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Tuesday 6 July 2021
Former CFO Pleads Guilty to Embezzling over $1.6 MillionRead the Press Release
SACRAMENTO, Calif. — Christopher Firle, 51, of Fairfield, pleaded guilty today to one count of wire fraud, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Firle was the Chief Financial Officer of a holding company that managed several vehicle dealerships. From January 2016 through September 2019, Firle misappropriated over $1.6 million from the company. He carried out his embezzlement scheme in multiple ways, including by using company credit cards to pay for over $750,000 in personal expenses. The unauthorized charges included tickets to sporting events and purchases at several retail stores, including Bergdorf Goodman, Chanel, Hermès, Nordstrom, and Tiffany & Co. Firle also initiated over 30 unauthorized wire transfers from the company to a family member. Those transfers totaled over $500,000. Additionally, Firle issued over 30 unauthorized company checks to himself that totaled over $165,000, and he withdrew over $50,000 from a company account without authorization. Finally, Firle issued himself excess bonus payments totaling almost $160,000.
This case is a product of an investigation by the Federal Bureau of Investigation. Assistant United States Attorney Matthew Thuesen is prosecuting the case.
As part of his guilty plea, Firle agreed to pay restitution of $1,937,706 to his former employer. He also agreed to forfeit $1,652,269.44 to the United States.
U.S. District Judge John A. Mendez is scheduled to sentence Firle on October 19, 2021. Firle faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the court’s discretion after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Federal Grand Jury Indicts Man for Gun and Drug OffensesRead the Press Release
NEW ORLEANS, LOUISIANA – On July 1, 2021, a federal grand jury returned a three-count indictment charging a New Orleans man for violations of the Federal Gun Control and Federal Controlled Substances Acts, announced U.S. Attorney Duane A. Evans.
According to court documents, CHARLES ROY, age 32, is charged in Count 1 with possession with intent to distribute a quantity of a mixture of fentanyl and heroin, in violation of Title 21, United States Code, Sections 841(a)(1), (b)(1)(B), and (b)(1)(C). In Count 2, ROY is charged with possession of a firearm by a convicted felon, in violation of Title 18, United States Code, Section 922(g)(1). In Count 3, ROY is charged with possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18 United States Code, Section 924(c)(1)(A).
If convicted of Count 1, ROY faces a maximum sentence of 40 years imprisonment, up to a $5,000,000 fine, at least 4 years of supervised release, and a mandatory special assessment of $100. If convicted of Count 2, ROY faces a maximum sentence of 10 years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a mandatory special assessment of $100. If convicted of Count 3, ROY faces a mandatory consecutive 5 years imprisonment, up to life imprisonment, a $250,000 fine, up to 5 years of supervised release, and a mandatory special assessment of $100.
U.S. Attorney Evans stated that an indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
This case was investigated by the Louisiana State Police and the Office of Homeland Security Investigations. The prosecution of this case is being handled by Assistant United States Attorney Christopher Usher.
Eastern District of Texas Delivers Another Blow Against White Supremacist Prison GangRead the Press Release
BEAUMONT, Texas – Three individuals connected to the Aryan Circle (AC) prison gang have pleaded guilty to federal violations, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Anthony Levi Cochran, 39, of Bullard, Texas pleaded guilty today to charges related to an October 2016 violent assault in the Eastern District of Texas. Specifically, he admitted to assault resulting in serious bodily injury in aid of racketeering, as well as conspiracy to sell firearms to a convicted felon. Cochran committed the assault as part of his membership in the AC.
Additionally, Breanna Beckley, 40, of Moberly, Missouri, pleaded guilty on June 29, 2021, to conspiracy to possess with intent to distribute a controlled substance, namely 500 grams or more of a mixture or substance containing methamphetamine. Shane Louque, 46, of Gonzales, Louisiana, pleaded guilty to the same charges today.
“In the battle against organized, multistate criminal organizations, agency cooperation is essential,” said Acting U.S. Attorney Nicholas J. Ganjei. “Criminals carry on their illegal and violent conduct in whatever jurisdiction benefits them the most, so we need to bring the fight to them, wherever they might be.”
The AC is a violent, white supremacist organization that originated in the Texas Department of Corrections and operates in federal prisons across the country, as well as outside prisons in states including Texas, Arkansas, Louisiana, and Missouri. The AC enforces its rules and promotes discipline among its members, prospects, and associates through murder, attempted murder, assault, and threats. Members, and oftentimes associates, are required to follow the orders of higher-ranking members without question.
Cochran’s offense conduct included planning and participating in the events surrounding a violent beating of another AC member who wanted to switch his gang affiliation, or “patch over,” from the AC to a different gang. Cochran and other AC members carried out the attack in order to “X,” or remove, the AC member from the gang, because it violated the AC’s rules to join another organization. According to court documents, Beckley transported between 1.5 and 5 kilograms of methamphetamine in 2016, from Houston, Texas, to buyers in Louisiana, such as Louque and other AC members. The drug conspiracy that Beckley and Louque pleaded to was uncovered as part of Operation Noble Virtue, an investigation into the AC that has targeted AC leadership.
Cochran was indicted by a federal grand jury on Oct. 7, 2020. He faces up to 20 years in federal prison. Beckley and Louque were also indicted on Oct. 7, 2020, and each face up to life in federal prison. The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case is being investigated by an Organized Crime Drug Enforcement Task Force (OCDETF) consisting of the Bureau of Alcohol, Tobacco, Firearms and Explosives; Drug Enforcement Administration; Federal Bureau of Prisons; Texas Department of Public Safety; Houston Police Department-Gang Division; Montgomery County (TX) Precinct One Constable’s Office; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; Texas Department of Criminal Justice; New Jersey Department of Corrections-Special Investigations Division; Indiana State Police; Fort Smith (AR) Police Department; Arkansas Department of Corrections; Arnold (MO) Police Department; Jefferson County (MO) Sheriff’s Department; St. Louis Metropolitan Police Department; St. Louis County (MO) Police Department; Indiana Department of Corrections; Carrollton (TX) Police Department; Montgomery County (TX) Sheriff’s Office; Travis County (TX) Sheriff’s Office; Tarrant County (TX) Sheriff’s Office; Evangeline Parish (LA) Sheriff’s Office; Smith County (TX) Sheriff’s Office; McCurtain County (OK) Sheriff’s Office; Montgomery County (TX) District Attorney’s Office; Liberty County (TX) District Attorney’s Office; Harris County (TX) District Attorney’s Office; Mercer County (NJ) Prosecutor’s Office; Evangeline Parish (LA) District Attorney’s Office; and the Sebastian County (AR) District Attorney’s Office.
Assistant U.S. Attorney Christopher Rapp of the Eastern District of Texas is prosecuting these cases along with trial attorneys from the Organized Crime and Gang Section of the Department of Justice.
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East Hartford Man Pleads Guilty to Trafficking Fentanyl AnalogueRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that WILLIAM VALERIO-PALERMO, also known as “Willy,” 35, of East Hartford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to possession with intent to distribute 100 grams or more of acetylfentanyl, a fentanyl analogue.
According to court documents and statements made in court, in 2018, law enforcement received information that Valerio was trafficking kilogram-quantities of fentanyl and was using his Hartford auto-repair business to launder drug proceeds. On July 12, 2018, a court-authorized search of a West Hartford apartment that Valerio rented revealed approximately six kilograms of acetylfentanyl, items used to process and package narcotics, and approximately $49,000 in cash.
Judge Thompson scheduled sentencing for September 28, 2021.
Valerio has been detained since his arrest on July 12, 2018.
This investigation has been conducted by the DEA’s Hartford Task Force and the FBI’s Northern Connecticut Gang Task Force. The Drug Enforcement Administration’s Hartford Task Force includes personnel from the Bristol, Hartford, East Hartford, Manchester, New Britain, Rocky Hill, Wethersfield, Windsor Locks and Willimantic Police Departments. The FBI’s Northern Connecticut Gang Task Force includes the Hartford Police Department, East Hartford Police Department, New Britain Police Department, West Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Duquesne, PA Felon Indicted on Drug and Gun ChargesRead the Press Release
PITTSBURGH, PA - A resident of Duquesne, Pennsylvania has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotic and firearm laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment, returned on May 5 and unsealed today, named Brandon McCaskill, age 35, as the sole defendant.
According to the Indictment, on or about August 17, 2020, McCaskill possessed with the intent to distribute mixtures of controlled substances containing fentanyl, heroin, tramadol, and cocaine. The Indictment also alleges that McCaskill was in possession of a firearm in furtherance of a drug trafficking crime. The Indictment further alleged that McCaskill, a convicted felon, possessed both a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a term of imprisonment of life and/or a fine of up to $2,000,0000. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Duquesne Police Department, The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Dubuque Man Sentenced to Twelve Years in Prison for Attempting to Tamper with WitnessesRead the Press Release
A man who attempted to tamper with witnesses after he was facing charges related to an incident with a firearm was sentenced on July 2, 2021, to twelve years in federal prison.
Stephan Wayne Toliver, age 35, from Davenport, Iowa, received the prison term after a January 13, 2021 guilty plea to attempted witness tampering.
In a plea agreement, Toliver admitted that he struck a woman with a gun, knocking her unconscious. Toliver also admitted to making false accusations against family members of the victim resulting in an investigation by DHS and the Dubuque Police Department that ultimately showed no wrongdoing by them. Toliver also admitted that he sent a letter to the victim falsely telling her that if she or her family testified against him, DHS would use that information against her family.
Toliver was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Toliver was sentenced to 144 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Toliver is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and investigated by the Dubuque Police Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-cr-1033.
Follow us on Twitter @USAO_NDIA.
Documented Macon Gang Member Pleads Guilty to Federal Gun ChargeRead the Press Release
MACON, Ga. – A documented gang member with a violent criminal history pleaded guilty to illegally possessing a firearm after law enforcement arrested him with a loaded semi-automatic pistol.
Derrick Murphy, 28, of Macon, pleaded guilty to one count of possession of a firearm by a convicted felon before U.S. District Judge Marc Treadwell today and remains in custody. Murphy faces a maximum sentence of ten years in prison and a $250,000 fine. Sentencing is currently scheduled for September 8, 2021. There is no parole in the federal system.
According to court documents, Murphy was taken into custody on March 5, 2020, following a traffic stop by a Georgia State Patrol (GSP) trooper on Pio Nono Avenue in Macon. The trooper on patrol observed the vehicle Murphy was driving make multiple traffic violations and then turn into a fast-food restaurant’s drive-thru. Murphy was in the drive-thru line when the trooper pulled into the parking lot. Murphy then drove away without picking up any items in the drive-thru window and backed his car into some bushes. Someone got out of the right rear passenger door and ran. Murphy drove towards the trooper’s vehicle and the trooper turned on his take down lights in order to initiate a traffic stop.
The trooper approached the vehicle and could smell marijuana coming from the vehicle. Murphy, who was in the driver’s seat, claimed that he did not know who ran from the vehicle, and he and the passenger did not have identification. Murphy gave a false name and date of birth. An infant was in the back seat of the vehicle and the trooper noticed that the child was not properly restrained in the child safety seat. In the vehicle, the trooper located several sandwich bags which contained methamphetamine along with a digital scale. A firearm was also visible. The firearm was a 9-millimeter caliber semi-automatic pistol loaded with four rounds in the magazine and one round in the chamber. Murphy, who was driving with a suspended license for DUI drugs and was wanted on a parole violation warrant, was taken into custody and admitted that he had been incarcerated for five years for criminal street gang activity and that he had purchased the firearm for $150 approximately two weeks prior to his arrest. Murphy has prior convictions in the Superior Court of Bibb County, Georgia, for violation of the street gang terrorism and prevention act, obstruction of an officer and aggravated assault.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Georgia State Patrol (GSP), Bibb County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
Assistant U.S. Attorney William Keyes is prosecuting the case.
Dickinson County Man Pleads Guilty to Meth ConspiracyRead the Press Release
A Dickinson County man who conspired to distribute meth pled guilty July 7, 2021, in federal court in Sioux City.
Jared Wolthuis, 32, from Milford, Iowa, was convicted of conspiring to distribute methamphetamine.
At the plea hearing, Wolthuis admitted his involvement in a conspiracy that distributed more than three pounds of pure methamphetamine from July, 2018, through approximately March of 2020 in the Dickinson County, Iowa area. On March 17, 2020, law enforcement executed a search warrant at a co-conspirators residence and seized 20 pounds of methamphetamine from the residence. During the course of the execution of the search warrant, law enforcement stopped Wolthuis leaving the residence in a vehicle. Upon a search of the vehicle, law enforcement seized 3 pounds of pure meth that Wolthuis admitted he planned to distribute to other persons.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Wolthuis remains free on bond previously set. Wolthuis faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and 5 years up to life of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4050. Follow us on Twitter @USAO_NDIA.
Detroit Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Detroit man pleaded guilty today to a federal drug crime. Jaishawn Harris, 19, pleaded guilty to possession with intent to distribute fentanyl.
According to court documents, on March 11, 2021, law enforcement officers were conducting criminal interdiction and surveillance at a motel on Route 60 for possible drug activity. The officers observed numerous individuals associated with at least two different rooms interacting with each other. During the surveillance, officers observed a gold Honda pull up to the hotel room. An unknown black male, later identified as Harris, exited a room with a female and placed a bag in the trunk. Officers following the vehicle attempted a traffic stop, however, the Honda failed to stop. Eventually, Harris fled from the Honda on foot and was apprehended shortly thereafter. Law enforcement officers searched the Honda and found approximately nine grams of fentanyl in the bag that Harris had placed in the trunk.
Harris faces up to 20 years imprisonment when sentenced on October 12, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Huntington Violent Crime Drug Task Force, the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey 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. 3:21-cr-00059.
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Detroit Man Pleads Guilty in Unemployment Fraud SchemeRead the Press Release
DETROIT - A Detroit man pleaded guilty today for his role in a scheme aimed at defrauding the State of Michigan, other states, and the U.S. Government of funds earmarked for unemployment assistance during the COVID19 pandemic, announced Acting United States Attorney Saima Mohsin.
Joining in the announcement were Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General, Special Agent in Charge Douglas J. Zloto, US Secret Service, Acting Special Agent in Charge Juan Vargas, US Postal Inspection Service, Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Acting Special Agent in Charge Brian Thomas, Internal Revenue Service-Criminal Investigation and Liza Estlund Olson, acting director of the Unemployment Insurance Agency.
Pleading guilty was Johnny Richardson, 26.
According to court records, Richardson conspired with others including Brandi Hawkins—a former contract employee for the State of Michigan Unemployment Insurance Agency who pleaded guilty last month—to fraudulently obtain hundreds of thousands of government money that was intended to support individuals who lost their jobs during the COVID-19 pandemic.
According to the plea agreement, Richardson, either himself or through others, filed fraudulent unemployment claims over the Internet in at least five states resulting in the fraudulent disbursement of at least $683,555 of funds intended for unemployment assistance during the pandemic. Richardson provided Hawkins information on Michigan claims, and Hawkins subsequently used her insider access to fraudulently release payments on these claims.
Richardson is scheduled to be sentenced on November 9, 2021 at 11 am before United States District Judge Bernard A. Friedman. Co-defendant Micahia Taylor is scheduled for a plea hearing on August 10, 2021 at 11:30am.
The case is being prosecuted by Assistant United States Attorney Timothy Wyse. The investigation is being conducted jointly by the Department of Labor, Office of Inspector General, United States Secret Service, Internal Revenue Service - Criminal Investigation, Federal Bureau of Investigation, the U.S. Postal Inspection Service and the Unemployment Insurance Agency, Michigan Department of Labor and Economic Opportunity
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts.
For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form
Des Moines Man Sentenced for Defrauding WIC and SNAP ProgramsRead the Press Release
Des Moines, Iowa – A Des Moines man was sentenced on Friday, July 2, 2021, to 15 months in prison for conspiracy to commit wire fraud.
According to court documents, Osman Rashid Jama, age 39, defrauded the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC) and the Supplemental Nutrition Assistance Program (SNAP) from at least January 2017 through April 2019. Jama owned and operated the MidCity Halal Food Market Inc., d/b/a International Food Market (International), in Des Moines. Jama, and others at his direction, scanned SNAP and WIC recipients’ EBT cards at his store. Instead of giving the recipient the WIC and/or SNAP approved items, Jama and others gave recipients non-approved items, store credit, and cash. Jama also used SNAP recipients’ EBT cards to purchase items to stock his store. Jama was found to have defrauded the programs a total of $1,445,460.47 and was ordered to pay restitution to the agencies that administer the programs.
Acting United States Attorney Richard D. Westphal made the announcement. The Federal Bureau of Investigation and United States Department of Agriculture – Office of Inspector General investigated the case.
Cleveland man admits to role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Eiandreus Kirkland Rebraun Pique, of Cleveland, Ohio, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Pique, also known as “Duke,” age 25, pleaded guilty to one count of “Aiding and Abetting the Distribution of Cocaine Base within 1000 feet of a Protected Location.” Pique admitted to working with someone to distribute cocaine base, also known as “crack,” near Wheeling University in February 2020.
Pique faces at least one and up to 40 years of incarceration and a fine of up to $2,000,000. 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. Attorneys Shawn M. Adkins and Clayton J. Reid are prosecuting the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. Magistrate Judge James P. Mazzone presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Charleston Woman Sentenced to Federal Prison for Role in Multi-State Methamphetamine ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Charleston woman who conspired with multiple individuals to distribute methamphetamine in 2018 and 2019 was sentenced today to 12 months and one day in federal prison.
According to court documents, between the fall of 2018 and September 2019, Melanie Lynne Curnutte, 58, conspired with multiple individuals to distribute methamphetamine in the Huntington and Charleston areas. During the conspiracy, Curnutte repeatedly obtained quantities of methamphetamine which were transported from Akron to Huntington. Curnutte relied on multiple individuals from Akron to deliver the methamphetamine to her and Curnutte would in turn distribute the methamphetamine to various customers. Curnutte admitted that she was aware that some of her customers intended to distribute the methamphetamine she provided to them.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department and the Brecksville, Ohio Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams 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. 3:19-cr-00245.
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Bridgeport Gang Member Pleads Guilty to Federal Racketeering Charge Stemming from 2018 MurderRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that TA’RON PHARR, also known as “250,” 21, of Bridgeport, pleaded guilty today before U.S. District Judge Kari A. Dooley in Bridgeport to a racketeering charge stemming from a gang-related murder in Bridgeport’s East End in August 2018.
According to court documents and statements made in court, the FBI, ATF, DEA, U.S. Marshals Service and Bridgeport Police have been investigating multiple Bridgeport-based gangs whose members are involved in narcotics trafficking, murder and other acts of violence. Pharr was a member of the Original North End (“O.N.E.”), a gang based in the Trumbull Gardens area of Bridgeport that committed acts of violence against rival gang, including the East End gang, the East Side gang, and the PT Barnum gang. O.N.E. members also robbed drug dealers, sold narcotics, laundered narcotics proceeds, and stole cars from inside and outside Connecticut and used the cars to commit crimes.
On August 8, 2018, Pharr and other O.N.E. members stole a white Jeep Grand Cherokee in Newburgh, New York, and drove it back to Bridgeport. In the early morning hours of August 13, 2018, O.N.E. members drove the stolen Jeep to Union Avenue in Bridgeport where they shot and killed Len Smith, 25, who they mistook for a rival East End group member, and shot and seriously wounded Smith’s female companion, both of whom were seated in a parked car. After the shooting, Pharr and others transported the Jeep to Indian Wells State Park in Shelton where they burned the vehicle in an effort to destroy evidence of the murder.
Pharr pleaded guilty to one count of engaging in a pattern of racketeering activity, which carries a maximum term of imprisonment of 20 years. He has been detained since July 7, 2020.
This ongoing investigation is being conducted by the FBI’s Safe Streets and Violent Crimes Task Forces, ATF, DEA, U.S. Marshals Service, Bridgeport Police Department, Connecticut State Police and the Bridgeport State’s Attorney’s Office, with the assistance of the U.S. Postal Inspection Service, Connecticut Forensic Science Laboratory and the Waterbury Police Department. The case is being prosecuted by Assistant U.S. Attorneys Rahul Kale, Jocelyn C. Kaoutzanis, Peter D. Markle and Karen L. Peck.
This prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN), Project Longevity and Organized Crime Drug Enforcement Task Forces (OCDETF) programs. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
AAR Corp. Agrees to Pay $11 Million to Settle False Claims Act Allegations on Aircraft Maintenance Contract and to Pay Penalties Assessed by the FAARead the Press Release
AAR Corp., located in Wood Dale, Illinois, and its subsidiary, AAR Airlift Group Inc. (Airlift), located in Melbourne, Florida, have agreed to pay the United States $11,088,000 to resolve False Claims Act allegations in connection with aircraft maintenance services performed by Airlift on two U.S. Transportation Command (TRANSCOM) contracts.
The allegations involve helicopters that Airlift owned and maintained for use in transporting Department of Defense (DoD) cargo and personnel in support of DoD missions in Afghanistan and Africa. The settlement resolves allegations that Airlift knowingly failed to maintain nine aircrafts in accordance with contract requirements, and that because of this failure, the helicopters were not airworthy and should not have been certified by Airlift as “fully mission capable.”
AAR and Airlift have also agreed to pay $429,273.69 to resolve a separate Federal Aviation Administration (FAA) matter citing deficiencies in Airlift’s helicopter maintenance.
“The knowing failure to comply with contractual obligations is unacceptable, particularly when such violations raise safety concerns,” said Acting Assistant Attorney General Brian M. Boynton for the Justice Department’s Civil Division. “Today’s settlement reaffirms that the government will hold contractors to the quality and safety standards in their contracts that are intended to protect our men and women in uniform.”
“Defense contracting is a special trust because it supports the servicemembers who protect our nation’s interests around the world,” said U.S. Attorney Steven D. Weinhoeft for the Southern District of Illinois. “Whenever a military contractor cuts corners, it presents not only a possible fraud against taxpayers but also a potential safety hazard to our soldiers. The settlement announced today addresses both of those concerns. I am especially grateful to my staff, the many dedicated agents who worked on this matter and the witnesses who came forward.”
“Our military is entitled to rely on high level contractor performance when it procures essential services like those at issue here,” said Acting U.S. Attorney Karin Hoppmann for the Middle District of Florida. “We are grateful for the diligent and collaborative work put into this investigation by the Southern District of Illinois, the Department of Justice Civil Frauds Section and all of the investigative agencies who supported these cases.”
“Failure to properly maintain aircraft is unacceptable under any circumstances, but it’s especially egregious in a war zone, where the lives of America’s warfighters are on the line,” said John F. Sopko, Special Inspector General for Afghanistan Reconstruction (SIGAR). “I’m proud of the work of SIGAR’s special agents – in Afghanistan and the United States – whose collaboration brought this case to a successful conclusion.”
“The Department of the Air Force Office of Special Investigations (OSI) commends the complainant for coming forward, which allowed us and our joint investigative partners to vigorously protect the DoD’s procurement process, preserve the military’s ability to carry out its warfighting mission and ensure the wrongdoers were held accountable,” said Special Agent in Charge Nicholas J. Groesbeck of the OSI Procurement Fraud Detachment 4, Wright-Patterson AFB, OH.
“This case demonstrates the commitment of the Defense Criminal Investigative Service (DCIS), along with our partner agencies, to aggressively go after those who disregard and ignore critical safety and contractual specifications on Department of Defense contracts,” said Acting Special Agent in Charge Gregory P. Shilling of the DCIS Southwest Field Office. “Today’s resolution highlights the culmination of investigative efforts to hold those who supply the Department of Defense accountable for their product and actions.”
“It is unacceptable that anyone would bypass contractual agreements and most importantly safety guidelines meant to ensure the wellbeing of our American service men and women,” said Christopher Grey, spokesperson for the U.S. Army Criminal Investigation Command (CID). “We will continue to aggressively investigate allegations such as this and work closely with our law enforcement partners to bring a successful resolution.”
“The failure to perform critical maintenance to Department of Defense aircraft poses a grave and unnecessary threat to our nation’s military readiness,” said Special Agent in Charge Michael DeFamio of the Naval Criminal Investigative Service (NCIS) Central Field Office. “NCIS and our federal law enforcement partners remain committed to fully investigating any and all allegations of contract fraud that compromise the safety of our service members and waste American taxpayer money.”
“Those certified to perform critical safety aircraft inspections and maintenance work are expected to adhere to aviation regulations in order to ensure that safety is not compromised,” said Special Agent in Charge Todd Damiani of the U.S. Department of Transportation Office of Inspector General, Southern Region. “The settlement reached today clearly demonstrates that we will vigorously pursue those who choose profits over the quality and integrity of the work they are contracted to perform.”
“Improperly maintaining aircraft creates a safety risk that we absolutely will not tolerate,” said FAA Administrator Steve Dickson. “Today’s agreement makes clear that disregard for maintenance requirements is unacceptable.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Christopher Harvey, a former Airlift employee. The act permits private parties to sue for false claims on behalf of the United States and to share in any recovery. The qui tam case is captioned U.S. ex rel. Harvey v. AAR Corp., et al., No. 3:15-cv-00390 (S.D. Ill.). Mr. Harvey will receive $2,162,160 of the False Claims Act settlement.
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Southern District of Illinois; and the U.S. Attorney’s Office for the Middle District of Florida, with assistance from the U.S. Transportation Command, the FAA, Air Force OSI, DCIS, NCIS, Army CID, Department of Transportation Office of the Inspector General, the Defense Contract Audit Agency (DCAA) and SIGAR.
The case was investigated by Trial Attorney Elspeth A. England of the Civil Division and Assistant U.S. Attorneys Nathan D. Stump and Laura J. Barke of the Southern District of Illinois and Randy Harwell of the Middle District of Florida.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Monday 5 July 2021
Texas Man Sentenced in Federal Court for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Texas man convicted of failure to register as a sex offender was sentenced on June 28, 2021, by U.S. District Judge Charles B. Kornmann.
Rene Alvarez DeLeon, Jr., age 45, was sentenced to 30 months in federal prison, followed by five years of supervised release. He was also ordered to pay $100 to the Federal Crime Victims Fund.
DeLeon was indicted for failure to register as a sex offender by a federal grand jury on March 2, 2021. He pled guilty to on May 11, 2021.
According to court documents, in April 2020, DeLeon, a person required to register under the Sex Offender Registration and Notification Act, knowingly failed to register and update his registration. He is a sex offender by reason of a conviction for sexual assault of a child under the laws of the State of Texas, and he traveled in interstate commerce, and having entered, left, and resided in Indian country, while failing to register or update his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.
DeLeon was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to Federal Prison for Firearm and Drug ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City man convicted of Possession of a Firearm by a Prohibited Person, Possession with Intent to Distribute a Controlled Substance, and Possession of a Firearm in Furtherance of Drug Trafficking Crime was sentenced on June 24, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Jonathan Blacksmith, age 45, was convicted by a jury of all five charges and was sentenced to a total of 16 years and three months in federal prison. Blacksmith was also sentenced to four years of supervised released and was ordered to pay a total of $500 in special assessments to the Federal Crime Victims Fund.
Evidence at trial established Blacksmith, knowing he was a convicted felon, possessed a Glock 9mm pistol in Kyle on February 17, 2017, and a .40 caliber pistol in Rapid City in January 2017. Blacksmith distributed 50 grams or more of methamphetamine in Kyle in February 2017. In January 2017, Blacksmith distributed methamphetamine in Rapid City while in possession of the .40 caliber pistol.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice's signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department's past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/opa/pr/attorney-general-william-p-barr-announces-launch-project-guardian-nationwide-strategic-plan.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Bureau of Indian Affairs Division of Drug Enforcement, the Oglala Sioux Tribe Department of Public Safety, the Pennington County Sheriff’s Office, the Rapid City Police Department, and the Unified Narcotics Enforcement Team (“UNET”), which is a local drug task force comprised of various agencies. Assistant U.S. Attorney Eric Kelderman prosecuted and tried the case.
Blacksmith was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Unlawful Possession of Unregistered FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person and Possession of an Unregistered Firearm.
Cory Marshall, age 42, was charged on June 17, 2021. Marshall appeared before U.S. Magistrate Judge Daneta Wollmann on June 23, 2021, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Marshall, previously convicted of a felony and prohibited from possessing firearms, possessing an unregistered, illegally shortened Remington Arms, 12-gauge, pump-action shotgun, which was found after Marshall came into contact with Pennington County Sheriff’s deputies in April 2021. The charges are merely an accusation and Marshall is presumed innocent until and unless proven guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Marshall was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of Unregistered FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person and Possession of an Unregistered Firearm.
Toby Acevedo, age 50, was charged on March 18, 2021. Acevedo appeared before U.S. Magistrate Judge Daneta Wollmann on June 23, 2021, and pleaded not guilty to the charges. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Acevedo, previously convicted of a felony and prohibited from possessing firearms, possessing an unregistered, illegally shortened Mossberg International semi-automatic rifle, which was found after Acevedo came into contact with Rapid City Police officers in July 2020. The charges are merely an accusation and Acevedo is presumed innocent until and unless proven guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Acevedo was detained pending trial. A trial date has not been set.
Rapid City Man Charged with Unlawful Possession of FirearmRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man was charged in federal district court with Possession of a Firearm by a Prohibited Person.
Waylon Loefer, age 42, was charged on June 17, 2021. Loefer appeared before U.S. Magistrate Judge Daneta Wollmann on June 23, 2021, and pleaded not guilty to the charge. The maximum penalty upon conviction is 10 years in federal prison and/or a $250,000 fine, three years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Loefer, previously convicted of a felony and prohibited from possessing firearms, possessing a Taurus, .40 Smith & Wesson caliber, semi-automatic pistol, which was found after Loefer came into contact with Rapid City Police officers in February 2021. The charge is merely an accusation and Acevedo is presumed innocent until and unless proven guilty.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson is prosecuting the case.
Loefer was detained pending trial. A trial date has not been set.
Box Elder Man Pleads Not Guilty to Aggravated Sexual AbuseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Box Elder, South Dakota, man has been indicted by a federal grand jury for three counts of Aggravated Sexual Abuse and one count of Abusive Sexual Contact.
Ricardo Edward Franc Olandez, age 34, was indicted on June 17, 2021. He appeared before U.S. Magistrate Judge Daneta Wollmann on June 28, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is lifetime imprisonment and/or a $250,000 fine, up to life of supervised release, and a $400 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Olandez forcing a juvenile female to engage in sexual acts with him between April 1, 2021, and May 14, 2021, on the Ellsworth Air Force Base.
The charges are merely accusations and Olandez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Department of the U.S. Air Force Office of Special Investigations. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Olandez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for September 7, 2021.
Saturday 3 July 2021
Man Arrested on Charge of Illegally Transporting Fireworks, Including Homemade Devices that Caused Huge Explosion in South L.A.Read the Press Release
LOS ANGELES – A South Los Angeles man was arrested this afternoon on federal charges of illegally transporting tons of explosives he purchased in Nevada – including dangerous homemade devices that were detonated by police, leading to a massive explosion that destroyed a specially designed containment vehicle and injured 17 people.
Arturo Ceja III, was arrested by ATF special agents pursuant to a criminal complaint filed late Friday that charges him with transporting explosives without a license. Ceja will remain in custody until an initial appearance expected on July 6 in United States District Court in Los Angeles.
The complaint alleges that Ceja made several trips to Nevada in late June to purchase various types of explosives – including aerial displays and large homemade fireworks containing explosive materials – that he transported to his residence in rental vans. Most of the explosives were purchased at Area 51, a fireworks dealer in Pahrump, Nevada. The complaint notes that fireworks in California can be sold for as much as four times what purchasers pay for the fireworks in Nevada.
Ceja told investigators that he purchased the homemade explosives – constructed of cardboard paper, hobby fuse and packed with explosive flash powder – from an individual selling the devices out of the trunk of a Honda in the Area 51 parking lot, according to the complaint.
“Ceja did not possess an ATF explosives license or permit of any kind that would authorize him to transport either aerial display fireworks or homemade fireworks made with explosive materials, including but not limited to flash powder,” according to the complaint affidavit written by a special agent with the Bureau of Alcohol, Tobacco, Firearms and Explosives.
On Wednesday, after receiving a tip that fireworks were being stored in Ceja’s backyard, Los Angeles Police officers responded to his residence on East 27th Street. At the house, officers found over 500 boxes of commercial grade fireworks in large cardboard boxes. The initial investigation by local authorities estimated that approximately 5,000 pounds of fireworks were found; however, today the ATF determined that Ceja was storing approximately 32,000 pounds of fireworks in his backyard.
“[T]he fireworks were stored outside and in an unsafe manner, namely under unsecured tents and next to cooking grills,” the complaint alleges. “None of the commercial fireworks or homemade fireworks, which contained explosive materials, were stored in an approved magazine.”
In addition to the commercial fireworks, the initial search of Ceja’s residence led to the discovery of over 140 other homemade fireworks (typically referred to M devices of varying sizes), as well as explosives-making components, including hobby fuse that matched the fuse on a homemade mortar shell wrapped in tin foil that was discovered inside the residence, according to the affidavit.
While the fireworks were being removed from Ceja’s residence, the LAPD Bomb Squad determined that some of the homemade fireworks containing explosive materials were not safe to transport due to risk of detonation in a densely populated area and therefore would be destroyed on scene using a total containment vessel (TCV), according to the affidavit. During the destruction of the devices, the entire TCV exploded, causing a massive blast radius, damaging homes in the neighborhood and injuring a total of 17 law enforcement personnel and civilians.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
The charge of transporting explosives without a license carries a statutory maximum sentence of 10 years in federal prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the United States Department of Transportation, Office of Inspector General; and the Los Angeles Police Department are investigating this matter.
Assistant United States Attorneys Amanda M. Bettinelli and Erik M. Silber of the Environmental and Community Safety Crimes Section are prosecuting this case.
Friday 2 July 2021
Woman Pleads Guilty to Violating Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced on Thursday July 1, 2021, that JILL MARTIN, age 39, a resident of New Orleans, pled guilty to participating in a conspiracy to distribute and to possess with intent to distribute 500 grams or more of a mixture or substance containing a detectible amount of methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A).
According to court documents, MARTIN supplied another New Orleans drug dealer with pounds of methamphetamine which she obtained from a drug dealer in Hammond, Louisiana.
United States District Court Judge Mary Ann Vial Lemmon will sentence MARTIN on October 21, 2021. For the drug trafficking violation, MARTIN faces a term of imprisonment of not less than 10 years and not more than life in prison, a fine of up to $10,000,000.00, a period of supervised release of at least 5 years, and a mandatory special assessment fee of $100.00.
The case was investigated by the Federal Bureau of Investigation and the New Orleans Police Department. This case is being prosecuted by United States Attorney Maurice Landrieu of the U.S. Attorney’s Office.
Two O.C. Men Agree to Plead Guilty to Securities Fraud Charge for Swindling Investors Through $1.8 Million Cryptocurrency OfferingRead the Press Release
LOS ANGELES – Two Orange County men were charged today with conning thousands of investors into purchasing a cryptocurrency that purportedly provided exclusive access to a trading program that they falsely claimed was profitable, and then using most of the $1.8 million raised to enrich themselves.
Jeremy David McAlpine, 25, of Fountain Valley, and Zachary Michael Matar, 28, of Huntington Beach, each were charged in a one-count information with securities fraud.
McAlpine and Matar have agreed to plead guilty to the charge, according to plea agreements that also were filed today. The defendants are expected to plead guilty in United States District Court in the coming weeks.
According to court documents, in 2017, McAlpine and Matar founded Dropil Inc., a Belize-based company operating out of Fountain Valley. Dropil provided and managed investments in digital assets such as cryptocurrency. The defendants primarily were responsible for the development of Dropil’s digital asset, called DROP tokens, as well as its digital asset trading program, an automated trading bot called “Dex.” Purchasers of DROPs had access to Dex, which could only be used with DROP tokens. Neither McAlpine, Matar nor Dropil was registered with the Securities and Exchange Commission (SEC) as a broker or dealer.
McAlpine and Matar induced investors to purchase DROPs by making false claims about the functionality and profitability of Dex, which was said to provide an “expertly managed portfolio balancing algorithm [that] manages risk,” according to information published on Dropil’s website. The DROP tokens were said to “ensure privacy while also offering added value and exclusivity.” Dropil further promised that Dex’s trading would generate profits that would be distributed as additional DROP tokens every 15 days.
Beginning in late 2017, McAlpine and Matar began an unregistered offer and sale of DROPS on Dropil’s website. In January 2018, the defendants launched an initial coin offering (ICO) for the sale of DROPs, again through Dropil’s website, which continued through March 2017. To induce investors to purchase DROPs, McAlpine and Matar made a series of false statements to investors in a “White Paper” published on Dropil’s website and on its Twitter account, promoting the cryptocurrency’s supposed success.
The defendants also manufactured fake Dex profitability reports and made payments in the form of DROPs to Dex users, giving the false appearance that Dex was operational and profitable. McAlpine and Matar also made false statements about the volume and dollar amount of DROPs sold both during and after the ICO, stating Dropil had successfully raised $54 million from 34,000 investors both foreign and domestic. In fact, the ICO raised less than $1.9 million from fewer than 2,500 investors.
In total, the defendants obtained approximately $1,896,657 from 2,472 investors through the sale of approximately 629 million DROPs. But McAlpine and Matar did not use at least $1.6 million of the invested money as promised, using it instead to fund disbursements to themselves and their associates.
In conjunction with today’s announcement of the defendants’ agreement to plead guilty to securities fraud charges, the SEC has also announced that, in connection with a complaint filed in April 2020, Dropil, McAlpine and Matar have agreed to permanent injunctions barring further fraudulent conduct and prohibiting them from directly or indirectly participating in the offer, purchase, or sale of digital securities, with disgorgement, prejudgment interest, and civil penalties to be determined by the court.
The FBI investigated this matter.
Assistant United States Attorney Ranee A. Katzenstein, Chief of the Major Frauds Section, is prosecuting this case.
Two Men from Hope, Idaho, Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
COEUR D’ALENE – Morgan Kenney, 35, and Zachary Craig Carlson, 30, of Hope, Idaho, were sentenced to federal prison for conspiracy to distribute methamphetamine, announced Acting U.S. Attorney Rafael M. Gonzalez, Jr., today. Senior United States Ninth Circuit Judge Richard C. Tallman sentenced Kenney to 52 months and Carlson to 37 months. Kenney and Carlson, upon completion of their time, were ordered to serve an additional three years of supervised release.
According to court records, in 2015 and 2016, Kenney and Carlson conspired with Larry Junior Hillbroom, 37, and Sean Robert Wathen, 49, to smuggle methamphetamine through international airports between North Idaho and the Pacific islands of Guam and Palau. Kenney and Carlson used several different methods to smuggle the drugs, including shampoo containers and carrying the substance on their person. Once in Guam or Palau, Kenney and Carlson would coordinate with locals to sell the methamphetamine. Law enforcement officers learned of the conspiracy and were able to investigate and ultimately arrest Kenney, Carlson, and their coconspirators.
The two remaining defendants, Hillbroom and Wathen, are currently scheduled for trial in November at the federal courthouse in Coeur d’Alene.
Acting U.S. Attorney Gonzalez credited the cooperative efforts of the Drug Enforcement Administration, Bonner County Sheriff's Office, Bureau of Indian Affairs, Coeur d'Alene Police Department, Idaho State Police, U.S. Border Patrol, and the U.S. Marshals Service, which led to charges.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Trader at Large Canadian Asset Management Firm Charged with Insider Trading for Engaging in Multimillion-Dollar Front Running SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that SEAN WYGOVSKY, a trader at a large Canadian asset management firm (the “Employer Firm”), was charged in a Complaint in Manhattan federal court with securities fraud and wire fraud in connection with his scheme to steal confidential information about the trade orders of the Employer Firm in order to conduct hundreds of timely, profitable personal securities trades in the same stocks as the Employer Firm. WYGOVSKY attempted to hide his conduct by trading or causing trading in brokerage accounts held in the names of his close relatives. WYGOVSKY was arrested this morning in Austin, Texas, and is expected to be presented in federal court this afternoon before a U.S. Magistrate Judge for the Western District of Texas.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, Sean Wygovsky illegally exploited his access to his employer firm’s yet-to-be-executed trade orders to make numerous trades in anticipation of the bump or dip the firm’s buying or selling would cause. To conceal the scheme, Wygovsky allegedly made his front running trades through brokerage accounts of certain of his relatives. As alleged, Wygovsky made or directed over 700 timely transactions that netted him more than $3.6 million in illegal profits. Now Sean Wygovsky is in custody and facing serious criminal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Over the course of several years, as alleged, Wygovsky made hundreds of short-term trades based on inside information that ultimately reaped more than $3 million in profits. Schemes like the one alleged here grossly affect the integrity of our financial markets and remain a top priority for our financial fraud investigative teams.”
As alleged in the Complaint unsealed today in Manhattan federal court:[1]
SEAN WYGOVSKY has been employed at the Employer Firm since approximately 2013. The Employer Firm is an asset management firm based in Toronto, Canada, with at least approximately $19 billion in assets under management. WYGOVSKY has a number of close relatives who live in the United States, including a relative in North Carolina (“Relative-1”) and two relatives in Virginia (“Relative-2” and Relative-3”) who are married to each other.
The Front Running Scheme
Based on his position as a trader at the Employer Firm, WYGOVSKY had access to the trade information and trade orders of the Employer Firm. Like most large asset managers, the Employer Firm had rules and regulations concerning employees’ personal trading, including requirements about the confidentiality of client information and prohibitions against insider trading and personal trading in the same securities as the Employer Firm. The size of the Employer Firm’s trade orders often caused slight, temporary movements in the price of the securities traded. For example, if the Employer Firm engaged in a large purchase of stock, the increased demand could cause a slight rise in the stock price, and if the Employer Firm engaged in a large sale of stock, the increased supply could cause a slight drop in the stock price. Because WYGOVSKY had access to the Employer Firm’s trade orders, he knew in advance when a particular stock price would move slightly up or down based on that trading.
WYGOVSKY’s relatives maintained brokerage accounts for the personal purchase and sale of securities. In particular, Relative-1 maintained at least one brokerage account and Relative-2 and Relative-3 maintained at least four brokerage accounts (the “Subject Accounts”). From at least 2015 through April 2021, after obtaining information about the Employer Firm’s upcoming trading activity but before those trades were executed, WYGOVSKY caused the Subject Accounts to buy or sell the same securities the Employer Firm would be buying or selling, in order to profit through the subsequent movement of the stock that would often result from the Employer Firm’s trading. WYGOVSKY would then cause the Subject Accounts to exit those positions once the Employer Firm’s trading was underway, often within hours of when the Subject Accounts had first entered the positions. For example, if WYGOVSKY knew that the Employer Firm would be buying a particular stock, WYGOVSKY would cause one or more of the Subject Accounts to purchase that stock beforehand in relatively small amounts. Then, as the Employer Firm made relatively large purchases, the stock price would increase and WYGOVSKY would cause the Subject Accounts to sell their holdings at a profit.
At times, WYGOVSKY personally conducted the trading on behalf of both the Employer Firm and the Subject Accounts. For example, on occasion, IP log-ins from the Subject Accounts show the Subject Accounts were being accessed from locations where WYGOVSKY was travelling. On other occasions, WYGOVSKY would cause others to execute the timely, profitable trading in the Subject Accounts. Over an approximately five-year period, WYGOVSKY caused the Subject Accounts to engage in more than 700 such short-term timely, profitable trades, resulting in at least over $3.6 million of profits in the Subject Accounts.
Financial Transfers Back to Wygovsky
During the course of the front running scheme, Relative-2 and Relative-3 caused at least approximately hundreds of thousands of dollars to be sent back to WYGOVSKY from the Subject Accounts. For example, between 2015 and 2020, Relative-2 and Relative-3 moved millions of dollars from the Subject Accounts to bank accounts that they controlled, and wrote checks to WYGOVSKY and his immediate family members for hundreds of thousands of dollars. Furthermore, in or about late 2017 and early 2018, Relative-2 and Relative-3 transferred hundreds of thousands of dollars to a Slovenian bank for the benefit of certain relatives of WYGOVSKY’s wife.
* * *
WYGOVSKY, 40, of Ontario, Canada, is charged with one count of securities fraud, which carries a maximum sentence of 20 years in prison, and one count of wire fraud, which carries a maximum sentence of 20 years in prison. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the work of the FBI. Ms. Strauss further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action, for their cooperation and assistance in this investigation.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Daniel Tracer is in charge of the prosecution.
The allegations contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint, and the description of the Complaint set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Three years after victim's overdose death, drug trafficker pleads guilty to distributing the heroin that killed herRead the Press Release
ROME, Ga. - Shane Terhune, who sold heroin to a young couple just hours before the woman’s July 2018 overdose death, pleaded guilty to a charge of distributing that heroin, and admitted to causing the victim’s death.
“Terhune’s act of trafficking narcotics tragically ended the life of a young woman,” said Acting U.S. Attorney Kurt R. Erskine. “Opioid overdoses will be investigated as a federal priority and those who sell this poison will be held accountable for the death and serious injury that it causes.”
“The life of a young lady abruptly ended when Shane Terhune provided her with a deadly dose of heroin. DEA and its law enforcement partners are committing to bringing to justice, defendants like Mr. Terhune who pollute our streets with dangerous and deadly substances which cause immeasurable damage to our communities,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division.
According to Acting U.S. Attorney Erskine, the charges and other information presented in court: On July 6, 2018, officers of the Floyd County Police Department responded to a 911 call seeking medical attention for 25-year-old G.L. She died of a heroin overdose that night. The investigation revealed that earlier that afternoon, Terhune met G.L. and her fiancé at a location in Rome, Georgia, and gave them a plastic bag containing heroin in exchange for cash. G.L. subsequently injected the heroin Terhune sold, causing her death.
With this guilty plea, Terhune, who has a history of drug trafficking offenses, admitted to trafficking in heroin and acknowledged that the heroin he sold caused the victim’s death.
Sentencing for Shane Terhune, 41, of Rome, Georgia, is scheduled for October 19, 2021, at 10:00 a.m., before U.S. District Court Judge Steve C. Jones.
This case is being investigated by the Drug Enforcement Administration.
Assistant U.S. Attorney Irina Dutcher is prosecuting the case.
The U.S. Attorney’s Office in Atlanta recommends parents and children learn about the dangers of drugs at the following web site: www.justthinktwice.gov.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Texas Man Pleads Guilty to a Violation of the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA –GUSTAVO BALDERAS, age 34, a resident of Texas, pled guilty on June 30, 2021 before United States District Court Judge Martin L. C. Feldman to a one-count superseding bill of information charging him with conspiracy to distribute and possess with intent to distribute five hundred grams or more of cocaine hydrochloride, announced U.S. Attorney Duane A. Evans.
On February 9, 2018, a Drug Enforcement Administration (DEA) Task Force learned that Rafael Molina, an upper lever narcotics trafficker, was in route to Thibodaux, Louisiana to deliver two kilograms of cocaine hydrochloride the following day. Task Force officers established surveillance in Thibodaux and observed Molina, riding in a white pickup truck, and BALDERAS and an individual identified as Michael Garza, riding in a black Chrysler 300, registered to Garza, at a motel in Thibodaux. BALDERAS and Garza entered the truck with Molina, and they drove from the motel. Officers conducted a traffic stop on the truck, searched both vehicles, and located an ice chest in the Chrysler 300. Inside the ice chest were two kilograms of cocaine hydrochloride.
BALDERAS faces a mandatory minimum term of imprisonment of five years and a maximum term of forty years, a fine of up to $5,000,000.00, at least four years of supervised release following any term of imprisonment and a $100 special assessment fee.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
This case was investigated by the Drug Enforcement Administration, Office of Homeland Security Investigations, Terrebonne Parish Sheriff’s Office, and the Lafourche Parish Sheriff’s Office. The prosecution is being handled by Assistant United States Attorney André Jones.
Tampa Woman Sentenced to Twenty Years for Distribution of Heroin and Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – U.S. District Judge Thomas P. Barber has sentenced Leslie Pagan (40, Tampa) to 20 years in federal prison for conspiracy to distribute heroin and fentanyl and distribution of heroin and fentanyl resulting in death. The court also ordered Pagan to forfeit $105,932, which are traceable to proceeds of the offense. A federal jury had found her guilty on March 24, 2021.
According to testimony presented at trial, Pagan supplied coconspirators with heroin and fentanyl that was distributed in Hillsborough County. On December 19, 2019, a Tampa woman obtained a substance containing fentanyl from one of Pagan’s distributors, Jackylin Bonifacio. The victim used the fentanyl and shortly thereafter she collapsed and died.
The Hillsborough County Sheriff’s Office investigated the overdose death and identified Bonifacio as the person who had distributed the fentanyl to the victim. On December 20, 2019, Bonifacio was arrested and had 25 baggies of fentanyl, packaged for distribution in her possession.
The Hillsborough County Medical Examiner’s Office conducted an autopsy and determined that the victim had died from ingestion of substances, including heroin and fentanyl. Baggies recovered from Bonifacio and residue from a syringe found near the victim at the time of the overdose were analyzed and identified to contain fentanyl. Lab analysis also determined that the fentanyl mixtures were all very similar and, based on the circumstances of the death and the toxicology from the autopsy, the victim’s use of the fentanyl caused the victim’s death.
A joint investigation led by the FBI identified Pagan as Bonifacio’s supplier. During a series of covert operations, Pagan distributed fentanyl and heroin to a confidential informant and received payments from that informant. Pagan was arrested on September 1, 2020, and investigators recovered 97 grams of fentanyl and more than $105,000 from her residence.
On February 12, 2021, Bonifacio pleaded guilty to distribution of heroin and fentanyl, resulting in death. Her sentencing hearing is scheduled for August 31, 2021.
This investigation is the result of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, Homeland Security Investigations, the Drug Enforcement Administration, the Hillsborough County Sheriff’s Office, the Tampa Police Department, the Hillsborough County Medical Examiner’s Office, and the Florida Department of Law Enforcement. It is being prosecuted by Assistant United States Attorney Michael Sinacore.
This investigation is the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Tampa Man Sentenced to Twenty Years in Prison for Drug TraffickingRead the Press Release
GAINESVILLE, FLORIDA – Willie Murphy, Jr., 39, of Tampa, Florida, has been sentenced to serve 20 years in federal prison for possession with intent to distribute 28 grams or more of cocaine base and a synthetic cathinone as a result of his previously entered guilty plea. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
On June 5, 2020, Florida Highway Patrol troopers conducted a traffic stop on Murphy’s vehicle as it travelled northbound on Interstate 75 through Alachua County. During a search of the vehicle, troopers located more than 55 grams of cocaine base (crack), and over 1,100 pills later determined to be Eutylone Hydrochloride (a synthetic cathinone), and a small amount of marijuana. During questioning, Murphy admitted that he had a couple ounces of crack and about 1000 “molly” pills in the vehicle, which he intended to sell.
Murphy’s prior criminal history includes more than 15 felony convictions, several which involve narcotics distribution and violence against law enforcement officers. As a result, he has been previously incarcerated in the Florida Department of Corrections on five separate occasions.
“Those who repeatedly commit serious crimes are deserving of significant prison sentences,” stated Acting U.S. Attorney Coody. “Thanks to the outstanding work of our law enforcement partners at the Florida Highway Patrol and the Drug Enforcement Administration, this recidivist drug trafficker has been called to account for his continued criminal conduct.”
“The robust partnerships established between our federal, state and local law enforcement agencies allow us to work together to prevent crime and stop drug trafficking,” said Lieutenant Colonel Troy Thompson, Deputy Director of the Florida Highway Patrol. “We are proud of our partnerships and the incredible efforts our Florida Highway Patrol troopers perform every day to build a stronger, safer Florida”.
“This conviction highlights the importance of the relationship between the federal and state law enforcement agencies,” said DEA Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “As a result of the collaboration with our law enforcement partners, this repeat offender will now be behind bars, and rendering our community safer.”
This sentencing resulted from the collaborative efforts of the Drug Enforcement Administration and the Florida Highway Patrol. Assistant United States Attorney Christopher Elsey prosecuted the case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Tahlequah Resident Found Guilty of Sexually Abusing Child Under 12 in Indian Country and Production of Child PornographyRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that Michael David Jackson, age 39, of Tahlequah, Oklahoma was found guilty by a federal jury of two counts of Aggravated Sexual Abuse of a Minor Under 12, one count of Abusive Sexual Contact with a Child Under 12 Years, one count of Sexual Exploitation of a Child/Use of a Child to Produce a Visual Depiction, and two counts of Possession of Certain Material Involving the Sexual Exploitation of a Minor. The jury trial began with testimony on Monday, June 28, 2021 and concluded on Thursday, July 1, 2021 with the guilty verdicts. The punishment for Aggravated Sexual Abuse of a Minor Under 12 is a mandatory minimum of not less than 30 years imprisonment.
During the jury trial, the United States presented evidence that Jackson began sexually abusing the victim in the fall of 2019 and the abuse continued until late December 2019. The child’s parents testified they relied on Jackson to provide childcare for them while they worked because they thought they could trust Jackson. In his caretaking role, Jackson had continued access to the child, which included staying overnight. Jackson used this time with the victim to sexually abuse her. The trial evidence also proved Jackson used a cell phone camera to capture images of the abuse.
The United States Attorney’s Office for the Eastern District of Oklahoma prosecuted the case because the defendant is a member of a federally-recognized Indian tribe and the crime occurred in Cherokee County, within the boundaries of the Cherokee Nation, and within the Eastern District of Oklahoma.
The guilty verdicts were the result of an investigation by the Cherokee Nation Marshal Service and the Federal Bureau of Investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Jackson was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Assistant United States Attorneys Courtney Jordan and Dean Burris represented the United States.
Springfield Man Sentenced to 30 Years for Producing Child PornographyRead the Press Release
SPRINGFIELD, Mo. – A Springfield, Missouri, man was sentenced in federal court today for sexually exploiting a minor to produce child pornography.
Anthony Thompson, 40, was sentenced by U.S. District Judge Roseann Ketchmark to 30 years in federal prison without parole. The court also ordered Thompson to spend 10 years on supervised release following incarceration.
On Oct. 19, 2020, Thompson pleaded guilty to one count of the sexual exploitation of a minor. Thompson admitted that he victimized a minor in to produce child pornography on July 1, 2018.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by the Springfield, Mo., Police Department and the FBI.
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."
Spanish Fort Alabama Couple Sentenced for the Production and Packaging of Misbranded Drugs and PesticidesRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Richard and Monique Parker of Spanish Fort, Alabama, doing business as FB McGuinness were sentenced in federal court on four counts of an information. The Parkers pled guilty to introducing misbranded animal drugs into interstate commerce with the intent to defraud or mislead, operating an unregistered drug establishment, and the sale of unregistered, adulterated, and misbranded pesticides.
According to documents filed as part of the defendant’s guilty plea the Parkers operated a business, F.B. McGuinness, from their residence in Spanish Fort. F.B. McGuinness sold products from a catalogue, including drugs and pesticides mainly focused on the cockfighting industry. The facility was unregistered with the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA). These products included items that were repackaged and labeled to include false FDA and NADA numbers on F.B. McGuinness products. Through a series of anonymous purchases, products were obtained from the F.B. McGuinness catalogue. An analysis of the products purchased indicated that these items were mislabeled or not as they were advertised.
In October 2020 a search warrant was executed at the Parker’s residence and location of their catalogue business. The Parkers admitted to producing and packaging drugs and pesticides at their residence for several years. The Parkers went on to admit that many of the products were repackaged and relabeled for F.B. McGuinness. The Parkers stated that the false FDA and NADA numbers on the F.B. McGuinness products gave a perception of legitimacy for their customers.
The F.B. McGuinness catalogue included products the FDA no longer approved for sale in the United States because they contained suspected carcinogens. Additionally, the EPA determined the Parker’s facility contained pesticides that were inactive or no longer allowed to be marketed in the United States.
At sentencing, the Parkers were sentenced to a three year term of probation, a $5,000 fine and the forfeiture of $100,000.
The case was investigated by the FDA, the EPA, and the FBI.
“Since 2014, the defendants sold to customers across the country over $3 million of products, which included unregistered pesticides without instructions on how to use the product safely,” said Special Agent-in-Charge Chuck Carfagno of EPA’s Criminal Investigation Division in Atlanta. “Today’s sentencing shows that EPA and our law enforcement partners will hold responsible those who violate our pesticide laws and put the public at risk.”
“The FDA regulates animal drugs as part of its mission to protect the public health, which includes ensuring that prescription animal drugs are lawfully distributed and dispensed pursuant to a valid prescription,” said Special Agent in Charge Justin C. Fielder, Ph.D., FDA Office of Criminal Investigations Miami Field Office. “These laws are in place not only for the well-being of the animals, but also to protect consumers from animals that may be used for food that may contain unsafe drug residues. We will continue to pursue and bring to justice those who attempt to evade the law.”
This matter was prosecuted by the United States Attorney’s Office for the Southern District of Alabama.
South Texan convicted of gun and drug possessionRead the Press Release
McALLEN, Texas – A 35-year-old Edinburg man has entered a guilty plea to being a prohibited person in possession of firearms, announced Acting U.S. Attorney Jennifer B. Lowery.
On April 29, 2020, authorities observed a vehicle departing Christian Ruben Chavez’s residence in Edinburg and conducted a traffic stop. At that time, they found marijuana inside the vehicle.
The investigation revealed Chavez had just sold the drugs to the driver at his residence.
Authorities subsequently searched his residence and found Chavez along with a .40 caliber pistol, 12-gauge shotgun, 5.56 caliber rifle, approximately 1000 rounds of ammunition, multiple high capacity magazines, body armor, eight pounds of vacuum sealed marijuana, marijuana plants, psychedelic mushrooms, a scale and thousands of dollars in U.S. currency.
Chavez admitted to regularly smoking marijuana for the past five years and to possessing both the marijuana and firearms.
Authorities confirmed Chavez had multiple arrests and other adjudications for possessing controlled substances. As such, federal law prohibits him from possessing firearms and ammunition.
Chavez has also agreed to forfeit all the firearms and ammunition.
U.S. District Judge Micaela Alvarez accepted the plea and set sentencing for Sept. 22. At that time, Chavez faces up to 10 years in federal prison and a possible $250,000 maximum fine.
He was permitted to remain on bond pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Edinburg Police Department. Assistant U.S. Attorney Matthew Redavid is prosecuting the case.
Six Alleged Ms-13 Members Facing Federal Indictment for Extortion of Maryland BusinessesRead the Press Release
Baltimore, Maryland – Six federal criminal complaints charging six defendants with conspiracy to interfere with commerce by violence or threats of violence including extortion were unsealed in the U.S. District Court in Maryland on Wednesday. The affidavit in support of the criminal complaints was partially unsealed. The defendants are:
Brayan Alexander Torres a/k/a “Spooky”;
Hernan Edgardo Yanes Rivera a/k/a “Shrek”, a/k/a “Recio”, a/k/a “Garra”;
Agustino Eugenio Rivas Rodriguez, a/k/a “Cipitio”, a/k/a “Chuchin”, a/k/a “Angel”, a/k/a “Terrible”;
Brian Samir Zelaya Meja a/k/a “Flaco”, a/k/a “Chispa”, a/k/a “Directo”;
Miguel Angel Ramires, a/k/a “Majin Buu”, a/k/a “El Gordo”;
Jorge Isaac Argueta Chica a/k/a “Timido”, a/k/a “Enamo”.
Torres, Rivas Rodriguez, Ramires, and Argueta Chica were arrested in Prince George’s County, Maryland on Tuesday. Zelaya Mejia was arrested in Houston, Texas on Tuesday. Yanes Rivera is already in federal custody after arrest on a pending Indictment charging him and others with Racketeering Conspiracy in Case No. PX-21-00047.
As alleged by the criminal complaint affidavit, Torres, Yanes Rivera, Rivas Rodriguez, Zelaya Mejia, Ramires, Argueta Chica and other co-conspirators are members of the Weedams Locos Salvatrucha (“WLS”), a clique of MS-13. Members of the same clique, including Yanes Rivera and unnamed co-conspirators, were also the subject of the Indictment charging Conspiracy to Participate in a Racketeering Enterprises filed in March of this year.
The criminal complaints were announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Acting Field Office Director Francisco Madrigal of U.S. Immigration and Customs Enforcement=s (ICE) Enforcement and Removal Operations; Chief Malik Aziz of the Prince George’s County Police Department; and Sheriff Melvin C. High of the Prince George’s County Sheriff Department.
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.
As stated in the affidavit supporting the criminal complaint, members of MS-13 are expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members are expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 also frequently forces individuals to make extortion payments (that MS-13 refers to as “rent”) in order to operate unlicensed businesses in MS-13 gang-controlled territory. Extortion funds may then be used for gang purposes, including obtaining weapons and providing support for MS-13 gang members, some of whom are imprisoned in the United States, both inside and outside of Maryland, and in El Salvador.
Torres, Yanes Rivera and other WLS members threatened and collected rents from brothels and beer sellers. Over the course of the investigation, law enforcement observed and recorded members of the clique collecting extortion payments.
If convicted, each conspirator faces a maximum sentence of 20 years imprisonment for their participation in the conspiracy. 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. At yesterday’s initial appearances in U.S. District Court in Greenbelt, U.S. Magistrate Judge Charles B. Day ordered that Ramires and Argueta Chica be detained pending trial. Torres and Rivas Rodriguez each have been ordered detained pending detention hearings scheduled for July 2, 2021.
A criminal complaint is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, U.S. Immigration and Customs Enforcement; Prince George’s County Police Department; the Prince George’s County Sheriff Department; and the Montgomery County Police Department for their work in the investigation. Mr. Lenzner also thanked Assistant U.S. Attorneys Joseph R. Baldwin and Thomas P. Windom, who are prosecuting the case.
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Schuylkill County Man Pleads Guilty to Methamphetamine TraffickingRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that David Collazo, age 34, formerly of Girardville, Schuylkill County, pleaded guilty on July 1, 2021, before U.S. District Court Judge Robert D. Mariani to possession with intent to distribute crystal methamphetamine.
According to Acting United States Attorney Bruce D. Brandler, Collazo admitted to possessing highly pure crystal methamphetamine for further distribution in the Schuylkill County area between December 2018 and February 2019.
This matter was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Schuylkill County Drug Task Force. Assistant U.S. Attorney Robert J. O’Hara is prosecuting the case.
Judge Mariani ordered that a presentence report be completed for Collazo. Sentencing will be scheduled at a later date.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal enforcement and the local community to develop effective, locally-based strategies to reduce crime.
The charge carries a mandatory minimum sentence of ten years in prison. The maximum sentence under federal law is up to life in prison, 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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Romanian National Co-Defendant Pleads Guilty for His Role in A Conspiracy to Steal Checks Intended for Religious InstitutionsRead the Press Release
Greenbelt, Maryland – Daniel Velcu, age 43, of Baltimore, Maryland, pleaded guilty today to a federal bank and wire fraud conspiracy, in which the conspirators received approximately $1,244,056.77 in stolen checks intended for religious institutions.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Special Agent in Charge Shimon R. Richmond of the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG); Chief Marcus Jones of the Montgomery County Police Department; Chief Toni Dezomits of the Cary, North Carolina, Police Department; and Sheriff Dusty Rhoades of the Williamson County, Tennessee, Sheriff’s Office.
According to his guilty plea, from June 2018 to October 2020, Velcu conspired with five other foreign nationals and others to steal checks, including donations, directed to religious institutions through the U.S. mail. Velcu and his co-conspirators conducted the thefts by driving to roadside mailboxes of religious institutions’ and removing the mail from the institution’s mailboxes.
As part of the scheme to defraud, Velcu fraudulently opened bank accounts at more than four victim financial institutions under false identities. Co-conspirators opened bank accounts in coordination with a conspiracy member employed at one of the victim financial institutions, who assisted in the fraudulent account openings under false identities.
Velcu often fraudulently negotiated stolen checks at victim financial institutions through automated teller machine (ATM) transactions and deposited stolen proceeds into both fraudulently opened bank accounts and into bank accounts held in his name or a family member’s identity. Velcu subsequently withdrew money from the fraudulently opened bank accounts through ATMs and spent fraudulent funds associated with the fraudulently opened bank accounts.
On October 9, 2020, law enforcement agents executed a search and seizure warrant at Velcu’s residence. Authorities seized documents pertaining to at least one fraudulent bank account as well as fraudulent French identity documents containing photographs of Velcu with a fictitious name. In order to open fraudulent bank accounts, Velcu but using several fictitious names and identifying documentation.
During the course of the conspiracy, Velcu personally negotiated at least approximately 70 stolen checks totaling in at least approximately $40,357.50 from various religious institutions in Virginia, Ohio, North Carolina, Minnesota, Georgia, and Maryland. Velcu withdrew at least $4,740 from the accounts that received checks. The accounts Velcu personally deposited checks into received at least $48,987.44 from approximately 101 stolen checks.
Eight additional accounts in the name of Velcu or a family member received at least approximately $82,872.65 from approximately 145 stolen checks, and at least that amount was withdrawn.
Co-defendant Marian Unguru, age 36, of Baltimore, Maryland pleaded guilty to the same charge on April 23, 2021. His sentencing is scheduled for July 28, 2021, at 10 a.m.
Co-defendant Nicolae Gindac pleaded guilty to the same charge on June 29, 2021. His sentencing is scheduled for August 31, 2021, at 2 p.m.
As part of his plea agreement, Velcu has agreed to pay restitution in the full amount of the victims’ losses, which is at least $1,244,056.77.
Velcu faces a maximum sentence of 30 years in prison followed by five years of supervised release for conspiracy to commit bank and wire fraud. U.S. District Judge Theodore D. Chuang has scheduled sentencing for September 29, 2021 at 9:30 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Postal Inspection Service, HSI, the FDIC Office of Inspector General, the Montgomery County Police Department, the Cary (North Carolina) Police Department, and the Williamson County (Tennessee) Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Elizabeth Wright, who is prosecuting the case.
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Philadelphia Man Charged with Federal Firearms Offense After Incident During 2020 Civil UnrestRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Mashaq White, 23, of Philadelphia, PA, was arrested and charged by Indictment on the charge of being a previously convicted felon in possession of a firearm, stemming from an incident which occurred during the civil unrest in Philadelphia last year. At a hearing in U.S. District Court today, the defendant was detained pending trial.
The Indictment alleges that on June 1, 2020, the defendant was in possession of a loaded 9mm Ruger handgun as a convicted felon. According to court documents, Philadelphia Police Officers responded to a burglary in progress at a pharmacy on the 5600 block of Chestnut Street in West Philadelphia. When they entered the store they found it ransacked and the sprinkler system activated. Suddenly, the defendant allegedly came running down an aisle of the store, toward one of the officers, while carrying a handgun. The officer restrained the defendant and he was arrested. The incident was captured on the officer’s body camera.
“Our office is committed to prosecuting anybody who took advantage of the civil unrest and protests of last summer to try to commit violent acts or otherwise violate federal law,” said Acting U.S. Attorney Williams. “In this case, a previously convicted felon is charged with allegedly possessing a loaded firearm, which presents a clear danger to our community that is struggling under a surge of violent gun crime.”
“Getting guns away from people who shouldn’t have them is a crucial part of our concerted effort to check violent crime in this city,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “If you’re in criminal possession of a firearm, the FBI and our partners will be glad to take it off your hands, in exchange for a nice pair of cuffs. We will continue to do all we can to make Philadelphia safer for the good folks who live, work, or visit here.”
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, three years of supervised release, $250,000 fine, and a $100 special assessment.
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney James R. Pavlock.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
One Man Pleads Guilty, Another Sentenced for Their Roles in Buffalo Area Drug RingRead 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 Antoine Gilbert a/k/a Twan, 43, of Buffalo, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to narcotics conspiracy, which carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine. In addition, Ronnie Charleston, also of Buffalo, who was convicted of possessing with intent to distribute cocaine, and being a felon in possession of ammunition, was sentenced to serve 18 months in prison by Judge Arcara.
Assistant U.S. Attorneys Laura A. Higgins and Richard Antoine, who are handling the case, stated that Antoine Gilbert conspired with co-defendants Ronnie Charleston, Louis Gilbert, and Saan Thompson to sell cocaine in the City of Buffalo. On 18 different occasions between December 21, 2019, and March 13, 2020, Antoine Gilbert purchased approximately 75 ounces of cocaine from Thompson. On August 5, 2020, investigators executed a search warrant at Antoine Gilbert’s Wecker Street residence and seized cocaine, crack cocaine, marijuana, $2,050 in U.S. currency, a digital scale, four cell phones, and, a computer.
As to defendant Charleston, on six separate occasions between December 2019 and January 2020, he purchased approximately 49 grams of cocaine from co-defendant Thompson. On August 5, 2020, investigators executed a search warrant at Charleston’s Lisbon Avenue residence and seized approximately 1,500 rounds of assorted ammunition, three firearm magazines, $5,000 U.S. currency, approximately 12 grams of cocaine, and three digital scales. In 2006, the defendant was convicted in state court of Criminal Possession of a Loaded Firearm – Third Degree and is legally prohibited from possessing ammunition.
Saan Thompson and Louis Gilbert were previously convicted and are awaiting sentencing.
The plea and sentencing are the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Antoine Gilbert is scheduled to be sentenced on October 14, 2021, before Judge Arcara.
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Officials from Two Louisiana Healthcare Companies Indicted for Multi-Million Dollar Bank Fraud SchemeRead the Press Release
MONROE, La. – A federal grand jury has returned an indictment charging Charlie L. Simpson, 48, of Downsville, who worked as Chief Operating Officer of United Home Care, Inc. (“United”) and Trinity Home Health Care, Inc. (“Trinity”), and Charles R. Gardner, 53, of West Monroe, who worked as Chief Financial Officer/Controller of United and Trinity. Simpson and Gardner were each charged with one count of conspiracy to commit bank fraud and four counts of bank fraud, announced Acting United States Attorney Alexander C. Van Hook.
The indictment alleges that from April 2016 until March 2017, Simpson and Gardner were involved in a scheme to defraud Origin Bank, Peoples Bank, and Louisiana National Bank (“LNB”) by fraudulently obtaining money and credits from the three banks. It is alleged that Simpson and Gardner orchestrated and executed a check kite between accounts at Origin Bank and LNB wherein they deposited hundreds of checks between multiple accounts they controlled at both banks and took advantage of the float when they passed the checks, timing the exchanges to artificially inflate the account balances. In so doing, Simpson and Gardner caused Origin Bank and LNB to honor checks and payments drawn against accounts with insufficient funds and put the financial institutions at risk.
The indictment further alleges that on March 8, 2017, Simpson learned that accounts under his control at LNB had an overdraft and the bank would only accept a certified check to cover the deficit. To cover the overdraft and prevent the kite from collapsing, Simpson and Gardner allegedly added a third bank, Peoples Bank, into the scheme by issuing over 20 checks for approximately $4 million drawn from different accounts at that bank and deposited them into multiple accounts at Origin Bank. However, the accounts used at Peoples Bank did not have sufficient funds to cover the checks deposited into Origin Bank. In fact, the accounts at Peoples Bank had less than $2,000 available. The following day, March 9, 2017, the defendants used the artificially inflated balances to obtain four certified checks totaling $2.1 million from Origin Bank and deposited them into different accounts at LNB to cover the overdraft. Origin Bank suffered a financial loss when it discovered that Simpson and Gardner had used the inflated accounts to obtain certified funds.
An indictment is merely an accusation and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
The FBI is conducting this investigation and Assistant U.S. Attorney Leon H. Whitten is prosecuting the case.
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Northern Ohio Health System Agrees to Pay over $21 Million to Resolve False Claims Act Allegations for Improper Payments to Referring PhysiciansRead the Press Release
Akron General Health System (AGHS), a regional hospital system based in Akron, Ohio, will pay $21.25 million to resolve allegations under the False Claims Act of improper relationships with certain referring physicians, resulting in the submission of false claims to the Medicare program. AGHS was acquired at the end of 2015 by the Cleveland Clinic Foundation (Clinic) through a full member substitution agreement.
This settlement resolves allegations that between August 2010 and March 2016, AGHS paid compensation substantially in excess of fair market value to area physician groups to secure their referrals of patients, in violation of the Anti-Kickback Statute and the Physician Self-Referral Law, and then submitted claims for services provided to these illegally referred patients, in violation of the False Claims Act. The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by Medicare, Medicaid and other federally funded programs.
The Physician Self-Referral Law, commonly known as the Stark Law, prohibits a hospital from billing Medicare for certain services referred by physicians with whom the hospital has an improper financial arrangement, including the payment of compensation that exceeds the fair market value of the services actually provided by the physician. The Clinic voluntarily disclosed to the government its concerns with these compensation arrangements, which were put in place by AGHS’s prior leadership, and received credit for its cooperation in the resolution reached by the parties.
“Improper payments to physicians for referrals threaten the integrity of our health care system and deprive patients of the independent medical decision making that they deserve,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department is committed to upholding these important interests and to pursuing providers who engage in improper financial arrangements.”
“Medical decisions should be made with a patient’s best interest in mind rather than an illegal financial agreement,” said Acting U.S. Attorney Bridget M. Brennan for the Northern District of Ohio. “This office is committed to taking appropriate action to ensure the integrity of federal healthcare programs.”
“Physicians must make referrals and other medical decisions based on what is best for patients, not to serve profit-boosting business arrangements,” said Special Agent in Charge Lamont Pugh III of HHS-OIG. “Working closely with our law enforcement partners, we will continue to protect taxpayer-funded federal health care programs as well as patients.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Beverly Brouse, the former Director of Internal Audit at AGHS, and Ethical Solutions LLC. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam case is captioned United States ex rel. Brouse et al. v. Akron General Health System, Inc. et al., No. 5:15-cv-2720 (N.D. Ohio).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch and Fraud Section, the U.S. Attorney’s Office for the Northern District of Ohio, HHS-OIG, and the FBI.
The investigation and resolution of this matter illustrate the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to HHS at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Trial Attorney Christopher Wilson of the Civil Division and Assistant U.S. Attorney Patricia M. Fitzgerald.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Naples Pill Mill Doctor Pleads Guilty and Agrees to Forfeit 9 Luxury Vehicles and More Than $400,000Read the Press Release
Fort Myers, Florida – Gerald Michael Abraham (76, Naples) has pleaded guilty to three counts of dispensing controlled substances for no legitimate medical purpose. He faces a maximum penalty of 20 years in federal prison on each count.
According to court documents, Abraham was a licensed medical doctor practicing in Naples, Florida. In October 2019, the DEA began an investigation after receiving a tip that Abraham was illegally prescribing strong opioids to patients who had no need for the medication. Over the course of the next year, the DEA conducted 18 undercover patient visits to Abraham’s office, each time receiving prescriptions for oxycodone.
Abraham ignored signs of drug abuse the undercover patients pretended to have and prescribed them oxycodone without ever examining them. Additionally, Abraham repeatedly increased the strength of the prescriptions simply because the patient asked him for more. In one instance, he prescribed an undercover patient oxycodone after telling him the medical paperwork “shows you are completely normal.”
The investigation also revealed that Abraham frequently prescribed Adderall to patients for no legitimate reason. Adderall is the brand name of a drug used to treat attention deficit hyperactivity disorder and contains amphetamine, a frequently abused controlled substance. On multiple occasions, law enforcement observed Abraham prescribe Adderall simply upon a patient’s request, without asking any questions or engaging in any examination justifying the prescription.
Abraham’s clinic operated on a cash only basis, with patients paying $400 per visit. Investigators traced the proceeds of Abraham’s criminal activities to multiple high-end vehicles he purchased and hundreds of thousands of dollars he held, all of which they seized. In connection with his plea agreement, Abraham has agreed to forfeit the following to the United States: a 2020 Acura NSX, a 2020 Porsche GT4, a 2021 Toyota Supra, a 2020 Chevrolet Corvette, a 2020 Aston Martin, a 2020 Nissan 370Z, a 2020 Chevrolet Camaro, two 2020 Ford Mustangs, $190,496.56 paid towards a 2021 Aston Martin, and $249,598.52 in cash.
This case was investigated by the DEA Miami Tactical Diversion Squad and the United States Secret Service, with assistance from the Naples Police Department and the Charlotte County Sheriff’s Office. Assistant United States Attorney Michael V. Leeman is prosecuting the criminal charges, and Assistant United States Attorneys Anita Cream and James Muench are prosecuting the forfeitures.
Mother, Boyfriend, and Son Indicted for Violations of the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on Thursday, July 1, 2021 that MATTHEW BARRA, age 33, JOSELYN BARRA, age 54, and JAMES HEIGLE, age 39, all from Orleans Parish, were charged in a six-count indictment by a Federal Grand Jury for violations of the Federal Gun Control Act, Misprision of a Felony, and False Declarations Before a Grand Jury.
MATTHEW BARRA is charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). If convicted, he faces a maximum sentence of ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment.
JOSELYN BARRA is charged with misprision of a felony for intentionally lying to law enforcement regarding the investigation, in violation of Title 18, United States Code, Section 4. If convicted on that charge, she faces a maximum sentence of three (3) years imprisonment, up to a
$250,000 fine, up to one (1) year of supervised release, and a $100 mandatory special assessment. She was also charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). If convicted, she faces a maximum sentence of ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment.
JAMES HEIGLE is charged with making false declarations before a grand jury, in violation of Title 18, United States Code, Section 1623. If convicted on that charge, he faces up to five (5) years imprisonment, up to a $250,000 fine, up to 3 years of supervised release, and a
$100 mandatory special assessment. HEIGLE is also charged with being a felon in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(1). If convicted, he faces a maximum sentence of ten (10) years imprisonment, up to a $250,000 fine, up to three (3) years of supervised release, and a $100 mandatory special assessment. Finally, HEIGLE is charged with being a violent felon in possession of body armor, in violation of Title 18, United States Code, Section 931. If convicted on that count, he faces up to three (3) years imprisonment, up to a
$250,000 fine, up to 1 year of supervised release, and a $100 mandatory special assessment.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation, New Orleans Gang Task Force. It is being prosecuted by Assistant United States Attorney Melissa E. Bücher of the U.S. Attorney’s Office.
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Mississippi Prison’s Deputy Warden Charged with Civil Rights Offense for Beating InmateRead the Press Release
WASHINGTON – The Justice Department announced today that a federal grand jury indicted Melvin Hilson, 49, currently a Deputy Warden at the Mississippi State Penitentiary, for repeatedly striking an inmate and knocking him to the ground, resulting in injury to the inmate. The indictment charges Hilson with a felony civil rights offense for assaulting the inmate in 2016, when Hilson was a member of the K-9 Unit at the prison, which is also known as Parchman. The indictment also alleges that Hilson wrote a false report to conceal his unlawful assault and, later, lied to investigators from the Mississippi Department of Corrections when questioned about the assault.
Today’s indictment was announced by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, Acting U.S. Attorney Clay Joyner for the Northern District of Mississippi and FBI Jackson Special Agent in Charge Michelle Sutphin.
This case was investigated by the Jackson Division of the FBI. Special Litigation Counsel Samantha Trepel and Trial Attorney Cameron Bell of the Civil Rights Division and Assistant U.S. Attorney Robert Mims of the Northern District of Mississippi are prosecuting the case.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty.
Michigan Sex Offender Sentenced to Thirty-Five Years for Enticing an Okaloosa County Child to Produce Child PornographyRead the Press Release
PENSACOLA, FLORIDA - Frank Leon Stapleton, 45, of Ypsilanti, Michigan, was sentenced in federal court today to thirty-five years' imprisonment for enticement of a minor, production of child pornography, and transfer of obscene matter to a minor. The sentence was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
In June 2019, the Okaloosa County Sheriff’s Office was contacted regarding communications of a sexual nature between an unknown individual and a 9-year old girl via the internet. Deputies observed text communications on the child’s cellphone wherein the individual enticed the child to produce child pornography of herself, then directed that explicit images and videos be sent to him. The individual also transmitted images and videos of adults engaged in sex acts to the child. Through collaborative efforts, deputies and agents with Homeland Security Investigations identified the individual as Frank Leon Stapleton, a previously convicted sex offender who was at the time on supervised release as a result of a prior federal conviction involving his possession of child pornography in Michigan.
“There is no greater charge than the protection of our children,” stated Acting U.S. Attorney Coody. “Acts of such depravity, committed by a previously convicted sex offender while under court-ordered supervision, highlight the danger to our most vulnerable. We will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
“This child predator was brought to justice via a collaborative effort between HSI Pensacola, HSI Detroit, and our partners with the Okaloosa County Sheriff’s Office, highlighting the important work of the North Florida Internet Crimes Against Children Task Force,” said HSI Jacksonville Assistant Special Agent in Charge K. Jim Phillips.
The case was investigated by Homeland Security Investigations, the Okaloosa County Sheriff’s Office, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorney Jeffrey M. Tharp.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Methamphetamine Dealing Couple, Who Dumped A Dead Teenager’s Body in A Texas Bayou, Sentenced to Twenty Years in Prison for Drug DistributionRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that CARLOS MARIO CANTU-COX, age 49, and his husband, CHRISTOPHER CANTU-COX, age 38, both of Pasadena, Texas, were sentenced on June 29, 2021 by U.S. District Court Judge Wendy B. Vitter to twenty years of imprisonment, five years of supervised release and a mandatory $100 special assessment fee for conspiring to distribute methamphetamine, the maximum sentence allowed under the statute 21 United States Code § 846.
The CANTU-COXES were large scale methamphetamine suppliers to the Houston and New Orleans area. They pleaded guilty on February 4, 2020, to conspiring with nine other defendants to distribute methamphetamine in the Eastern District of Louisiana. As part of this conspiracy, the CANTU-COXES sent methamphetamine to themselves and other drug traffickers in New Orleans using the U.S. Postal Service, Greyhound Package Express, and other services. The drug conspiracy lasted from a time prior to January 1, 2016 and continued through August 18, 2016.
As described in court documents, one of the CANTU-COXES’ customers was an eighteen-year-old from Slidell, Louisiana, who frequently traveled to Texas to stay at their home. During one of these visits, the teenager was arrested for unlawful possession of a firearm and the CANTU-COXES posted his $6000 bond.
The teenager did not appear for his Texas court appearances and the CANTU-COXES told their New Orleans customers that they wanted the teenager so they could transport him back to Texas and recover their bond. Williams Harrison Farris, age 40, a New Orleans-based methamphetamine dealer and user who was supplied by the CANTU-COXES learned that the couple was looking for the teenager and were offering free methamphetamine to anyone who successfully led them to him.
Farris had previously dated Kacie Doucet, aged 38, another New Orleans-based drug user. Farris knew that Doucet was connected to the teenager on Facebook. At the direction of Farris, Doucet contacted the teenager over Facebook on multiple occasions and suggested that they meet for a sexual encounter. Farris and Doucet enlisted the help of Leilani Aspuria, age 26, of Jefferson Parish, the only one of the three with a car.
The CANTU-COXES were aware that Doucet’s offer of a sexual encounter with the teenager was a ruse, and that the real purpose of picking up the teenager in Slidell at his grandfather’s house was to provide him with a cocktail of powerful drugs and thus render him incapacitated so he could be delivered to the CANTU-COXES who were staying at a hotel in downtown New Orleans. The CANTU-COXES supplied the drug cocktail, which contained ketamine, as well as instructions on how to mix the drugs with alcohol so that it could be administered to the teenager without him knowing what he was taking.
Doucet and Aspuria picked up the teenager on February 23, 2016 and gave him the CANTU-COXES’s drug cocktail, which the couple referred to as an “elixir.” Eventually, the teenager passed out, at which point Doucet and Aspuria drove to the parking garage of Harrah’s Casino in New Orleans. Farris had been following Doucet and Aspuria on his motorcycle. The teenager’s body was then transferred to the CANTU-COXES’ car. The CANTU-COXES then drove back to Texas, with the teenager passed out in their back seat.
Somewhere near the Louisiana-Texas border, the CANTU-COXES realized that the teenager was no longer breathing. The CANTU-COXES continued driving to their home in Pasadena, Texas and parked in their driveway. Because it was still daylight, they left the teenager’s body in the car. At nightfall on February 24, 2016, the CANTU-COXES drove to a bridge over Sims Bayou in the Houston area and put the teenager’s body into the bayou. The teenager’s body washed to the shore of Sims Bayou a week later. The CANTU-COXES later paid Farris a quantity of methamphetamine for his efforts in capturing the teenager.
Farris, Doucet, and Aspuria have all pleaded guilty to distributing ketamine. U.S District Judge Jane Triche Milazzo sentenced Aspuria to ten years of imprisonment on February 7, 2020. Doucet will be sentenced on August 4, 2021. Farris will be sentenced on August 18, 2021.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Houston Police Department, and the Drug Enforcement Administration. The case was prosecuted by Assistant United States Attorneys David Howard Sinkman and Brandon S. Long.
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Medical Imaging Companies CEO Found Guilty of Running Massive Health Care Fraud Through the State Workers’ Comp SystemRead the Press Release
SAN DIEGO – The CEO of several Southern California-based medical imaging companies was found guilty by a federal jury today of running a scheme in which more than $250 million in claims were fraudulently submitted through the state workers’ compensation system for medical services procured through bribes and kickbacks to physicians and others.
Sam Sarkis Solakyan, 40, of Glendale, was found guilty of one count of conspiracy to commit honest services mail fraud and health care fraud, and 11 counts of honest services mail fraud.
Solakyan was the CEO of several medical-imaging companies, including the Glendale-based Vital Imaging Inc., and San Diego MRI Institute. Solakyan operated diagnostic imaging facilities throughout California, including the Bay Area, Los Angeles and Orange counties, and San Diego.
According to the evidence presented at the eight-day trial, from no later than mid-2013 to November 2016, Solakyan conspired with Steven Rigler, a Solana Beach-based chiropractor; Fermin Iglesias, the former CEO of MedEx Solutions, a patient-scheduling company; and others to perpetrate a scheme in which physicians were paid bribes and kickbacks in exchange for the referral of workers’ compensation patients. The compensation offered to the corrupt doctors consisted of either cash or referrals of new patients in what is known as a “cross-referral” scheme.
The conspirators obscured the true nature of their financial relationships in order to conceal the bribes and kickbacks, including by entering into various sham agreements such as contracts for “marketing,” “administrative services,” and “scheduling,” when in fact the money Solakyan paid amounted to volume-based, per- magnetic resonance imaging (MRI) scan bribes and kickbacks to induce physicians to refer and continue referring patients to Solakyan’s companies.
Solakyan’s recruiters required physicians to refer a minimum number of patients to receive “cross-referrals,” and those referrals stopped if the physicians failed to meet the minimum quota. Solakyan’s recruiters – Fermin Iglesias, 41 of Glendale, and Carlos Arguello, 39, of Bonita – were paid more than $8.6 million for obtaining MRI referrals, payments which were concealed from patients and health insurers.
Solakyan concealed his cash payments to Rigler for patient referrals by calling them “reports,” and in March 2015 he asked Rigler if Solakyan could “send my driver with your reports,” then stated, “I’ll have him contact you then I’ll just send him with your reports, buddy,” according to a September 2018 federal grand jury indictment.
In total, Solakyan submitted and caused to be submitted more than $250 million in claims for medical services procured through the payment of bribes and kickbacks.
Rigler pleaded guilty in November 2015 to one count of conspiracy to commit honest services mail fraud and was sentenced to six months in federal prison.
Iglesias pleaded guilty in December 2016 to conspiracy to commit honest services mail fraud and health care fraud and was sentenced in February 2019 to five years in federal prison.
Arguello pleaded guilty in August 2016 to conspiracy to commit honest services mail fraud and health care fraud and was sentenced in April 2019 to four years in federal prison.
United States District Judge Cynthia A. Bashant has scheduled an October 4 sentencing hearing, at which time Solakyan will face a statutory maximum sentence of 240 years in federal prison.
The FBI and the California Department of Insurance, Fraud Division, investigated this matter.
Assistant United States Attorney Faraz R. Mohammadi of the Santa Ana Branch Office and Assistant United States Attorney Adam P. Schleifer of the Major Frauds Section are prosecuting this case.
Maricopa Man Sentenced to Prison for Shooting DeathRead the Press Release
PHOENIX, Ariz. – Brent Edwin Justin, 32, of Maricopa, Arizona, was sentenced yesterday by U.S. District Judge John J. Tuchi to nearly 17 years in prison, followed by five years of supervised release. Justin previously pleaded guilty to Second Degree Murder.
On March 1, 2020, Justin shot the victim multiple times on the Gila River Indian Community, resulting in the victim’s death. Justin is an enrolled member of the Gila River Indian Community.
The Gila River Police Department and the Federal Bureau of Investigation conducted the investigation in this case. Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-20-00557-PHX-JJT
RELEASE NUMBER: 2021- 041_Justin###
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Man from Los Lunas pleads guilty to federal firearm and ammunition chargeRead the Press Release
ALBUQUERQUE, N.M. – Santos Duran, 23, of Los Lunas, New Mexico, pleaded guilty in federal court on June 23 to being a felon in possession of a firearm and ammunition.
A federal grand jury indicted Duran on June 24, 2020. According to his plea agreement, on May 20, 2020, Duran fled from law enforcement after officers attempted to execute a traffic stop in Albuquerque. Duran then drove his vehicle to Valencia County, New Mexico, where he abandoned the vehicle and attempted to flee on foot. While running away from law enforcement, Duran attempted to get rid of a bag containing a loaded firearm and a high-capacity magazine.
As a previously convicted felon, Duran cannot legally possess firearms or ammunition. By the terms of the plea agreement, Duran faces up to 10 years in prison.
The Albuquerque Field Office of the FBI, New Mexico State Police and Albuquerque Police Department investigated this case. Assistant U.S. Attorneys Jaymie L. Roybal and Sarah J. Mease are prosecuting the case.
Man from Albuquerque sentenced to three years in federal prison for communication threatsRead the Press Release
ALBUQUERQUE, N.M. –Michael Nissen, 66, of Albuquerque, was sentenced on June 18 in federal court to three years and five months in prison for threatening to harm another in an interstate communication.
On Aug. 7, 2019, a federal jury returned a verdict of guilty against Nissen on two counts of interstate communication containing threat to injure the person of another. According to public court records, on Nov. 2, 2018, Nissen was pulled over by New Mexico State Police (NMSP) and issued multiple citations in Torrance County, New Mexico. That evening, Nissen called NMSP dispatch and threatened to the kill the police officer who pulled him over. In November 2018, Nissen called and emailed NMSP Internal Affairs to complain about the police officer and again threatened to shoot the officer. On Dec. 13, 2018, Nissen called the Bernalillo County Sheriff’s Office to complain about the NMSP officer and stated he owned multiple firearms to protect himself from “rogue state cops.”
Upon his release from prison, Nissen will be subject to three years of supervised release.
The FBI and New Mexico State Police investigated this case with assistance from the Bernalillo County Sheriff’s Office. Assistant U.S. Attorneys Paul Mysliwiec and Alexander M. Uballez prosecuted the case.