Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
9 August 2021
Columbia Gang Member Pleads Guilty in Federal Court to Firearm ChargeRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart, announced today that Kevin Shacqile Roney, a/k/a “Kevo,” a/k/a “Valentine Roney,” 26, of Columbia, pleaded guilty in federal court to being a felon in possession of a firearm and ammunition.
Evidence presented to the court showed that at approximately 1:15am on August 18, 2019, officers in the Five Points area of Columbia, observed an individual, later identified as Roney, stash something underneath bushes adjacent to a parking lot. Officers discovered that the item was a loaded 9mm handgun. Therefore, officers set up surveillance and arrested Roney when he returned to retrieve the firearm an hour later. Roney, a gang member, admitted to placing the firearm underneath the bushes.
Roney is prohibited from possessing firearms and ammunition based upon his prior felony convictions. Roney has prior state convictions for unlawful carrying of a weapon, burglary 3rd degree, and assault and battery 2nd degree.
Roney faces of maximum penalty of 10 years in federal prison and a fine of $250,000. United States District Judge Mary Geiger Lewis accepted the guilty plea and will sentence Roney after receiving and reviewing a sentencing report prepared by the United States Probation Office.
The charges against Roney were the result of an investigation by Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department, 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.
Assistant United States Attorney Stacey D. Haynes is prosecuting the case.
#####
Colchester Man Pleads Guilty to Possessing MachinegunRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut; Kelly D. Brady, Special Agent in Charge, ATF Boston Field Division; and David Sundberg, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, announced that MICHAEL SHERIDAN, 27, of Colchester, pleaded guilty today to illegal possession of a machinegun.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Robert A. Richardson occurred via videoconference.
According to court documents and statements made in court, Sheriden agreed with an associate who had manufactured a machinegun to deliver it to another individual who had purchased it. On January 29, 2021, Sheriden transferred the machinegun to the purchaser in a parking lot in Cromwell.
Possession of a machinegun carries a maximum term of imprisonment of 10 years. Sheriden is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant in Hartford on November 10, 2021.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Federal Bureau of Investigation, with the assistance of the Penobscot County (Maine) Sheriff’s Office. The case is being prosecuted by Assistant U.S. Attorney Margaret Donovan.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Central Valley Fruit Broker Member Pleads Guilty and Agrees to Pay $1.25 Million to Resolve Criminal and Civil Allegations of Fraudulent Crop Insurance ClaimsRead the Press Release
FRESNO, Calif. — Ralph Hackett, 66, of Clovis, pleaded guilty today to aiding and abetting mail fraud and agreed to pay $650,000 in criminal restitution for helping another individual submit a fraudulent crop insurance claim for table grapes for the crop year 2013, Acting U.S. Attorney Phillip A. Talbert announced.
In a civil settlement with the United States, Hackett also agreed to pay another $605,000 to resolve allegations of crop insurance fraud for the crop years 2012 through 2015.
According to court documents, Hackett was a member and manager of a Central Valley fruit broker through which the other individual sold various crops, including table grapes, from the individual’s farming operation in Fresno and Tulare counties. At the other individual’s request, Hackett instructed one of his employees to provide altered records to the individual that underreported the amount of table grapes the individual sold through the fruit broker so the individual could submit a fraudulent crop insurance claim for the grapes for the crop year 2013. Hackett then instructed the same employee to falsely confirm the accuracy of the altered records when the insurance company called for verification.
Hackett further acknowledged that he helped the other individual submit additional fraudulent crop insurance claims for the crop years 2012 through 2015 and, all together, caused more than $650,000 in fraudulent insurance payments to be made to the individual’s farming operation. The insurance payments were federally backed by the Federal Crop Insurance Corporation (FCIC) and were made by checks sent through the mail. The civil settlement resolves claims that Hackett violated the False Claims Act and the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) during those years.
The False Claims Act allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. FIRREA allows the government to impose civil penalties for violations of enumerated federal criminal statutes, including fraud on the FCIC.
This case is the product of an investigation by the United States Department of Agriculture’s Office of the Inspector General and Risk Management Agency Special Investigations Staff. Assistant U.S. Attorney Joseph Barton is prosecuting the criminal case and Assistant U.S. Attorney Matthew R. Belz handled the civil investigation.
Hackett is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Feb. 22, 2022. Hackett faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account several variables.
Bronx Man Convicted of Murder, Robbery, and Drug Trafficking OffensesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that a jury returned a guilty verdict Friday against KASHEEN SAMUELS, a/k/a “Kash,” a/k/a “JR,” on five counts, including charges relating to the felony murder of Andrew Torres during an armed robbery, as well as other charges relating to robbery, robbery conspiracy, and narcotics conspiracy. U.S. District Judge Edgardo Ramos presided over the 9-day trial.
U.S. Attorney Audrey Strauss said: “Kasheen Samuels planned and carried out dangerous gunpoint robberies for years. He spread addiction in our communities by selling crack cocaine and heroin. A young man was shot and killed during one of his robberies, and Kasheen Samuels now stands convicted of that murder by a unanimous jury. We will continue our work with law enforcement partners to vigorously prosecute gun violence and drug trafficking crimes, and to pursue justice for the victims of violent crimes.”
According to the Superseding Indictment and the evidence at trial:
In June 2017, Kasheen Samuels and others conspired to rob a man of money and jewelry in the Bronx, New York and Middlesex County, New Jersey. The robbery took place in a New Jersey hotel, during which a young man was shot and killed. SAMUELS assisted in planning the robbery, provided a gun that was used during the robbery, and obtained jewelry stolen from one of the victims.
In addition, during April 2016, SAMUELS and others conspired to steal drug-trafficking proceeds near an autobody shop in the Bronx. SAMUELS also conspired to distribute large quantities of heroin and crack cocaine in the Bronx and Burlington, Vermont, from 2015 to 2018.
* * *
SAMUELS, 34, was convicted of conspiracy to commit robbery in April 2016, which carries a maximum prison term of twenty years; conspiracy to commit robbery in June 2017, which carries a maximum prison term of twenty years; robbery on June 21, 2017, which carries a maximum prison term of twenty years; murder through the use of a firearm on June 21, 2017, which carries a mandatory consecutive prison term of five years and a maximum prison term of life; and conspiring to distribute and possess with intent to distribute crack cocaine and heroin, which carries a mandatory minimum prison term of ten years and a maximum prison term of life. SAMUELS was acquitted of one count of attempted robbery in April 2016 and one count of using a firearm in connection with that attempted robbery.
The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Ms. Strauss praised the outstanding work of the Special Agents of the U.S. Attorney’s Office. Ms. Strauss also thanked the Middlesex County Prosecutor’s Office of New Jersey, the Drug Enforcement Administration, the Federal Bureau of Investigation, the New York State Police, the Burlington Police Department, the New York City Police Department, and the Yonkers Police Department for their assistance.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Jessica K. Fender, Mollie Bracewell, Christopher Brumwell, and Jason Swergold, and paralegal specialist Christopher Sykes, are in charge of the prosecution.
Boston Man Charged with Firearm and Ammunition OffensesRead the Press Release
BOSTON – A Boston man was arrested and charged on Friday, Aug. 6, 2021 in connection with illegal possession of a firearm and ammunition.
Jammy Alphonse, 27, was charged with one count of being a felon in possession of a firearm and ammunition. Following an initial appearance before U.S. Magistrate Judge Jennifer C. Boal, Alphonse was detained pending a probable cause and detention hearing scheduled for Aug. 12, 2021.
According to the charging documents, on July 26, 2021, law enforcement responded to a report of shots fired in the area of Cherry Street and Harvard Street in Cambridge and observed a vehicle fleeing the scene. Shortly thereafter, law enforcement located the vehicle crashed and abandoned on I-93. Through its investigation, law enforcement connected the vehicle to Alphonse and recovered video surveillance showing Alphonse in the area where the vehicle was abandoned. A search of Alphonse’s residence recovered keys consistent with the make and model of the vehicle and a loaded Glock Model 43x 9mm firearm. Alphonse is prohibited from possessing a firearm and ammunition due to a previous felony conviction in February 2020 for credit card fraud.
The charge of belong a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; Boston Police Acting Commissioner Gregory Long; Cambridge Police Commissioner Branville Bard; and Nikitas Splagounias, Acting Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations, made the announcement. Assistant U.S. Attorney J. Mackenzie Duane of Mendell’s Major Crimes Unit is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Berkeley County woman sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ashley Lynn Hess, of Inwood, West Virginia, was sentenced today to 36 months of incarceration for her role in a drug conspiracy that spanned several states, Acting United States Attorney Randolph J. Bernard announced.
Hess, 32, pled guilty in November 2020 to one count of “Distribution of a Mixture and Substance Containing Phencyclidine (PCP)” and one count of “Aiding and Abetting Distribution of Cocaine Hydrochloride.” Hess admitted to selling PCP and cocaine hydrochloride or “coke” in September 2019 in Berkeley County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.
Original press release here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Amherst Man Pleads Guilty to Threatening Members of Congress and New Hampshire State RepresentativeRead the Press Release
CONCORD –Ryder Winegar, 34, of Amherst, pleaded guilty on Friday in federal court to six counts of threatening members of Congress and one count of transmitting interstate threatening communications, Acting United States Attorney John J. Farley announced.
In February 2021, Winegar was indicted by a federal grand jury and charged with six counts of threatening members of Congress and one count of transmitting interstate threatening communications.
According to court documents and statements made in court, in the early morning hours of December 16, 2020, Winegar left voicemails at the offices of six members of the United States Congress in the District of Columbia. In some of the messages, Winegar identified himself by name or identified his telephone number. The voicemails threatened to hang the members of Congress if they did not “get behind Donald Trump.” For example, in one message, Winegar allegedly said, “I got some advice for you. Here’s the advice, Donald Trump is your president. If you don’t get behind him, we’re going to hang you until you die.”
Following his arrest on about January 11, 2021, investigators learned of a separate, e-mailed threat to a member of the New Hampshire State House of Representatives on December 14, 2020, in which Winegar threatened to pull the representative from his bed and hang him.
Winegar is scheduled to be sentenced on December 1, 2021. He has been in custody since his January arrest.
“While political expression is protected speech, threats to commit acts of violence constitute serious federal crimes,” said Acting U.S. Attorney Farley. “By threatening to kill members of Congress and a member of the New Hampshire House of Representatives, this defendant sought to intimidate public officials. As this prosecution demonstrates, such conduct is not acceptable and will not be tolerated.”
“Ryder Winegar crossed a line when he threatened to hang six members of Congress, and a New Hampshire state lawmaker, if they didn’t conform to his beliefs. His actions, to which he admitted to today, are crimes, not protected speech,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “The FBI will ensure individuals who engage in criminal conduct with the intent on harming our public servants are held accountable."
The case was investigated by the U.S. Capitol Police with assistance from the United States Marshals Service, U.S. Customs and Border Protection, Federal Bureau of Investigation, and the Amherst Police Department. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
###
Albany Doctor Admits to Violating the Controlled Substances ActRead the Press Release
ALBANY, NEW YORK – Dr. Larry Bruni has agreed to pay the United States $50,000 to resolve allegations that on numerous occasions from 2016 through 2020, he prescribed controlled substances without a legitimate medical purpose or outside the usual course of a professional medical practice, in violation of the Controlled Substances Act. Dr. Bruni also agreed to surrender DEA registration, and will not seek another DEA registration for at least 15 years. The amount of the civil penalty is based on Dr. Bruni’s inability to pay a higher amount.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Ray Donovan, U.S. Drug Enforcement Administration (DEA), New York Division.
“Prescription pads are for the medication patients need, not drugs they want,” said Antoinette T. Bacon, Acting United States Attorney for the Northern District of New York. “We will continue to work with the Drug Enforcement Administration to enforce the Controlled Substances Act by pursuing civil remedies when there is evidence that physicians have violated their oath to do no harm by writing unlawful prescriptions.”
“Instead of providing appropriate treatment and a safe haven for patients, Dr. Bruni perpetuated the cycle of addiction,” said Special Agent in Charge Ray Donovan, DEA New York Division. “I commend the Northern District of New York and the Diversion Investigators of the Albany District Office for their resolve to this investigation. DEA and our dedicated partners will continue to investigate those DEA Registrants who choose to neglect their duties and harm those they swore to protect.”
The Settlement Agreement resolves allegations that while Dr. Bruni purported to treat patients for substance abuse, he actually facilitated continued addiction and drug abuse. Examples of conduct include:
- Prescribing Adderall to a patient Dr. Bruni knew was abusing cocaine and methamphetamines, contributing to a high risk of heart attack or stroke for that individual;
- Prescribing Adderall to a patient who repeatedly tested negative for having taken Adderall, suggesting that those prescriptions were not medically necessary or that the medication was being diverted to the illegal market;
- Prescribing ketamine to patients to self-administer even though that drug is typically administered only in a medical setting because it induces a trance-like and dissociative state. In one case, a patient was injured at work while under the influence of ketamine; and
- Prescribing fentanyl strips for a patient who had ongoing substance abuse problems and ultimately died of fentanyl intoxication.
The DEA suspended Dr. Bruni’s DEA Registration in March 2021, which Dr. Bruni agreed to surrender in June 2021. As a result, Dr. Bruni is no longer able to write prescriptions for controlled substances. Pursuant to the Agreement, Dr. Bruni also agreed not to reapply for a DEA registration for at least 15 years.
This case was investigated by the DEA Albany District Office Diversion Group. Assistant United States Attorney Christopher R. Moran represented the United States in this matter.
- Prescribing Adderall to a patient Dr. Bruni knew was abusing cocaine and methamphetamines, contributing to a high risk of heart attack or stroke for that individual;
8 August 2021
Michigan Biodiesel Exporter Sentenced to Prison for Tax FraudRead the Press Release
WASHINGTON – A Bloomfield, Michigan, businessman, who operated a biodiesel fuel company, was sentenced to 30 months in prison today for filing a false income tax return.
Chandra Yarlagadda owned and operated Alpha Bioenergy LLC, formerly known as Naturol Bioenergy LLC, which purchased and sold biodiesel fuel. Under the Clean Air Act and related federal regulations, companies such as Alpha that exported biodiesel fuel were required to purchase and retire Renewable Identification Numbers (RINs) for any volume of renewable fuel they exported. The RINs are used by the Environmental Protection Agency to track compliance with its annual Clean Air Act standards.
According to court documents, Yarlagadda reported income and expenses associated with Alpha on Schedules C attached to his personal income tax returns. Yarlagadda admitted as part of his plea that on the Schedules C attached to his 2009, 2010, and 2011 tax returns, he substantially overstated expenses associated with the purchase of RINs. For these three years, Yarlagadda reported RIN expenses totaling more than $14.2 million, when, in fact, he was only entitled to claim approximately $80,000 in RIN expenses for those years. Yarlagadda admitted that if he had not claimed these false deductions, he would have owed an addition $2.3 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Gershwin A. Drain ordered Yarlagadda to serve one year of supervised release and pay restitution to the IRS in the amount of $3,285,303.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Saima S. Mohsin for the Eastern District of Michigan made the announcement.
IRS Criminal Investigation, the U.S. Environmental Protection Agency – Criminal Investigation Division, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, conducted the investigation.
Trial Attorneys Melissa S. Siskind and Sarah C. Ranney of the Tax Division prosecuted the case, and Assistant U.S. Attorney Stephen Hiyama of the Eastern District of Michigan provided substantial assistance in this matter.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
6 August 2021
York County Man Charged with Producing, Receiving and Possession of Child Pornography and Enticing A Minor to Engage in Sexual ConductRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on August 4, 2021, Jeremy Fallbeck, age 31, of York, Pennsylvania, was charged with producing, receiving, and coercing child pornography and enticing a child to engage in unlawful sexual activity.
According to Acting U.S. Attorney Bruce D. Brandler, the indictment charges Fallbeck with producing and attempting to produce child pornography, receiving child pornography, possessing child pornography, and coercing or enticing a child to engage in unlawful sexual activity from on or about January 9, 2019 until on or about August 25, 2019, in York County.
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."
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Christian Haugsby is prosecuting the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for these offenses is up to life imprisonment, a term of up to lifetime 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.
###
Woman found guilty of second-degree murder and intentional child abuse for death of two-month old infantRead the Press Release
ALBUQUERQUE, N.M. – A federal jury on Aug. 5 found Sophia Monique Zayas, 39, guilty of second-degree murder, intentional child abuse resulting in death, intentional child abuse resulting in great bodily harm, intentional child abuse not resulting in great bodily harm, and aiding and abetting. Zayas will remain in custody pending sentencing, which has not been scheduled.
On Feb. 19, 2014, her husband, Peter Zayas, pleaded guilty to negligent child abuse resulting in great bodily harm. In his plea agreement, Peter Zayas admitted that between August 16, 2007, and Oct. 22, 2007, he permitted his infant to be in a situation that endangered her life knowing that there was a foreseeable risk that she would be physically harmed or killed by leaving her in the care of Sophia Zayas, knowing that she had a history of alcohol abuse. Peter Zayas acknowledged that the infant sustained posterior transverse skull fractures, rib fractures, and radius and ulna fractures as a result of his negligence. At the time of the offenses, Peter Zayas was a sergeant with the U.S. Air Force and was stationed at Holloman Air Force Base. On Oct. 2, 2018, he was sentenced to 15 years in prison.
Previously, Sophia Zayas pleaded guilty on Feb. 24, 2014, to negligent child abuse resulting in great bodily harm. However, in November of 2015, her counsel filed a motion to withdraw her guilty plea, asserting that her plea was not knowing and voluntary following a change in the relevant child abuse law. The district court denied that motion on Feb. 8, 2017. On Sept. 27, 2018, she was sentenced to 15 years in prison, but successfully appealed the district court’s decision to the Tenth Circuit Court of Appeals. On Feb. 6, 2020, the Tenth Circuit remanded the case back to the district court with instructions to vacate her guilty plea.
Sophia Zayas now faces the possibility of life in prison.
The FBI and the Air Force Office of Special Investigations investigated this case. Assistant U.S. Attorneys Maria Y. Armijo and Christopher McNair are prosecuting the case.
Whitley County Man Sentenced to 27 Years for Producing Child PornographyRead the Press Release
LONDON, Ky. - A Williamsburg, Ky., man, Amos Sparkman, 26, was sentenced Thursday, to 27 years in federal prison for production of child pornography, by U.S. District Judge Claria Horn Boom.
According to his plea agreement, in October 2020, Sparkman started an online relationship with a minor female using the social media platform Snapchat. Sparkman confessed to a sexual relationship with the minor and possessed a video of the minor performing sexual acts on Sparkman. Sparkman admitted that he used the minor victim to produce visual depictions of the minor engaging in sexually explicit conduct and that the depictions were then transported using Snapchat.
Sparkman was previously convicted of Harassment and Physical Contact with a child and of Sexual Abuse, Second Degree of another minor. Sparkman was a registered sex offender at the time he produced child pornography with his third minor victim. When law enforcement arrested Sparkman, he stated he was planning to meet another girl.
Sparkman was indicted in January 2020 and entered a guilty plea on March 2, 2021.
Under federal law, Sparkman must serve 85 percent of his prison sentence, and upon his release from prison will be under the supervision of the U.S. Probation Office for 10 years.
Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky; Edward J. Gray-, Acting Special Agent in Charge, FBI, Louisville Field Office, and Colonel Phillip Burnett, Jr., Commissioner of the Kentucky State Police, jointly announced the sentence.
The investigation was conducted by the FBI with assistance from the Kentucky State Police. The United States was represented by Assistant U.S. Attorney Jenna E. Reed.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
— END —
West Roxbury Woman Pleads Guilty to Wire FraudRead the Press Release
BOSTON – A West Roxbury woman pleaded guilty yesterday in federal court in Boston in connection with a scheme involving inferior merchandise refunds.
Tamara Khatuntseva, 64, pleaded guilty to wire fraud before U.S. Senior District Court Judge Douglas P. Woodlock who scheduled sentencing for Dec. 6, 2021. Khatuntseva was charged on July 20, 2021.
In December 2018, law enforcement initiated an investigation into multiple individuals who were suspected of engaging in activities to defraud runway stores across Massachusetts. From December 2018 through approximately August 2020, Khatuntseva engaged in a scheme to defraud a store through refunds of inferior merchandise including high end and expensive jewelry, clothing, purses, handbags, luggage and shoes. Specifically, Khatuntseva admitted to returning merchandise purportedly purchased from the store, but that was actually not purchased from the store and was of inferior quality, for a full refund and then selling the legitimate merchandise on the internet. For example, Khatuntseva was captured on video surveillance purchasing a pink Gucci scarf for $399, which was then listed for sale on an eBay site associated with Khatuntseva. Several days later, video surveillance showed Khatuntseva returning a different scarf – with the same bar code – and receiving a full refund. The company’s loss as a result of Khatuntseva participation in this scheme is estimated to be between $40,000 and $150,000.
The charge of wire fraud provides a sentence of up to 20 years in prison, three years of supervised release, a fine of $250,000, forfeiture and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Assistant U.S. Attorney Laura J. Kaplan of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
West Haven Man Charged with Narcotics and Ammunition OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging CHAZ REDDICK, 38, of West Haven, with narcotics and ammunition offenses.
The indictment was returned on August 3 and Reddick appeared yesterday before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty. He has been detained since his arrest on related state charges on April 20, 2021.
As alleged in statements made in court, on April 20, 2021, Reddick was arrested by West Haven Police after a court-authorized search of his apartment revealed a distribution quantity of crack cocaine and multiple rounds of ammunition.
It is alleged that Reddick’s criminal history includes state felony convictions for firearm, drug and larceny offenses. It is a violation of federal law for someone previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
The indictment charges Reddick with one count of possession with intent to distribute 28 grams or more of cocaine base (“crack”), which carries a mandatory minimum term of imprisonment of five years and a maximum term of imprisonment of 40 years, and one count of possession of ammunition by a felon, which carries a maximum term of imprisonment of 10 years.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation’s New Haven Safe Streets/Gang Task Force and the West Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Conor M. Reardon.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Washington County Man Charged with Illegal Possession of a Machinegun and AmmunitionRead the Press Release
ALBANY, NEW YORK – Daniel Day, age 34, of Argyle, New York, was arrested and charged by criminal complaint today with unlawfully possessing ammunition as a felon and illegally possessing a machinegun on August 5, 2021.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Janeen DiGuiseppi, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI), and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
The criminal complaint alleges that Day, who has a prior felony conviction for unlawfully possessing a firearm as a user of a controlled substance, possessed ammunition and a machinegun at his residence in Argyle, on August 5, 2021. Law enforcement also located other firearms and ammunition at his residence. The charges in the complaint are merely accusations. The defendant is presumed innocent unless and until proven guilty.
If convicted, Day faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
Day appeared today before United States Magistrate Judge Christian F. Hummel, who ordered him detained.
This case was investigated by the FBI's Joint Terrorism Task Force (JTTF), with assistance from the New York State Police and ATF, and is being prosecuted by Assistant U.S. Attorneys Alexander Wentworth-Ping and Richard Belliss.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Virginia Man Sentenced for $1.3 Million Fraud Schemes and Receipt of Child PornographyRead the Press Release
RICHMOND, Va. – A Glen Allen man was sentenced today to 151 months in prison for wire fraud, engaging in an unlawful monetary transaction using fraud proceeds, and receipt of child pornography.
“Not only did the defendant defraud innocent victims through a million dollar investment fraud scheme designed to maintain his lifestyle, but he also painfully contributed to the exploitation of children by collecting thousands of materials depicting child sexual abuse,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “We are thankful to the FBI and USPIS for their thorough investigative efforts and close partnership with our Office to hold the defendant accountable for his appalling conduct.”
According to court documents, Gordon G. Miller III, 56, was the sole owner and operator of G3 Systems, Inc., a software engineering company, and G3i Ventures, LLC, purportedly a venture capital company. Starting around 2017, Miller began to engage in overlapping fraud schemes to prevent his companies from going out of business and to maintain his lifestyle in the absence of legitimate income.
One scheme involved the solicitation of contacts in an online question-and-answer forum, where Miller falsely represented himself as an entrepreneur with a significant net worth, multiple advanced degrees, and expertise investing in technology companies. Between 2017 and 2018, through various misrepresentations, Miller fraudulently obtained approximately $1 million from at least 10 individuals through this scheme.
Another fraud entailed the diversion of a federal subcontract to G3 Systems, which he obtained using misrepresentations regarding his educational experience. Once he secured the subcontract, Miller submitted fraudulent timesheets and invoices to obtain more than $300,000 in payments from the prime contractor. Between 2018 and 2019, Miller took checks he received from the contractor to a check-cashing store in Richmond to convert the proceeds of the contract-fraud scheme to cash.
During the investigation of the above-described fraud schemes, federal agents obtained a search warrant for Miller’s residence. During the preliminary examination of devices seized from Miller’s home, agents discovered child sexual abuse material. After the execution of a search warrant targeting such material, and based on a review of the material which continued following Miller’s guilty plea, agents discovered more than 11,000 images or videos constituting child pornography, including images or videos Miller obtained between August 2017 and September 2020.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office; and Daniel A. Adame, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge John A. Gibney, Jr.
Assistant U.S. Attorneys Katherine Lee Martin and Kevin Elliker prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-109.
Victim Advisory- United States v. Choksi, et al. Case UpdatesRead the Press Release
CASE NAME: United States v. Choksi, et al., Criminal Case No. 3:19-cr-160
COURT: U.S. District Court for the Eastern District of Virginia, Richmond Division
CASE SUMMARY: The remaining defendants in this case, Shehzadkhan Khandakhan Pathan, Pradipsinh Dharmendrasinh Parmar, and Sumer Kantilal Patel have each pleaded guilty to offenses in connection with their participation in a conspiracy to commit mail and wire fraud. The purpose of this conspiracy was to defraud victims of money through unsolicited telephone calls originating from a call center in India operated by Pathan. Each defendant faces a maximum sentence of 20 years in prison for this conspiracy. Defendants Pathan and Parmar each also face an additional mandatory minimum sentence of two years for their convictions of aggravated identity theft.
According to court documents, conspirators at the call center used automated, previously recorded calls, commonly referred to as “robocalls,” to initiate contact with victims. These robocalls usually contained messages designed to create a sense of urgency with the call recipient, including threats of serious legal problems, usually criminal in nature, that required immediate action in order to avoid drastic consequences, including arrest and/or significant financial penalties. Victims would be instructed to stay on the line or to call a particular number.
Eventually victims would speak with one or more live persons, who used a variety of scripts incorporating different fraud schemes to persuade victims to send money, including the following scripts:
- Conspirators impersonated an official with a federal law enforcement agency, such as the FBI or DEA, to convince victims that they were the subjects of criminal investigations, often involving the prospective seizure of all of the victims’ financial assets. Conspirators told victims to ship packages of cash or preloaded payment cards to addresses purportedly used to receive official government mail as demonstrations of good faith to avoid immediate arrest and prosecution. Conspirators promised victims that the money would be returned, sometimes with interest, if they were ultimately cleared of wrongdoing.
- Conspirators also posed as employees of federal agencies, such as the Social Security Administration or the Internal Revenue Service, to convince victims to send packages of cash and/or preloaded payment cards, or to wire funds, in order to keep or restore their federal benefits or as payment for purported tax bills.
- Conspirators also told victims that they had been approved for loans that required an earnest money or initial installment payment, which conspirators directed victims to send by wire transfer via Western Union, MoneyGram, or Walmart2Walmart. The typical amount of the requested transfers ranged from several hundred dollars up to three thousand dollars.
Pathan operated the call center in India through which the robocalls and follow-up calls were made. Pathan also recruited, supervised, and operated a network of money couriers in the United States who would retrieve victim shipments and wire transfers and then send the bulk of those funds to conspirators, including Pathan, through deposits into various bank accounts and via informal money transmitters, known as hawalas. These networks operated in several states, including Virginia, Minnesota, New Jersey, California, Indiana, Texas, and Illinois. Victim cash shipments were often directed to addresses in these states. Parmar and Patel worked for Pathan as money mules.
CASE STATUS: Pathan is scheduled to be sentenced on September 16. Parmar and Patel are scheduled to be sentenced on September 20.
VICTIM RESPONSE: To ensure that members of the public, including potential victims of this conspiracy, are informed of developments in this ongoing case, the U.S. Attorney’s Office has established a page on its website, available at the following link: https://www.justice.gov/usao-edva/united-states-v-chirag-choksi-et-al.
The website currently includes a copy of the second superseding indictment, plea agreements, and statements of fact filed in this case with respect to defendants Pathan, Parmar, and Patel. Victims with questions can email the United States Attorney’s Office at [email protected], referencing the above case name and docket number. The website includes information for submitting victim impact statements, which may be emailed or mailed to:
U.S. Attorney’s Office
Eastern District of Virginia
Attn: Dutch Parcel
919 E. Main Street, Suite 1900
Richmond, VA 23219
Two West Plains Men Sentenced for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Two West Plains, Missouri, men were sentenced in federal court today for their roles in a conspiracy to distribute methamphetamine in Howell, Greene, and Texas counties.
Benny D. Griffin, 59, and Jordan W. Gutierrez, 26, were sentenced in separate appearances before U.S. District Judge Stephen R. Bough. Griffin was sentenced to 15 years in federal prison without parole. Gutierrez was sentenced to 12 years and six months in federal prison without parole.
Griffin and Gutierrez each pleaded guilty on March 25, 2021, to participating in a conspiracy to distribute methamphetamine in Howell, Greene, and Texas counties from Dec. 31, 2015, to June 21, 2019. Griffin also pleaded guilty to possessing a firearm in furtherance of a drug-trafficking crime.
On Nov. 26, 2018, law enforcement officers executed a search warrant at Griffin’s residence. They searched Griffin, who had 1.947 grams of pure methamphetamine in his pocket. During a search of the property, officers found a black waterproof case in the wood line approximately 100 yards from the residence. Inside the case, officers found multiple bags of methamphetamine, which totaled 851 grams of pure methamphetamine. Officers also found several bags of marijuana, drug paraphernalia, and surveillance equipment both inside and outside the residence. Officers seized $16,098, which has been forfeited to the government as the proceeds of drug trafficking, from a living room safe. Officers also found a loaded Ruger .22-caliber pistol on the bed in the master bedroom.
Griffin told officers he had obtained the methamphetamine a few days earlier from co-defendant Fontella J. Noose, 40, of Springfield. Griffin rented a vehicle and drove it to Springfield, Mo. He stayed in a hotel while Noose took the vehicle to Tulsa, Oklahoma, to purchase the methamphetamine. Noose picked up three pounds of methamphetamine on the trip and gave him two of the pounds. Griffin said he provided all of the cash for the drugs and Noose owed him $9,000 for her pound and another pound she had kept on a previous transaction.
Griffin told officers he had used Noose as his source of supply for approximately three months and had conducted four or five transactions with her, having gotten three pounds of methamphetamine on each occasion. Griffin said he paid $5,000 per pound of methamphetamine.
Noose, who pleaded guilty to her role in the conspiracy, was sentenced on March 25, 2021, to 20 years in federal prison without parole.
Gutierrez was arrested on Sept. 25, 2018, while returning from a trip to Oklahoma to purchase illegal drugs. When officers detained Gutierrez at a truck stop in Cabool, Mo., he was in possession of 70.63 grams of methamphetamine.
Although the methamphetamine seized at the time of his arrest was purchased from a different source, Gutierrez told officers that he purchased methamphetamine from co-defendant Shirley J. Hicks, 63, of West Plains, on a consistent basis for approximately two months during the conspiracy. Gutierrez purchased one ounce at a time from Hicks, several times per month.
Hicks has pleaded guilty to her role in the conspiracy, as well as to possessing methamphetamine with the intent to distribute. When law enforcement officers executed a search warrant at Hicks’s residence on July 24, 2018, they found a red toolbox inside a shop/barn that contained six bags with a total of 5.627 kilograms of pure methamphetamine. Inside a bedroom closet in the house, officers also found12 bags with a total of 243 grams of pure methamphetamine inside a black leather bag, and a bag of methamphetamine inside a blue waterproof box that contained 122.892 grams of pure methamphetamine. Officers also seized a total of $20,393, which Hicks admitted was proceeds from her distribution of methamphetamine.
Co-defendants Jose I. Gonzales, 39, and Shaun M. Ross, 43, both of West Plains, also have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Jessica R. Sarff. It was investigated by the South Central Drug Task Force, the Drug Enforcement Administration, the Missouri State Highway Patrol, the Howell County, Mo., Sheriff’s Department, the West Plains, Mo., Police Department, and the Mountain View, Mo., Police Department.
Two Myanmar Citizens Arrested in Plot to Injure or Kill Myanmar’s Ambassador to the United NationsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, Jacqueline Maguire, the Acting Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Police Commissioner of the City of New York (“NYPD”), announced the arrests of PHYO HEIN HTUT and YE HEIN ZAW for conspiracy to assault and make a violent attack upon Myanmar’s Permanent Representative to the United Nations. HTUT and ZAW were charged in two separate complaints and will be presented later today in the U.S. District Court in White Plains before U.S. Magistrate Judge Andrew E. Krause.
U.S. Attorney Audrey Strauss said: “As alleged, Phyo Hein Htut and Ye Hein Zaw plotted to seriously injure or kill Myanmar’s ambassador to the United Nations in a planned attack on a foreign official that was to take place on American soil. We commend the tireless work of our law enforcement partners at all levels of government to ensure the safety of foreign diplomats and officials.”
FBI Acting Assistant Director Jacqueline Maguire said: “Time was of the essence when we received information about a threat to Myanmar’s Ambassador to the United Nations. I would like to thank our Westchester Safe Streets Task Force and each of our partner law enforcement agencies that worked quickly and diligently to track down the men allegedly hired in this plot to harm and potentially kill a foreign diplomat on U.S. soil. Our laws apply to everyone in our country, and these men will now face the consequences of allegedly breaking those laws.”
NYPD Commissioner Dermot Shea said: “As alleged in today’s federal charges, these defendants reached across borders and oceans in designing a violent plot against an international leader on United States soil. But our NYPD investigators and prosecutors from the United States Attorney’s Office in the Southern District of New York worked relentlessly with our law enforcement partners to bring them to justice before any harm could be done.”
According to the allegations in the two Complaints filed today[1]:
Between at least in or about July 2021 through at least on or about August 5, 2021, HTUT and ZAW, citizens of Myanmar currently residing in New York, conspired to injure or kill Myanmar’s Permanent Representative to the United Nations (the “Ambassador”). During the conspiracy, HTUT communicated with an arms dealer in Thailand (the “Arms Dealer”) who sells weapons to the Burmese military, which overthrew Myanmar’s civilian government in or about February 2021. In the course of those conversations, HTUT and the Arms Dealer agreed on a plan in which HTUT would hire attackers to hurt the Ambassador in an attempt to force the Ambassador to step down from his post. If the Ambassador did not step down, then the Arms Dealer proposed that the attackers hired by HTUT would kill the Ambassador.
Shortly after agreeing on the plan, ZAW contacted HTUT by cellphone and transferred approximately $4,000 to HTUT through a money transfer app as an advance payment on the plot to attack the Ambassador. Later, during a recorded phone conversation with ZAW, HTUT discussed how the planned attackers would require an additional $1,000 to conduct the attack on the Ambassador in Westchester County, and for an additional payment the attackers could, in substance, “finish off” the Ambassador. In response, ZAW agreed, in substance, to pay the additional $1,000 and to try to obtain the additional money.
HTUT, 28, and ZAW, 20, both citizens of Myanmar, are each charged in separate complaints with one count of conspiracy to assault and make a violent attack upon a foreign official, which carries a maximum sentence of five 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 defendants will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI’s Westchester Safe Streets Task Force, which comprises special agents and task force officers from the FBI, NYPD, United States Probation Office, New York State Police, New York State Department of Corrections and Community Supervision, Westchester County Department of Public Safety, Westchester County District Attorney’s Office, Putnam County Sheriff’s Office, and the police departments of Yonkers, Mount Vernon, New Rochelle, Greenburgh, White Plains, Peekskill, Ramapo, and Clarkstown. Ms. Strauss also thanked the Pelham Manor Police Department and the U.S. Department of State’s Diplomatic Security Service for their assistance in the investigation.
Ms. Strauss said that the investigation is ongoing, and asked any individuals with relevant information to contact the FBI at (800)-CALL-FBI.
The prosecution is being handled by the Office’s White Plains Division. Assistant United States Attorney Nicholas S. Bradley is in charge of the prosecution.
The charges in the Complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the texts of the Complaints and the description of the Complaints set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Two Hartsville Men Sentenced to 12.5 Years in Federal Prison for Meth DistributionRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Chazoid Cenetell Rogers, 42, and Oyarmma Robinson, 42, both of Hartsville, were sentenced to more than twelve years in federal prison, after pleading guilty to their roles in possessing with the intent to distribute and distributing methamphetamine.
Evidence presented to the Court showed that, in the Spring and Summer of 2019, law enforcement conducted a series of controlled buys of methamphetamine from Rogers and/or Robinson. Rogers participated in five sales of methamphetamine over a three-month period, for a total of 209 grams of methamphetamine. Robinson participated in two sales of methamphetamine in one month, for a total of 111 grams of methamphetamine.
United States District Judge Sherri A. Lydon sentenced Rogers and Robinson to 150 months in federal prison, to be followed by a five-year term of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Drug Enforcement Administration (DEA), the Chesterfield County Sheriff’s Office, the Darlington County Sheriff’s Office, and the Hartsville Police Department.
Assistant United States Attorney Katherine Flynn prosecuted the case.
#####
Two Defendants Plead Guilty for Their Roles Helping Cybercriminals Launder Money as Part of the QQAAZZ OrganizationRead the Press Release
PITTSBURGH – Two individuals have pleaded guilty for their roles in the cybercriminal money laundering organization QQAAZZ. On August 6 and July 13, two of the charged defendants, Arturs Zaharevics and Aleksejs Trofimovics, respectively, pleaded guilty to money laundering conspiracy in the Western District of Pennsylvania. QQAAZZ was a European-based money laundering organization that provided illegal cash-out and cryptocurrency transactions for computer hackers and their associates. In total, 20 individuals have been charged as part of this scheme.
In furtherance of QQAAZZ’s criminal conspiracy, Trofimovics, using his own name, registered a shell company in Portugal that conducted no legitimate business. Trofimovics then opened at least thirteen corporate bank accounts in Portugal in the name of the shell company for the intended purpose of enabling QQAAZZ to receive and launder money stolen by cybercriminals from victims and their respective financial institutions. Several of these Portuguese accounts received, or were intended to receive, funds stolen from U.S. victims.
Arturs Zaharevics was successfully extradited from the United Kingdom in April. In furtherance of QQAAZZ’s criminal conspiracy, Zaharevics established a shell company under a false name and set up foreign bank accounts in the name of that shell company that received or intended to receive funds stolen from U.S. victims.
Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania and FBI Pittsburgh Special Agent in Charge Mike Nordwall made the announcement today.
“Transnational money laundering organizations like the QQAAZZ group play a critical role in helping cybercriminals profit from their schemes. The guilty pleas announced today reflect our ongoing commitment to dismantle these pernicious groups through collaboration with our foreign partners. The guilty pleas further demonstrate our commitment to pursue such criminals in other parts of the world and ensure that they face justice in our U.S. courts,” said Acting United States Attorney Stephen R. Kaufman of the Western District of Pennsylvania.
“These individuals operated a money laundering scheme working in concert with cyber criminals who stole from unsuspecting victims in the United States and around the globe,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “Their guilty pleas are proof no one can hide behind a computer or an international border. The FBI is engaged in numerous efforts to combat cyber threats, from improving threat identification and information sharing, to examining the way we operate to disrupt and defeat these threats. Partnerships are a vital part of the work we do every day, and the global partners in this investigation allowed all of us to combine tools, skills and knowledge to create a stronger team to put these criminals out of business.”
According to the factual bases for the two guilty pleas and the various charging instruments in this case, the QQAAZZ members, acting in concert with cybercriminals across the world, conspired to launder money stolen from victims of computer fraud in the United States and elsewhere. More than 40 house searches were conducted in Latvia, Bulgaria, the United Kingdom, Spain and Italy, with criminal prosecutions initiated in the United States, Portugal, Spain and the United Kingdom. The largest number of searches and arrests were carried out in Latvia by the Latvian State Police (Latvijas Valsts Policija), and an extensive bitcoin mining operation associated with the group was seized in Bulgaria. Europol and several law enforcement agencies across Europe collaborated with the United States to develop parallel investigations and prosecutions of the QQAAZZ members in their own countries.
The investigation was conducted by FBI. The Justice Department’s Office of International Affairs and law enforcement partners in the United Kingdom and Latvia secured the arrest of the defendants overseas.
The case is being prosecuted by Trial Attorney Michael Parker of the Money Laundering and Asset Recovery Section of the U.S. Department of Justice’s Criminal Division, Assistant U.S. Attorney Charles A. “Tod” Eberle, Chief of the National Security and Cybercrime Section for the Western District of Pennsylvania, and Assistant U.S. Attorney Brian Czarnecki of the Western District of Pennsylvania.
Tulsa Man Sentenced for Applying for Paycheck Protection Program Loans under False PretensesRead the Press Release
A Tulsa man who fraudulently applied for Paycheck Protection Program forgivable loans guaranteed by the Small Business Administration under the Coronavirus Aid, Relief, and Economic Security (CARES) Act was sentenced today in federal court, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Ibanga Etuk, 41, to a total of four years in federal prison— two years for bank fraud and two years for aggravated identity theft. Judge Eagan also ordered Etuk to pay $168,000 in restitution to Chickasaw Community Bank.
In a plea agreement, Etuk admitted that from April 6, 2020, to April 29, 2020, he knowingly applied for a Paycheck Protection Program loan from Frontier State Bank under false pretenses. The defendant lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the business, and relationships between the parties in a $300,000 loan application submitted for AboveAll Business Inc.
During the same time, Etuk unlawfully used another individual’s identity on payroll records submitted to Frontier State Bank when he applied for the $300,000 loan.
Etuk’s wife, Teosha Etuk, also fraudulently applied for Paycheck Protection Program loans. She pleaded guilty to one count of bank fraud on April 6, 2021. She was sentenced on July 19, 2021, to one year and a day in federal prison followed by five years of supervised release. She was further ordered to pay restitution in the amount of $150,000 to First Liberty Bank.
In a plea agreement, Teosha Etuk, 33, admitted that from April 14, 2020, to April 29, 2020, she fraudulently applied for a Paycheck Protection Program loan through First Liberty Bank. Specifically, she lied about the number of people employed during the previous months of purported operations, the payroll expenditures during the previous months, taxes paid during previous months of operation, ownership of the businesses and relationships between the conspirators in a loan application for $150,000 for the company TMARK Enterprises, Inc.
The Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection Office of Inspector General; Small Business Administration Office of Inspector General; and FBI conducted the investigation. Assistant U.S. Attorneys Kristin Harrington and Victor A.S. Régal are prosecuting the case.
To learn more about the Justice Department’s COVID response, visit: https://www.justice.gov/coronavirus. For further information on the Criminal Division’s enforcement efforts on PPP fraud, including court documents from significant cases, visit the following website: https://www.justice.gov/criminal-fraud/ppp-fraud.
To report a COVID-19-related fraud scheme or suspicious activity, contact the National Center for Disaster Fraud (NCDF) by calling the NCDF Hotline at 1-866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-for
Tucson Drug Trafficker Sentenced to Five YearsRead the Press Release
TUCSON, Ariz. – Oscar Alberto Martinez, 27, of Tucson, Arizona was sentenced yesterday by U.S. District Judge John C. Hinderaker to five years in prison, followed by three years of supervised release. Martinez previously pleaded guilty to conspiracy to distribute methamphetamine, heroin, and fentanyl.
Martinez operated as a drug courier for a Tucson-based drug trafficking organization that trafficked methamphetamine, heroin, and fentanyl. Martinez made daily deliveries of drugs to buyers in Tucson for approximately three months. On February 20, 2020, Martinez was arrested while attempting to deliver three pounds of methamphetamine and ten ounces of heroin. Martinez fled from law enforcement, leading them on a high-speed vehicle chase through Tucson before abandoning his vehicle and continuing his flight on foot. Officers finally apprehended Martinez as he was trying to run into a home.
The Drug Enforcement Administration conducted the investigation in this case, with assistance from the Pima County Sheriff’s Office, the Tucson Police Department, and the Oro Valley Police Department. The United States Attorney’s Office, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR 20-1864-03-TUC-JCH (LCK)
RELEASE NUMBER: 2021-027_Martinez# # #
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.Swainsboro, Ga., banker admits obtaining hundreds of thousands of dollars in fraudulent loansRead the Press Release
SAVANNAH, GA: A former commercial loan officer at a Chatham County bank is facing significant penalties after admitting to obtaining hundreds of thousands of dollars in fraudulent loans.
Jason McMillan, 45, of Swainsboro, Ga., awaits sentencing after pleading guilty in U.S. District Court to an Information charging him with Bank Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. McMillan’s guilty plea subjects him to a statutory penalty of up to 30 years in prison, up to $1 million in fines, significant restitution and asset forfeiture, and up to three years of supervised release after completion of any prison term.
There is no parole in the federal system.
“Customers of financial institutions rightly depend on the integrity of those institutions, and of the staff they employ,” said Acting U.S. Attorney Estes. “As part of his plea, Jason McMillan will never again work as a banker – and that will help protect those institutions and their customers.”
As described in court documents and testimony, McMillan was employed as a commercial loan officer at a Chatham County branch of a bank when, in July 2009, he used the identity of C.J. without the victim’s knowledge or authorization to obtain a commercial loan for $187,000, “purportedly for obtaining industrial farm equipment.”
During the next four years, McMillan made interest payments on the loan and completed renewal applications to obtain additional loan amounts of $160,000, $157,000, and $250,000. The plea agreement attributes a total of approximately $200,271 in fraudulently obtained funds that McMillan converted to his personal use. The bank discovered the fraud during an internal investigation.
In addition to the statutory guidelines for sentencing, as part of the plea agreement, McMillan agrees to forfeit $112,430.32, to pay restitution as ordered by the court, and to consent to an order prohibiting him from future employment as a banker.
“Purposely stealing from others for one’s own personal benefit is a greedy, criminal act that burdens all involved,” said Steven R. Baisel, Special Agent in Charge of the Atlanta Field Office of the U.S. Secret Service. “Thankfully, our daily investigative collaboration with our prosecutorial partners helps identify and bring to justice those who choose a felonious path.”
The case was investigated by the U.S. Secret Service, and prosecuted for the United States by Assistant U.S. Attorney Steven H. Lee and Asset Forfeiture Unit Section Chief Xavier A. Cunningham.
Statement of the U.S. Attorney’s Office for the Eastern District of Pennsylvania Regarding Recent Publication by Institute for Quantitative Study of Inclusion, Diversity, and Equity, Inc.Read the Press Release
In our constitutional democracy, the court is the focal point of the entire criminal justice system; its mission is to serve the public by administering justice in a fair and impartial manner, by preserving each citizen’s constitutional rights, and by faithfully applying the rule of law in each individual case. The court’s ability to fulfill this mission – one that the Department of Justice shares with the court – depends on the public’s confidence in our judiciary as an institution.
A recent paper by an organization called the Institute for the Quantitative Study of Inclusion, Diversity, and Equity claims that two judges in our District – Judges C. Darnell Jones II and Timothy J. Savage – have engaged in discriminatory sentencing practices. Our Office is the most frequent litigant before the U.S. District Court for the Eastern District of Pennsylvania. We can report that Judges Jones and Savage treat defendants fairly and even handedly, balancing the complexities presented in each case without regard to race or ethnicity.
Putting aside questions about the paper’s methodology and underlying data set, what we have seen over many years is wholly inconsistent with the paper’s assertions. Simply put, it’s conclusion is belied by our experience appearing before these judges.
Statement from Acting U.S. Attorney Sandra Hairston on Death of Sheriff ClemmonsRead the Press Release
GREENSBORO, NC - Acting U.S. Attorney Sandra Hairston’s statement following the death of Richmond County Sheriff Clemmons:
“It is with great sadness that we learned of the passing of Richmond County Sheriff James E. Clemmons, Jr. He was a trusted partner to the U.S. Attorney’s Office for the Middle District of North Carolina, always fully supportive of the mission to eradicate crime in Richmond County. He was held in the highest regard possible by both his deputies and the constituents he served. Sheriff Clemmons was a leader of rare qualities, having risen through the ranks of the Sheriff’s Office over the last 32 years to become a highly respected voice for law enforcement throughout his own county and the State of North Carolina. Always approachable, always candid, and never one to back down from a tough issue, he will be sorely missed by everyone in this Office. His collegiality, professionalism, and dedication to ‘doing it the right way’ will never be forgotten.”
# # #
Stamford Man Pleads Guilty to Trafficking Counterfeit Oxycodone Pills Containing Fentanyl AnaloguesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ARBER ISAKU, 31, of Stamford, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a charge related to his manufacturing and distributing counterfeit oxycodone pills containing fentanyl analogues.
According to court documents and statements made in court, Isaku and his associate, Vincent Decaro, purchased fentanyl analogues from suppliers in China and, working out of Decaro’s residence at 77 West Hill Circle in Stamford, pressed the drug into counterfeit oxycodone pills, which they sold to customers on dark web markets. David Reichard, who lived for a short time at Decaro’s residence, helped Decaro and Isaku press pills and mail the pills to customers.
On April 3, 2018, a court-authorized search of Decaro’s residence revealed numerous pills containing approximately 330 grams of fentanyl and acetyl fentanyl, approximately 40 grams of fentanyl analogues in powder form, three pill presses, instructions on how to prepare the fentanyl analogue Carfentanil, a hazardous material suit, a gas/respirator-type mask, and numerous U.S. Postal mail envelopes.
At the time of the search of Decaro’s home in April 2018, Decaro and Isaku were in Europe. On September 21, 2018, Decaro and Isaku were arrested by Albanian State Police as they were attempting to cross the border from Albania into Kosovo. A search of an apartment in Tirana where they had been staying revealed alprazolam, fentanyl and other controlled substances; tools and dies for pressing pills, and instructions for synthesizing fentanyl.
Isaku pleaded guilty to one count of possession with intent to distribute 100 grams or more of fentanyl analogues. Judge Underhill scheduled sentencing for October 29, 2021.
Isaku is released on a $50,000 bond pending sentencing.
Decaro and Reichard pleaded guilty to related charges and await sentencing.
This matter has been investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, Connecticut State Police and Stamford Police Department, with the assistance of the Albanian State Police. The case is being prosecuted by Assistant U.S. Attorney Patrick J. Doherty.
Acting U.S. Attorney Boyle thanked the U.S. Department of Justice's Office of International Affairs for coordinating the extradition proceedings in this matter.
Se acusa a hombres puertorriqueños de delitos de odio por haber disparado a una mujer transgénero con una pistola de paintballRead the Press Release
Un gran jurado federal en San Juan, Puerto Rico, presentó una acusación formal que acusa a Jordany Rafael Laboy García, Christian Yamaurie Rivera Otero y Anthony Steven Lobos Ruiz de delitos de odio por haber agredido a una mujer transgénero por motivos de su identidad de género. Rivera Otero y Lobos Ruiz también fueron acusados de obstrucción a la justicia.
La acusación formal alega que el 24 de febrero del 2020, Laboy García, Rivera Otero y Lobos Ruiz estaban viajando en un carro cuando reconocieron a la víctima en la orilla del camino en Toa Baja, Puerto Rico. Según consta en la acusación formal, los conspiradores reconocieron a la víctima de sus publicaciones en los medios sociales que previamente la identificaban como hombre que entró en el aseo de mujeres en un restaurante local. Tras identificarla, Laboy García, Rivera Otero y Lobos Ruiz acosaron verbalmente a la víctima. Después, los tres hombres se fueron en carro a conseguir una pistola de paintball con la cual disparar a la víctima. Los hombres volvieron posteriormente al lugar donde habían visto a la víctima y la dispararon con bolas de pintura. En los dos encuentros, los hombres usaron un teléfono celular para grabar sus acciones. Los hombres compartieron estas grabaciones con otros. Más aún, la acusación formal alega que después de la alegada agresión, Rivera Otero le indicó a Lobos Ruiz que borrara de su celular al menos una grabación de vídeo de la agresión con la pistola de paintball y acoso verbal de la víctima y que, como respuesta, lo hizo.
De ser condenados, los acusados se enfrentan a una pena máxima de 10 años de cárcel por la acusación de delito de odio, cinco años de cárcel por el cargo de confabulación y una sanción de hasta 250.000 $ por cada cargo. De ser condenados, Rivera Otero y Lobos Ruiz también se enfrentan a una pena máxima de 20 años de cárcel y una sanción de hasta 250.000 $ por el cargo de obstrucción a la justicia.
El caso está siendo investigado por la Oficina Local en San Juan del FBI. El caso está siendo procesado por la Consejera Especial para Litigios, Rose E. Gibson, y la Abogada de Litigios, Laura B. Gilson, de la División de Derechos Civiles del Departamento de Justicia, junto con el Fiscal Federal Auxiliar, José A. Contreras, de la Fiscalía Federal para el Distrito de Puerto Rico.
La acusación formal lo anunciaron la Fiscal General Auxiliar, Kristen Clarke, de la División de Derechos Civiles del Departamento de Justicia, el Fiscal Federal del Distrito de Puerto Rico, W. Stephen Muldrow y el Agente Especial Encargado de la Oficina Local del FBI en San Juan, Joseph González.
Una acusación formal es meramente un alegato y a los acusados se los considera inocentes mientas no se pruebe su culpabilidad.
Real Estate Investor Pleads Guilty to Rigging Bids at Foreclosure AuctionsRead the Press Release
A California man pleaded guilty yesterday to rigging bids at public foreclosure auctions.
According to court documents filed in Sacramento, Yama Marifat was indicted for conspiring with other real estate investors to rig bids when purchasing selected properties at foreclosure auctions in San Joaquin County, California, beginning in or about April 2009 and continuing until in or about October 2009. Trial was scheduled to begin on August 17.
“Real estate investors who take advantage of the foreclosure process to line their own pockets will be held accountable,” said Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division. “The defendant’s guilty plea is a testament to our persistence and the strong case built by the division’s talented prosecutors, paralegals and staff, along with our partners at the FBI.”
According to the one-count indictment, Marifat and his co-conspirators carried out the conspiracy by agreeing not to bid against each other on selected properties. Instead, they designated one co-conspirator to bid at the public auction, then held a second, private auction and made payoffs to one another.
“Real estate fraud had devastating impact on the regional economy during the previous recession,” said Special Agent in Charge Sean Ragan of the FBI’s Sacramento Field Office. “This case exemplifies the FBI’s commitment to working with our local, state and federal partners to identify and investigate crimes that impact the communities we serve to ensure no crime goes unpunished, and public trust in our financial and real estate systems is maintained.”
Marifat is the 11th individual to plead guilty in the investigation of fraud and bid rigging at real estate auctions in San Joaquin County. Including Marifat, the division’s efforts to prosecute bid rigging and fraud at real estate foreclosure auctions in regions across the country have resulted in charges against 140 individuals, including 124 guilty pleas and 12 individuals convicted at trial.
A criminal violation of the Sherman Antitrust Act carries a maximum sentence of 10 years in prison and a $1 million criminal fine. The maximum fine may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Antitrust Division’s San Francisco Office is prosecuting the case, which was investigated with the assistance of the FBI’s Sacramento Field Office. Anyone with information in connection with this investigation should contact the Antitrust Division’s Complaint Center at 888-647-3258, or visit http://www.justice.gov/atr/report-violations.
Puerto Rico Men Charged with Hate Crimes for Shooting Transgender Woman with a Paintball GunRead the Press Release
WASHINGTON – A federal grand jury in San Juan, Puerto Rico, returned a three-count indictment charging Jordany Rafael Laboy García, Christian Yamaurie Rivera Otero and Anthony Steven Lobos Ruiz with hate crimes for assaulting a transgender woman because of her gender identity. Rivera Otero and Lobos Ruiz were also charged with obstruction of justice.
The indictment alleges that on Feb. 24, 2020, Laboy García, Rivera Otero and Lobos Ruiz were traveling in a car when they recognized the victim on the side of the road in Toa Baja, Puerto Rico. According to the indictment, the conspirators recognized the victim from social media posts previously identifying her as a man who entered the women’s restroom at a local restaurant. After identifying her, Laboy García, Rivera Otero and Lobos Ruiz verbally harassed the victim. The three men then drove to get a paintball gun and paintballs to be used to shoot at the victim. The men returned to the same place where they had spotted the victim and fired paintballs at her. During both encounters, the men used a cell phone to record their actions. The men then shared these recordings with others. The indictment further alleges that after the alleged assault, Rivera Otero directed Lobos Ruiz to delete at least one video recording of the paintball gun assault and verbal harassment of the victim from his cellular phone, and that Lobos Ruiz, in response, did so.
If convicted, the defendants face a maximum sentence of 10 years in prison for the hate crime charge, five years in prison for the conspiracy charge, and a fine up to $250,000 with respect to each charge. If convicted, Rivera Otero and Lobos Ruiz also face a maximum sentence of 20 years in prison and a fine up to $250,000 for the obstruction of justice charge.
The case is being investigated by the San Juan Field Office of the FBI. The case is being prosecuted by Special Litigation Counsel Rose E. Gibson and Trial Attorney Laura B. Gilson of the Department of Justice Civil Rights Division along with Assistant U.S. Attorney José A. Contreras of the U.S. Attorney’s Office for the District of Puerto Rico.
The indictment was announced by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico and Special Agent in Charge Joseph González for the FBI’s San Juan Field Office.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
###
Puerto Rico Men Charged with Hate Crimes for Shooting Transgender Woman with a Paintball GunRead the Press Release
A federal grand jury in San Juan, Puerto Rico, returned a three-count indictment charging Jordany Rafael Laboy García, Christian Yamaurie Rivera Otero and Anthony Steven Lobos Ruiz with hate crimes for assaulting a transgender woman because of her gender identity. Rivera Otero and Lobos Ruiz were also charged with obstruction of justice.
The indictment alleges that on Feb. 24, 2020, Laboy García, Rivera Otero and Lobos Ruiz were traveling in a car when they recognized the victim on the side of the road in Toa Baja, Puerto Rico. According to the indictment, the conspirators recognized the victim from social media posts previously identifying her as a man who entered the women’s restroom at a local restaurant. After identifying her, Laboy García, Rivera Otero and Lobos Ruiz verbally harassed the victim. The three men then drove to get a paintball gun and paintballs to be used to shoot at the victim. The men returned to the same place where they had spotted the victim and fired paintballs at her. During both encounters, the men used a cell phone to record their actions. The men then shared these recordings with others. The indictment further alleges that after the alleged assault, Rivera Otero directed Lobos Ruiz to delete at least one video recording of the paintball gun assault and verbal harassment of the victim from his cellular phone, and that Lobos Ruiz, in response, did so.
If convicted, the defendants face a maximum sentence of 10 years in prison for the hate crime charge, five years in prison for the conspiracy charge, and a fine up to $250,000 with respect to each charge. If convicted, Rivera Otero and Lobos Ruiz also face a maximum sentence of 20 years in prison and a fine up to $250,000 for the obstruction of justice charge.
The case is being investigated by the San Juan Field Office of the FBI. The case is being prosecuted by Special Litigation Counsel Rose E. Gibson and Trial Attorney Laura B. Gilson of the Department of Justice Civil Rights Division along with Assistant U.S. Attorney José A. Contreras of the U.S. Attorney’s Office for the District of Puerto Rico.
The indictment was announced by Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division, W. Stephen Muldrow, U.S. Attorney for the District of Puerto Rico and Special Agent in Charge Joseph González for the FBI’s San Juan Field Office.
An indictment is merely an allegation, and the defendants are presumed innocent unless and until proven guilty.
Promoter of Bogus Green Energy Firm Based in Montgomery County Sentenced to 18 Years for $54 Million Ponzi SchemeRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Wayde McKelvy, 59, of Aurora, Colorado, was sentenced to 18 years in prison, five years of supervised release, and ordered to pay $37 million restitution today by United States District Judge Joel Slomsky for operating a $54 million Ponzi scheme in one of the largest green energy frauds in U.S. history.
In October 2018, the defendant was convicted after trial of seven counts of wire fraud, conspiracy to commit wire fraud, securities fraud, and conspiracy to engage in securities fraud. The government established at trial that McKelvy and his co-conspirators ran an elaborate Ponzi scheme operating as Mantria Corporation, which received more than $54 million in fraudulently obtained new investor funds. The group promised investors huge returns, as high as 484%, for securities investments in supposedly profitable business ventures in real estate and green energy. In reality, Mantria, based in Bala Cynwyd, PA, was a classic Ponzi scheme in which new investor money was used to pay “returns” to early investors, and the business generated meager revenues and no actual profits.
To induce investors to invest money, the defendant and his co-conspirators repeatedly made fraudulent representations and material omissions about the economic state of Mantria. McKelvy also promoted himself as a financial wizard through aggressive marketing tactics, even though he had little financial acumen and was an unlicensed securities salesman. McKelvy operated what he called “Speed of Wealth” clubs, which advertised on television, radio and the Internet, held seminars for prospective investors, and promised to make them rich. During those seminars and other programs, McKelvy lied to prospective investors to dupe them into investing in Mantria. When the SEC shut down Mantria in November 2009, the pyramid scheme collapsed and was exposed.
McKelvy’s co-conspirators, Troy Wragg and Amanda Knorr, who met as Temple University students, were previously sentenced for their involvement in this scheme to 22 years and two and a half years in prison, respectively.
“This case is a classic example of the warning: if it seems too good to be true, it probably is,” said Acting U.S. Attorney Williams. “McKelvy is nothing more than a twenty-first century snake oil salesman, with all of the trappings to make him appear to be a legitimate businessman. The defendant is clearly a danger to the investing public and deserves to be in prison for a very long time, as the government demonstrated at trial.”
“Wayde McKelvy didn’t care about green energy. The only ‘green’ on his mind was money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “At his bogus financial seminars, he actively and enthusiastically duped people into investing in Mantria, even urging them to liquidate retirement funds and other assets to do so. When the teetering Ponzi scheme finally collapsed, many victims were left financially devastated. It’s the FBI’s duty to hold scammers like McKelvy and his co-conspirators accountable for the serious damage they’ve done.”
This case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorneys Robert Livermore and Sarah Wolfe. Additionally, the U.S. Attorney’s Office appreciates the assistance of Securities and Exchange Commission.
Porcupine Man Sentenced to Twenty Years in Federal PrisonRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Porcupine, South Dakota, man convicted of Abusive Sexual Contact was sentenced on August 2, 2021, by Judge Jeffrey L. Viken, U.S. District Court.
Leonard Martin Brings Plenty, age 73, was sentenced to 20 years in federal prison, followed by five years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Brings Plenty was indicted by a federal grand jury in June 2019. He pleaded guilty on December 9, 2020.
In 2016, Brings Plenty sexually molested two young females, ages four and six, at his residence in Porcupine.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Brings Plenty was immediately turned over to the custody of the U.S. Marshals Service.
Pine Ridge Man Sentenced to Prison for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 30, 2021, by Judge Karen E. Schreier, U.S. District Court.
Ronald Pumpkin Seed, age 36, was sentenced to 7 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Pumpkin Seed was indicted for the charge by a federal grand jury in January 2017. He pleaded guilty on April 30, 2021.
The conviction stems from Pumpkin Seed having sexual contact with a female under the age of 10, between 2011 and 2016 at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Pumpkin Seed was immediately turned over to the custody of the U.S. Marshals Service.
Philadelphia Sex Offender Convicted of Failing to Register After Absconding from Federal SupervisionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Edward C. Kipp, 74, of Philadelphia, PA, was convicted today at trial of failing to register as a sex offender, as required by the Sex Offender Registration and Notification Act (SORNA), also known as “Megan’s Law.” Under Megan’s Law, sex offenders are required to register their home, work, and school addresses with state law enforcement, so that individuals can search a database and be aware of convicted sex offenders living, working, or attending school in their neighborhood.
In 2013, the defendant was convicted of possessing child pornography. Because of that conviction, he is required to register as a sex offender with the Pennsylvania State Police, and to verify that registration on an annual basis for 10 years. The defendant must also notify the State Police within three business days if there is any change in his residence. In 2020, Kipp absconded from federal supervised release and moved to a new residence without updating his registration. In September 2020, the defendant was charged by Indictment with one count of failing to register as a convicted sex offender.
“The purpose of Megan’s Law is to provide the public with current information about the whereabouts of sex offenders in order to ensure public awareness and safety,” said Acting U.S. Attorney Williams. “Failure to comply with the Megan’s Law registration requirement is not simply an administrative hiccup; it is a new federal crime. And if these offenders do not comply, we will aggressively prosecute.”
“The U.S. Marshals Service is pleased to lead Sex Offender Registration and Notification Act (SORNA) enforcement as part of Project Safe Childhood initiatives to diminish the risk posed by those that have the potential to dangerously endanger children,” said Eric Gartner, U.S. Marshal for the Eastern District of Pennsylvania.
“Parents and caregivers deserve to know if a sex offender lives next door,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “That's precisely why the registration and notification law was passed, to provide that critical information to the public and better protect children. Convicted offenders are required to advise the state police if their address of record changes. Edward Kipp was well aware of that, failed to do so, and is now being held appropriately accountable.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the United States Marshals Service and the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorneys Jessica Rice and Nancy Rue.
Pembroke Man Sentenced for Fentanyl and Firearm CrimesRead the Press Release
WILMINGTON, N.C. – A Pembroke man was sentenced yesterday to 160 months in prison for possession with intent to distribute fentanyl and possession of a firearm in furtherance of a drug trafficking crime. On May 3, 2021, Patrick Warren Privette pled guilty to the charges.
According to court documents and other information presented in court, on October 15, 2020, officers with the Robeson County Sheriff’s Office executed a search warrant at Patrick Privette’s residence after learning he supplied drugs to an individual which led to an overdose. Inside the defendant’s bedroom, officers located a quantity of fentanyl, and approximately 50 prescription pills. Inside an air vent near the nightstand, officers recovered a Walther .380, model PK380, semi-automatic handgun. Officers arrested Privette and transported him to the Robeson County Sheriff’s Office where he waived his Miranda rights and gave a statement. Privette stated that the drugs found in the house were his and that he had been dealing heroin and fentanyl. He also admitted to possessing the gun and needing it for protection. Privette is also a convicted felon and prohibited from possessing firearms. Another witness confirmed that Privette had been dealing fentanyl for months.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Robeson County Sheriff’s Office investigated the case and Assistant U.S. Attorney Chad E. Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00193-M.
Pain Management Organization Pays $5.1 Million to Settle Criminal Medicare Kickback ViolationsRead the Press Release
For Further Information, Contact:
Assistant U. S. Attorney Joseph S. Green (619) 546-6955
SAN DIEGO – National Spine & Pain Center, LLC (“NSPC”), a physician management services organization headquartered in Rockville, Maryland, agreed this week to pay $5.1 million in restitution to Medicare as part of a criminal settlement for receiving payments in violation the Anti-Kickback Statute.
CLICK HERE for Non-Prosecution Agreement
As part of a non-prosecution agreement resolving criminal liability, NSPC admitted that the company and its affiliate Physical Medicine Associates, Ltd. (“PMA”) entered into an arrangement with Proove Biosciences, a defunct genetics testing company formerly based in Irvine, California, in which Proove unlawfully compensated physicians under the guise of a clinical research program.
The federal Anti-Kickback Statute provides for criminal penalties for whoever knowingly and willfully offers, pays, solicits, or receives remuneration to induce or reward the referral of business that is reimbursable under any of the Federal health care programs, including Medicare. The statute covers the payers of kickbacks - those who offer or pay remuneration - as well as the recipients of kickbacks - those who solicit or receive remuneration.
NSPC admitted that certain NSPC and PMA physicians referred to the clinical research payments offered by Proove as being payments “per test” or “per patient,” and that as a part of the scheme physicians completed timesheets used by Proove to pay the physicians which overstated the time that the physicians spent conducting related clinical research. In some cases, the timesheets indicated that the physicians had performed certain tasks, which had, in fact, been performed by Proove’s own employees, resulting in payments from Proove to the physicians for tasks that they did not perform.
NSPC admitted that certain NSPC personnel communicated to Proove that the company would not offer Proove’s genetic tests at additional NSPC sites unless Proove was current on its payments to NSPC and PMA physicians. Conversely, Proove communicated to NSPC that Proove expected NSPC and PMA physicians to order a certain volume of tests from Proove. Proove’s genetic tests purportedly could determine a patient’s risk of abusing certain prescription opioids and how patients metabolized certain drugs.
PMA received a total of $1.1 million in payments from Proove. Medicare paid Proove approximately $4 million for claims submitted by Proove from referrals from NSPC and PMA physicians.
“Referring patients based on expectation of personal profit corrupts the health care system by encouraging medical providers to make decisions based on their own financial gain rather than a patient’s best interests,” said David Leshner, Attorney for the United States. “Kickback payments also unfairly generate business for dishonest providers at the expense of those who do not engage in illegal conduct. This office is committed to holding perpetrators accountable for these fraudulent schemes.” Leshner commended AUSA Joseph Green, the FBI and HHS-OIG for the diligent investigation and prosecution of this matter.
“The defendants bilked millions of dollars intended to fund services that promote and improve the health of Medicare beneficiaries, some of whom were their own patients,” stated Timothy DeFrancesca, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “They prioritized their own enrichment above their duties as health care providers. HHS-OIG is dedicated to protecting Federal health care beneficiaries and programs, so our work includes the pursuit of providers who cheat both.”
“This week's restitution order sends a strong message to healthcare providers that choose to put personal gain over professional responsibility,” said FBI Special Agent in Charge Suzanne Turner. “The FBI is proud to work with our federal partners at HHS-OIG to root out these schemes which further diminish trust in the health care system.”
The non-prosecution agreement cited NSPC’s new ownership group, its voluntary termination of its relationship with Proove prior to the company’s knowledge of the criminal investigation, its continuing cooperation with investigators, and the adoption of a robust compliance program, as factors that supported the resolution of the criminal investigation with a non-prosecution agreement.
On June 9, 2021, nine individuals were charged in connection with the scheme in United States v. Brian Meshkin, et al., 21CR0112-JLS, United States District Court, Central District of California. The case is presently pending.
AGENCIES
Federal Bureau of Investigation
Department of Health and Human Services, Office of Inspector General
Ocala Man Convicted of Wire Fraud in Relation to Resale of Wireless Communications PlansRead the Press Release
GAINESVILLE, FLORIDA – A federal jury in Gainesville has convicted Justin Lewis, 38, of Ocala, Florida of six counts of wire fraud. The guilty verdict, returned Tuesday, at the conclusion of a five-day trial, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Evidence introduced at trial revealed that between September 2015, and February 2018, Lewis engaged in a scheme to defraud a wireless carrier by obtaining unlimited cellular data lines through fraudulent means and reselling them to the public for a 1500% mark-up. During most of this time-period, unlimited plans were not widely available to the public. When his actions were discovered, Lewis made false representations to the carrier, created new companies in other people’s names, and submitted altered documentation to conceal his activities. Finally, he used a technique to manipulate the carrier’s customer website portal to obtain unlimited data for free through accounts he had opened in other people’s names.
“Notwithstanding the size of the corporation, fraud schemes harm companies and their customers,” stated Acting U.S. Attorney Coody. “The deceptive, persistent, and sophisticated acts employed by this defendant demonstrate the danger posed to both corporations and their consumers. With the assistance of our dedicated law enforcement partners, we are committed to investigating and prosecuting those who engage in acts of corporate fraud.”
“This case is an example of the FBI’s relentless effort to protect American companies and their customers,” said Rachel L. Rojas, Special Agent in Charge of the FBI Jacksonville Division. “When individuals defraud corporations, it is ultimately us – the corporation’s customers – who pay the price. The FBI remains committed to pursuing investigations into corporate fraud in an effort to protect consumers from bearing the costs associated with criminal activity.”
Lewis’ sentencing hearing is scheduled for October 26, 2021, at 10:00 am at the United States Courthouse in Gainesville before the Honorable United States District Judge Allen Winsor. Lewis faces a maximum penalty of 20 years in federal prison for the wire fraud offenses.
This conviction was the result of an investigation conducted by the Federal Bureau of Investigation and the Internal Revenue Service. Assistant United States Attorneys Gary Milligan and David Byron 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.
Norwood Woman Indicted for Stealing Government BenefitsRead the Press Release
BOSTON – A Norwood woman was arrested today in connection with fraudulently receiving federal workers’ compensation benefits and disability benefits from the Social Security Administration (SSA).
Karen Nolan, 64, was indicted on two counts of theft of public funds and two counts of making false statements. Nolan will make an initial appearance this afternoon before U.S. District Court Magistrate Judge Jennifer Boal.
According to the charging document, from approximately November 2017 through August 2021, Nolan repeatedly stole federal workers’ compensation benefits, as well as Social Security disability benefits from approximately July 2019 through August 2021. It is alleged that in April 2019, Nolan falsely reported to the SSA that she had not worked since 2017 due to a medical disability but was actively employed at a dermatology practice at the time. It is further alleged that Nolan made similar false statements to the Department of Labor, Office of Workers’ Compensation Programs in May 2021.
The charges of theft of public funds each provide for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charges of making a false statement each provide for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Christopher Algieri, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Jermaine Jack, Acting Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations, Boston Field Division; and Kate Mulligan, Chief of Investigations, Insurance Fraud Bureau of Massachusetts, made the announcement today. Special Assistant U.S. Attorney Karen Burzycki of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
North Dakota Man Sentenced on Drug ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Bottineau, North Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on July 30, 2021, by Judge Karen E. Schreier, U.S. District Court.
Jeffrey Walters, age 62, was sentenced to four years and nine months in federal prison, followed by three years supervised release, and was ordered to pay $100 special assessment to the Federal Crime Victims Fund.
Walters was indicted for Possession with Intent to Distribute a Controlled substance by a federal grand jury on July 23, 2020. He pleaded guilty on April 9, 2021.
The conviction stems from Walters possessing, with intent to distribute, 1,288 grams of methamphetamine, 80 grams of cocaine, and 14 grams of marijuana near Buffalo, South Dakota, which was found after Walters came into contact with a Harding County Sheriff’s Deputy in March 2020.
This case was investigated by the U.S. Drug Enforcement Administration, the Harding County Sheriff’s Office, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Walters was immediately turned over to the custody of the U.S. Marshals Service.
New Orleans Man Sentenced for Wire FraudRead the Press Release
NEW ORLEANS, LOUISIANA – JASON PICK, age 40, a resident of New Orleans, Louisiana, was sentenced on August 5, 2021 for committing wire fraud in violation of Title 18, United States Code, Section 1343 announced U.S. Attorney Duane A. Evans. The Honorable Eldon Fallon sentenced PICK to 2 months incarceration, 10 months of home detention, 2 years of supervised release, a mandatory $100 special assessment fee and payment of $140,791.21 in restitution.
According to court documents, PICK was employed as an accountant for Company A between August 2016 and June 2018. Part of PICK’s duties was handling the credit card accounts of Company A. Without authorization, PICK used Company A’s credit cards for his own personal expenses. In total, PICK stole approximately $140,791.21 from Company A.
U.S. Attorney Evans praised the work of the United States Secret Service in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
* * *
New Orleans Man Sentenced for Possessing a Gun in Furtherance of Drug DealingRead the Press Release
NEW ORLEANS, LA – United States District Judge Sarah S. Vance sentenced ASHONTI HALL, 31, of New Orleans, Louisiana, on August 5, 2021 to 60 months in the Bureau of Prisons for possessing a firearm in furtherance of a drug trafficking crime in violation of Title 18, United States Code, Section 924(c), announced U.S. Attorney Duane A. Evans.
In October 2019, HALL was indicted for possessing heroin, cocaine base, cocaine, and marijuana with the intent to distribute, being a felon in possession of a firearm, and possessing a firearm in furtherance of drug trafficking.
Court documents show that HALL admitted that he fled from New Orleans Police Department Officers who were investigating HALL for a shooting that occurred the previous day. The police caught HALL and found him with a backpack that contained several different types of drugs, scales, cash, and a loaded gun.
District Judge Vance sentenced HALL to the mandatory minimum term of 5 years imprisonment to be followed by three years of supervised release. She also ordered that he pay a mandatory $100 special assessment fee.
U. S. Attorney Evans praised the work of the New Orleans Police Department, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Drug Enforcement Administration in investigating this matter. The case is being prosecuted by Assistant United States Attorney David Haller.
* * *
New Orleans Man Admits to Defrauding Customers Through Bitcoin SalesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that MICHAEL YUSKO, III, age 46, a resident of New Orleans, pleaded guilty today to operating an unlicensed money transmitting business before U.S. District Judge Barry W. Ashe.
According to court documents, federal agents received complaints beginning in May 2018 that YUSKO was selling customers bitcoin and other cryptocurrencies but failing to follow through on transactions. YUSKO would promise customers any amount of bitcoin in exchange for U.S. dollars at five percent above market price for a five percent fee. He then directed these customers to deposit U.S. dollars into one of several business bank accounts, among them Nervous Light Capital LLC, Ready Demolition LLC, Patriot Concrete Pumping, LLC, Praetorian Energy, LLC, and Hudson Oak Partners LLC. YUSKO did not register these companies as money transmitting businesses with Financial Crimes Enforcement Network (FinCEN) of the Department of Treasury, and he otherwise did not comply with the regulations of Title 31, United States Code, Section 5330. YUSKO also instructed his clients not to tell any bank employees that the purpose of their wire transfer was to purchase cryptocurrency. Agents have learned that banks frequently shut down accounts used to sell cryptocurrency, and banks had previously shut down YUSKO’s accounts for such activity.
The court documents detail how customers communicated with YUSKO and paid him tens of thousands of dollars for bitcoin. While YUSKO did carry out transactions with many customers, he failed to fulfill other transactions, and then he failed to return the U.S. dollars deposited in his accounts. YUSKO admitted to being responsible for $201,399.00 in losses to victims. As part of his plea, YUSKO agreed to make full restitution.
YUSKO faces a maximum of five years in prison, a maximum $250,000.00 fine, up to three years of supervised release, and a $100 mandatory special assessment. Judge Ashe scheduled YUSKO’s sentencing for November 4, 2021.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation New Orleans Field Office and the U.S. Secret Service New Orleans Field Office. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
* * *
Nebraska Fugitive Sentenced to Four Years in PrisonRead the Press Release
Ocala, Florida – Senior United States District Judge John Antoon II has sentenced Howard D. Farley, Jr. (72, Weirsdale) to four years in federal prison, followed by one year of supervised released for passport fraud, aggravated identity theft, and operating as a pilot without a legitimate airman’s certificate. The court also ordered the forfeiture of an aircraft that was seized by the Department of Homeland Security at Farley’s home.
Farley had pleaded guilty in April 2021.
According to his plea agreement, Farley admitted to using the identity of a deceased person to obtain a United States passport and an Airman’s Certificate (pilot’s license). Farley admitted to operating as an airman using the fraudulently obtained certificate between January 4, 2016, until his arrest by federal authorities on November 28, 2020.
Other court documents established that Farley used the identity of a deceased infant for more than 35 years to avoid apprehension in the Nebraska where, in 1985, he had been indicted on federal narcotics conspiracy charges.
The case against Farley’s co-defendant, Duc Hanh Thi Vu, remains pending and is scheduled for the October 2021 trial term.
“The Diplomatic Security Service (DSS) has a statutory mandate to investigate passport fraud,” said Peter Kapoukakis, Special Agent in Charge of the DSS Miami Field Office. “We are firmly committed to collaborating with the U.S. Attorney’s Office, along with our federal, state, and local law enforcement partners to bring fugitives like Mr. Farley to justice regardless of how long they have been on the run. Strong relationships like those that made this prosecution possible are vital toward ensuring the integrity of U.S. travel documents and protecting our country’s greater interests.”
“By operating aircraft for several years with a fraudulently obtained airman’s certificate, Howard D. Farley, Jr., put the safety of those traveling in our National Airspace System at serious risk,” said Todd Damiani, Special Agent-in-Charge, Department of Transportation Office of Inspector General Southern Region. “May today’s sentencing serve as a stern warning that, together with our law enforcement and prosecutorial partners, we will not waver in our commitment to pursue those who are willing to compromise safety for personal gain.”
“The importance of the U.S. passport system and aviation security procedures cannot be overstated,” said HSI Orlando Assistant Special Agent in Charge David J. Pezzutti. “By using a variety of investigative techniques and leveraging strong partnerships, HSI has helped ensure this criminal faces the consequences of his actions.”
This case was investigated by the U.S. Department of State’s Diplomatic Security Service, the Department of Transportation – Office of Inspector General, the Social Security Administration – Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Internal Revenue Service – Criminal Investigation, with support from the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
Montgomery County Man Sentenced for Receipt of Child PornographyRead the Press Release
GREENSBORO – A North Carolina man was sentenced today to 327 months in prison for receipt of child pornography.
Ronnie Nelson Clark, 38, was indicted on September 2, 2020, on one count of receipt and attempted receipt of child pornography. He pleaded guilty to the indictment on February 3, 2021.
According to court documents, in April, 2019, North Carolina Department of Public Safety Probation and Parole officers conducted a compliance check on Clark, who was a registered sex offender under their supervision. Clark was convicted of first-degree rape of a child in Montgomery County Superior Court in 2006 and sentenced to 173 months to 217 months of imprisonment. Clark had completed his term of imprisonment and was under supervision as a result. Clark’s conditions of supervision included limitations on his use of electronic devices and contact with minors, and required him to submit to warrantless searches, including searches of computers and electronic devices.
When officers arrived at Clark’s residence, they asked to see Clark’s cell phone and saw several text message conversations with what appeared to be underage girls. These conversations were sexual in nature. Montgomery County Sheriff’s Office (MCSO) deputies then obtained search warrants for Clark’s cell phone and residence. MCSO detectives seized two of Clark’s cell phones and a tablet and noted conversations on both cell phones between Clark and underage girls. In the messages, Clark would ask the girls about their schools and their parents. In most of the messages, Clark referred to the girls as “baby girl,” and the girls referred to Clark as “daddy.” Federal Bureau of Investigation review of one of Clark’s cell phones found images and videos of child pornography and revealed additional conversations that appeared to be with minors using social media applications including Instagram, Snapchat, Facebook Messenger, and the default text messaging application. Clark often asked the girls if they were single and asked their ages. The girls would say their ages, often ages twelve to fourteen years old. Clark told the girls he wanted to date them and would ask if age mattered to the girls. Many of the girls told Clark he was too old for them. Clark often tried to convince them otherwise. In one conversation, when the minor indicated she was only twelve, Clark responded, “Why does that matter nobody gotta know but us ik you wouldn’t tell on me would u.” Clark asked one person, later identified as an adult purporting to be a 9-year-old, for pictures of her genitals.
Following release from prison, Clark will be subject to supervised release for life.
This case was investigated by the Federal Bureau of Investigations, the Montgomery County Sheriff’s Office, and the North Carolina Department of Public Safety Probation and Parole and was prosecuted by Assistant U.S. Attorney Kennedy Gates.
The case is part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat online child sexual exploitation and abuse. The initiative is led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), and focuses on coordinating federal, state, and local resources to better identify and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
###
Mission Woman Sentenced to Five and a Half Years for Meth TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on July 29, 2021, by Judge Karen E. Schreier, U.S. District Court.
Carmen Dillon, age 49, was sentenced to five and a half years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Carmen Dillon was indicted for Conspiracy to Distribute a Controlled Substance by a federal grand jury on October 22, 2020. She pleaded guilty on April 23, 2021.
From approximately July 2019 to January 2020, methamphetamine was brought to South Dakota by others. The defendant tracked packages she knew to contain methamphetamine that were being sent through the mail. The defendant also accepted such packages and signed for them upon their arrival. She thereafter distributed methamphetamine in South Dakota.
This case was investigated by the U.S. Postal Inspection Service, Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, South Dakota National Guard, and the South Dakota Highway Patrol. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Dillon was immediately returned to the custody of the U.S. Marshals Service.
Minneapolis Man Pleads Guilty to Illegal Possession of a FirearmRead the Press Release
MINNEAPOLIS – A Minneapolis man pleaded guilty today to possessing a firearm as a felon, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on May 21, 2020, law enforcement arrested Deshawn Tyrone Braziel, 36, who had an outstanding warrant and was suspected in connection with a shooting that occurred in Minneapolis on April 16, 2020. At the time of his arrest, Braziel was wearing a backpack containing a loaded, Springfield XD 9mm pistol, 94 ecstasy pills, a credit card in his name, and a digital scale. Because Braziel has prior felony convictions, including a previous conviction for a drive-by shooting in 2005, he is prohibited under federal law from possessing firearms or ammunition.
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 the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Federal Bureau of Investigation, and the Minneapolis Police Department.
Assistant U.S. Attorney Allison Ethen is prosecuting the case.
Michigan Biodiesel Exporter Sentenced to Prison for Tax FraudRead the Press Release
A Bloomfield, Michigan, businessman, who operated a biodiesel fuel company, was sentenced to 30 months in prison today for filing a false income tax return.
Chandra Yarlagadda owned and operated Alpha Bioenergy LLC, formerly known as Naturol Bioenergy LLC, which purchased and sold biodiesel fuel. Under the Clean Air Act and related federal regulations, companies such as Alpha that exported biodiesel fuel were required to purchase and retire Renewable Identification Numbers (RINs) for any volume of renewable fuel they exported. The RINs are used by the Environmental Protection Agency to track compliance with its annual Clean Air Act standards.
According to court documents, Yarlagadda reported income and expenses associated with Alpha on Schedules C attached to his personal income tax returns. Yarlagadda admitted as part of his plea that on the Schedules C attached to his 2009, 2010, and 2011 tax returns, he substantially overstated expenses associated with the purchase of RINs. For these three years, Yarlagadda reported RIN expenses totaling more than $14.2 million, when, in fact, he was only entitled to claim approximately $80,000 in RIN expenses for those years. Yarlagadda admitted that if he had not claimed these false deductions, he would have owed an addition $2.3 million in federal income taxes.
In addition to the term of imprisonment, U.S. District Judge Gershwin A. Drain ordered Yarlagadda to serve one year of supervised release and pay restitution to the IRS in the amount of $3,285,303.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Saima S. Mohsin for the Eastern District of Michigan made the announcement.
IRS Criminal Investigation, the U.S. Environmental Protection Agency – Criminal Investigation Division, and U.S. Immigration and Customs Enforcement – Homeland Security Investigations, conducted the investigation.
Trial Attorneys Melissa S. Siskind and Sarah C. Ranney of the Tax Division prosecuted the case, and Assistant U.S. Attorney Stephen Hiyama of the Eastern District of Michigan provided substantial assistance in this matter.
Additional information about the Tax Division and its enforcement efforts can be found on the division’s website.
Metro East Personal Assistant Facing Health Care Fraud ChargesRead the Press Release
EAST SAINT LOUIS, Ill. – Shomanicka Holly, 36, of East Saint Louis, Illinois, was arraigned in federal court today after a grand jury returned an indictment charging her with three counts of felony health care fraud.
The indictment alleges that Holly served as a personal assistant from 2016 to 2019 for a qualified beneficiary enrolled in the Illinois Department of Human Services Home Services Program. The Home
Services Program is a Medicaid program in Illinois that provides personal assistants to
Medicaid recipients to assist them with general household activities and personal care. It is designed to reduce Medicaid expenditures by avoiding more expensive institutional care, including nursing home care.According to the indictment, Holly submitted false timesheets requesting payment for personal assistant services that she never actually performed because she was working at another job, not caring for the Medicaid recipient. In doing so, Holly allegedly defrauded the program and breached its policies stating that personal assistants “cannot charge [the Home
Services Program] for the same hours worked when working another job” and “billing for hours not worked constitutes Medicaid fraud.”Holly’s case is set for trial on October 4, 2021, at 9:00am, before United States District Judge
David W. Dugan in the federal courthouse in East St. Louis. If convicted, Holly faces a maximum penalty of 10 years in prison on each fraud count.An indictment is a formal charge against a defendant. Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was investigated by agents of the U.S. Department of Health and Human Services, Office of
Inspector General (HHS-OIG) and the Illinois State Police, Medicaid Fraud Control Bureau (MFCB).
The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.
Member of O.B.H. Sentenced to & 7½ Years for Attempting to Intimidate Witness During 2019 Trial That Sent Fellow Gang Members to PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Charles Salley, a/k/a “Dark Lo,” a/k/a “Ron Harvey,” 39, of Philadelphia, PA, was sentenced to seven and a half years in prison, one years of supervised release, and was ordered to pay a $10,000 fine by United States District Court Judge Mark A. Kearney for threatening a cooperating witness during a federal trial in November 2019.
Salley, a well-known Philadelphia-based rapper and member of the violent street gang “O.B.H.” (or “Original Block Hustlaz”), mailed a menacing letter to a witness on the eve of the witness’ testimony during a federal trial in which Salley’s O.B.H. associates were charged with drug trafficking and weapons possession. The letter threatened violence against the witness and the witness’ girlfriend if the witness told the truth during his testimony. Salley was then present in the courtroom during the course of the 2019 trial, including on the day of the witness’ scheduled testimony. Later that day, following the witness’ testimony, Salley was arrested at his home in Delaware and charged with witness tampering for sending the letter. Ultimately, the O.B.H. defendants were all convicted after trial and sentenced to lengthy prison terms. Salley will now join them.
“Witness intimidation has no place in the criminal justice system and will be dealt with immediately so as to deter anyone else who might consider acting so reprehensibly,” said Acting U.S. Attorney Williams. “If you attempt to intimidate a federal witness, you will face federal charges of your own.”
“Imagine agreeing to be a federal witness against members of a violent drug gang and the day before you take the stand, one of their buddies threatens you and yours,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “This is exactly the type of thing our witness tampering laws are designed to prevent, as our justice system depends on witnesses being willing to share what they know. The FBI simply will not permit them to be targeted like this, in an attempt to subvert the rule of law. Charles Salley was hoping to keep his OBH associates out of prison. Instead, he finds himself behind bars as well, for quite some time.”
The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Justin Ashenfelter.