a mandatory minimum sentence of 10 years in prison and a maximum of life in prison followed by up to lifetime of supervised release for coercion and enticement of a minor. U.S. District Judge Stephanie A. Gallagher has not scheduled the sentencing hearing at this time.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, the Maryland State Police, the Maryland Department of Natural Resources Police, Kent County Sheriff’s Office, the Madisonville Police Department of Kentucky, and the Queen Anne’s County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul E. Budlow who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Brown County, Ohio man sentenced to 17 years in prison for distributing images of child sexual abuseRead the Press Release
CINCINNATI – Wayne Cusimano, 55, of Hamersville, Ohio, was sentenced in U.S. District Court to 204 months in prison for distributing child pornography through Kik messenger chat groups.
According to court documents, from January through September 2018, Cusimano belonged to online chat groups dedicated to the trading of child pornography. Cusimano posted images and videos to the groups depicting adults sexually abusing minor children.
In one chat group, Cusimano served as the group’s administrator. He promoted others in the group, banned users, and vetted individuals who sought to join the group.
Cusimano pleaded guilty in January 2021 to two counts of distributing child pornography.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; and Vance Callendar, Special Agent in Charge, Homeland Security Investigations (HSI), announced the sentence handed down July 15 by Senior U.S. District Court Judge Susan J. Dlott. Assistant United States Attorneys Kyle J. Healey and Matthew Singer are representing the United States in this case.
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Bristol Man Sentenced to 5 Years in Prison for Trafficking Cocaine from Puerto Rico to ConnecticutRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that MIGUEL FREYTES, 42, of Bristol, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to 60 months of imprisonment, followed by four years of supervised release, for trafficking cocaine from Puerto Rico to Connecticut through the U.S. Mail.
According to court documents and statements made in court, the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service developed evidence regarding a drug trafficking organization that was sending USPS parcels containing kilograms of cocaine from Puerto Rico to Connecticut and Massachusetts. Between July and December 2018, law enforcement intercepted and seized five suspect parcels that were being mailed to addresses in Bristol, Meriden and Burlington, Connecticut, and in Worcester, Massachusetts. All five of the suspect parcels contained multiple kilogram-sized bricks of cocaine. On several occasions, investigators conducted surveillance of the delivery of suspect parcels and the scheduled delivery of seized parcels. During surveillance, investigators observed Freytes, Marcos Mendez, Omar Mendez and others picking up or attempting to pick up parcels that had been seized. The investigation revealed that the cocaine was being sent from Puerto Rico by Roberto Muniz and others.
On January 9, 2019, investigators arrested Freytes and other members of this drug trafficking organization and seized approximately 2.5 kilograms of cocaine, items used to process and package narcotics, and more than $150,000 in cash. Approximately one kilogram of cocaine was found in Freytes’ residence.
On January 23, 2019, a federal grand jury returned an indictment charging, Freytes, Marcos Mendez, Omar Mendez, Muniz and two others with conspiracy to distribute cocaine and related offenses.
On February 27, 2020, Freytes pleaded guilty to conspiracy to distribute 500 grams or more of cocaine.
Marcos Mendez, 31, of Bristol; Omar Mendez, 43, of Bristol; and Muniz, 37, of Puerto Rico, also have pleaded guilty. Two defendants are awaiting trial.
Freytes, who had been released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of the sentencing proceeding.
This case is being investigated by the Drug Enforcement Administration’s Hartford Task Force and the U.S. Postal Inspection Service. The DEA’s Hartford Task Force includes personnel from the DEA Hartford Resident Office, the Connecticut State Police, and the Bristol, Hartford, East Hartford, Enfield, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The DEA Puerto Rico Caribbean Corridor Strike Force and U.S. Postal Inspection Service, Newark Division, San Juan (P.R.) Office, have assisted the investigation.
This case is being prosecuted by Assistant U.S. Attorney Geoffrey M. Stone through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Baton Rouge Concert Promoter and Restaurateur Sent to Federal Prison for Violations of Supervised Release Stemming from Federal Fraud and Tax ConvictionsRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Adrian C. Hammond, Jr., age 41, of Baton Rouge, Louisiana, to 24 months in federal prison following the Court’s determination that Hammond violated the terms of his federal supervised release. The Court also ordered the defendant to pay his outstanding restitution balance of approximately $250,000.
Previously, in 2017, Hammond was convicted of bank fraud, money laundering, and obstructing the due administration of the Internal Revenue Code. Hammond’s convictions arose from two separate, but related, criminal schemes. First, as Hammond admitted in connection with his guilty plea, he defrauded a local bank by submitting false documents in support of a loan application for a new restaurant that Hammond was attempting to open at the time, and after obtaining the bank’s money, Hammond caused a series of financial transactions intended to conceal and disguise the funds. Meanwhile, Hammond had a significant unpaid tax liability with the Department of the Treasury—Internal Revenue Service, and the IRS was taking steps to collect what Hammond owed. As Hammond admitted, he engaged in a series of acts intended to obstruct the IRS, including allowing a fictitious document to be filed in the 19th Judicial District Court that purported to withdraw a tax lien that the IRS had properly filed against Hammond, and then engaging in a series of transactions that circumvented an IRS levy and enabled Hammond to obtain funds for promoting a concert on the campus of Southern University, which funds should have been paid to the IRS.
In August 2018, Hammond was sentenced to serve 12 months and one day in federal prison. Hammond was ordered to pay approximately $258,000 in restitution and to forfeit an additional $213,656.12. Significantly, the Court ordered Hammond to serve a three-year term of supervised release following his release from prison. After serving his prison sentence, Hammond began serving his term of supervised release in August 2019.
At yesterday’s hearing, the Court found that Hammond had violated the conditions of his supervised release. Specifically, the Court found that Hammond failed to timely report to his supervising probation officer his March 2021 arrest by the Baton Rouge Police Department, during which Hammond was stopped while allegedly driving more than 100 miles an hour, and which led to his arrest for DWI (second offense), reckless driving, and several other offenses. The Court also found that Hammond had failed to comply with court-ordered substance abuse testing and treatment – that Hammond had failed to submit to court-ordered drug tests and that he had taken other steps intended to circumvent his required testing.
The original investigation was led by the U.S. Treasury Inspector General for Tax Administration (TIGTA) and the Federal Bureau of Investigation, which received valuable assistance from the Internal Revenue Service’s Examination and Collection Divisions, and was prosecuted by Assistant United States Attorney Alan Stevens, who serves as Senior Litigation Counsel for the United States Attorney’s Office.
Baltimore County Man Sentenced to over Four Years in Prison Related to His Impersonation of a U.S. Secret Service Agent and the Commission of Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Baltimore, Maryland – U.S. District Court Judge Ellen L. Hollander sentenced Igor Cooper Rosensteel, age 30, of Middle River, Maryland to 50 months in federal prison for device fraud and aggravated identity theft, related to a scheme in which he held himself out as a federal law enforcement officer or federal employee in order to defraud a total of at least 15 victims.
Rosensteel previously admitted that he posed as a Secret Service Agent to gain the trust of his victims, then he exploited them, stealing bank checks and credit cards, among other things. The guilty plea was entered on September 1, 2020. Rosenteel also pled guilty to additional charges of identity theft that he committed while he was on pre-trial release status in June and July of 2020.
The sentence was announced by Acting United States Attorney Jonathan F. Lenzner; Special Agent in Charge Bo Keane of the United States Secret Service - Baltimore Field Office; and Lieutenant Colonel Kevin M. Anderson, Chief of the Maryland Transportation Authority Police.
According to his guilty plea, on August 3, 2018, Rosensteel was driving in Baltimore when he was pulled over by Maryland Transportation Authority Police for driving with a suspended license. When the patrol officer requested Rosensteel’s license and registration, Rosensteel instead pulled a law enforcement badge from his pocket, placed it on his lap and told the officer that he was a Secret Service Agent. The officer detected the odor of alcohol emanating from the vehicle and believed that Rosensteel was attempting to use his law enforcement badge to get out of a traffic ticket. Rosensteel was transported to the police station and continued to maintain that he was a law enforcement officer. Local police contacted the U.S. Secret Service in Washington, D.C. Investigation revealed that Rosensteel had never worked as an officer or employee of the U.S. government. After real Secret Service agents traveled to the police station in Baltimore, Rosensteel finally admitted that he had lied about being an agent and that the badge was fake.
As detailed in his plea agreement, additional investigation revealed that from approximately January 2018 through February 2019, Rosensteel falsely held himself out to be a federal law enforcement officer and he used this law enforcement status to defraud at least eight victims. Specifically, Rosensteel used his law enforcement status to get everything from free parking and food in restaurants, to gaining the trust of women he met online. Using his phony law enforcement persona to create a sense of security and trust, Rosensteel then exploited his victims by cashing out bank loans in the victims’ names, saddling the victims with the resulting debt and fees. After being invited into victims’ homes, Rosensteel admitted that he surreptitiously searched their belongings, stealing keys, bank checks, and credit cards, then used those items to go on lavish spending sprees, with resulting losses of more than $20,000.
According to his second plea agreement, Rosensteel was placed on pretrial release on January 30, 2020, related to his pending federal charges. While on pretrial release status, Rosensteel employed his previous strategy of deceptive online relationships and began a romantic relationship with person A under the false name of “Cooper Kent.” In this relationship, Rosensteel falsely claimed he was an employee of the Central Intelligence Agency. After an argument with his third-party custodian on June 3, 2020, Rosensteel removed his ankle monitoring bracelet, and he absconded from Maryland.
On July 7, 2020, the United States Marshal’s Service apprehended Rosensteel in another state, and it was discovered that he possessed at least seven debit and credit cards in the names of at least six additional victims. Law enforcement also discovered that Rosensteel possessed the banking information of another victim, which had been handwritten in a note inside of his wallet.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Secret Service, the Maryland Transportation Authority Police for their work in the investigation, and recognized the Anne Arundel County Police Department, and the Baltimore County Police Department for their assistance. Mr. Lenzner also thanked Assistant U.S. Attorney Christine Duey, who prosecuted the case.
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Athens, Georgia Resident Sentenced to Prison in Elder Fraud InvestigationRead the Press Release
ATHENS, Ga. – An Athens, Georgia, resident was sentenced to federal prison and ordered to pay restitution and a fine for illegally operating an unlicensed money transmitting business targeting elderly victims.
Colin Moore, 24, of Athens, was sentenced to serve 18 months in federal prison to be followed by three years of supervised release, $65,450 in restitution and a $95,000 fine by U.S. District Judge C. Ashley Royal on Thursday, July 15, after Moore previously pleaded guilty to operating an unlicensed money transmitting business. There is no parole in the federal system.
“Consumers must remain vigilant when it comes to solicitations for money in exchange for the illusion of a grand prize,” said Acting U.S. Attorney Peter D. Leary. “Our office will protect the consumer and prosecute those who concoct schemes that illegally prey on the false hope of vulnerable people.”
“This defendant took advantage of our elderly population who are the most susceptible victims of financial fraud exploitation,” said Tommy D. Coke, Inspector in Charge of the Atlanta Division. “Postal Inspectors will continue to protect the nation’s mail system and the American public from individuals who commit crimes against the U.S. Postal Service for illicit financial gain.”
“Criminals like Moore help fraudsters systematically target the elderly and vulnerable offering various services and opportunities for prizes,” said IRS-Criminal Investigation Special Agent in Charge James E. Dorsey. “We all have a shared responsibility to protect and safeguard the elderly and vulnerable among us from individuals like Moore and his co-conspirators. The Special Agents of IRS-CI are proud of the work we have done in this investigation and will continue our efforts toward maintaining the integrity of the country’s financial markets, while also protecting our elderly.”
According to court documents, Moore was operating an unlicensed money transmitting business, having never registered such a business with either the State of Georgia or U.S. Government. Moore was under investigation by the U.S. Postal Inspection Service for multiple offenses related to a fraudulent sweepstakes scheme. The investigation revealed that unidentified co-conspirators contacted victims and directed the victims to send money to Moore. Moore would purchase money orders with the victims’ money, buy bitcoin and sell bitcoin to a third party, thereby operating an unlicensed money transmitting business. Moore received approximately $65,450 from seven elderly victims in seven different states. The total amount that unidentified co-conspirators received from the scheme was $545,050. The victims did not have knowledge of bitcoin and did not send money to Moore or another third party for any bitcoin transaction. The IRS discovered Moore used 14 different accounts with six different financial institutions to receive large sums of cash and money orders from victims that he used to purchase virtual currency.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
The case was investigated by the U.S. Postal Inspection Service and the IRS.
Assistant U.S. Attorney Shanelle Booker prosecuted the case for the Government.
Aaron Shamo’s Co-Defendants Sentenced in Dark Web Narcotics Distribution CaseRead the Press Release
SALT LAKE CITY – All eight of the co-defendants in the case against Aaron Michael Shamo have been sentenced after a series of sentencing hearings took place this week in a Utah federal court. Seven co-defendants were sentenced throughout the week, including Jonathon “Luke” Paz, Drew Wilson Crandall, Alexandrya Marie Tonge, Katherine Lauren Anne Bustin, Mario Anthony Noble, Sean Michael Gygi, and Ana “Gabby” Noriega, while Christopher Sean Kenny was sentenced last month in a separate hearing. All defendants previously plead guilty to charges related to their involvement in Shamo’s multi-million dollar nationwide dark net drug trafficking organization that distributed more than a half million counterfeit pills throughout the country.
During a trial in federal court in August of 2019, a jury found Shamo guilty of organizing and directing a drug trafficking organization that imported fentanyl and alprazolam from China and used the drugs to manufacture fake oxycodone pills made with fentanyl and counterfeit Xanax tablets. The evidence at trial showed that more than 90 of Shamo’s customers died of drug overdoses. However, the total number of victims could not be calculated since Shamo sold many of his fentanyl laced fake oxycodone pills in bulk to redistributors and their customers could not always be located by investigators. Shamo was sentenced to life in prison by U.S. District Court Judge Dale A. Kimball in October of 2020.
The sentences handed down in federal court for Shamo’s co-defendants are as follows:
Jonathon “Luke” Paz, 33, now of Fort Walton Beach, Florida, was sentenced to 60 months in federal prison for his role in helping to run the dark web drug distribution empire founded by Aaron Shamo. Paz was convicted of conspiracy to manufacture a controlled substance containing fentanyl, two counts of knowingly adulterating drugs while holding them for sale, and conspiracy to commit money laundering. In the plea agreement, Paz admitted to operating pill presses for Aaron Shamo and pressing counterfeit Xanax containing alprazolam and counterfeit oxycodone pills containing fentanyl. Paz admitted that he developed the process and recipe to create the counterfeit fentanyl-laced oxycodone pills, and that he pressed almost 500,000 of these counterfeit pills. Paz turned over $800,000 in U.S. currency and 32.8 bitcoins to federal investigators upon his arrest that were proceeds from his involvement in the drug distribution with Shamo.
Drew Wilson Crandall, 35, of Draper, was sentenced to 54 months in federal prison for his role in helping to run the dark web drug distribution empire founded by Aaron Shamo. Crandall was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, and conspiracy to commit money laundering. In the plea agreement, Crandall admitted that he and Aaron Shamo imported and distributed controlled substances in Utah and around the country using the Pharma-Master dark web site developed by Shamo. Crandall also admitted that he helped Shamo mix the illegal narcotics in mason jars and used pill presses to turn the mixture into pill form. After having his own misgivings about the scheme, Crandall sold his stake in the company to Shamo for $40,000 and moved to New Zealand in November of 2015, but was later lured back into the scheme by Shamo and continued to work in customer service and handled complaints and inquiries from Shamo’s customers. Crandall was arrested in 2017 by federal law enforcement when he returned to Hawaii to get married to his fiancé.
Alexandrya Marie Tonge 29, of South Jordan, was sentenced to 36 months in federal prison for her role in Shamo’s drug trafficking network. Tonge was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, possession of fentanyl with the intent to distribute, using the U.S. mail to commit drug trafficking, and conspiracy to commit money laundering. In the plea agreement, Tonge admitted to being paid to ship and receive packages containing illegal narcotics on behalf of Aaron Shamo and Drew Crandall, and to using their bitcoin wallets to pay for expenses related to the drug trafficking organization.
Katherine Lauren Anne Bustin, 31, of South Jordan, was sentenced to 36 months in federal prison for her role in Shamo’s dark web drug trafficking network. Bustin was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, possession of fentanyl with the intent to distribute, using the U.S. mail to commit drug trafficking, and conspiracy to commit money laundering. In the plea agreement, Ms. Tonge admitted to being paid to ship and receive packages containing illegal narcotics on behalf of Aaron Shamo and Drew Crandall, and to using their bitcoin wallets to pay for expenses related to the drug trafficking organization. Bustin also admitted that Shamo paid her and Tonge $7,000 per month to package thousands of shipments of narcotics to Shamo’s customers, including placing the correct number of pills in the customers’ orders and writing false return addresses on the packages.
Mario Anthony Noble, 32, of Midvale, was sentenced to 30 months in federal prison for his role in Shamo’s dark web drug trafficking network. Noble was convicted of conspiracy to distribute fentanyl and conspiracy to distribute alprazolam. In his plea agreement, Noble admitted to being recruited by Shamo to be the “backbone” of Shamo’s dark web store and to manage customer service along with processing orders of various controlled substances. These controlled substances included alprazolam tablets and pills marked like oxycodone, but which contained fentanyl. Noble admitted that when he worked for Shamo, part of his daily duties included pulling together a list of customers, their mailing addresses, and the types and quantities of drugs they ordered. Once he created these lists, he would send them in an encrypted form, through an email account Aaron Shamo created, to co-conspirators who were responsible for packaging the orders and affixing mailing labels and postage. Noble admitted that he processed thousands of tablets containing alprazolam and pills containing fentanyl.
Sean Michael Gygi, 31 of Midvale, was sentenced to 24 months in federal prison for his role in Shamo’s dark web drug trafficking network. Gygi was convicted of conspiracy to distribute fentanyl, conspiracy to distribute alprazolam, importing fentanyl into the United States, and using the U.S. mail to commit drug trafficking. In his plea agreement, Gygi admitted to accepting shipments of illegal narcotics from China at his home on behalf of Aaron Shamo. Gygi also admitted that he also served as a runner for Shamo and picked up packages from co-defendants Tonge and Bustin five nights a week and delivered them to multiple post offices around the Salt Lake Valley to avoid detection.
Ana “Gabby” Noriega, 30, of West Jordan, was sentenced to 36 months of probation for her role in assisting Aaron Shamo’s drug trafficking operation. Noriega was convicted of conspiracy to commit money laundering, and in her plea agreement, admitted to working for Shamo for six months in 2016 in a role that was equivalent to an Executive Assistant. Noriega admitted that she bought supplies and other items for Shamo to use in furtherance of his drug trafficking operation and that she used money to purchase items that she knew was obtained from the sale of illegal narcotics.
Christopher Sean Kenny, 46, of Midvale, was sentenced to 120 months of imprisonment in June of 2021. Kenny was convicted of conspiracy to distribute fentanyl and engaging in money laundering. In the plea agreement, Kenny admitted that he worked as a middleman for Aaron Shamo and helped Shamo sale fentanyl laced oxycodone pills to other drug dealers in Utah, who would then sell Shamo’s pills to their customers. Kenny admitted that he was paid approximately one dollar per pill for this service and that he distributed approximately 140,000 pills. Kenny then bought a Ford F150 in August of 2016 using cash that he obtained from selling narcotics for Shamo.
“Aaron Shamo’s life sentence, and the sentences imposed on his co-defendants, send a clear message to anyone involved in the distribution of illegal narcotics. Law enforcement will catch you, and you will be punished for your role in the death and destruction that you cause in our communities,” said Acting United States Attorney Andrea Martinez. “As the opioid epidemic continues to take its destructive toll, we will remain vigilant and continue to aggressively prosecute those who violate the controlled substance laws of the United States. I send my deepest condolences to the families of our victims. We know you will never be made whole, but we hope that this will provide some measure of closure and allow you to heal.”
“There is no way to overstate the deadly severity of the crimes these defendants committed. They assisted one of the most prolific opioid dealers this state has ever encountered, and they are complicit in the destructive and too often-fatal consequences that resulted,” said Utah Attorney General Sean D. Reyes. “Regardless of the length of their sentence, they must live with the fact that they profited from crimes that ruined countless lives. I would like to express my sincere condolences to the families around the world who lost loved ones and whose lives were devastated by these crimes. I am grateful to the fine DEA agents and prosecutors of the DEA, the U.S. Attorney’s Office, and the Utah AG Office in this case. I also appreciate Judge Kimball’s careful handling and thoughtful decisions in this case.”
“The amount of Fentanyl distributed throughout the U.S. as a result of the operations these criminals supported devastated communities throughout the country,” said Steven Cagen Special Agent in Charge, Homeland Security Investigations Denver. “We will continue to investigate those that put personal profits above the lives of people in their communities and bring deadly drugs into the U.S. for distribution. Justice was served and we’re gratified these co-conspirators will be behind bars for the foreseeable future.”
“The dismantlement of this organization, which was responsible for multiple overdose related deaths, highlights the success of cooperative efforts between law enforcement agencies within the state of Utah,” said Michael J. Tinkler, Utah DEA Assistant Special Agent in Charge.
“It’s another example of the strength of our partnerships and unified approach in confronting criminal organizations targeting our communities.”
“The opioid crisis is still with us and continues to expand. Those who contribute to the breadth and depth of this crisis carry the burden of the devastation they impose on families and communities across the nation,” said Special Agent in Charge Charles L. Grinstead, FDA Office of Criminal Investigations Kansas City Field Office. “We will continue to investigate and bring to justice those who facilitate illicit access to opioids.”
“Mr. Shamo and his associates put at risk countless individuals addicted to opioids, through the sale of dangerous counterfeit fentanyl laced pills. This drug empire affected the entire nation, and today marks a final step in justice for those who caused this great tragedy for so many,” said IRS Criminal Investigation Special Agent in Charge, Albert Childress. “We will continue to work together with our law-enforcement partners to dismantle criminal enterprises like this, who intend to financially profit from the exploitation and suffering of the American people.”
“Battling and keeping illegal narcotics - especially synthetic opioids - out of the U.S. Mail is one of the highest priorities of the U.S. Postal Inspection Service,” said Utah Postal Inspection Service Team Leader Jared Bingham. “In today’s world of Dark Web and cyber crimes, drug dealers don’t always fit the stereotypical image of years past where the danger and effect of their crimes was confined to local jurisdictions. The Dark Web allowed the defendants in this case to operate their criminal organization from the safety and comfort of their own homes. However, the danger and lethal effects of their drug dealing enterprise was not limited to individual cities and towns. Rather, it touched virtually every corner of our nation, and it’s wake of death and pain is just as wide. In cases like this, it is important that justice not only be served, but that it send the right message to would be Dark Web criminals. The Postal Inspection Service is grateful to the U.S. Attorney’s Office and our federal law enforcement partners for their diligence in investigating and prosecuting this important case.”
Assistant U.S. Attorneys and Special Assistant U.S. Attorney’s from the Utah Attorney General’s Office prosecuted the cases. Special Agents from the DEA’s Metro Narcotics Task Force, Homeland Security Investigations, IRS Criminal Investigations, Food and Drug Administrations Office of Criminal Investigations, and Inspectors from the United States Postal Inspection Service conducted the investigation.
Thursday 15 July 2021
Woodsboro Man Sentenced to More Than 11 Years in Federal Prison for Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge Stephanie A. Gallagher today sentenced Jeffrey John White, age 53, of Woodsboro, Maryland, to 133 months in federal prison, followed by 20 years of supervised release, for possession of child pornography. At the time of his federal offense, White was on supervised probation for a previous conviction for similar conduct in Montgomery County Circuit Court. Judge Gallagher ordered White to pay a $5,000 special assessment and $3,000 in restitution. Judge Gallagher also ordered that White must continue to register as a sex offender in the places where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Frederick County Sheriff Charles A. “Chuck” Jenkins; and Frederick County State’s Attorney J. Charles Smith III.
According to his guilty plea, White was previously convicted of two counts of possession of child pornography in the Circuit Court of Montgomery County on September 25, 2014. The conviction arose from White’s possession of almost 10,000 files of child sex abuse material. For that conviction, White was sentenced to five years imprisonment, suspended, and five years of supervised release. On September 30, 2015, White was found to have violated his probation and was sentenced to five years in prison with all but 18 months suspended, followed by four years of supervised probation.
From April 14, 2020 through July 2020, while on supervised probation for his previous child pornography conviction, White began to use a peer-to-peer file sharing network to access, distribute and possess child pornography. On three separate occasions in April 2020, investigators with the Frederick County Sheriff’s Office were able to establish twenty direct connections with a device, later determined to be White’s laptop and SD card, to view and download known files of child pornography, including a one hour and thirty-nine second video depicting a prepubescent 12-year-old victim.
On July 6, 2020 law enforcement executed a search warrant at White’s Woodsboro residence and seized White’s laptop and SD card. White told law enforcement that it was his laptop, however he claimed he did not know how to access the encrypted laptop. White also claimed to have no knowledge of child pornography activity on the file sharing network. Additionally, a child-sized sex-doll with an anal and vaginal opening was located during the execution of the search warrant.
Federal agents were able to decrypt White’s laptop and forensically examine its hard drive, recovering 7,000 images and more than 240 videos of child pornography. Child pornography found on White’s laptop was similar to the images investigators initially downloaded from White’s IP address. In addition, thousands of child erotica files were also discovered on White’s laptop and SD card.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, Frederick State’s Attorney’s Office, the Frederick Sheriff’s Office, and the Frederick County Cyber Crimes Task Force for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Daniel A. Loveland, Jr. and Special Assistant U.S. Attorney Joyce King, 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/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Wise County Man Sentenced in Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Wise County, Virginia man, who conspired with others to file for fraudulent pandemic unemployment benefits, was sentenced today to 87 months in prison for conspiring to defraud the United States and conspiring to commit mail fraud.
According to court documents, Travis Kilgore, 34, defrauded the government of more than $182,474 in pandemic unemployment benefits beginning in May 2020. Kilgore was also ordered to pay $164,470 in restitution. The government previously recouped $18,004.
“When Kilgore filed numerous false claims for pandemic insurance benefits, he committed a serious crime and stole funds designed to help those truly in need because of the international pandemic,” Acting U.S. Attorney Bubar stated today. “We are thankful for the good work of the investigative team, including the Department of Labor, IRS and our state and local partners, and will continue to closely work together to bring all who stole from these important programs to justice.”
“Travis Kilgore conspired with others to commit fraud against the Pandemic Unemployment Assistance Program by filing for and receiving benefits that he and others were not entitled to receive. The U.S. Department of Labor Office of Inspector General will continue to work closely with the Virginia Employment Commission and our law enforcement partners, to safeguard the integrity of all unemployment assistance programs,” stated Syreeta Scott, Acting Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General.
“Fraud involving falsely receiving pandemic relief funds is particularly cold-hearted. Those dishonestly taking advantage of programs meant to help people in need during a global crisis need to be held accountable for their criminal actions. Today, another individual who stole pandemic unemployment benefits received the consequences of their actions,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington D.C. Field Office.
Kilgore admitted that he and his wife developed a scheme beginning in May 2020 to defraud the United States and the Virginia Employment Commission (VEC) through the filing of fraudulent claims for pandemic unemployment benefits.
According to court documents, Kilgore, his wife, and others filed claims for pandemic unemployment benefits through the VEC website. The scheme involved submitting claims for various individuals, including Kilgore and his wife, who were not eligible to receive pandemic unemployment benefits. Kilgore falsified the filings as part of the scheme to appear eligible for benefits. Because pandemic unemployment benefits were paid weekly, Kilgore reverified and re-certified the false statements on numerous occasions throughout the scheme.
In all, Kilgore and his wife filed claims for approximately 21 other individuals, causing at least $182,474 in false claims to be paid.
The investigation of the case was conducted by the Department of Labor-Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office. Assistant United States Attorney Daniel J. Murphy is prosecuting the case for the United States.
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 .
Waubay Man Sentenced for Possession of a Firearm by a Prohibited PersonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Waubay, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Levi Ambrose Locke, age 29, was sentenced to 36 months in federal prison, three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Locke was indicted by a federal grand jury on January 12, 2021. He pled guilty on April 12, 2021.
The conviction stemmed from an incident on or about October 2, 2020, when Locke, who had previously been convicted of a crime punishable by imprisonment for a term exceeding one year and was also an unlawful user of a controlled substance, possessed a Sturm Ruger .22 long rifle, semi-automatic rifle, which had been shipped and transported in interstate and foreign commerce.
Locke knew he was prohibited from owning firearms due to his previous conviction.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Locke was immediately turned over to the custody of the U.S. Marshals Service.
Watertown Man Sentenced for Making and Subscribing a False Tax ReturnRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Watertown, South Dakota, man convicted of Making and Subscribing a False Tax Return was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Dean Minnerath, age 70, was sentenced to 30 months in federal prison, one year of supervised release, $50,000 fine, restitution in the amount of $1,358, 990, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
An Information was filed on December 30, 2020 and Minnerath pled guilty to that information on January 8, 2021.
The conviction resulted from the filing of his 2014 Individual Income Tax Return. Minnerath, who owned and operated Discount Seeds, Inc., understated his income by claiming personal expenses as business expenses. Investigation of his financial records indicated Minnerath failed to include over $1,000,000 in income he received and therefore owed additional income tax of $404,445. As part of a plea agreement with the government, Minnerath agreed to pay additional income tax he owed for tax years 2009 through 2013. By the time of the sentencing hearing, Minnerath paid $1,358,990 in income tax.
This case was investigated by the Internal Revenue Service. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
Minnerath has been allowed to self-surrender to the U.S. Marshals Service by August 3, 2021.
U.S. Government Launches First One-Stop Ransomware Resource at StopRansomware.govRead the Press Release
Today, as part of the ongoing response, agencies across the U.S. government announced new resources and initiatives to protect American businesses and communities from ransomware attacks. The U.S. Department of Justice (DOJ) and the U.S. Department of Homeland Security (DHS), together with federal partners, have launched a new website to combat the threat of ransomware. StopRansomware.gov establishes a one-stop hub for ransomware resources for individuals, businesses and other organizations. The new StopRansomware.gov is a collaborative effort across the federal government and is the first joint website created to help private and public organizations mitigate their ransomware risk.
“The Department of Justice is committed to protecting Americans from the rise in ransomware attacks that we have seen in recent years,” said Attorney General Merrick B. Garland of the Justice Department. “Along with our partners in and outside of government, and through our Ransomware and Digital Extortion Task Force, the Department is working to bring all our tools to bear against these threats. But we cannot do it alone. It is critical for business leaders across industries to recognize the threat, prioritize efforts to harden their systems and work with law enforcement by reporting these attacks promptly.”
“As ransomware attacks continue to rise around the world, businesses and other organizations must prioritize their cybersecurity,” said Secretary Alejandro Mayorkas for the Department of Homeland Security. “Cyber criminals have targeted critical infrastructure, small businesses, hospitals, police departments, schools and more. These attacks directly impact Americans’ daily lives and the security of our nation. I urge every organization across our country to use this new resource to learn how to protect themselves from ransomware and reduce their cybersecurity risk.”
StopRansomware.gov is the first central hub consolidating ransomware resources from all federal government agencies. Before today, individuals and organizations had to visit a variety of websites to find guidance, latest alerts, updates and resources, increasing the likelihood of missing important information. StopRansomware.gov reduces the fragmentation of resources, which is especially detrimental for those who have become victims of an attack, by integrating federal ransomware resources into a single platform that includes clear guidance on how to report attacks, and the latest ransomware-related alerts and threats from all participating agencies. StopRansomware.gov includes resources and content from DHS’s Cybersecurity and Infrastructure Security Agency (CISA) and the U.S. Secret Service, the DOJ’s FBI, the Department of Commerce’s National Institute of Standards and Technology (NIST), and the Departments of the Treasury and Health and Human Services.
Ransomware is a long-standing problem and a growing national security threat. Tackling this challenge requires collaboration across every level of government, the private sector and our communities. Roughly $350 million in ransom was paid to malicious cyber actors in 2020, a more than 300% increase from the previous year. Further, there have already been multiple notable ransomware attacks in 2021, and despite making up roughly 75% of all ransomware cases, attacks on small businesses often go unnoticed. Like most cyber attacks, ransomware exploits the weakest link. Many small businesses have yet to adequately protect their networks, and StopRansomware.gov will help these organizations and many more to take simple steps to protect their networks and respond to ransomware incidents, while providing enterprise-level information technology (IT) teams the technical resources to reduce their ransomware risk.
DHS, DOJ, the White House and our federal partners encourage all individuals and organizations to take the first step in protecting their cybersecurity by visiting StopRansomware.gov.
U.S. Attorney’s Office Promotes 2021 Virtual Safe Surrender ProgramRead the Press Release
WASHINGTON – The Superior Court of the District of Columbia is hosting the final two days of its Virtual Safe Surrender Program this Friday, July 16, and Saturday, July 17. “Safe Surrender” is a program that allows an individual to take care of a misdemeanor bench warrant without having to visit the courthouse or a police station. Anyone wishing to surrender voluntarily can participate on their computer or smartphone.
“The U.S Attorney’s Office for the District of Columbia encourages anyone who has an outstanding bench warrant in a misdemeanor case, or who may have missed a court hearing and is unsure of what to do, to take part in DC Safe Surrender,” said Acting U.S. Attorney Channing D. Phillips. “Prosecutors will credit you for you taking responsibility and coming forward to handle the warrant without the involvement of the police. Participants will be treated respectfully, and defense attorneys will be available to represent persons who wish to have a lawyer. A participant’s warrant may even be taken care of the day that they log in to DC Safe Surrender. The U.S. Attorney’s Office for the District of Columbia urges individuals to take advantage of the final days of this program.”
The Court strongly encourages registration in advance at: http://DCCourts.gov/safesurrender.
Two South Bay Residents Plead Guilty to Securities FraudRead the Press Release
SAN FRANCISCO – Benjamin J. Wylam and Nathaniel A. Brown each pleaded guilty in federal court today to one count of securities fraud related to Wylam’s engaging in transactions in corporate securities after receiving from Brown material nonpublic information about the corporation issuing the securities, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig Fair. Wylam’s and Brown’s plea agreements were accepted by the Honorable Edward M. Chen, United States District Judge.
Brown, 49, and Wylam, 42, both of San Jose, Calif., pleaded guilty to the charge signing separate plea agreements. According to Brown’s plea agreement, Brown admitted that, between 2011 and 2017, he was employed as a Senior Revenue Manager at Infinera Corporation (“Infinera”), a Sunnyvale-based technology company. Infinera’s common shares were registered pursuant to Section 12(b) of Securities Exchange Act of 1934 and publicly traded on the NASDAQ Stock Market under the ticker symbol INFN. During Brown’s employment at Infinera, he was regularly privy to material nonpublic information about Infinera’s financial performance and financial projections. Beginning in or about April 2016 and continuing until the termination of his employment from Infinera in November 2017, Brown admitted that he regularly shared material nonpublic information that he obtained during his employment with Wylam. Brown admitted he knew Wylam intended to, and did, use the material nonpublic information to purchase Infinera securities in advance of Infinera’s quarterly public earnings announcements.
According to Wylam’s plea agreement, Wylam admitted that between April 2016 and November 2017, he obtained material nonpublic information about Infinera, and then engaged in transactions in Infinera securities. Wylam admitted that he obtained this material nonpublic information directly from Brown. As with Brown, Wylam admitted Infinera’s common shares were registered pursuant to section 12(b) of Securities Exchange Act of 1934 and publicly traded on the NASDAQ Stock Market under the ticker symbol INFN. Wylam acknowledged the gross gains he made from trading based on material nonpublic information belonging to Infinera that he received from Brown amounted to approximately $999,959.
The plea agreements further revealed the steps Brown and Wylam took to conceal their actions and relationship. Both men admitted to having begun using the messaging application WhatsApp to communicate with each other because of its encrypted communications and as an extra measure to conceal the facts that Brown was providing Wylam with material nonpublic information and that the two were friends. Both men admitted that Wylam also “unfriended” Brown on Facebook to achieve these ends.
In sum, Brown and Wylam were each charged with one count of securities fraud, in violation of 18 U.S.C. § 1348. The maximum statutory penalties for a violation of 18 U.S.C. § 1348 is 25 years in prison and the greater of either $250,000 or twice the gross gain made from the offense. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. Judge Breyer scheduled the sentencing hearing for both defendants for October 28, 2021, at 10:30 a.m.
The Securities and Exchange Commission has filed a separate enforcement action against Brown and Wylam and four others. The announcement of that action can be viewed here.
Assistant U.S. Attorney Kyle Waldinger is prosecuting the case with assistance from Kathy Tat. This case was investigated by the FBI. The Department of Justice appreciates the assistance of the Securities and Exchange Commission.
Two Sentenced for PPP Loan Application Fraud Involving Trucking CompanyRead the Press Release
SALT LAKE CITY – Hubert Ivan Ugarte 52, of Draper, and Lisa Bradshaw Rowberry, 49, of Provo, have both been sentenced for their roles in unlawfully obtaining a Paycheck Protection Program (PPP) loan for Frisbu Trucking, Incorporated, where they were both employed.
Rowberry was sentenced to prison for a term of 12 months and a day last week in federal court. Her co-defendant, Hubert Ivan Ugarte, was sentenced to a term of 36 months in federal prison back in June for his role in the PPP loan fraud scheme. Ugarte’s sentence will run concurrently with a sentence that Ugarte received in a related case involving the bribery of officials at the Utah FedEx Ground Hub.
According to plea agreements in this case, Ugarte was the owner and operator of Frisbu Trucking, Inc. Ugarte hired Rowberry to work for Frisbu after she had been terminated from her role as an Assistant Vice President of U.S. Bank for engaging in financial transactions with Ugarte that violated U.S. Bank’s ethical policies. After Ugarte was indicted by a federal grand jury for his role in the FedEx bribery scheme, Ugarte’s many trucking businesses began to struggle because they were dependent on Ugarte’s ability to engage in business with the FedEx Ground Hub. In order to remain in business, Ugarte and Rowberry fraudulently applied for a PPP loan authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act, and obtained $210,000 in loan funding. However, Rowberry and Ugarte both unlawfully failed to disclose that Ugarte was under federal indictment for his role in the FedEx bribery case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses through the PPP. In April 2020, Congress authorized more than $300 billion in additional PPP funding, and Congress again authorized more than 284 billion in Additional PPP funding in 2021.
PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be entirely forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses a certain amount of the PPP loan proceeds on payroll expenses.
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.
Assistant United States Attorneys in the Utah U.S. Attorney’s Office prosecuted the case against Rowberry and Ugarte. Special Agents from the FBI, IRS, and the Department of Transportation Office of Inspector General conducted the investigations.
Three Men Indicted for Trafficking Cocaine and Methamphetamine in FresnoRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Fresno residents David Garcia, 31; Luis Perez, 34; and Gerardo Perez, 48, charging them with conspiracy to distribute and to possess with the intent to distribute 500 grams or more of cocaine and methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
Garcia was charged in three additional counts: one count of distributing cocaine and methamphetamine, one count of distributing cocaine, and one count of being a felon in possession of a firearm.
According to court documents, between April 2020 and May 2021, the defendants worked together to distribute more than 500 grams of cocaine, some of which was adulterated with methamphetamine.
This case is the product of an investigation by the Drug Enforcement Administration, Homeland Security Investigations, the Federal Bureau of Investigation, the U.S. Marshals Service, the Fresno Police Department, the Fresno County Sheriff’s Office, the Tulare County Sheriff’s Department, the Multi-Agency Gang Enforcement Consortium, and the Fresno County District Attorney’s Office. Assistant U.S. Attorney Katherine E. Schuh is prosecuting the case.
If convicted, each defendant faces a mandatory minimum sentence of 10 years in prison and maximum statutory penalty 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.
Texas Man Pleads Guilty to $1.5 Million Investment Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – A Houston, Texas, man pleaded guilty in federal court today to defrauding two Kansas City-area brothers who have also been convicted in the investment fraud scheme.
Duc Nguyen, also known as “Doug,” 57, pleaded guilty before U.S. District Judge Roseann Ketchmark to one count of wire fraud.
By pleading guilty today, Nguyen admitted that he engaged in a fraud scheme from April 2018 to August 2019 in which he proposed an opportunity for high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. He told Phillip Hudnall of Lenexa, Kansas, and his brother, Brian Hudnall, of Kansas City, Missouri, that profit from these transactions would be three to five times the amount of the investment. Brian and Phillip Hudnall raised money from investors based upon these representations from Nguyen.
For example, Brian Hudnall wire transferred $415,000 to Nguyen between May 3 and Sept. 19, 2018, for the purchase, refurbishment, and shipping of the oil equipment. Brian Hudnall wire transferred an additional $80,000 to Nguyen on Feb. 26, 2019. Phillip Hudnall transferred $1,075,000 to Nguyen between April 15 and June 17, 2019, for the purchase, refurbishment, and shipping of the oil equipment.
Nguyen admitted that he did not use any of the monies for the purchase, refurbishment, and shipment of used oil equipment, but instead spent the money on personal expenses.
Phillip and Brian Hudnall pleaded guilty in June 2020, in separate but related cases, to their roles in the investment fraud scheme and await sentencing.
Phillip Hudnall told investors that his company, BirdDog Business Group, LLC, had completed two successful transactions – a $244,000 loan and a $490,000 loan, both of which had been repaid with an interest rate of 30 percent. In fact, no prior completed transactions occurred and no monies were received from the sale of any oil equipment including any principal or interest. To support the false claim, Phillip Hudnall requested that Brian Hudnall create documents as proof of the prior successfully completed transactions. Brian Hudnall wrote two checks on the bank account of his business, DonDon LLC, which was closed. Brian Hudnall also created a fraudulent memorandum to support the false claim.
Phillip Hudnall told investors their funds would be used to purchase specific pieces of oil equipment for refurbishment and resale. Persons invested approximately $3.6 million for the purpose of purchasing specific pieces of oil equipment. Phillip Hudnall and another person also obtained a loan from a bank in Pittsburgh, Pennsylvania, for approximately $1.3 million to finance the oil equipment scheme. Most of the money raised from investors, however, was spent on personal expenses.
Under federal statutes, Nguyen is subject to a sentence of up to 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
These cases are being prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI and the Securities and Exchange Commission.
Tallahassee Man Indicted for Conspiracy to Produce, Distribute, Possess, and Receive Child PornographyRead the Press Release
TALLAHASSEE, FLORIDA – Eric Matthew Lipman, 59, of Tallahassee, Florida, was arrested this morning after a federal grand jury in Tallahassee returned an indictment charging him with conspiracy to produce, distribute, possess, and receive child pornography. The indictment was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Beginning February 8, 2021, through February 11, 2021, the indictment alleges that Lipman conspired to distribute, receive, and possess material containing child pornography. The indictment alleges that as part of the conspiracy, Lipman, along with others, was a participant in Mega.NZ chat groups that distributed, received, possessed, and discussed child pornography images and videos. It is further alleged that the participants posted child pornography images and videos within Mega.NZ chat groups for the benefit of other like-minded participants. The indictment alleges that Mega.NZ was an Internet cloud storage and file hosting service based in New Zealand. Lipman is also charged with receiving, distributing, and possessing material containing child pornography. The pornographic material allegedly found in Lipman’s possession involved a prepubescent minor, as well as a minor under the age of 12.
Lipman faces a maximum penalty of 20 years in prison for conspiracy, receiving material containing child pornography, and distributing material containing child pornography, with a minimum mandatory sentence of 5 years in prison, and a maximum penalty of 10 years in prison for possession of material containing child pornography, followed by a term of 5 years to life of supervised release on all counts following his prison sentence.
This case resulted from an investigation by the Leon County Sheriff’s Office and Homeland Security Investigations. Assistant United States Attorney Justin M. Keen is prosecuting the case.
A jury trial for Lipman is scheduled for August 23, 2021, at 8:15am. He will be tried before the Honorable United States Chief District Judge Mark Walker at the United States Courthouse in Tallahassee.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office for the Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Sylvania, GA man sentenced to federal prison for distributing child pornographyRead the Press Release
STATESBORO, GA: A Screven County man was sentenced to federal prison after admitting that he distributed child pornography.
Daniel Boulineau, 34, of Sylvania, Ga., was sentenced to 63 months in prison after pleading pled guilty to Distribution of Child Pornography, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S District Court Chief Judge J. Randal Hall also ordered Boulineau to pay restitution to the victims in the case, to register as a sex offender, and to serve 25 years of supervised release after completion of his prison term.
There is no parole in the federal system.
“In collaboration with our law enforcement partners, we will relentlessly pursue predators who prey upon vulnerable children,” said Acting U.S. Attorney Estes. “Daniel Boulineau’s incarceration will hold him accountable and protect other vulnerable citizens from this predator.”
As outlined in court documents and testimony, in early August 2020, Boulineau admitted that he electronically distributed images and videos of a minor engaging in sexually explicit conduct. An investigation by the FBI and the Child Exploitation Task Force into online activity led to Boulineau’s arrest on Sept. 1, 2020, after he used an online messaging service to share videos and images of child exploitation with an undercover investigator.
“This sentence demonstrates the determination of the FBI and U.S. Attorney’s Office to find those who prey on children in our communities and bring them to justice,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The trauma suffered by a child who is sexually abused is deplorable and even more so every time images of that abuse are distributed and viewed.”
The case was investigated by the FBI, and prosecuted for the United States by Assistant U.S. Attorney and Project Safe Childhood Coordinator Tara M. Lyons.
Subcontractor Employee Working at Cyril E. King Airport Pleads Guilty to Possessing with Intent to Distribute 4.6 Kilos of CocaineRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert announced today that Keilin Lopez Lopez, 22, a resident of St. Thomas, pleaded guilty in federal court to possession with intent to distribute approximately 4.6 kilograms of cocaine.
According to court documents, on July 31, 2020 at approximately 6:30 p.m., a Virgin Islands Port Authority employee witnessed a male tampering with a trashcan in a stall in the male restroom located inside the Cyril E. King terminal. Officers removed the trashcan from the wall, revealing an open recess in between both sides of the interior wall. One large, brick-shaped bundle and one small, brick-shaped bundle containing approximately 4.6 kilograms of cocaine was lying at the bottom of the recess where the trashcan was previously inserted.
Airport surveillance footage showed a male, later identified as Keilin Lopez Lopez, wearing a backpack enter the bathroom where the bundles were discovered. Officers located Mr. Lopez who is an employee for a company contracted to work on the airport remodel. After being
advised of his constitutional rights, Mr. Lopez waived them and stated he removed the trashcan from the wall in the restroom stall and placed the bundles inside the wall.Lopez faces up to 40 years imprisonment and a fine of up to $5,000,000.00. A sentencing date will be set by the Court.
This case is being investigated by Homeland Security Investigations and U.S. Customs and Border Patrol and is being prosecuted by Assistant United States Attorney Juan Albino. 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.
St. Francis Man Sentenced for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) was sentenced on July 12, 2021, by U.S. District Judge Karen E. Schreier.
Darius Adrian Two Eagle, age 29, was sentenced to 360 months in federal prison, five years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Two Eagle was indicted by a federal grand jury on October 6, 2020. He pled guilty on March 29, 2021.
The conviction stemmed from incidents beginning on an unknown date and continuing until approximately October 2020, when Two Eagle, along with at least one other person reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the U.S. Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Two Eagle was immediately turned over to the custody of the U.S. Marshals Service.
South Florida Man Pleads Guilty to Multi-Million Dollar Investment Scam Targeting the Elderly, Spending Investor Money on Gambling, Jewelry, and Luxury VehiclesRead the Press Release
Miami, Florida – Isaac Grossman, 46, of Parkland, Florida, pled guilty today to wire fraud, mail fraud, and money laundering charges, for directing an elder fraud scheme in which he sold stock in his South Florida-based technology company to elderly investors across the country, and then misappropriated the investors’ funds for his own personal use.
During a hearing this morning in federal district court in Ft. Lauderdale, Grossman admitted that from September 2014 through April 2018, he raised approximately $2.4 million in investor funds for his company, Dragon-Click Corp., by soliciting investments from elderly retirees nationwide. Grossman told potential investors that Dragon-Click was developing an internet application that would revolutionize internet shopping by allowing a user to upload a photograph of any item the user wanted to purchase, identify all retailers offering that item for sale, provide price comparisons for that item across retailers, and provide a link to retailers’ websites where the user could purchase the item. Grossman admitted that he solicited funds by falsely telling potential investors they would double, triple, or quadruple their investments, and that Dragon-Click was on the verge of being sold to a large technology company, such as Google, Apple, or Amazon, for over $1 billion. He concealed from investors that, prior to raising funds for Dragon-Click, he had been permanently barred by the Financial Industry Regulatory Authority (“FINRA”) from acting as a broker-dealer or associating with any broker-dealer firm, and that he had been permanently banned from commodities trading by the U.S. Commodity Futures Trading Commission (“CFTC”).
Grossman admitted that he falsely told investors that their investment money would be used to complete the technological development of the Dragon-Click internet application, to pay legal fees related to the patent application process, and to close the sale of the application to a large technology company. But rather than using investors’ money for any legitimate business purpose Grossman admitted that he misappropriated investors’ funds for his own personal use. Specifically, Grossman admitted that he spent $1.3 million of investors’ money on gambling, diamond jewelry, luxury cars, home mortgage payments, tuition payments for his children’s private school education, and other personal expenditures. For example, Grossman’s unlawful expenditures included a McLaren MP4-12C, a Chevrolet Corvette, and a 4.81 carat diamond ring.
Grossman is scheduled to be sentenced on September 23, at 12:00 p.m., by U.S. District Judge Raag Singhal, who sits in Ft. Lauderdale. Grossman faces up to 50 years in prison.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, FBI Miami, made the announcement.
Acting United States Gonzalez commended the investigative efforts of the FBI’s Miami Field Office and also thanked the SEC’s Miami Regional Office for their assistance, as they had filed a parallel civil enforcement action against Grossman. See SEC v. Isaac Grossman, et al., Case No. 18-61234-CV-BB (S.D. Fla.). This case is being prosecuted by Assistant U.S. Attorney Michael B. Homer.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. The mission of the Department’s Elder Justice Initiative is to support and coordinate the Department’s enforcement and programmatic efforts to combat elder abuse, neglect and financial fraud and scams that target our nation’s seniors. To learn more visit https://www.justice.gov/elderjustice. The public is encouraged to report victimization and suspected fraud schemes by calling the National Elder Fraud Hotline at 1-833-FRAUD 11 (1-833- 372-8311).
You may find related court documents and information 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 number 19-cr-60300.
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Sixteen Members of A White Supremacist Gang Indicted for Violent Crimes in Aid of RacketeeringRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging 16 individuals with violent crimes in aid of racketeering. The names of the individuals, their charges, and their potential penalties appear in the chart below.
According to the indictment, the defendants were members of Unforgiven, a racketeering enterprise engaged in acts of murder, violence, kidnapping, robbery, obstruction of justice, and other offenses. The indictment also alleges that Unforgiven used “corrupt law enforcement officers and state employees” to gather information about people, investigations, and prosecutions, and to smuggle contraband to incarcerated inmates. The indictment charges each of the 16 defendants with committing at least one violent act in aid of Unforgiven, including kidnappings, conspiracies to commit assault, threats of violence, and assaults with deadly weapons.
One charge accuses David Howell of assaulting protestors with a dangerous weapon at a Peace Walk for Black Lives held on June 5, 2020.
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 Bureau of Alcohol, Tobacco, Firearms and Explosives, the Pasco Sheriff’s Office, the Florida Department of Law Enforcement, the St. Petersburg Police Department, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Natalie Hirt Adams.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. 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 https://www.justice.gov/OCDETF.
Defendant (Age)
Charges
Maximum Penalties
Maverick Maher, a/k/a Saxon
(39)
Pensacola
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Six: Threats of Violence in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(4) and 2 Maximum term of 5 years in prison; 3 years of supervised release; and a $250,000 fine Count Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Count Nine: Threats of Violence in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(4) Maximum term of 5 years in prison; 3 years of supervised release; and a $250,000 fineJoshua Fisher, a/k/a Hammer
(27)
Brooksville
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Three: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Five: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Levi Sharp, a/k/a Sketch
(38)
Satsuma
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Three: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineGeorge Andrews, II, a/k/a Shrek
(51)
Pensacola
Count Two: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineJames Mapoles, a/k/a Matt Mapoles a/k/a Matt Criston
(40)
Panama City
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Six: Threats of Violence in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(4) and 2 Maximum term of 5 years in prison; 3 years of supervised release; and a $250,000 fineCount Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Count Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineDavid Howell
(35)
Loxahatchee
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Twelve: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Ryann Howard, a/k/a/ Auto
(39)
Orange Park
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Eight: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineRyan McLaughlin, a/k/a Pretty Boy
(35)
Jacksonville
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine Count Five: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineDarrin Terranova, a/k/a Nova
(51)
Beverly Hills
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineBrandon Welch, a/k/a Scumbag
(34)
Milton, Florida
Count One: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
- Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Joshua Williamson, a/k/a Chain Gang
36)
Live Oak
Count One: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
- Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Steve Anderson
(28)
Bristol
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineCount Seven: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6)
Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fine
Joshua Hall, a/k/a K9
(42)
Wildwood
Count Ten: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineCount Eleven: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2
Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine
Jarrett Arnold, a/k/a Jit
(31)
Zephyrhills
Count Ten: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Eleven: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineScott Marshall, a/k/a Solo
(45)
Port Richey
Count Ten: Kidnapping in Aid of Racketeering Activity, 18 U.S.C. §§ 1959(a)(1) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fine Count Eleven: Assault in Aid of Racketeering, in violation of 18 U.S.C. §§ 1959(a)(3) and 2 Maximum term of 20 years in prison; 5 years of supervised release; and a $250,000 fineWilliam Walker, a/k/a The Duke
(38)
Jacksonville
Count Four: Conspiracy to Commit Assault in Aid of Racketeering Activity, 18 U.S.C. § 1959(a)(6) Maximum term of 3 years in prison; 1 year of supervised release; and a $250,000 fineSisseton Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sisseton, South Dakota, man convicted of Abusive Sexual Contact of a Child was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Okokipe Jones, age 47, was sentenced to 200 months in federal prison, 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted by a federal grand jury on September 1, 2020. He pled guilty on April 20, 2021.
The conviction stemmed from incidents on or about July 1, 2010, and continuing through on or about July 31, 2010, when Jones knowingly engaged in, and attempted to engage in, sexual contacts with a young female victim. Jones, by using force, intentionally touched, either directly or through the clothing, the victim’s genitalia, anus, groin, breast, inner thigh, and buttocks.
At the time of the sexual contact, Jones was approximately 36 years old and the victim was under 12 years of age.
Jones is an enrolled member of the Sisseton-Wahpeton Oyate Sioux Tribe. The sexual assault occurred in Roberts County, State and District of South Dakota, within the exterior boundaries of the Lake Traverse Reservation. Jones and the victim resided together in the same household at the time.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Production of Child PornographyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography.
Robert Eugene Stefani, age 45, was indicted on July 7, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 12, 2021 and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about June 22, 2019, Stefani, knowingly employed, used, persuaded, induced, enticed, and coerced a juvenile female to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing and having reason to know that such visual depiction would be transported in interstate or foreign commerce or mailed, and such visual depiction would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The charge is merely an accusation and Stefani is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Stefani were released on bond pending trial. A trial date has not been set.
Sinaloa, Mexico, man sentenced to 17 years in prison for meth trafficking in Butte areaRead the Press Release
MISSOULA – A Sinaloa, Mexico, man, who admitted methamphetamine trafficking and money laundering activities in the Butte area, was sentenced today to 17 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Humberto Horiol Medina Villarreal, 34, pleaded guilty on March 25 to possession with intent to distribute meth and to conspiracy to commit money laundering.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that from about July 2017 until August 2020 in Butte, Villarreal and others were involved in drug trafficking. An undercover law enforcement agent ordered a pound of meth directly from Villarreal. When negotiating the price per pound of meth, Villarreal stated, “There’s people I give 5 packs, 10 packs, 20 packs, for four grand, and they get rid of that stuff in a week.” Law enforcement knew that Villarreal meant 5-pound, 10-pound and 20-pound shipments of meth. One pound of meth is the equivalent of 3,624 doses. Villarreal told the undercover agent to wire the money to “Ricardo Ramos Medina, Baja California North.” Ricardo Ramos Medina, of Sinaloa, Mexico, was convicted of meth trafficking in a related indictment and sentenced to eight years in prison.
The government also alleged that Villarreal conspired to launder money and directed others to wire money from Montana to California, and elsewhere, to pay for and fund the purchase of additional meth and other drugs.
Villarreal’s two co-defendants have been convicted of drug trafficking crimes and sentenced. Charles Joshua Petty, of Butte, was sentenced to 10 years in prison, while Shawn James Miller, of Deer Lodge, was sentenced to five years in prison.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation and the Butte Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Senior NASA Employee Sentenced for COVID-19 Related Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) was sentenced today to 18 months in prison for submitting fraudulent applications for over $350,000 in COVID-19 economic relief loans and benefits.
“While serving in a high-ranking position at NASA, this defendant used the identities of others to carry out a brazen scheme in which he exploited taxpayer-funded programs during the global pandemic for his own personal benefit,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of EDVA’s commitment to pursuing justice against those who attempt to take advantage of essential programs that are intended for deserving community members.”
According to court documents, Andrew Tezna, 36, of Leesburg, fraudulently submitted three loan applications to two financial institutions totaling $272,284, under the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic. Tezna also submitted two Economic Injury Disaster Loan Program applications to the Small Business Administration totaling $69,500, and he applied for COVID-related unemployment benefits, totaling $15,950, from Virginia, ostensibly for his mother-in-law, who was retired and did not qualify for the benefits. In support of the fraudulent PPP loan applications, Tezna submitted fabricated IRS tax returns and fraudulently claimed payroll expenses that did not exist.
Tezna successfully obtained over $285,000 from the PPP loans and unemployment benefits. The bulk of the money came from PPP loans applied for in his and his mother-in-law’s names for businesses that did not exist. He then spent the funds, among other things, to pay off a personal loan for a residential pool, a personal loan for a minivan, personally incurred credit card debt, a down payment on a new car, and a dog-breeder. In addition, Tezna also admitted to filing a false Financial Disclosure Report with NASA.
“Tezna made fraudulent representations to obtain funds from COVID-19 relief programs designed to aid businesses and individuals that were struggling as a result of the pandemic. In doing so, he stole funds from American taxpayers that he ultimately used to pay down personal debt and purchase luxury items,” said Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office. “Today’s sentencing should serve as a deterrent to all those trying to game the system for personal gratification.”
“COVID-19 relief programs are not meant to be used for paying off personal indulgences. Tezna, despite having an executive position, stole funds from the government meant to aid struggling businesses during the pandemic. Today, the penalties of his actions were realized,” said Darrell J. Waldon, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
In addition to the 18 months of imprisonment, Tezna was sentenced to 3 years of supervised release and $285,449.11 of restitution and forfeiture.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-CI; and Mark J. Zielinski, Special Agent in Charge, NASA Office of Inspector General, Eastern Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker prosecuted the case.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]. Members of the public in the Eastern District of Virginia are encouraged to call 804-819-5416, or email [email protected] to reach their local Coronavirus Fraud Coordinator.
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. 1:21-cr-77.
Self-Described Member of “Boogaloo Bois” Pleads Guilty to Illegally Possessing a Machine GunRead the Press Release
MINNEAPOLIS – A St. Cloud man, and self-described member of the Boogaloo Bois, pleaded guilty yesterday to possessing two drop-in auto sears, a device that converts a semi-automatic firearm into an unlawful fully automatic firearm, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, in November 2020, the FBI initiated an investigation into Michael Paul Dahlager, 27, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that Dahlager was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.
According to court documents, on February 3, 2021, Dahlager delivered two auto sears to the CHS and he demonstrated how the devices should be inserted into a firearm. At the time of his arrest in April 2021, law enforcement recovered six additional auto sears and a silencer from Dahlager’s vehicle and home.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.
Sapulpa Man Sentenced after Child Pornography ConvictionsRead the Press Release
Aaron James Seney, 33, of Sapulpa, was sentenced today to 78 months in federal prison after pleading guilty to distribution and receipt of child pornography and to possession of child pornography, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell further ordered Seney to serve 10 years on supervised release following his prison sentence. The defendant will also forfeit property used to commit his crimes: an Iphone, USB Drive, a Samsung smartphone, a digital camera, and a desktop computer.
During his April plea hearing, Seney admitted that between March 24, 2020, and September 2, 2020, he distributed and received child pornography via the internet using file sharing programs. He further admitted that he knowingly possessed and accessed the child sexual abuse material. In total, investigators discovered 193 images and 33 videos depicting the abuse and rape of children as young as infants.
Judge Frizzell remanded Seney into the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Tulsa Police Department, Sand Springs Police Department and Oklahoma State Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
San Francisco Resident Convicted of Robbery Affecting Interstate Commerce in Scheme to Steal Merchandise While Threatening to Spread Covid-19Read the Press Release
SAN FRANCISCO – A federal jury convicted Carmelita Barela today of committing robbery affecting interstate commerce in connection with a scheme to steal merchandise from a Walgreens while claiming to have COVID-19, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The conviction follows a 2-day trial before the Honorable Charles R. Breyer, United States District Judge.
“The spread of COVID-19 has forced almost all of us to make sacrifices and to rely on each other to maintain our safety and good health,” said Acting U.S. Attorney Hinds. “Unfortunately, some people have tried to use the crisis to intimidate essential workers and to commit crimes. This conviction demonstrates that those who seek to exploit the pandemic and commit crimes for their own personal gain will be held accountable.”
"The FBI did not stand by while criminals were using the COVID-19 pandemic to threaten and intimidate frontline workers," said Special Agent in Charge Craig Fair. "People working in grocery stores and convenience stores were risking going to work so the rest of us could get the food and medicine we needed. The FBI has remained committed to this case to protect the essential workers in our community."
At trial, the government submitted evidence that on April 6, 2020, Barela, 36, of San Francisco, and another woman entered a Walgreens near San Francisco’s Civic Center with empty bags and without wearing masks. After the store manager offered assistance, the other woman began to cough without covering her mouth. The store manager asked the other woman to leave the store if she was sick. Instead, the woman walked over to Barela and both defendants began to cough audibly while taking merchandise off the shelves and placing it into their bags. The manager told the defendants to leave the store, to which they responded by saying, “We have COVID.” Barela continued to cough audibly and eventually left the store without paying for the merchandise the defendants placed into their bags.
A grand jury indicted Barela on June 22, 2020, charging her with robbery affecting interstate commerce (Hobbs Act Robbery), in violation of 18 U.S.C. § 1951. The jury convicted Barela of the charge.
Barela faces a maximum sentence of 20 years of prison and a $250,000 fine. In addition, the court may order restitution and an additional term of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Breyer ordered the Barela detained pending sentencing and scheduled a sentencing hearing for August 4, 2021.
Assistant United States Attorneys Abraham Fine and Leif Dautch are prosecuting the case with assistance from Soana Katoa and Margoth Turcios. The prosecution is a result of an investigation by the FBI.
Riverside County Man Who Attempted to Enter Federal Facility in Downtown L.A. with Several Firearms Named in Criminal ComplaintRead the Press Release
LOS ANGELES – A Riverside County man who drove to a federal facility in downtown Los Angeles and attempted to enter with three firearms was charged late this afternoon with a federal firearms offense.
A federal criminal complaint filed this afternoon charges Erik Christopher Younggren, 34, of Cherry Valley, with attempted possession of firearms and dangerous weapons in a federal facility, a misdemeanor offense that carries a sentence of up to one year in federal prison.
Younggren, who currently is being held in federal custody, is expected to make his initial court appearance Friday afternoon in United States District Court.
The complaint alleges that Younggren attempted to enter the employee parking lot under the Edward R. Roybal Federal Building and United States Courthouse Wednesday morning at approximately 9:30 a.m. When stopped by security at the entrance to the parking facility, Younggren initially stated that he was “a witness” who needed to enter the facility. When the security officer asked if he was armed, Younggren admitted to being in possession of a handgun and two rifles, according to the complaint.
A subsequent search of his vehicle led to the discovery of two rifles, a .45-caliber semi-automatic firearm and approximately 565 rounds of ammunition. When he was detained by authorities, Younggren was wearing body armor with loaded magazines and knives attached, the complaint alleges.
During an interview with Federal Protective Service, the FBI and Homeland Security Investigations, Younggren said he went to the Roybal building because he needed “protection…[and he] explained that he was purportedly a confidential informant assigned to a confidential federal task force,” according to the complaint.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Protective Service. The Los Angeles Police Department; the FBI; Homeland Security Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives provided substantial assistance.
Assistant United States Attorney Maria Elena Stiteler of the General Crimes Section is prosecuting this case.
Raleigh Man Convicted of Possessing a Firearm as a Convicted FelonRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Raleigh man yesterday on charges of Possession of a Firearm by a Convicted Felon.
According to court records and evidence presented at trial, Romar Leshawn Bartee, Jr., 25, Raleigh Police Department (RPD) Officers stopped at the Sheetz gas station located at 5200 New Bern Ave., on April 15, 2020, and while there, officers noticed a black Dodge Charger with heavily tinted windows cut across multiple lanes of traffic and enter into the Sheetz gas station. The vehicle's front windshield was heavily tinted to the point officers could not see inside the vehicle. At that point, officers initiated a traffic stop on the Charger for a window tint violation.
The Charger parked at a gas pump and as soon as the Charger parked, an Officer noticed that the front passenger exited the vehicle and quickly walk away. The Officer noticed that this individual was carrying a red bag and wearing a green sweatshirt. He watched this individual walk around the left side of the Sheetz building. The Officer then notified check in units of the passenger's description and direction of travel.
Additional responding officers located the passenger, identified as Romar Bartee, Jr., close by at 1030 Rogers Lane. When located, Bartee had taken off the sweatshirt the Officer had seen him wearing when he exited the Charger. Bartee was no longer carrying the red bag that he fled Sheetz with. Officers combed the areas and quickly located the red bag inside of a trash can on the left side of the Sheetz Gas Station building. Inside Bartee’s red bag was 153 pills with Xanax stamped on each one, miscellaneous clothing, and a loaded Glock Model 17, 9mm pistol with 17-9mm rounds of ammunition
Video surveillance footage from the Sheetz was obtained by officers on scene that showed Bartee exiting the Dodge Charger carrying the red bag.
Bartee faces 120 months in prison when sentenced in October 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, & Explosives (ATF) investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No.5:20-cr-00495-D.
President and Employee of Ft. Lauderdale Business Indicted for Procuring Fraudulent Nursing Diplomas and CertificatesRead the Press Release
Miami, Florida – Today, a Miami federal grand jury returned an indictment charging two Lauderhill residents for their roles in a fraud conspiracy that sold fake nursing degrees to people who had not completed the required nursing coursework or clinicals.
According to the indictment and a previously filed criminal complaint affidavit, Geralda Adrien, 51, and Woosvelt Predestin, 35, worked for PowerfulU Health Care Services LLC. Adrien was Powerful U’s President and Predestin was an employee. PowerfulU advertises itself on social media as a group of nurses and doctors who want to empower men and women by helping them to become health care providers. It is alleged that Adrien and Predestin assisted various individuals in procuring fraudulent nursing diplomas and transcripts from two nursing schools in Florida by falsely documenting that the individuals had completed the necessary courses and/or clinicals to obtain nursing degrees.
On March 18, 2021, for example, Adrien and Predestin met with an individual at the PowerfulU office and offered to sell the person a false degree, according to the criminal complaint affidavit. It is alleged that during the meeting, Adrien explained that for $16,000, Adrien would process the applicant through a Florida nursing school that was either on probation or closed, making it appear as if the applicant had in fact attended the school. Adrien also offered to help the individual pass the nursing board certification exam, and recommended that they take the exam in New York, as that state allows for unlimited attempts to pass. Adrien offered to fill out the application for the individual and offered to complete two continuing education unit classes which were required to apply for admission to the New York nursing board, according to the affidavit.
After the individual paid for the false nursing degree, it is alleged that Adrien provided a backdated diploma indicating completion of an Associate Degree in Science of Nursing and a fraudulent transcript that falsely reflected that the individual had completed approximately 72 credit hours and achieved a grade point average of 3.4. The individual’s application for licensure, which Predestin helped complete, was later forwarded to the New York State Education Department, according to the affidavit. It included a certification of completion two continuing educations courses-Child Abuse: New York Mandated Reporter Training and Infection Control and Barrier Precautions-that the individual had never taken.
The indictment charges Adrien and Predestin each with one count of conspiring to commit wire fraud and mail fraud. They face up to 20 years in federal prison on each count.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Omar Perez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services-Office of Inspector General, announced the charges.
FBI Miami and HHS-OIG investigated the case, with assistance from United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture component of the case.
This case is being prosecuted in conjunction with a related criminal investigation being conducted in the District of Maryland.
An indictment is merely a charging document and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you have information to report regarding this case or any other case involving falsified medical degrees, please call the FBI hotline: (410) 277-6999.
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.
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Peever Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Peever, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
David George Derby, age 24, was sentenced to 36 months in federal prison, 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Derby was indicted by a federal grand jury on August 17, 2020. He pled guilty on April 12, 2021.
The conviction stemmed from an incident on or about April 11, 2020, when Derby knowingly engaged in, and attempted to engage in, a sexual contact with his 17-year old female cousin. The victim was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual contact, and Derby was aware of the victim’s incapacity. Derby also knew the victim was his cousin.
Derby and the victim consumed alcoholic beverages, and the victim became intoxicated. Derby perpetrated the sexual contact knowing the victim was vulnerable and unable to give her consent to the sexual contact.
Derby was approximately 23 years old at the time of the offense. He is an enrolled member of the Sisseton-Wahpeton Oyate Sioux Tribe. The sexual contact occurred within the exterior boundaries of the Lake Traverse Reservation.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Derby was immediately turned over to the custody of the U.S. Marshals Service.
Passaic County Man Sentenced to 45 Months in Prison for Distributing FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 45 months in prison for distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Tawan Grier, a/k/a “TJ,” 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Grier is an associate of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, Grier and other members and associates of the 230 Boys distributed narcotics, including heroin, fentanyl, and cocaine base.
In addition to the prison term, Judge Martinotti sentenced Grier to three years of supervised release.
This case is part of an Organized Crime Drug Enforcement Task Force (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.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff's Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Parmelee Man Indicted for Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Odell Good Shield, age 33, was indicted on May 11, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 17, 2021, in Todd County, South Dakota, Good Shield did assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
The charge is merely an accusation and Good Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Good Shield was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 31, 2021.
Owner of Sacramento Area Home Health Care and Hospice Agencies Pleads Guilty to Medicare FraudRead the Press Release
SACRAMENTO, Calif. — Akop Atoyan, 48, of Glendale, pleaded guilty today to one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Atoyan and his wife, Liana Karapetyan, owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Atoyan and Karapetyan certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Atoyan and Karapetyan paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Atoyan, Karapetyan, and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies over $2 million for services purportedly provided to beneficiaries, but these beneficiaries were referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case is a product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
As part of his guilty plea, Atoyan agreed to pay $2,525,363 in restitution to the U.S. Department of Health and Human Services. He also agreed to forfeit that same amount to the United States.
U.S. District Judge Morrison C. England Jr. is scheduled to sentence Atoyan on Oct. 7, 2021. Atoyan faces maximum statutory penalties of 10 years in prison for the health care fraud conspiracy charge and five years in prison for the kickback conspiracy charge. He also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Karapetyan, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.
Organized Drug Trafficking Operation Taken DownRead the Press Release
INDIANAPOLIS – Nineteen individuals have been indicted in relation to a federal methamphetamine and fentanyl trafficking operation in Indianapolis. Seventeen of these individuals are charged with conspiracy to distribute methamphetamine and fentanyl.
During the morning of July 14, 2021, federal agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations centralized to the Indianapolis area. This operation led to the arrest of 17 individuals, with 2 individuals being fugitives. During the investigation, approximately 35 firearms, $70,000 in currency, 1.75 kilograms of fentanyl, 14 pounds of methamphetamine, 6 ounces of cocaine, and 30 pounds of marijuana were seized.
According to the indictment, Jason Betts directed the activities of a methamphetamine and fentanyl trafficking organization in Indianapolis. Montez Wells and Richard Wells also distributed significant quantities of fentanyl and methamphetamine as part of this organization. Betts, Montez Wells and Richard Wells coordinated their activities by receiving methamphetamine and fentanyl from their sources, sharing controlled substances with each other, and distributing the controlled substances to other dealers. Individuals in the conspiracy distributed and or assisted in the distribution of methamphetamine and fentanyl in the Indianapolis area as well as other locations in Indiana. The investigation revealed that Betts often received 100-pound shipments of methamphetamine from his source.
“I believe the safety and quality of life of citizens living in Indianapolis neighborhoods improves when law enforcement works collaboratively,” said Acting U.S. Attorney John E. Childress. “This happens by pooling resources to target, investigate and prosecute organizations engaged in drug trafficking in our community. That is precisely what occurred in this case.”
“This was a win for law enforcement and more importantly, for the community. We were able to effectively shut down a criminal organization responsible for a lot of the violence around our city,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This investigation and subsequent arrests would not have been possible without our federal, state and local partners.”
Those charged include:
Jason Betts, 26, Indianapolis
Jennifer Black, 39, Indianapolis
Montez Wells, 30, Indianapolis
Richard Wells, 28, Indianapolis
Aleshalia Boss, 40, Indianapolis
Carl Wilson, 34, Indianapolis
Donta Hampton, 34, Indianapolis
Rick Coley, 34, Indianapolis
Colin Johnson, 30, Indianapolis
David Duggar, 38, Greenwood
Brian McGee, 42, Indianapolis
Justin Helms, 41, Spencer
William Mosier, 41, Indianapolis
Christina Pennington, 26, Indianapolis*
Mar-Kel Sampson, 29, Indianapolis
Asa Vetters, 30, Indianapolis
Brittany Cocco, 31, Indianapolis
Marco Uribe, 41, Indianapolis
Kenneth K. Fielder, 26, Bloomfield*
*Remains a fugitive
If convicted, the defendants charged with conspiracy face 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation, Indianapolis Metropolitan Police Department, Drug Enforcement Administration, U.S. Postal Inspection Service, Indiana State Police, and the Marion County Sheriff’s Office.
Assistant United States Attorneys Bradley A. Blackington is prosecuting this case for the government.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Levon Williams, of Mount Vernon, New York, was sentenced today to 36 months of incarceration for his involvement in a drug distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Williams, also known as “Slim,” 39, pleaded guilty in August 2019 to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Williams admitted to selling cocaine near Mascoli Park in Monongalia County in July 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
New Orleans Man Charged with Aiding in Filing False TaxesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LEROI G. JACKSON, age 49, of New Orleans, was charged today by a bill of information with one count of aiding and assisting in the filing of false tax returns, a violation of Title 26, United States Code, Section 7206(2).
The bill of information alleges that in February 2016, Jackson assisted in preparing a false tax return for a taxpayer in which JACKSON included false business losses, false charitable deductions, and false unreimbursed employee expenses. The resulting refund was over $16,000.00 in excess of what the taxpayer should have received.
If convicted, JACKSON faces a maximum sentence of three years of imprisonment, a fine of up to $100,000.00 fine, up to one year of supervised release, and a $100 mandatory special assessment.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The investigation is being handled by the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
* * *
Murder victim’s ex-wife sentenced to 35 years in prison for interstate stalking resulting in deathRead the Press Release
DAYTON – A 37-year-old Centerville woman was sentenced in federal court today to 420 months in prison for interstate stalking that resulted in her ex-husband’s death.
Tawnney Caldwell accepted responsibility for her role in the August 2017 murder of Robert Caldwell. She pleaded guilty in federal court in October 2020.
According to court documents, around 6pm on August 15, 2017, Robert Caldwell and his three minor children left a counseling appointment in Riverside, Ohio. While crossing the parking lot, Robert Caldwell was shot multiple times by an assailant in front of his children and died at the scene. The assailant is alleged to be co-defendant Sterling Roberts.
Tawnney Caldwell is the ex-wife of the murder victim and was the girlfriend of Sterling Roberts at the time of the incident.
She and the murder victim had an ongoing dispute regarding the custody of their children and Tawnney Caldwell had talked to Sterling Roberts on at least two occasions (while Roberts was incarcerated in Montgomery County) about killing Robert Caldwell.
Tawnney Caldwell collaborated with others, including Sterling Roberts; his brothers, Chance Deakin and Christopher Roberts; Chandra Harmon (Tawnney’s mother); and James Harmon (Tawnney’s step-father), to plan, execute and cover-up the violent crime resulting in the death of Robert Caldwell.
Sterling Roberts is scheduled for jury trial in U.S. District Court on March 7, 2022. Each of the other defendants has pleaded guilty in this case.
Vipal J. Patel, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Amy M. Smith, Sheila G. Lafferty and Kevin Koller are representing the United States in this case.
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