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Thursday 15 July 2021
Buffalo Man Arrested Following Traffic Accident on Drug and Gun Charge Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jarmaine Dunbar, 44, of Buffalo, NY, who was convicted of possessing a firearm in furtherance of a drug trafficking crime, was sentenced to serve 72 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorneys Douglas A. C. Penrose and David J. Rudroff, who handled the case, stated that on October 10, 2020, the defendant was involved in a traffic accident at Leroy Avenue and Holden Street in Buffalo. When officers arrived on the scene, they observed a loaded, semi-automatic pistol on the front passenger seat of Dunbar’s car. When patting down the defendant, officers also retrieved a plastic bag containing cocaine.
The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Byron Lockwood and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
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Box Elder Man Sentenced to Federal Prison for Receiving and Possessing Child PornographyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man convicted of Receipt of Child Pornography and Possession of Child Pornography was sentenced on July 8, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
As to the charge of Receipt of Child Pornography, Christopher Lee Golden, age 51, was sentenced to just over 8 years in federal prison, 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund. Golden was likewise sentenced to just over 8 years in federal prison, 10 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for the charge of Possession of Child Pornography. The time to be served in federal prison and supervised release are to run concurrently.
Golden was indicted for the charges by a federal grand jury in October 2018. He was found guilty of the charges following a bench trial in Rapid City on January 19, 2021.
The charges related to Golden knowingly receiving and possessing sexually explicit images of minor females between June 2014 and September 2018. Golden was arrested in Rapid City in 2018 on a Colorado fugitive warrant for sexual exploitation of a child. At the time of his arrest, Golden had five devices containing child pornography and multiple devices on which he had installed data shredding applications and other anonymizing software.
This case was investigated by the South Dakota Internet Crimes Against Children Task Force, the Pennington County Sheriff’s Office, the Meade County Sheriff’s Office, and members of the Black Hills Fugitive Task Force. Assistant U.S. Attorney Heather Sazama prosecuted the case.
Golden was immediately turned over to the custody of the U.S. Marshals Service.
Berkeley County man admits to role in drug trafficking enterpriseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Maxwell Edward Sanderlin, of Martinsburg, West Virginia, has admitted to his role in a drug distribution enterprise, Acting United States Attorney Randolph J. Bernard announced.
Sanderlin, 33, pled guilty to one count of “Aiding and Abetting Distribution of Heroin and Fentanyl.” Sanderlin admitted to working with others to sell heroin and fentanyl in February 2020 in Berkeley County.
Sanderin faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated. The Eastern District of Pennsylvania U.S. Attorney’s Office and the Kent County Sheriff’s Office assisted.
These charges are the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. 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.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/22-people-indicted-drug-trafficking-enterprise-spanned-several-states
Berea Man Sentenced to 214 Months for Production of Child PornographyRead the Press Release
FRANKFORT, Ky. — A Berea, Ky., man, Bradley Scott Helton, 33, was sentenced on Thursday to 214 months in federal prison, by U.S. District Judge Gregory VanTatenhove, for using a minor to produce child pornography.
According to Helton’s plea agreement, on May 16, 2020, he communicated with a 7-year-old victim, via an app called “Kiss Kiss: Spin the Bottle.” Helton admitted to chatting with the victim, sending the victim sexual videos and pictures, and requesting the victim send sexual videos in return. Helton admitted that he persuaded and used the 7-year-old victim to engage in sexually explicit conduct, for the purpose of producing a visual depiction of that conduct. He further admitted that the images traveled in interstate commerce when the victim, who was in Texas, sent them to him, in Kentucky, via the app.
Helton pleaded guilty in March 2021.
Under federal law, Helton must serve 85 percent of his prison sentence and will be under the supervision of the U.S. Probation Office for 25 years, following his release from prison.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Jerry Templet, Special Agent in Charge, Department of Homeland Security - Homeland Security Investigations; and Colonel Phillip Burnett, Commissioner of the Kentucky State Police, announced the sentence.
The investigation was conducted by DHS-HSI and the KSP. The United States was represented by Assistant U.S. Attorney Erin Roth.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Albuquerque couple sentenced to federal prison in Ayudando Guardians caseRead the Press Release
ALBUQUERQUE, N.M. – Susan K. Harris, 74, and William S. Harris, 60, both of Albuquerque, were sentenced today in federal court for conspiracy to defraud the United States and other financial crimes committed in connection with the operation of Ayudando Guardians, Inc., a non-profit corporation that previously provided guardianship, conservatorship and financial management to hundreds of people with special needs.
Susan Harris was sentenced to 47 years in prison, followed by three years of supervised release. William Harris was sentenced to 15 years in prison, followed by three years of supervised release. Both will be required to pay the entire amount of stolen funds as restitution to the victims.
A superseding indictment filed on Dec. 5, 2017, charged Susan Harris, William Harris, Sharon A. Moore, 64, and Susan Harris’ son, Craig M. Young, 53, with various financial crimes, including conspiracy to defraud the United States, mail fraud, aggravated identity theft and money laundering.
Susan Harris pleaded guilty on July 11, 2019, to conspiracy, mail fraud, aggravated identity theft, money laundering and conspiracy to commit money laundering. William Harris pleaded guilty on June 25, 2019, to conspiracy to defraud the United States and to commit money laundering. Both Susan Harris and William Harris were originally scheduled to be sentenced on March 2, 2020, but failed to appear for their sentencing hearing. A bench warrant was issued for their arrest and the U.S. Marshals Service arrested them in Shawnee, Oklahoma, on April 15, 2020, after they fled New Mexico.
According to their plea agreements and other court records, Susan Harris acted as president and was the 95-percent owner of Ayudando, while Moore acted as chief financial officer and was a five-percent owner. They engaged in a pattern of criminal conduct from November 2006 to July 2017 that included unlawfully transferring money from client accounts to a comingled account without any client-based justification. They wrote and endorsed numerous checks, often of more than $10,000, from these comingled accounts to themselves, family members, cash and other parties where payment would benefit their families.
Susan Harris took steps to maintain Ayudando’s appearance of legitimacy, including submitting a proposal to the New Mexico Office of Guardianship that contained numerous false representations, including a false claim that Young was a nationally certified guardian at the time of the submission.
William Harris, who worked as a guardian, admitted that he knew that Moore was siphoning payments to clients from the Department of Veterans Affairs and Social Security Administration and using the money to benefit herself, Harris, and their co-conspirators. Harris specifically admitted receiving, endorsing, and depositing dozens of checks drawn on Ayudando accounts for his own personal benefit. Harris admitted to his involvement in a money laundering scheme, using an Ayudando corporate credit card for personal expenses, knowing that it would be paid for with client money. He also admitted his role in a loan application for the stated purpose of expanding the Ayudando business with the actual intent of using the money to “pay back” clients whose money had been taken without authorization.
The stolen funds were used to fund an extravagant lifestyle, including the purchases of homes, vehicles, luxury RVs and cruises, as well as a private box at “the Pit” at the University of New Mexico. The stolen funds were also used to pay for more than $4.4 million in American Express charges incurred by the defendants and their families.
“The sentences that the defendants have received today are just, and the defendants are fully deserving of them,” said Fred J. Federici, Acting U.S. Attorney for the District of New Mexico. “The defendants’ conduct in preying upon individuals with special needs, who they were entrusted to protect, was both loathsome and contemptible. We hope that these sentences serve as a warning to others that we will seek to hold accountable anyone who chooses to violate federal law by abusing any similar position of trust for personal enrichment.”
“Taking advantage of disabled veterans and other vulnerable Americans deserves a harsh penalty, especially when those entrusted with their finances instead use the money for vacations and other expensive perks,” said Raul Bujanda, Special Agent in Charge of the FBI Albuquerque Field Office. “The FBI will never stop trying to hold such criminals accountable and making sure their victims get justice.”
“This final phase of the investigation will hopefully give some closure to the many victims who have suffered as a result of the selfish acts of the defendants,” said Sonya K. Chavez, United States Marshal for the District of New Mexico. “We at the United States Marshals Service will continue to work diligently with our partners to protect the citizens of New Mexico, particularly those who are most vulnerable.”
“The criminal actions by these defendants were truly brazen and egregious,” stated IRS - Criminal Investigation Special Agent in Charge Albert Childress. “Instead of helping people who placed their trust in them, the defendants were greedy and helped themselves to their clients’ money. They must now pay the consequences for their bad deeds.”
“Today's sentencing reflects the egregious crimes committed by the defendants, who not only violated the public’s trust but also the trust of a vulnerable population who relied upon them to manage their benefits. We will continue to join our law enforcement partners in investigating organizations and individuals who misuse Social Security benefits that they agreed to manage on behalf of beneficiaries,” said Adam Schneider, Special Agent-in-Charge of the Social Security Administration Office of the Inspector General, Dallas Field Division. “I thank our law enforcement partners for their outstanding investigative work and the District of New Mexico U.S. Attorney’s Office for their efforts in bringing these individuals to justice.”
“Criminal acts by would-be fiduciaries are most heinous because they violate veterans’ trust and put in jeopardy the benefits on which they are dependent,” said Special Agent in Charge Rebeccalynn Staples, Veterans Affairs, Office of Inspector General. “This sentence should send a clear message that the VA OIG will continue to work with our law enforcement partners to ferret out those who would defraud VA and steal the benefits of deserving veterans.”
Young pleaded guilty on Nov. 12, 2019, and was sentenced on June 11, 2020, to five years and 11 months in prison, followed by three years of supervised release. Young was ordered to pay approximately $6.8 million in restitution to the victims of the fraud scheme.
Moore pleaded guilty on July 11, 2019, and was sentenced on March 2, 2020, to 20 years in prison, followed by three years of supervised release. Moore was ordered to pay the entire amount of stolen funds as restitution to the victims.
The Albuquerque Field Office of the FBI and the Phoenix Field Office of IRS Criminal Investigation conducted the investigation with the assistance of the Complex Assets Unit and the U.S. Marshals Service, the Criminal Investigations Division of the Department of Veterans Affairs Office of Inspector General, and the Dallas Field Division of the Social Security Administration Office of Inspector General. Assistant U.S. Attorneys Jeremy Peña and Brandon L. Fyffe prosecuted the case.
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20-Year Prison Sentence for Agency Village Man Convicted of Sex Offense Involving ChildrenRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Agency Village, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Kevin Lee Farmer, age 58, was sentenced to 240 months in federal prison, life of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Farmer was indicted by a federal grand jury on July 20, 2020. He pled guilty on April 12, 2021.
The conviction stemmed from incidents between on or about June 1, 2016, and on or about December 31, 2016, when Farmer knowingly engaged in, and attempted to engage in, sexual contacts with a young female victim. Farmer, using force, intentional 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, Farmer was approximately 54 years old and the victim was under 12 years of age. The sentencing judge also found that he sexually abused other children. He is an enrolled member of the Sisseton-Wahpeton Oyate Sioux Tribe. Farmer and the victim resided together in the same household.
This case was investigated by the Sisseton Wahpeton Tribal Law Enforcement Criminal Investigations Division and the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Farmer was immediately turned over to the custody of the U.S. Marshals Service.
10th Century Statue Looted from Cambodian Temple Is Subject of Forfeiture Action Filed in Manhattan Federal CourtRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today the filing of a civil complaint seeking forfeiture of a 10th Century Khmer sandstone statue – Skanda on a Peacock – for the purpose of returning it to the Kingdom of Cambodia. The statue was stolen from the Prasat Krachap temple at Koh Ker in Cambodia, and sold by antiquities dealer Douglas Latchford into the international art market. Skanda on a Peacock is considered to be a masterpiece of artistic achievement and a valuable part of the Cambodian cultural heritage. The owner of Skanda on a Peacock has voluntarily relinquished possession of the statue to the custody of HSI.
Manhattan U.S. Attorney Audrey Strauss said: “Skanda on a Peacock is a work of great historical, religious, and artistic significance to the people of Cambodia. With this action, we reaffirm our commitment to ending the sale of illegally trafficked antiquities in the United States, and begin the process of returning Skanda on a Peacock to its rightful home.”
According to the Complaint filed in Manhattan Federal Court on July 15, 2021:
From 928 to 944 A.D., Koh Ker was the capital of the ancient Khmer empire in Cambodia. The Cambodian state under King Jayavarman IV constructed a vast complex of sacred monuments at Koh Ker, including the Prasat Krachap temple and its statuary. Koh Ker statuary was revolutionary for its time. Many of the statues, including Skanda on a Peacock, were huge, often shown in movement, and were free-standing or in high-relief. Skanda on a Peacock depicts the Hindu god of war, Skanda, riding on the back of a peacock. The body and tail of the peacock are decorated with intricate engraved patterns. Khmer cultural experts believe that the face of the Skanda on the statue may in fact be a portrait of a royal family member, such as Harshavarman II, the son of King Jayavarman IV.
During the civil conflicts of late 20th century, statues and other artifacts were stolen from Koh Ker and entered the international art market through an organized looting network. Local teams of looters would first remove the statues from the original location at Koh Ker. The statues would then be transported to the Cambodia-Thailand border, and transferred to brokers, who would in turn transport them to dealers in Khmer artifacts located in Thailand, particularly Bangkok. These dealers would sell the artifacts to local or international customers, who would either retain the pieces or sell them on the international art market.
Skanda on a Peacock, along with several other significant statues, was stolen from Prasat Krachap in or about 1997 by a former member of the Khmer Rouge leading a team of looters (“Looter-1”). Looter-1 transported Skanda on a Peacock by oxcart to the house of a broker near the Thai border. Looter-1 was aware that the broker sold antiquities to a foreign national called “Sia” (which means “lord” in Thai) “Ford” – the British/Thai antiquities dealer Douglas Latchford, a/k/a “Pakpong Kriangsak.” In 2019, Latchford was charged by the Office with wire fraud conspiracy and other crimes related to a many-year scheme to sell looted Cambodian antiquities on the international art market, primarily by creating false provenance documents and falsifying invoices and shipping documents. The indictment was ultimately dismissed due to the death of Latchford.
On or about April 10, 2000, Latchford sold Skanda on a Peacock and, thereafter, it was imported into the United States. After the most recent owner was contacted by the United States regarding Skanda on a Peacock, the owner agreed to relinquish possession of the statue and to waive all claims of right, title, and interest in it. Skanda on a Peacock is currently in the possession of the United States Department of Homeland Security.
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Ms. Strauss thanked HSI for its outstanding work on this investigation, which she noted is ongoing, and praised its ongoing efforts to find and repatriate stolen and looted cultural property. Ms. Strauss also thanked the Kingdom of Cambodia’s Ministry of Culture and Fine Arts for its assistance with this investigation.
This announcement supports the Memorandum of Understanding first signed between the U.S. and Cambodia in 2003, and last renewed in 2018.
This matter is being handled by the Office’s Money Laundering and International Criminal Enterprises Unit. Assistant U. S. Attorney Jessica Feinstein is in charge of the case.
The allegations contained in the Complaint are merely accusations.
Wednesday 14 July 2021
Worden man sentenced to more than 15 years in prison for trafficking methamphetamineRead the Press Release
BILLINGS – A Worden man who admitted to trafficking methamphetamine after investigators found 10 pounds of the drug in his vehicle was sentenced today to 15 years and eight months in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Bo Bryan Fish, 40, pleaded guilty on Jan. 27 to possession with intent to distribute meth.
U.S. District Judge Susan P. Watters presided. Fish was detained.
The government alleged in court documents that between January and March 2020, the Eastern Montana High Intensity Drug Trafficking Area Task Force began investigating Fish for involvement in drug trafficking. Cooperating witnesses told investigators that Fish took trips to Colorado to acquire bulk quantities of meth, ranging from five to 20 pounds per trip.
The investigation led to a traffic stop of a truck occupied by Fish, who told investigators there were about 10 pounds of meth in the back seat and admitted to acquiring the meth that day in Wyoming. He said he had been acquiring bulk meth from the source for about eight months. Investigators served a search warrant on the truck and Fish’s property and seized 10 pounds of meth from the vehicle and about seven ounces of meth from the property. Ten pounds of meth is the equivalent of about 36,240 doses.
Assistant U.S. Attorney Colin M. Rubich prosecuted the case, which was investigated by the Eastern Montana High Intensity Drug Trafficking Area Task Force and FBI Western Transnational Organized Crime Task Force.
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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Woman Arrested for Fake COVID-19 Immunization and Vaccination Card SchemeRead the Press Release
A California-licensed naturopathic doctor was arrested today for her alleged scheme to sell homeoprophylaxis immunization pellets and to falsify COVID-19 vaccination cards by making it appear that customers had received the U.S. Food and Drug Administration (FDA) authorized Moderna vaccine.
Juli A. Mazi, 41, of Napa, is charged with one count of wire fraud and one count of false statements related to health care matters. The case is the first federal criminal fraud prosecution related to homeoprophylaxis immunizations and fraudulent Centers for Disease Control and Prevention (CDC) COVID-19 vaccination record cards.
“This defendant allegedly defrauded and endangered the public by preying on fears and spreading misinformation about FDA-authorized vaccinations, while also peddling fake treatments that put people’s lives at risk. Even worse, the defendant allegedly created counterfeit COVID-19 vaccination cards and instructed her customers to falsely mark that they had received a vaccine, allowing them to circumvent efforts to contain the spread of the disease,” said Deputy Attorney General Lisa O. Monaco. “The Department of Justice and its law enforcement partners are committed to protecting the American people from fraudsters during this national emergency. This commitment is evident in this prosecution as well as in the ongoing work of the Department and our agency partners in the COVID-19 Fraud Enforcement Task Force established by the Attorney General earlier this year.”
According to court documents, in April 2021, an individual submitted a complaint to the Department of Health and Human Services Office of Inspector General (HHS-OIG) hotline stating that family members purchased from Mazi COVID-19 homeoprophylaxis immunization pellets. The complainant stated that the family members had told her/him that Mazi stated that the pellets contained the COVID-19 virus and would create an antibody response in the immune system. The complainant reported that her/his family did not receive injections of any of the three FDA-authorized COVID-19 vaccines. However, in connection with the delivery of the homeoprophylaxis immunization pellets, Mazi sent COVID-19 Vaccination Record cards, with Moderna listed, to the complainant family. Mazi allegedly instructed the complainant family to mark the cards to falsely state that they received the Moderna vaccine on the date that they ingested the COVID-19 homeoprophylaxis immunization pellets.
“Steering through the challenges presented by COVID-19 requires trust and reliance on our medical professionals to provide sage information and guidance,” said Acting U.S. Attorney Stephanie Hinds for the Northern District of California. “According to the complaint, instead of disseminating valid remedies and information, Juli Mazi profited from unlawfully peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. We will act to protect trust in the medical developments that are enabling us to emerge from the problems presented by the pandemic.”
According to court documents, Mazi offered homeoprophylaxis immunizations for childhood illnesses that she falsely claimed would satisfy the immunization requirements for California schools, and falsified immunization cards that were submitted by parents to California schools. Homeoprophylaxis involves the exposure of an individual to dilute amounts of a disease, purportedly to stimulate the immune system and confer immunity. Mazi is alleged to have falsely claimed that orally ingesting pellets with small amounts of COVID-19 would result in full lifelong immunity from COVID-19.
“This doctor violated the all-important trust the public extends to healthcare professionals — at a time when integrity is needed the most,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, our agency will continue to investigate such fraudsters who recklessly endanger the public’s health during the unprecedented COVID-19 crisis.”
The affidavit alleges that Mazi used the COVID-19 pandemic to expand the pre-existing immunization scheme by selling immunization pellets that she fraudulently claimed, in written documents and consensually monitored recordings, would provide “lifelong immunity to COVID-19.” Mazi explained that the pellets contained a “very minute amount of this [COVID-19] disease” that can result in “infectious symptoms” of COVID-19 or “automatically flag[] the immune system’s attention, inducing immunity.” To encourage customers to purchase the pellets, Mazi allegedly exploited disinformation and fear by falsely claiming that the FDA-authorized COVID-19 vaccines contain “toxic ingredients.” Mazi further stated that her customers could provide the pellets to children for COVID-19 immunity, and that the “dose is actually the same for babies.”
“Spreading inaccurate or false medical information about COVID-19 for personal gain, as the complaint alleges, is dangerous and only seeds skepticism among the public,” said Special Agent in Charge Craig D. Fair of the FBI's San Francisco Field Office. “As the government continues to work to provide current and accurate information to help slow the spread of COVID-19, the FBI will continue to pursue those who attempt to fraudulently profit from spreading misinformation and providing false documentation.”
Mazi also provided CDC COVID-19 vaccination record cards to her customers with instructions on how to fraudulently complete the cards to falsely make it appear as if a customer had received two doses of the Moderna vaccine. As part of her scheme, Mazi provided customers with specific Moderna vaccine lot numbers to enter onto the cards and with instruction on how to select the purported dates on which they had received the Moderna vaccines to evade suspicion.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Trial Attorney Sridhar Babu Kaza of the Criminal Division’s Fraud Section’s National Rapid Response Strike Force and Assistant U.S. Attorney Christiaan Highsmith of the U.S. Attorney’s Office for the Northern District of California are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Wilkes-Barre Man Indicted on Drug Trafficking and Firearms ChargesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that James Hughes, age 38, of Wilkes-Barre, Pennsylvania, was indicted on July 13, 2021, by a federal grand jury on drug trafficking and firearms charges.
According to Acting United States Attorney Bruce D. Brandler, the indictment alleges that Hughes possessed with the intent to distribute over 50 grams of methamphetamine on May 12, 2021, in Wilkes-Barre, Pennsylvania. The indictment also alleges that Hughes possessed a .40 caliber Smith and Wesson handgun in furtherance of his drug trafficking activities and he is prohibited from possessing a firearm.
The case was investigated by the Federal Bureau of Investigation (FBI), the Pennsylvania State Police and the Wilkes-Barre City Police Department. Assistant U.S. Attorney Jenny P. Roberts is prosecuting the case.
This case is also part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for this offense is life imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Virginia Man Sentenced for Production of Child PornographyRead the Press Release
NORFOLK, Va. – A Southampton County man was sentenced today to 40 years in prison for producing and possessing images of child sexual abuse.
James William Thomas, III, 36, was found guilty by a jury on February 13, 2020, of seven counts of production of child pornography and three counts of possession of child pornography. According to court records, Thomas’s crimes were discovered in 2014 after he was caught burglarizing a coin shop in Franklin. Southampton County investigators obtained a search warrant for Thomas’s residence and seized evidence related to over 25 unsolved burglaries in Virginia and North Carolina. Part of this seizure included computers and other digital storage devices.
The evidence presented at trial showed that a review of these electronic devices revealed the presence of child pornography. Moreover, investigators found detailed folders on the devices with names of child victims and saved chat sessions. Over multiple years, Thomas, then in his late 20s, posed as a 17-year-old teen and befriended female victims on social media who were generally between the ages of 12-16. Thomas then groomed these victims and convinced them to produce naked images of themselves to send to him. In some instances, he convinced them to masturbate over a webcam, which Thomas recorded and saved. Thomas saved these chat sessions and the images in the folders on the electronic devices.
The evidence adduced at trial further demonstrated that Thomas chatted online with dozens of minor victims. To keep track of them, he employed a “cheat sheet” at the top of the saved chat sessions for each victim, which contained information including their name, age, phone number, and other facts, such as how easily they provided him with naked images. In one instance, he convinced a 14-year-old girl to meet him for sex on three separate occasions. Each time, Thomas had the victim pose naked for photographs and then recorded their sexual encounters.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Arenda Wright Allen.
Assistant U.S. Attorney Joseph L. Kosky prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:18-cr-58.
Upton Man Arrested on Possession of Child Pornography ChargeRead the Press Release
BOSTON – An Upton man was arrested and charged today in federal court in Worcester for possessing child pornography.
Matthew Stefanelli, 31, was charged with one count of possession of child pornography. Following an initial appearance before U.S. Magistrate Judge David H. Hennessey this afternoon, Stefanelli was detained pending a detention hearing set for July 19, 2021.
According to the charging documents, on Jan. 6, 2021, agents seized several electronic devices from Stefanelli’s residence. A forensic review of the devices revealed images of child pornography saved in an encrypted application designed to appear as a calculator.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, a minimum of five years and up to a lifetime of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the United States Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Matthew B. Millhollin, Special Agent in Charge of Homeland Security Investigations in Boston; and Upton Police Chief Michael J. Bradley Jr. made the announcement today. Assistant U.S. Attorney Kristen Noto of Mendell’s Worcester Branch Office is prosecuting the case.
Members of the public who have questions, concerns or information regarding this case should call 617-748-3274.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney’s Office, Joined by State and Local Agencies, to Host One-Stop Reentry Resource Fair at the War Memorial in Baltimore Tomorrow, July 15, 2021Read the Press Release
Baltimore, Maryland – TOMORROW, THURSDAY, JULY 15, the U.S. Attorney’s Office for the District of Maryland, along with the Maryland Division of Parole and Probation, Office of the State’s Attorney for Baltimore City, and the Mayor’s Office of Neighborhood Safety and Engagement, will sponsor a one-stop reentry resource fair that will be held FROM 10:00 A.M. TO 2:00 P.M. at the War Memorial, 101 N. Gay Street, Baltimore, MD. More than 50 organizations, including at least 20 employers, will be on-site offering assistance and resources to returning citizens and justice-involved persons, including in the areas of employment, job training, educational opportunities, health services, transitional housing, and legal assistance, among other areas of support and assistance. The Baltimore City Health Department will also be on hand offering free COVID-19 vaccinations.
The event is FREE and OPEN TO THE PUBLIC.
This reentry resource and job fair is a component of the U.S. Attorney’s Office’s violent crime reduction strategy. In addition to the office’s enforcement efforts to remove violent criminals with guns from our communities, the U.S. Attorney’s Office has initiated a number of outreach, intervention and prevention efforts to support and invest in communities plagued by violence, such as this reentry resource fair and the I Care Baltimore campaign.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md and https://www.justice.gov/usao-md/community-outreach.
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Two Louisiana Men Sentenced in Federal Court for Excavating Arrowheads in Kisatchie National ForestRead the Press Release
LAFAYETTE, La. – Tony Fee, 49, and James Carroll, 35, both of Pitkin, Louisiana, have been sentenced by United States District Judge James D. Cain, Jr. to three (3) years of probation, with mandatory and special conditions, for unlawfully removing and damaging archeological resources at Kisatchie National Forest, announced Acting United States Attorney Alexander C. Van Hook. A special condition imposed by Judge Cain prohibited Fee and Carroll from entering or using the Kisatchie National Forest during their term of probation. The defendants were also ordered to pay $5,676.56 in restitution to the United States Department of Agriculture Forestry Service.
Evidence presented in court revealed that from October 2017 through June 2018, Fee and Carroll conducted unauthorized excavation on public land in the Kisatchie National Forest, doing so in an effort to uncover Native American artifacts, such as arrowheads. On June 1, 2018, Fee and Carroll traveled to their established dig-site, and conducted further excavation and uncovered various Native American artifacts, including arrowheads and some chips of Native American tools or utensils. The excavation site in question was designated by the United States government as a known Archeological Site, and, at all times, Carroll and Fee lacked the necessary permits to conduct the excavation activities. The cost of restoration and repair to the site totaled $5,676.56.
The United States Forest Service conducted the investigation and Assistant U.S. Attorneys John W. Nickel and T. Forrest Phillips prosecuted the case.
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Tulsa Man Pleads Guilty for Causing an Infant's Head injuryRead the Press Release
A man who caused an infant's head injury during a domestic violence incident pleaded guilty today in U.S. District Court, announced Acting U.S. Attorney Clint Johnson.
Chadwick Andre Young, 34, of Tulsa, admitted to child abuse in Indian Country. Sentencing is set for November 10, 2021.
On Aug. 3, 2019, Young's girlfriend and four children walked to a nearby grocery store. Young was angry at the woman for leaving the apartment and met her as she returned. He approached her, while she was holding an infant, and began punching the woman. She fell to the ground and dropped the child as a result of the assault. The infant's head struck the pavement, and he was rushed to an emergency room via ambulance. The infant suffered a depressed skull fracture, requiring surgery. The doctor determined the injury was from blunt force trauma. The infant has since recovered.
The child is a citizen of the Muscogee Nation, and the crime occurred within the Muscogee Nation reservation.
The FBI and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Reagan V. Reininger is prosecuting the case.
Three Defendants Charged in Organized Crime Money Laundering SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and Aaron C. Rouse, Special Agent in Charge of the Las Vegas Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an indictment charging YOSEF COHEN, a/k/a “Joe,” VAGUE SHAGENOVICH TERGALSTANYAN, a/k/a “Vahe,” a/k/a “Vic,” and IGAL BEN HANAN with conspiracy to commit money laundering.
TERGALSTANYAN and COHEN were arrested and presented in California on July 9, 2021, and July 12, 2021, respectively, and will be arraigned in Manhattan federal court at a later date. BEN HANAN was arrested on July 12, 2021, and will be presented later today in Nevada. The case is assigned to U.S. District Judge Laura Taylor Swain.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, the defendants conspired to launder millions of dollars of illicit proceeds. Thanks to the hard work of the FBI, the defendants face serious federal charges.”
FBI Special Agent-in-Charge Aaron C. Rouse said: “This case is an outstanding example that demonstrates the strength of the FBI’s partnerships with national and international law enforcement. The FBI takes pride in combating the most dangerous crime organizations in the world. This should be a wake-up call to criminals that regardless of where they think they can hide, the FBI and our partners will find them and bring them to justice.”
According to the allegations in the Indictment:[1]
COHEN, TERGALSTANYAN, and BEN HANAN worked on behalf of organized criminal enterprises operating in several countries around the world. In recorded conversations with undercover law enforcement officers (the “UCs”) who represented themselves to be members of an international organized criminal enterprise that distributed narcotics and laundered money, the defendants planned money laundering transactions of narcotics proceeds and discussed moving tens of millions of dollars of illicit money on behalf of international criminal organizations. The defendants conspired to execute, and did execute, money laundering transactions with the UCs and others known and unknown.
On several occasions, the defendants arranged for the UCs to pick up narcotics proceeds, in cash, from locations in the United States and then deliver the cash to the defendants, minus a percentage-based fee paid to the UCs for laundering the proceeds. For example, as arranged by the defendants, the UCs picked up approximately $208,000 in cash in Medford, New York, and delivered the cash, minus an arranged fee, to TERGALSTANYAN in California. In addition to discussing money laundering transactions with a UC who was in New York, New York, TERGALSTANYAN later proposed that the UCs pick up and launder one to two million dollars of marijuana proceeds in cash every week in Manhattan.
In another scheme, for example, the defendants conspired to fraudulently obtain a business visa for BEN HANAN so that BEN HANAN could move to the United States. In order for BEN HANAN to obtain a business visa, BEN HANAN’s purported business needed funds on deposit that appeared to be legitimate investments. COHEN proposed that the UCs provide COHEN with $150,000 in cash, and COHEN would use COHEN’s purported businesses to provide funds to BEN HANAN’s purported business. The UCs provided the cash to COHEN, which was represented to be narcotics proceeds that had not yet been laundered. Subsequent wire transfers sent by the defendants to the UCs as repayment were falsely described by the defendants as accounting for a particular month or time period, so as to appear like legitimate business transactions.
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YOSEF COHEN, 58, of Calabasas, California, VAGUE SHAGENOVICH TERGALSTANYAN, 38, of Glendale, California, and IGAL BEN HANAN, 43, of Las Vegas, Nevada, were each charged with one count of conspiracy to commit money laundering, in violation of 18 U.S.C. § 1956(h), which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants would be determined by a judge.
Ms. Strauss praised the outstanding investigative work of the FBI. This prosecution 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.
This case is being handled by the Office’s Narcotics Unit. Assistant United States Attorney Micah F. Fergenson is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Taney County Man Pleads Guilty to Sexually Assaulting Children, Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Merriam Village, Missouri, man pleaded guilty in federal court today to sexually assaulting two young children to produce child pornography, and to receiving and distributing child pornography, after his wife pleaded guilty to the same charges last month.
Mark John Millman, 37, a citizen of Great Britain and a legal alien resident, pleaded guilty before U.S. Chief Magistrate Judge David P. Rush to one count of the sexual exploitation of minors and one count of receiving and distributing child pornography.
Millman’s wife and co-defendant, Tara Sau Millman, 41, pleaded guilty to the same charges on June 30, 2021. Both Mark and Tara Millman have been in federal custody since their arrest and remain detained without bail.
The Millmans admitted that Mark used Tara’s iPhone to record video of her performing a sexual act on a 2-year-old child, identified in court documents as John Doe. Mark Millman admitted that he sexually assaulted a 4-year-old child victim, identified in court documents as Jane Doe, which was also recorded on video. Investigators found images and videos of child pornography on the Millmans’ iPhones, including files that depicted the Millmans sexually assaulting both child victims.
Mark and Tara Millman each admitted they used a social media application to share child pornography over the internet, and that they viewed child pornography together.
The investigation began when agents with Homeland Security Investigations in San Diego, California, began investigating users of a cloud storage platform (identified in court documents as “Cloud Platform A”). The cloud platform provides encrypted, cloud-based services that enable private, secure online storage, communication, and collaboration for business and individuals. During the investigation, the agents accessed a weblink to an encrypted chat room with approximately 145 registered users. Files containing child pornography were uploaded/posted by participants in the chat room. Many users were actively involved in the distribution of child pornography. The child pornography distributed within the chat included 129 video files, 324 image files, and 43 cloud-storage weblinks which contained files of child pornography.
Mark Millman’s email was identified among the registered users of the chat room, and a search warrant was executed at the Millmans’ residence in Taney County, Mo., on Jan. 28, 2021.
Under federal statutes, Mark and Tara Millman each are subject to a mandatory minimum sentence of 15 years in federal prison without parole, up to a sentence of 50 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 defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled upon the completion of presentence investigations by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by Homeland Security Investigations and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
St. Louis man pleads guilty to armed robbery and brandishing a firearmRead the Press Release
ST. LOUIS – Dominick Anderson, 31, of St. Louis, Missouri, appeared before United States District Court Judge Henry E. Autrey on today’s date and pleaded guilty to armed robbery and brandishing a firearm in furtherance of that crime.
On August 25, 2019, as part of a prearranged drug deal, Anderson and a male accomplice arrived at the victim’s residence in a vehicle driven by a female accomplice. Anderson and his male accomplice entered the victim’s residence to buy methamphetamine from the victim. When the victim showed Anderson the methamphetamine, Anderson pulled a gun on the victim and demanded that the victim handover the methamphetamine. The victim refused. The victim told Anderson and his male accomplice to leave the victim’s residence. Anderson shot the victim in the stomach and stole the victim’s methamphetamine. Anderson and his male accomplice exited the residence and entered the vehicle of their female accomplice and fled the scene. The victim called 911 and was taken to the hospital for his gunshot wound. An investigation led to the arrest of Anderson.
Anderson’s sentencing hearing is set for October 6, 2021.
This case was investigated by the St. Louis Metropolitan Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Jennifer Szczucinski is handling this matter.
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St. John, Indiana Man Ordered to Pay over $5.3 Million in RestitutionRead the Press Release
HAMMOND- Richard E. Gearhart, age 71, of St. John, Indiana was sentenced before U.S. District Court Judge Philip P. Simon upon his plea of guilty to conspiracy to commit securities fraud, announced United States Attorney Tina L. Nommay.
Gearhart was sentenced to 60 months in prison, 3 years of supervised release, and ordered to pay over $5.3 million dollars in restitution that is owed to the victims of his securities fraud scheme.
According to documents in this case, between 2008 and 2013, Gearhart was a licensed insurance agent doing business as Gearhart & Associates in Schererville. He represented himself as experienced in investments and financial services. He was also CEO of Asset Preservation Specialists, Inc. Gearhart and others devised a scheme where they promoted and sold unregistered securities to Gearhart’s insurance clients. He promised them no risk to their initial deposit and a return of 6% to 8% on their investment. He also told them that upon request, their initial investment would be returned within thirty days. Neither Gearhart nor his co-conspirators were licensed to promote or sell the securities.
The victims of Gearhart’s scheme were between 50 and 90 years old when they trusted him with their savings. Instead of investing the money, they used it to repay other investors and for their own personal use. The money was wired from Gearhart’s bank accounts to other investors and to businesses in which Gearhart and co-conspirators held an interest.
To keep the scheme afloat, Gearhart directly or indirectly sent fraudulent financial statements to investors showing gains when none existed. The victims learned that they had lost their savings when Gearhart filed for bankruptcy listing them as creditors rather than investors.
The case was the result of a joint investigation by the U.S. Postal Inspection Service, the Federal Bureau of Investigation, and the Indiana Secretary of State Securities Division in collaboration with the Northern Indiana Region 10 Office of the United States Trustee, Nancy J. Gargula. This case was prosecuted by Assistant United States Attorneys Toi Denise Houston and Thomas McGrath.
Second defendant sentenced to federal prison for operating illegal pill factoryRead the Press Release
AUGUSTA, GA: A second Burke County man has been sentenced to federal prison after admitting to operating an illegal pill factory from a residence.
U.S. District Court Chief Judge J. Randal Hall sentenced Cedrick Gabriel Brown, a/k/a “Pop,” 47, of Midville, Ga., to 60 months in prison after Brown pled guilty to Conspiracy to Possess with Intent to Distribute and to Distribute Methamphetamine, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. After completion of his prison term, Brown also will be required to serve three years of supervised release. There is no parole in the federal system.
Brown’s codefendant, Telly Savalas Carswell, 47, also of Midville, is serving a sentence of 168 months in prison after also pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Methamphetamine.
“This sentence finalizes the investigation and prosecution of two men who profited from spreading poison in a rural community,” said Acting U.S. Attorney Estes. “We will continue to work closely with our law enforcement partners to hold accountable those who would make money from misery.”
The investigation of Carswell and Brown began in January 2020 when U.S. Drug Enforcement Administration (DEA) agents tracked the delivery of a commercial pill press to their Midville residence. With assistance from the Burke County Sheriff’s Office, DEA agents searched the home on May 7, 2020, and found the pill press, along with methamphetamine, heroin and other drugs; nearly $9,000 in cash; and paraphernalia related to drug manufacturing and trafficking.
Both men have extensive criminal records, including state convictions for drug trafficking offenses.
“’Garage manufacturers’ like this defendant continue to use pill presses which ultimately hurt and kill unsuspecting users,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners are committed to keeping our communities safe by removing drug pushers like this defendant. He will spend well-deserved time in federal prison.”
The case was investigated by the DEA and the Burke County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Matthew Josephson.
Rocky Mount Gang Leader and Others Indicted on Drug and Fraud ChargesRead the Press Release
GREENVILLE, N.C. – A federal grand jury returned an indictment yesterday charging three Rocky Mount individuals and one Wendell woman with various narcotics distribution and fraud-related charges.
Tyrone Foreman, also known as “Ty Nitty”, 33, is alleged to be the leader of a set of the United Blood Nation operating a heroin and fentanyl distribution ring in Nash and Edgecombe counties. Over the past three years, local, state, and federal authorities conducted an extensive investigation into Foreman’s organization, including the importation and distribution of various narcotics and several gang-related shootings in Rocky Mount.
According to the complaint, filed in June of 2021, Investigators identified a New York City man supplying Foreman with heroin and fentanyl mixtures for distribution in Rocky Mount. After Investigators discovered this individual bringing large quantities of heroin and fentanyl mixtures to Foreman, Investigators tracked Foreman travelling to New York City to pick up another heroin and fentanyl mixture supply. On December 11, 2020, during Foreman’s return trip to Rocky Mount, Maryland authorities stopped Foreman’s car for failure to wear a seat belt. Inside the car, authorities found over 3,500 bags of a heroin and fentanyl mixture.
The indictment, charging Foreman and Vernisha Marie Suggs, 34, of Rocky Mount, with narcotics-related violations, also alleges Foreman and two others conspired to commit wire and mail fraud related to federal unemployment benefits created in response to the COVID-19 pandemic.
According to the indictment, Foreman, Undia Fenne Sharpe, 39, of Rocky Mount, and Minnie Marie Edwards, 36, of Wendell, fraudulently filed claims using the information of individuals incarcerated in federal and state prisons. After filing the fraudulent claims, the co-conspirators distributed the unemployment benefits amongst themselves and other co-conspirators.
Foreman is charged with one count of conspiring to distribute and possess with intent to distribute 1,000 grams or more of heroin, 400 grams or more of fentanyl, and a quantity of marijuana; one count of possessing with intent to distribute heroin and fentanyl; one count of possessing with intent to distribute heroin and marijuana; and one count of conspiring to commit mail and wire fraud. If convicted, Foreman faces a mandatory minimum of ten years in prison and a maximum of life in prison.
Suggs is charged with one count of conspiring to distribute and possess with intent to distribute heroin and one count of possessing with intent to distribute a quantity of heroin. If convicted, Suggs faces a maximum of forty years in prison.
Sharpe is charged with one count of conspiring to commit mail and wire fraud. If convicted, Sharpe faces a maximum of twenty years in prison.
Edwards is charged with one count of possessing with intent to distribute a quantity of cocaine base (crack) and one count of conspiring to commit mail and wire fraud. If convicted, Edwards faces a maximum of forty years in prison.
This investigation and indictment are the result of a coordinated effort on the part of a coalition of local, state, and federal agencies over the span of three years. These agencies include Nash County Sheriff’s Office, Rocky Mount Police Department, Edgecombe County Sheriff’s Office, Nashville Police Department, Halifax County Sheriff’s Office, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Drug Enforcement Administration, the North Carolina Department of Commerce - Division of Employment Security, and the Office of the 8th Prosecutorial District of North Carolina.
Acting U.S. Attorney Acker commented: “The United States Justice Department and the United States Attorney’s Office are aggressively pursuing violent drug traffickers and this case targeted an organization who evaded justice and spread deadly narcotics in the community for years. This indictment represents another step in a coordinated effort to “Take Back North Carolina” from those who wish to bring harm to the citizens of the Eastern District of North Carolina.”
“The level of law enforcement cooperation to investigate the crimes committed by this violent organization was incredible. This case is yet another example of law enforcement partners working together to effectively dismantle criminal organizations which threaten the citizens of Nash and Edgecombe Counties,” said Nash County Sheriff Keith Stone.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement.
Related court documents and information are located on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-mj-1577-RN.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty.
Registered Sex Offender Arrested on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Bald, 40, of Lockport, NY, was arrested and charged by criminal complaint with possession of child pornography involving a prepubescent minor. The charge carries a minimum sentence of 10 years in prison, a maximum of 20 years, lifetime supervised release, and a $250,000 fine.
Assistant U.S. Attorney David J. Rudroff, who is handling the case, stated that in November 2020, the National Center for Missing and Exploited Children (NCMEC) contacted the New York State Police (NYSP) after receiving a Cybertipline Report involving an image of a suspected sexual performance by a child. The NYSP contacted Homeland Security Investigations (HSI) and the image was traced to the residence of the defendant, who is a registered Level 2 sex offender following his March 2011 conviction for Sexual Abuse in the First Degree.
On December 15, 2020, the NYSP, Niagara County Probation, and HSI executed a state search warrant at the defendant’s Lockport residence. During the execution of the search warrant, several digital items were located and seized, including a laptop computer and hard drive. Analysis of those items revealed numerous files of suspected child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and was released on conditions.
The complaint is the result of an investigation by Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly, the New York State Police, under the direction of Major James Hall, the Niagara County Probation Department, under the direction of Director John Cicchetti, and the National Center for Missing and Exploited Children.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Pittsburgh Man Sentenced in Mystery Shopper Fraud SchemeRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 4 years of probation and ordered to pay $28,461 in restitution on his conviction for fraud conspiracy, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge Mark R. Hornak imposed the sentence on Robert Shon Jackson, 45, of Pittsburgh, PA 15221, as the sole defendant.
Previously, in connection with Jackson’s guilty plea, the court was advised that that from around June 2013 to around October 31, 2013, Jackson participated in a Nigerian “mystery shopper” fraud scheme in which victims were falsely led to believe that they were being employed to anonymously evaluate products and services. After being recruited by the fraudsters, the victims unwittingly received counterfeit U.S. Postal Service money orders and checks, which they believed were provided to fund their evaluation purchases. The victims were told to deposit the instruments, keep a small portion of the funds for themselves, and wire the remainder to another individual who they believed was another mystery shopper, but was in actuality a co-conspirator. The counterfeit instruments were later returned to the bank, and the victims were charged for the funds they had deposited and additional fees.
The court was further advised that Jackson was mailed bulk shipments of counterfeit USPS money orders sent from overseas, approximately 1,820 money orders in total, valued at approximately $1,787,771.40, along with counterfeit checks. Jackson also received mailing labels with the names and addresses of victims to whom he was to send the counterfeit instruments. Jackson would mail counterfeit money orders and checks to the victims along with “mystery shopper” instructions directing them to check their email accounts for additional instructions. The victims would be emailed instructions to wire funds to Jackson, his wife, and other accomplices. Jackson used false return names and addresses on the mailings of counterfeit instruments. Jackson would then receive funds from the victims by wire, then himself wire a portion of the proceeds to co-conspirators in Nigeria. Jackson kept a portion of the funds as his payment. The losses associated with Jackson’s offense totaled $28,461.
Assistant United States Attorney David Lew prosecuted this case on behalf of the government.
The United States Postal Inspection Service and the Department of Homeland Security conducted the investigation leading to the successful prosecution of Jackson.
Perryton Police Officer Pleads Guilty to Sharing Child Pornography on KikRead the Press Release
A former Perryton police officer pleaded guilty today to child pornography charges, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Aaron Bennett Daugherty, 36, pleaded guilty on Wednesday to one count of transportation of child pornography. He was charged via criminal complaint in February.
According to plea papers, Mr. Daugherty was nabbed in an undercover FBI investigation into individuals using Kik, a social media app popular among teenagers, to share explicit images of children.
On June 9 2020, a Kik user with an obscene screenname – later identified as Mr. Daugherty – shared a video file depicting an adult male engaged in sexual acts with a blindfolded prepubescent child.
“I’m here to look at CP, everybody,” the user posted two weeks later. “Go on with the CP content!”
Law enforcement later contacted Mr. Daugherty at the Perryton Police Department. He admitted that he used Kik to view and share child pornography, adding that child porn did not “bother” him.
The defendant now faces up to 20 years in federal prison. A sentencing hearing has not yet been set.
The Federal Bureau of Investigation’s Dallas Field Office – Amarillo Resident Agency, the Texas Rangers, and the Winnebago County Sheriff’s Office conducted the investigation with the full cooperation of the Perryton Police Department. Assistant U.S. Attorney Joshua Frausto is prosecuting the case.
Pennsylvania man who mailed deadly fentanyl to Seattle area woman sentenced to more than 4 years in prisonRead the Press Release
Seattle – A 35-year-old Pennsylvania man was sentenced today in U.S. District Court in Seattle t0 54 months in prison for distributing fentanyl and acetyl fentanyl in the Western District of Washington, announced Acting U.S. Attorney Tessa M. Gorman. Jesse S. Dittmar sent multiple envelopes containing the drug to his former girlfriend who had moved to her brother’s home in Seattle. The former girlfriend was found dead on January 29, 2019, less than 24 hours after she texted Dittmar that she had done some of the drugs that arrived in the mail, and that she was feeling unwell. At the sentencing hearing Chief U.S. District Judge Ricardo S. Martinez noted the “recklessness” of sending powerful fentanyl through the mail. Chief Judge Martinez told Dittmar “This is a sad case from every possible aspect…. You are responsible for the direct actions you took that led to the victim’s death.”
“Sending deadly fentanyl through the mail, disguised in colorful greeting cards, was incredibly dangerous – for postal workers and for the children and adults who may have opened the cards in their Seattle home,” said Acting U.S. Attorney Gorman. “Fentanyl is claiming far too many lives in our area with overdose deaths up 38% in 2021 compared to the first six months of 2020.”
According to records filed in the case, the 32-year-old victim broke up with Dittmar and moved to her brother’s home in Seattle in the fall of 2018. Despite Dittmar’s repeated attempts to text the victim, the victim cut off contact with Dittmar until December 2018. During December 2018 and January 2019, Dittmar and the victim were in contact and the texts make clear he was sending her drugs enclosed in greeting cards. Dittmar repeatedly threatened suicide or exposure of the victim’s drug use if she did not continue the relationship. On the day she died, the victim texted Dittmar that she had taken some of the drugs and did not feel well. Dittmar texted the victim 25 times over the next few hours but did not get any response. He did not call her family or alert 9-1-1 that she might have overdosed. She was discovered dead the next day. Following the victim’s death, multiple greeting cards and packaging materials for drugs were found in the victim’s bedroom. The King County Medical Examiner determined the victim died from acute drug intoxication including fentanyl.
The case was investigated by the U.S. Postal Inspection Service (USPIS) with assistance from the Seattle Police Department and Seattle Fire Department.
The case was prosecuted by Assistant United States Attorney Lyndsie Schmalz.
Parkersburg Man Pleads Guilty to Federal Drug CrimeRead the Press Release
CHARLESTON, W.Va. – Reese Inman, 39, of Parkersburg, pleaded guilty today to a federal drug crime.
According to court documents and statements made in court, law enforcement officers executed a search warrant on October 16, 2019 at a residence on Dempsie Avenue in Parkersburg. Inman was located in the living room and a loaded .22 Rohm revolver and a quantity of heroin were nearby. In their search, officers located a total of between 14 and 15 grams of heroin, a Chiappa .22 revolver and ammunition, an iPad that was payment for heroin Inman had sold, a black digital scale, $384 in U.S. currency and some marijuana. Inman was advised of his Miranda rights and agreed to be interviewed. In that interview, Inman admitted that he had been selling heroin in Wood County and that he intended to distribute the heroin in his possession to others.
Inman pleaded guilty to possession with intent to distribute heroin and faces up to 20 years in prison when he is sentenced on October 28, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Drug Enforcement Administration (DEA), the Parkersburg Narcotics Task Force and the Wood County Sheriff’s Department.
United States District Judge Irene C. Berger presided over the hearing. Assistant United States Attorney Alexander Hamner is handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00090.
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Operation X-Nation: New York Man Sentenced to More Than 15 Years in Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A New York man was sentenced today to 186 months in federal prison for his participation in a drug trafficking organization (DTO) in Mercer County. James Walker, 43, previously pleaded guilty to conspiracy to distribute cocaine, oxymorphone, oxycodone and hydromorphone. Walker was charged as a result of a long-term, multi-state investigation known as Operation X-Nation. Walker also forfeited $150,000 in proceeds generated from his drug trafficking activity.
Between August 2017 and August 31, 2019, Walker worked with other members of a DTO to distribute prescription pills and cocaine in and around Mercer County. More specifically, Walker facilitated drug transactions with confidential informants working with law enforcement. Walker would then direct the informants to one of several trailers he owned in different trailer parks in Mercer County. Once the informants arrived at the trailer park, Walker would then direct them to meet with a particular member of the DTO to purchase the drugs. Walker and other members of the DTO also had telephone calls intercepted by law enforcement. In these calls Walker and others were discussing drug transactions including the pricing and quantities of different substances. Walker further admitted that he was arrested in New York after having calls intercepted by law enforcement. At the time of his arrest, Walker was in possession of approximately 1,500 prescription pills that he intended to distribute. Walker also was arrested in Princeton on January 10, 2020. and at that time, he was driving a car that had a hidden mechanical trap that was used to transport controlled substances.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the Southern Regional Drug and Violent Crime Task Force, which is composed of officers from the West Virginia State Police, the Mercer County Sheriff’s Department, the Princeton Police Department and the Bluefield Police Department.
Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Timothy D. Boggess handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 1:19-cr-00307.
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Odessa Attorney Sentenced to Federal Prison for Being a Drug User in Possession of a FirearmRead the Press Release
MIDLAND – Yesterday in Midland, a federal judge sentenced 52-year-old Adrian Antonio Chavez, an attorney practicing in Odessa, to 24 months imprisonment for being a drug user in possession of a firearm.
In addition to the prison term, U.S. District Judge David Counts ordered Chavez to pay a $10,000 fine. Judge Counts also ordered that Chavez be placed on supervised release for a period of three years after his prison term.
According to court records, after receiving information from several sources that Chavez received quantities of methamphetamine, officers from the Odessa Police Department executed a search warrant at Chavez’ residence on February 19, 2021. During the search, officers recovered a Springfield Armory Hellcat 9mm; a Taurus Brasil 357 Magnum; a Rossi RS22 .22 caliber rifle; a Remington Wingmaster 870TB 12-guage shotgun; and a Remington 770 .30-06 caliber rifle. Officers also confiscated a quantity of methamphetamine and drug paraphernalia.
On April 15, 2021, Chavez entered a plea of guilty to one count of being a drug user in possession of a firearm before U.S. Magistrate Judge Ronald C. Griffin.
This case was investigated by the Odessa Police Department and the Texas Department of Public Safety.
Assistant U.S. Attorney Glenn Harwood prosecuted this case.
Norwalk Felon Sentenced to 5 Years in Federal Prison for Illegal Gun PossessionRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that DAVID BURDEN, 40, of Norwalk, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 60 months of imprisonment, followed by three years of supervised release, for illegal possession of a firearm.
According to court documents and statements made in court, on September 30, 2020, Bridgeport Police officers arrested Burden after he fired a gun in the area of Kossuth Street and Nichols Street in Bridgeport. Investigators seized a loaded 9mm Smith and Wesson semi-automatic pistol from Burden.
Burden’s criminal history includes multiple state felony convictions and federal convictions in 2003 for crack cocaine distribution, racketeering, racketeering conspiracy and committing a violent crime in aid of racketeering offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Burden has been detained since is arrest. On April 21, 2021, he pleaded guilty to possession of a firearm by a felon.
This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Bridgeport Police Department. The case was prosecuted by Assistant U.S. Attorney Rahul Kale.
This prosecution has been brought through Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone.
New York Man Pleads Guilty to Bank Fraud ConspiracyRead the Press Release
CONCORD - Kizito Chukwujekwu, 37, of Brooklyn, New York pleaded guilty in federal court on Tuesday to participating in a conspiracy to commit bank fraud, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, between June of 2016 and August of 2017, Chukwujekwu and others opened at least ten bank accounts at banks in New Hampshire, Massachusetts, and Georgia using other persons’ identification information. Chukwujekwu or his co-conspirators then deposited fraudulent checks into those accounts. After the money was credited to the account but before the bank determined the check was false, one of Chukwujekwu’s co-conspirators withdrew money from the bank accounts. During the scheme, the conspirators deposited fraudulent checks worth more than $119,000 and withdrew more than $69,000.
Chukwujekwu is scheduled to be sentenced on October 25, 2021.
“Those who travel to New Hampshire to commit crimes should understand that they will be caught and held accountable for their actions,” said Acting U.S. Attorney Farley. “In order to protect the citizens of the Granite State, we work closely with our law enforcement partners to identify and prosecute the criminals who use stolen identities to commit fraud.”
“Postal Inspectors investigate and seek prosecution of those individuals who steal personal identifiable information to illegally obtain funds by defrauding financial institutions,” said Joshua W. McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “The U.S. Postal Inspection Service is committed to protecting our citizens and working hard to prevent more people from becoming victimized by these types of schemes.”
This matter was investigated by the United States Postal Inspection Service and Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Matthew T. Hunter.
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Napa Woman Arrested for Fake Covid-19 Immunization and Vaccine Card SchemeRead the Press Release
SAN FRANCISCO – A California licensed naturopathic doctor was arrested today for her alleged scheme to sell homeoprophylaxis immunization pellets and falsify COVID-19 vaccination cards by making it appear that customers received the U.S. Food and Drug Administration (FDA) authorized Moderna vaccine. The announcement was made by Deputy Attorney General Lisa O. Monaco; Acting U.S. Attorney Stephanie M. Hinds; Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG); and FBI Special Agent in Charge of the San Francisco Division, Craig D. Fair.
Juli A. Mazi, 41, of Napa, is charged with one count of wire fraud and one count of false statements related to health care matters. The case is the first federal criminal fraud prosecution related to homeoprophylaxis immunizations and fraudulent Centers for Disease Control and Prevention (CDC) COVID-19 vaccination record cards.
“This defendant allegedly defrauded and endangered the public by preying on fears and spreading misinformation about FDA-authorized vaccinations, while also peddling fake treatments that put people’s lives at risk. Even worse, the defendant allegedly created counterfeit COVID-19 vaccination cards and instructed her customers to falsely mark that they had received a vaccine, allowing them to circumvent efforts to contain the spread of the disease,” said Deputy Attorney General Lisa O. Monaco. “The Department of Justice and its law enforcement partners are committed to protecting the American people from fraudsters during this national emergency. This commitment is evident in this prosecution as well as in the ongoing work of the Department and our agency partners in the COVID-19 Fraud Enforcement Task Force established by the Attorney General earlier this year.”
“Steering through the challenges presented by COVID-19 requires trust and reliance on our medical professionals to provide sage information and guidance,” said Acting U.S. Attorney Hinds. “According to the complaint, instead of disseminating valid remedies and information, Juli Mazi profited from unlawfully peddling unapproved remedies, stirring up false fears, and generating fake proof of vaccinations. We will act to protect trust in the medical developments that are enabling us to emerge from the problems presented by the pandemic.”
According to court documents, in April 2021, an individual submitted a complaint to the Department of Health and Human Services Office of Inspector General (HHS-OIG) hotline stating that family members purchased from Mazi. The complainant stated that the family members had told her/him that Mazi stated that the pellets contained the COVID-19 virus and would create an antibody response in the immune system. The complainant reported that her/his family did not receive injections of any of the three FDA-authorized COVID-19 vaccines. However, in connection with the delivery of the homeoprophylaxis immunization pellets, Mazi sent COVID-19 Vaccination Record cards, with Moderna listed, to the complainant family. Mazi allegedly instructed the complainant family to mark the cards to falsely state that they received the Moderna vaccine on the date that they ingested the COVID-19 homeoprophylaxis immunization pellets.
According to court documents, Mazi offered homeoprophylaxis immunizations for childhood illnesses that she falsely claimed would satisfy the immunization requirements for California schools, and falsified immunization cards that were submitted by parents to California schools. Homeoprophylaxis involves the exposure of an individual to dilute amounts of a disease, purportedly to stimulate the immune system and confer immunity. Mazi is alleged to have falsely claimed that orally ingesting pellets with small amounts of COVID-19 would result in full lifelong immunity from COVID-19.
“This doctor violated the all-important trust the public extends to healthcare professionals — at a time when integrity is needed the most,” said Special Agent in Charge Steven J. Ryan of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “Working closely with our law enforcement partners, our agency will continue to investigate such fraudsters who recklessly endanger the public’s health during the unprecedented COVID-19 crisis.”
The affidavit alleges that Mazi used the COVID-19 pandemic to expand the pre-existing immunization scheme by selling immunization pellets that she fraudulently claimed, in written documents and consensually monitored recordings, would provide “lifelong immunity to COVID-19.” Mazi explained that the pellets contained a “very minute amount of this [COVID-19] disease” that can result in “infectious symptoms” of COVID-19 or “automatically flag[] the immune system’s attention, inducing immunity.” To encourage customers to purchase the pellets, Mazi allegedly exploited disinformation and fear by falsely claiming that the FDA-authorized COVID-19 vaccines contain “toxic ingredients.” Mazi further stated that her customers could provide the pellets to children for COVID-19 immunity, and that the “dose is actually the same for babies.”
“Spreading inaccurate or false medical information about COVID-19 for personal gain, as the complaint alleges, is dangerous and only seeds skepticism among the public,” said Special Agent in Charge Craig D. Fair of the FBI's San Francisco Field Office. “As the government continues to work to provide current and accurate information to help slow the spread of COVID-19, the FBI will continue to pursue those who attempt to fraudulently profit from spreading misinformation and providing false documentation.”
Mazi also provided CDC COVID-19 vaccination record cards to her customers with instructions on how to fraudulently complete the cards to falsely make it appear as if a customer had received two doses of the Moderna vaccine. As part of her scheme, Mazi provided customers with specific Moderna vaccine lot numbers to enter onto the cards and with instruction on how to select the purported dates on which they had received the Moderna vaccines to evade suspicion.
Mazi is charged with wire fraud, in violation of 18 U.S.C. § 1343, and making false statements related to health case, in violation of 18 U.S.C. § 1035. If convicted, Mazi faces a maximum statutory prison sentence of 20 years for the wire fraud charge and 5 years for the false statements charge. In addition, each charge carries a maximum $250,000 fine and 3 years 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.
HHS-OIG’s San Francisco Regional Office and the FBI’s San Francisco Field Office are investigating the case.
Assistant U.S. Attorney Christiaan Highsmith of the U.S. Attorney’s Office for the Northern District of California and Trial Attorney Sridhar Babu Kaza of the Department of Justice Criminal Division Fraud Section’s National Rapid Response Strike Force are prosecuting the case.
The case was brought in coordination with the Health Care Fraud Unit’s COVID-19 Interagency Working Group, which is chaired by the National Rapid Response Strike Force and organizes efforts to address illegal activity involving health care programs during the pandemic.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 federal districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The Fraud Section uses the Victim Notification System (VNS) to provide victims with case information and updates related to this case. Victims with questions may contact the Fraud Section’s Victim Assistance Unit by calling the Victim Assistance phone line at 1-888-549-3945 or by emailing [email protected]. To learn more about victims’ rights, please visit: https://www.justice.gov/criminal-vns/victim-rights-derechos-de-las-v-ctimas.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Milwaukee Man Sentenced for his Role in COVID-19 Relief Fraud SchemeRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that July 14, 2021 Stephen Smith, (42), of Milwaukee, WI was sentenced today to 36 months in prison for fraudulently seeking over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Smith, 42, of Milwaukee, pleaded guilty on April 12. According to court documents, Smith admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
In addition to the prison sentence, Smith was ordered to pay $397,500 in restitution.
The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases.
The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Public Information Officer Kenneth Gales 414-297-1700
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Mexican National Sentenced for Illegal Re-Entry of a Deported Alien Previously Convicted of a FelonyRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that FELIPE MARTINEZ-RIVERA, age 50, was sentenced for reentry of a deported alien previously convicted of a felony, in violation of 8 U.S.C. §§ 1326(a) and (b)(1).
According to court documents, FELIPE MARTINEZ-RIVERA reentered the United States after he was previously deported on November 9, 1998. Furthermore, on or about May 18, 2010, the defendant was convicted of illegal possession of less than one gram of cocaine in Harris County Texas – a felony under Texas law.
U.S. District Court Judge Sarah S, Vance sentenced MARTINEZ-RIVERA to 14 months of imprisonment, 1 year of supervised release, and a mandatory $100 special assessment.
U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U. S. Attorney Irene Gonzalez is in charge of the prosecution.
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Many, Louisiana Man Convicted of Kidnapping and Interstate Domestic ViolenceRead the Press Release
SHREVEPORT, La. – A federal jury returned a guilty verdict today against Dillon James Merritt, 54, of Many, Louisiana, charging him with kidnapping, interstate domestic violence and possession with intent to distribute methamphetamine, Acting United States Attorney Alexander C. Van Hook announced. United States District Judge Donald E. Walter presided over the trial.
Evidence introduced at trial this week revealed that on December 12, 2017, Merritt kidnapped a woman in Natchitoches, Louisiana, and took her across state lines to Texas and held her against her will from December 12, 2017 through December 16, 2017. Testimony at trial showed that Merritt and the woman (victim) briefly dated in the fall of 2017, but after Merritt punched the victim in the stomach following an argument, the victim severed the relationship with Merritt. Following the breakup, he continually called the victim and harassed her.
During the evening hours of December 12, 2017, Merritt found the victim walking back home from visiting with a friend near the Walmart parking lot in Natchitoches and struck her in the head and put her in a truck and left. The victim was bound and gagged and hidden under clothing in the vehicle and for the next several days, was taken by Merritt to various locations in Louisiana and remote locations in Texas near Toledo Bend. Merritt repeatedly raped the victim, doused her with lighter fluid and tried to set her on fire, and severely beat her with his fists, elbows, feet and with a Maglite flashlight over this four-day period causing serious bodily injury to the victim. In addition to the brutal beatings, aggravated sexual assault, and sexual abuse on the victim committed by Merritt, he possessed with the intent to distribute 5 grams or more of methamphetamine.
“The severe brutality and sexual abuse inflicted by this defendant on the victim was pure evil,” stated Acting United States Attorney Alexander C. Van Hook. “No one deserves to be treated in this manner and justice has prevailed today.”
Merritt faces up to life in prison for the kidnapping charge, life for the interstate domestic violence charges, a maximum of 40 years for the drug charge, and up to a $250,000 fine. Sentencing is set for November 11, 2021 at 11:00.
The FBI and Sabine County Sheriff’s Office in Hemphill, Texas conducted the investigation. Assistant U.S. Attorney Cadesby B. Cooper prosecuted the case.
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Manager of Water System in Red River Parish Pleads Guilty to Fraud ChargeRead the Press Release
SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced that Donald Messick, 50, of Coushatta, Louisiana, appeared before Chief United States District Judge S. Maurice Hicks, Jr. today and pleaded guilty to fraud. A Bill of Information was filed April 23, 2021 in United States District Court charging Messick with one count of wire fraud.
The charge stems from a scheme devised by Messick to defraud the Fairview Union Water System (FUWS), an entity responsible for the management and upkeep of a rural water system in Red River Parish, Louisiana. During the scheme, Messick used FUWS monies to purchase items for his own personal use, including fuel, vehicle parts, tools, and other equipment. In some cases, he would use FUWS funds to purchase items that he would then give to relatives. In another instance, Messick had an electronic funds transfer sent from FUWS’s bank account to another individual located in Florida for her own personal use and did so without authorization from FUWS. Messick also fraudulently enrolled a relative in the group health insurance of FUWS, when that individual was not an employee and not authorized to be on the insurance plan. As a result, FUWS paid the premiums for this individual and the insurer paid out $19,705 in claims made on behalf of the unauthorized individual.
In total, from February 1, 2018 to March 1, 2019, Messick defrauded the FUWS out of approximately $58,459.73 in monies and property.
Messick faces a penalty of not more than 20 years in prison, a $250,000 fine, or both. Sentencing has been set for November 18, 2021.
The FBI and USDA-OIG conducted the investigation and Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
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Man Sentenced for His Role in COVID-19 Relief Fraud SchemeRead the Press Release
A Wisconsin man was sentenced today to 36 months in prison for fraudulently seeking over $600,000 in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Stephen Smith, 42, of Milwaukee, pleaded guilty on April 12. According to court documents, Smith admitted that he fraudulently sought, on behalf of three different companies, over $600,000 in PPP loans through applications to an insured financial institution. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses.
In addition to the prison sentence, Smith was ordered to pay $397,500 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Acting Special Agent in Charge Fran L. Mace of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); and Special Agent in Charge Kathy Enstrom of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.
The FBI, SBA-OIG, FDIC-OIG and IRS-CI investigated the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
In May, 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 Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Man Pleads Guilty to Possession of Methamphetamine with Intent to DistributeRead the Press Release
A man who was a fugitive and fled with his girlfriend when Tulsa police officers tried to arrest him pleaded guilty to drug charges today, announced Acting U.S. Attorney Clint Johnson.
Jose Pizana Ruiz, 45, pleaded guilty to possession of methamphetamine with intent to distribute. In his plea agreement, Ruiz admitted to possessing with intent to distribute 500 grams or more of the drug.
His codefendant Brittany Paige Coffee previously pleaded guilty to the same charge and was sentenced to 10 years in federal prison.
On Sept. 17, 2020, Tulsa Police Officers approached Coffee’s vehicle and attempted to arrest fugitive Ruiz, a passenger in the car. In response, Coffee drove out of the parking lot at a high rate of speed, almost running over officers. The vehicle was eventually involved in a collision near 1500 W. Highway 412. Ruiz and Coffee ran from the crash scene but were not apprehended at the time. Officers discovered three firearms in the wrecked vehicle.
Ruiz and Coffee were eventually located at a Tulsa residence in and around a different vehicle parked in the driveway. Officers arrested Coffee in the vehicle. Ruiz was arrested after a brief foot pursuit. Officers found a purse in the vehicle containing Coffee’s Oklahoma identification card as well as a black case containing 585 grams of methamphetamine.
The Drug Enforcement Administration and Tulsa Police Department conducted the investigation. Assistant U.S. Attorney Joel-lyn A. McCormick prosecuted the case.
Man Pleads Guilty to Assault with a Dangerous WeaponRead the Press Release
A man pleaded guilty today in federal court for assaulting a woman with a piece of door trim that had a nail protruding from it, announced Acting U.S. Attorney Clint Johnson.
Robert Joseph Marder, 31, pleaded guilty to assault with a dangerous weapon in Indian Country. As part of the plea agreement, Marder will serve between 70 and 87 months in federal prison. U.S. District Judge Gregory K. Frizzell will determine the final sentence at a hearing scheduled for Nov. 5, 2021.
On May 29, 2020, Marder showed up at a former girlfriend’s home and became aggressive. The woman, accompanied by children, attempted to leave the apartment. The defendant followed her to her car, so she ran back to the apartment and locked the doors. Marder kicked in the door causing the door trim to break. He then exited the apartment but came back through a window and continued the argument. While the victim was holding a three-month old child, Marder picked up a piece of trim with a nail sticking out of it and struck the victim multiple times on her forehead, shoulder and back of the head.
During the assault, the apartment’s security officers heard screaming. After arriving at the apartment, they witnessed Marder striking the victim with the trim. Security detained Marder and called police. The victim was transported to the hospital for treatment.
Marder is a citizen of the Cherokee Nation, and the crime occurred within the Muscogee Nation reservation.
The FBI and Tulsa Police Department investigated the case. Assistant U.S. Attorneys Justin G. Bish and Benjamin D. Hargrove are prosecuting the case.
Man Found Guilty of Unlawful Possession of a MachinegunRead the Press Release
SAN JUAN, Puerto Rico – United States Attorney W. Stephen Muldrow announces that on July 12, 2021, a federal jury convicted Gilberto Joel Hernández Marín of unlawful possession of a machinegun. He faces a sentence of up to 10 years of imprisonment.
According to court documents and evidence presented at trial, on February 16, 2019, Gilberto Joel Hernández Marín, age 25 of Trujillo Alto, Puerto Rico unlawfully possessed a 7.62 x 39 caliber Zastava Serbia AK-47 type pistol that had been modified so that it was capable of firing as a machine gun. On that date, Hernández Marín was detained and ticketed by Trujillo Alto municipal officers because his vehicle had illegally tinted windows. During the traffic stop, the officers found that Hernández Marín was in possession of the machinegun, which was loaded with 31 rounds of 7.62 x 39 caliber ammunition. The officers contacted agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), who investigated the case and presented it to the United States Attorney’s Office for Prosecution.
United States Attorney Muldrow indicated that, “The United States Attorney’s Office and its law enforcement partners will remain vigilant and aggressive in the investigation and prosecution of individuals in possession of illegal firearms. These types of violations are among the highest of priorities for the Department of Justice, and we will work tirelessly to remove illegal weapons from the streets.”
“I would like to thank the municipal officers of Trujillo Alto who working with ATF and the USAO, were able to successfully prosecute this individual. Working together, we can further increase public safety and send the message to the public that possession of illegal guns will not be tolerated in Puerto Rico,” said Robert Cekada, Special Agent in Charge of ATF, Miami Field Division.
The case was investigated by ATF. It was prosecuted by Special Assistant U.S. Attorney R. Vance Eaton and Assistant U.S. Attorney Pedro R. Casablanca of the U.S. Attorney’s Office Gang Section.
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Mahnomen County Man Sentenced to 138 Months in Prison for Distribution of MethamphetamineRead the Press Release
ST. PAUL, Minn. – A Mahnomen County man was sentenced today to 138 months in prison followed by five years of supervised release for distributing methamphetamine.
According to court documents, in December 2019, Augustus Quintrell Light, 40, was engaged in the distribution of controlled substances. On December 7, 2019, law enforcement executed a search warrant at a residence in Bemidji, Minnesota, where Light was located. Law enforcement recovered more than 50 grams of pure methamphetamine, a digital scale, and three rounds of .45 caliber ammunition. That same day, law enforcement searched Light’s primary residence in Naytahwaush, Minnesota. Within a locked safe inside the residence, officers found small quantities of controlled substances, $4,800 in cash, and three rounds of .45 caliber ammunition.
In March 2019, Light was pulled over in Bemidji for having an expired registration. After officers smelled marijuana from inside Light’s vehicle, they ordered him to step out. Light refused to comply and instead rolled up his windows, locked his doors, and drove away from the scene at a high rate of speed. Light led officers on a high-speed chase through Bemidji before he was stopped and arrested.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after Senior U.S. District Judge Paul A. Magnuson sentenced the defendant.
This case is the result of an investigation conducted by the Mahnomen County Attorney’s Office, the Beltrami County Attorney’s Office, the Paul Bunyan Task Force, the Bemidji Police Department, and the Beltrami County Sheriff’s Office.
Assistant U.S. Attorneys Alexander D. Chiquoine and Ruth Shnider prosecuted the case.
Madison Felon Sentenced to 30 Months for Possessing FirearmRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Xavier Arthur, 24, Madison, Wisconsin, was sentenced today by U.S. District Judge William Conley to 30 months in prison for possessing a firearm as a felon. Arthur pleaded guilty to this charge on April 1, 2021.
On May 25, 2020, a Sun Prairie police officer stopped Arthur when the car he was driving nearly hit a bicyclist. Arthur was arrested for operating while under the influence. Police found a loaded 9mm handgun in his pocket and a loaded extended magazine in the center console of the car. Arthur said that he had the gun for protection.
In 2019 Arthur was convicted of felony bail jumping and misdemeanor domestic battery. In the battery case, charges of robbery with force, false imprisonment, and intimidation of a victim while threatening force were dismissed but read-in for sentencing purposes. There, Arthur had a handgun on him, hit the victim in the mouth, and threatened to shoot her in the head.
Arthur also has a pending charge out of Illinois for possession of a 9mm firearm with a defaced serial number. The government noted that this was now Arthur’s third firearm case.
At sentencing, Judge Conley remarked that this was very serious offense, that Arthur nearly ran over a bicyclist while driving drunk, and that having a gun while intoxicated was a “horrible combination.” The judge also noted that the prior domestic case involved him brandishing a gun, and that Arthur was on probation for that offense when arrested in this federal case. Arthur was also ordered to serve three years of supervised release.
The charge against Arthur was the result of an investigation conducted by the Sun Prairie Police Department and Bureau of Alcohol, Tobacco, Firearms and Explosives. The prosecution of the case has been handled by Assistant U.S. Attorney Corey Stephan.
This case has been brought as part of Project Safe Neighborhoods (PSN), the U.S. Justice Department’s program to reduce violent crime. The PSN approach emphasizes coordination between state and federal prosecutors and all levels of law enforcement to address gun crime, especially felons illegally possessing firearms and ammunition and violent and drug crimes that involve the use of firearms.
Local Entrepreneur Faces Federal Charges for Covid-Relief FraudRead the Press Release
PORTLAND, Ore.—An indictment was unsealed in federal court today charging a Portland entrepreneur with fraudulently applying for and converting to his personal use loans intended to help small businesses during the COVID-19 pandemic.
Peter Peacock Blood, 57, has been charged with two counts of loan fraud.
According to court documents, Blood is the sole owner and principal officer of two Oregon corporations, Cycle Power Partners, LLC, and Cycle Holdings, LLC. According to tax returns filed in 2019 and 2020, Cycle Power Partners had two or fewer employees and paid less than $6,900 in quarterly wages and other compensation. No quarterly tax returns were filed for Cycle Holdings during this time period.
In April 2020, Blood is alleged to have knowingly made false statements on two separate Paycheck Protection Program loan applications. In these applications, Blood claimed his companies had 10 employees and an average monthly payroll in excess of $116,000. The first application resulted in a loan of more than $332,000; the second yielded a loan of more than $290,000.
If convicted, Blood faces a maximum sentence of 30 years in federal prison, 5 years’ supervised release, and fines of up to $2 million.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the U.S. Treasury Inspector General for Tax Administration, the Small Business Administration Office of Inspector General, and the FBI. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
An indictment is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
The Paycheck Protection Program is an economic relief program authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act and administered by the Small Business Administration. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
On 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 http://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.
Lehighton Man Sentenced to 18 Months’ Imprisonment for Internet Threats Against the Jewish CommunityRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 13, 2021, Corbin Kauffman, age 32, of Lehighton, Pennsylvania, was sentenced by United States District Court Judge Robert D. Mariani to 18 months’ imprisonment for interstate transmission of threats to injure the person of another.
According to Acting United States Attorney Bruce D. Brandler, Kauffman pleaded guilty to a one-count criminal information and admitted that he posted a threatening image on a social media website on March 13, 2019. Kauffman posted a digitally-created image of his own arm and hand aiming an AR-15 rifle at a congregation of praying Jewish men, gathered in a synagogue. The threatening image came in the wake of the October 27, 2018 mass-shooting at Tree of Life synagogue in Pittsburgh, Pennsylvania, where 11 died and several more were wounded. On the same day he posted his own threatening image, Kauffman also shared a video of the Tree of Life shooting, as well as another post in support of the shooter. That same day, Kauffman also posted multiple references to “hate crimes” and a photograph of vandalism he committed by defacing a display case at the Chabad Lubavitch Jewish Center in Ocean City, Maryland, with white supremacist and anti-Semitic stickers.
Kauffman used various aliases online to post hundreds of anti-Semitic, anti-black, and anti-Muslim messages, images, and videos. Several of these posts, like the one charged in the information, included threats to various religious and racial groups. Other posts expressed a desire to commit genocide and “hate crimes,” and called for or depicted images of the killing of Jewish people, black people, and Muslim people. Kauffman also posted videos combining footage of a mass shooting at a Christchurch, New Zealand mosque with various audio tracks to celebrate the shooting, including video game sound effects and music.
In imposing the sentence, Judge Mariani found that Kauffman had made several threats, and that he intentionally selected the targets of his threats based on their race, religion, or ethnicity.
“While the disturbing and violent images and messages Kauffman posted online were abhorrent, that does not mean they were all criminal. Even abhorrent speech is protected by the First Amendment right to free speech,” said Acting U.S. Attorney Brandler. “But when the speech crosses the line into threats, particularly threats directed at vulnerable communities, we will not tolerate that behavior. Vulnerable communities are entitled to feel safe in living their lives and exercising their own rights. Under federal law, when you target a person or a group because of their race, religion, ethnicity, gender, gender identity, disability, or sexual orientation, that is a hate crime. And we take hate crimes very seriously in the Middle District of Pennsylvania.”
The case was investigated by the U.S. Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Sean A. Camoni.
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Leader of Cross-Country Methamphetamine Conspiracy ConvictedRead the Press Release
NORFOLK, Va. – A Chesapeake man was convicted today on methamphetamine and money laundering charges after a three-day bench trial.
According to court records and evidence presented at trial, Xavier Howell, 35, led the Virginia side of a multi-state, multi-kilogram methamphetamine conspiracy. He and his co-conspirators imported over 10 kilograms of high-purity methamphetamine, sourced from a California-based Grape Street Crips gang member, through the mail with the assistance of a corrupt U.S. Postal Service supervisor. The group also smuggled fentanyl into Hampton Roads on a commercial air flight.
“With the assistance of a corrupt federal employee and others, the defendant flooded South Hampton Roads with methamphetamine as part of a cross-country conspiracy supplied by a California-based gang,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Through the hard work and dedication of the trial team, this defendant and others have been brought to justice for threatening the safety of our communities.”
Howell faces a mandatory minimum sentence of 10 years and a maximum sentence of life when he is sentenced on November 12. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; Daniel A. Adame, U.S Postal Inspector in Charge for the Washington Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after U.S. District Judge John A. Gibney, Jr. announced the verdict.
Assistant U.S. Attorneys Andrew Bosse and Amanda Turner are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-11.
KC Man Sentenced to 12 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man was sentenced in federal court today on child pornography charges after he solicited young victims to engage in sex acts while live streaming over the internet.
Robert P. Salapuddin, 39, was sentenced by U.S. District Judge Greg Kays to 12 years in federal prison without parole. The court also ordered Salapuddin to spend the rest of his life on supervised release following incarceration.
On Sept. 10, 2020, Salapuddin pleaded guilty to one count of receiving child pornography over the internet and one count of possessing child pornography. Salapuddin admitted that he received a pornographic video of a minor victim on Jan. 3, 2016. He also admitted that he possessed images of child pornography on both his laptop and desktop computers on Jan. 11, 2017.
The investigation began when law enforcement received an anonymous tip that Salapuddin was soliciting young girls to perform sex acts for him via a live streaming app. When officers contacted Salapuddin at his residence on Jan. 11, 2017, they determined that he received and possessed a collection of child pornography. He admitted to using various internet apps to receive and possess videos and images of teenage girls as young as 13 engaging in sexually explicit conduct.
Investigators found more than 35 videos of child pornography on Salapuddin’s computers, many of which appeared to be recordings from web cams or chat programs. They also discovered more than 250 images (some duplicates) of possible child pornography. Investigators found thousands of messages on Salapuddin’s iPhones, including message strings that mentioned the user was under the age of 18. More than 1,000 photos of teenage girls and cell phone screen shots were organized into folders with girls' names and/or the term "nudes." The photos often depicted the subject in a series of photos, both clothed, then naked.
For example, investigators discovered a video of a live stream chat between a minor female as she bathed and someone who sounded like Salapuddin on Jan. 11, 2017. They discussed makeup and the girl being just 16 years old. As the girl gets out of the tub, the male off camera voice is heard to say: “Now Rob gets to dress you.”
This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the FBI and the Kansas City, Mo., Police Department.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
KC Man Pleads Guilty to Botched Robbery at Grandview Auto DealerRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Missouri, man pleaded guilty in federal court today to the botched robbery of a Grandview, Mo., auto dealership that ended when he shot an employee while fleeing, after a shootout with the owner, who was also armed.
Lyndale E. Watson, also known as “Red, “Blood,” and “Stoni Blud,” 36, pleaded guilty before U.S. District Judge Brian C. Wimes to one count of attempted robbery and one count of carrying a firearm in relation to a crime of violence.
According to today’s plea agreement, Watson wore a scarf over his face when he walked into Pride Auto Sales, a car lot at 12800 S. US 78 Highway in Grandview, on Feb. 19, 2015. Watson asked an employee, identified in court documents as “M.M.,” about a car for sale. After the owner came to the front of the business, Watson pulled out a firearm, pointed the gun at the owner, and said, “Don’t move.”
The owner, already armed with a firearm, ran back to his office as Watson shot at him. The two engaged in a firefight. As Watson ran out of the business, he shot M.M. in the back as M.M. was trying to escape himself. M.M. was wounded but survived the shooting.
On Feb. 27, 2015, law enforcement officers executed a search warrant at Wallace’s residence and found a Hi-Point 9mm rifle, a plastic bag that contained 98 rounds of 9mm ammunition, and a .380-caliber Winchester round that matched the shell casings recovered from the auto dealership.
Watson said he carried out the attempted robbery at the behest of a friend formerly employed at Pride Auto Sales, who claimed to be owed money by the owner of the car lot.
Under federal statutes, Watson is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of life 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.
This case is being prosecuted by Assistant U.S. Attorney Jeffrey Q. McCarther. It was investigated by the Grandview, Mo., Police Department, the Kansas City, Mo., Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Requires Divestitures in Transaction between Global Industrial and Agricultural Equipment Component ManufacturersRead the Press Release
The Department of Justice announced today that it will require Danfoss A/S (Danfoss) and Eaton Corporation Plc (Eaton) to divest assets from both Danfoss’s and Eaton’s orbital motor and hydraulic steering unit manufacturing businesses in order to proceed with their proposed asset purchase agreement. Without these divestitures, the transaction would substantially lessen competition in the design, manufacture, and sale of orbital motors and hydraulic steering units used in agricultural, industrial and construction equipment in the United States.
The Justice Department’s Antitrust Division filed a civil antitrust lawsuit today in the U.S. District Court for the District of Columbia to block the proposed transaction. At the same time, the Antitrust Division filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit.
“Orbital motors and hydraulic steering units are essential components in equipment used in the agricultural, industrial and construction industries,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The transaction, as originally proposed, would have led to higher prices and lower quality for original equipment manufacturers in these industries that are vital to the American economy. The remedy preserves competition in the manufacture and sale of these products for the benefit of equipment manufacturers and consumers.”
According to the complaint, Danfoss and Eaton are the two largest suppliers of orbital motors used for mobile off-road equipment in the United States. Orbital motors are used to propel and power the working attachments in equipment like skid steer loaders, harvesters and street sweepers. The complaint also alleges that Danfoss and Eaton are the two largest suppliers of hydraulic steering units that help turn a vehicle’s wheels using hydraulic fluid. According to the complaint, absent a divestiture, the proposed transaction between Danfoss and Eaton would lead to higher prices, decreased quality of delivery and service, and diminished innovation.
Under the terms of the proposed settlement, the parties must divest three Danfoss orbital motor and hydraulic steering unit facilities located in Hopkinsville, Kentucky; Parchim, Germany; and Wroclaw, Poland, and two orbital motor production lines and one hydraulic steering unit production line from Eaton facilities located in Shawnee, Oklahoma, and Eden Prairie, Minnesota, to Interpump Group S.p.A. (Interpump) or an alternate acquirer approved by the United States. Interpump is a global, established provider of cylinders, pumps and valves with operations in North America, Europe, South America, and Asia.
The department expressed thanks to its enforcement partners in the European Commission for their close and constructive collaboration on this matter, which enabled a thorough investigation and resulted in remedies that will preserve competition in the United States and Europe.
Danfoss A/S, a global corporation headquartered in Nordborg, Denmark, manufactures components and engineering technologies, among other products, for hydraulics for off-road machinery through its Power Solutions division. Danfoss’s Power Solutions division had sales of approximately €6.3 billion in 2019.
Eaton Corporation Plc, a global corporation headquartered in Dublin, Ireland, manufactures hydraulic motors, power units, valves and steering units through its subsidiary’s Power & Motion Controls Division. Eaton’s Power & Motion Controls Division had sales of approximately $2.2 billion in 2019.
As required by the Tunney Act, the proposed settlement, along with a competitive impact statement, will be published in the Federal Register. Any person may submit written comments concerning the proposed settlement during a 60-day comment period to Jay Owen, Acting Chief, Defense, Industrials, and Aerospace Section, Antitrust Division, U.S. Department of Justice, 450 Fifth Street NW, Suite 8700, Washington, D.C. 20530. At the conclusion of the 60-day comment period, the U.S. District Court for the District of Columbia may enter the final judgment upon finding it is in the public interest.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Judge sentences St. Louis man for armed robbery, attempted robbery, and discharging a firearmRead the Press Release
ST. LOUIS – United States District Court Judge Henry E. Autrey accepted pleas of guilty from Isaac Gonzalez for crimes involving robbery, attempted robbery, and discharging a firearm in furtherance of that attempted robbery today. Immediately after the guilty pleas, Gonzalez, a 24-year-old St. Louis, Missouri resident, was sentenced to a term of imprisonment of 13 years and 4 months.
On May 21, 2019, Gonzalez entered the Cash America Pawn shop located in the 10500 block of Page Avenue in St. Louis County. He was armed with a handgun and had his face partially covered with a bandana. He announced a robbery and ordered an employee to the back of the store. Gonzalez then ordered the employee to remove cash from the safe. Gonzalez stole the cash and left the store.
On June 4, 2019, Gonzalez again entered the Cash American Pawn shop wearing clothing that was similar to the clothing he had worn in the first robbery. Gonzales was armed with a handgun. Gonzalez went toward the rear of the store where the safe was located. An employee saw what was happening and closed the door which separated the main area of the store from the back office. Gonzalez began banging on the door and yelling at the employee to open the door. When the employee refused, Gonzalez fired his weapon at the office door. A bullet travelled through the door and into the office. No one was hurt. Gonzalez retrieved the spent cartridge casing and left the store.
St. Louis County Police had been looking for Gonzalez in connection with an unrelated incident. On June 5, 2019, officers received information that Gonzalez was staying at a motel in St. Louis County. Police went to the motel and located Gonzalez in a room with a female acquaintance. The officers seized clothing and a pistol from the room that appeared to be the clothing worn by Gonzales and the gun used by Gonzales during the May and June robbery and attempted robbery incidents of the Cash American Pawn shop.
The St. Louis County Police Department and Federal Bureau of Investigation investigated this case. Assistant United States Attorney Paul D’Agrosa is handling this matter.
Joint Law Enforcement Operation Results in Arrests and Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
LAS VEGAS, Nev. – Federal indictments in the District of Nevada have been unsealed, charging six defendants with nearly 100 criminal charges in connection with an alleged drug trafficking ring and money laundering conspiracy.
These charges are the result of a global joint investigation, “Operation Money Maker,” comprised of nine law enforcement agencies that worked closely together to target a crime organization.
According to allegations set forth in the indictments:
- Barak Amar (51, of Las Vegas) conspired with others to distribute more than 500 grams of cocaine, a Schedule II controlled substance. He is indicted on one count of conspiracy to distribute a controlled substance and one count of distribution of a controlled substance.
- Arshak Arayan (41, of Los Angeles, California) conspired with others to distribute more than 500 grams of cocaine. He is indicted on one count of conspiracy to distribute a controlled substance and six counts of distribution of a controlled substance.
- Ofir Frieden (38, of San Jose, California) conspired with others to distribute more than 500 grams of cocaine. He is indicted on 45 counts of money laundering, eight counts of conspiracy to distribute a controlled substance, and ten counts of distribution of a controlled substance.
- Djekem Kedoshim (31, of Seattle, Washington) is a business owner who wrote a business check in the amount of illegal drug proceeds to co-conspirators. He is indicted on one count of conspiracy to commit money laundering and four counts of money laundering.
- Moshe Malka (36, of Las Vegas) conspired with others to deposit illegal cash proceeds into his bank account and wrote checks to co-conspirators for the cash received. He is indicted on one count of conspiracy to commit money laundering and ten counts of money laundering.
- Shine True (39, of Phoenix, Arizona) conspired with others to deposit illegal cash proceeds into her bank account and wrote checks to co-conspirators for the cash received. She is indicted on one count of conspiracy to commit money laundering and eight counts of money laundering.
“Our office appreciates the opportunity to partner with the FBI and law enforcement agencies across the world to combat the flow of cocaine into our communities and stop the laundering of illegal drug proceeds,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “The hard work and dedication of our law enforcement partners made it possible to disrupt this crime operation.”
“This is a brilliant example of the power of the international partnerships the FBI enjoys to combat the most dangerous organizations in the world,” said Special Agent in Charge Aaron C. Rouse for the FBI. “This operation should be a wakeup call to other criminals that regardless of where they think they can hide; the FBI and its partners will find them and bring them to justice.”
An indictment merely alleges that a crime has been committed. Every defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
If convicted, the statutory maximum penalties for each count faced by each defendant are:
Defendant
Charges
Stat. Max. Penalties
Barak Amar
Conspiracy to Distribute a Controlled Substance
40 yrs. imprisonment (5 yrs. mandatory minimum), $5 million fine, and at least 4 yrs. supervised release
Distribution of Controlled Substance
20 yrs. imprisonment, $1 million fine, and 3 yrs. supervised release
Arshak Arayan
Conspiracy to Distribute a Controlled Substance
40 yrs. imprisonment (5 yrs. mandatory minimum), $5 million fine, and at least 4 yrs. supervised release
Distribution of a Controlled Substance
20 yrs. imprisonment, $1 million fine, and 3 yrs. supervised release
Ofir Frieden
Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
Conspiracy to Distribute a Controlled Substance
40 yrs. imprisonment (5 yrs. mandatory minimum), $5 million fine, and at least 4 yrs. supervised release
Distribution of a Controlled Substance
20 yrs. imprisonment, $1 million fine, and 3 yrs. supervised release
Djekem Kedoshim
Conspiracy to Commit Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
Moshe Malka
Conspiracy to Commit Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
Shine True
Conspiracy to Commit Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
Money Laundering
20 yrs. imprisonment, $250,000 fine, and 3 yrs. supervised release
This case was investigated by the FBI with significant assistance by the Australian Federal Police, the Royal Canadian Mounted Police, the Colombian National Police, the Costa Rican Judicial Investigation Organization, the Israeli National Police, the SRI – Romanian Intelligence Service, and the UK National Crime Agency. Assistant U.S. Attorney Daniel R. Schiess is prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts and dismantles the highest-level criminal organizations that threaten the United States, using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
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Jacksonville Man Sentenced to 64 Years in Federal Prison for Soliciting the Production and Posting of Child Sex Abuse Images and Videos on Motherhood Blog WebsitesRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Colum Patrick Moran, Jr. (43, Jacksonville) to 64 years in federal prison for attempting to entice minors to produce images and videos depicting child sexual abuse and for possessing materials depicting the sexual exploitation of children on his electronic devices. Moran was also ordered to serve a lifetime term of supervised release and to register as a sex offender.
A federal jury had found Moran guilty on March 10, 2021.
According to court documents, as well as evidence and testimony during the three-day trial, between 2015 and late 2018, Moran, using the name “Emily lover,” posted comments to numerous internet motherhood blog websites. These websites are designed and intended to offer and share helpful information about motherhood, childcare, useful commercial products, and other topics related to family life. During this period, Moran repeatedly posted sexually explicit comments that targeted mothers and their young children by name on these blogs. Further, Moran intentionally posted graphic comments on these blogs requesting that the mothers produce and post images and videos of their children engaging in sexually explicit conduct.
On March 6, 2019, FBI agents and other law enforcement officers executed a federal search warrant at Moran’s apartment in Jacksonville. During this search, law enforcement seized several smart phones and computers containing more than 1,000 images and videos depicting very young children, including infants and toddlers, being sexually abused. One of the smart phones had been used by Moran to access numerous motherhood blog websites and contained images of sexually explicit postings made by Moran with the usernames “Emily lover” and “Anonymous.” Agents also seized a plastic storage bin that contained a collection of children’s underwear, as well as several firearms, ammunition, and a bulletproof vest with Velcro law enforcement identification patches.
“This case demonstrates the lengths that predators will go to target innocent children online, and reveals the havoc placed on their families,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “While the FBI, in general, does not comment on specific websites or apps, we want parents to be aware of the risks and vulnerabilities posed by websites and apps that offer interactive communication capabilities to include video live-streaming and image sharing functionalities. While some predators target children directly for this content, this subject went a step further and also targeted parents, leaving many of them absolutely terrified. The FBI encourages online users to be vigilant and report any suspicious activity to law enforcement.”
This case was the result of a nationwide investigation by the Federal Bureau of Investigation in Jacksonville and Los Angeles, the Jacksonville Sheriff’s Office, and the Ohio Bureau of Criminal Investigation, with assistance from the National Center for Missing and Exploited Children in Alexandria, Virginia. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
This is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.