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3 August 2021
Jury Convicts Leader of Nevada City-Based Mortgage Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, a federal jury found James Christopher Castle, 57, formerly of Petaluma, guilty of 35 counts in a bank fraud scheme that sought to fraudulently eliminate home mortgages and then profit on the subsequent home sales, Acting U.S. Attorney Phillip A. Talbert announced. This was the first jury trial in the Eastern District of California since the onset of the COVID-19 pandemic in March 2020.
“Castle decided to game the system so that he could profit in the midst of the then looming financial crisis, to which his actions contributed,” said Acting U.S. Attorney Talbert. “We are gratified by the jury’s verdict for this significant fraud scheme.”
“Mortgage fraud is not a victimless crime. Identifying and investigating those who abuse the system for their own personal gain ensures the mortgage system is safer and fairer for everyone. The FBI affirms our commitment to pursuing those who leverage false statements made to financial institutions to enrich themselves while threatening the stability of the banking system and taking advantage of distressed homeowners desperate to retain their homes or start anew without significant losses,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “We thank our domestic and international law enforcement partners for their continued efforts to ensure fugitives will face justice regardless of the distance traveled or time that has elapsed.”
According to court documents, in May 2020, Castle was extradited to the United States from Australia. Castle had fled to New Zealand and then Australia in 2011 when it became clear that his scheme was unraveling. After a three-year extradition process, Castle was transported back to the United States by the U.S. Marshals Service to stand trial in the United States.
“The U.S. Marshals Service successfully conducted this extradition during the height of the pandemic,” said Acting U.S. Marshal Lasha R. Boyden for the Eastern District of California. “To minimize exposure, the extradition was conducted expeditiously with minimal time on the ground. All safety precautions were implemented, and Mr. Castle was extradited back to the United States without incident.”
Between April 22, 2010, and Nov. 18, 2011, Castle was the leader of a conspiracy that ran a “mortgage elimination program” that purported to help distressed homeowners avoid foreclosure. The conspirators fraudulently altered the chain of title on residential properties, sold the properties, and received the sales proceeds.
As a requirement for participation in the “mortgage elimination program,” the conspirators enrolled homeowners as members in a Nevada City-based church named Shon-te-East-a, Walks With Spirit, or its successor entity Pillow Foundation. The conspirators told the homeowners that these entities would offer protection against the banks.
Castle directed other co-conspirators in all aspects of the mortgage elimination program, including recruiting homeowners into the scheme, marshaling the necessary recorded documents, and guiding the homes through sale. Once the homeowner enrolled with Shon-te-East-a or Pillow Foundation, Castle would cause a sham deed of trust to be created and recorded, giving the impression that the homeowner had refinanced the mortgage loan with a new lender. In reality, the new lender was a fake entity controlled by the conspirators, and the homeowner owed no money to the purported new lender.
The next step in the process was also a recorded document. The conspirators caused a fake deed of reconveyance to be recorded, giving the appearance that the true mortgage loan had been discharged and that the true lienholder no longer had a security interest in the home.
With title appearing to be clear, the conspirators caused the sale of the home and split the proceeds between the co-conspirators and the homeowners.
In total, 37 properties were sold through the Shon-te-East-a conspiracy. The conspirators recorded fraudulent documents on an additional approximately 100 homes but were unable to sell these before the scheme unraveled.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys Audrey B. Hemesath and Tanya B. Syed are prosecuting the case.
Three other co-defendants have previously entered guilty pleas. On April 21, 2017, Remus A. Kirkpatrick, formerly of Oceanside, pleaded guilty to one count of falsely making writings of lending associations. On May 26, 2017, Michael Romano, of Benicia, pleaded guilty to conspiracy. On July 14, 2017, Laura Pezzi, of Roseville, pleaded guilty to falsely making writings of lending associations.
In related cases, on Sept. 4, 2015, Tisha Trites and Todd Smith, both of San Diego, pleaded guilty to related charges.
Two other co-defendants, George B. Larsen and Larry Todt, were convicted of conspiracy and bank fraud following a jury trial in December 2017.
Co-defendant John Michael DiChiara passed away on Aug. 24, 2019, while awaiting trial.
Castle is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on Oct. 28, 2021, at which time he faces a maximum penalty of 30 years in prison and a $1 million fine for bank fraud, 10 years in prison and a $250,000 fine for falsely making documents of a lending association, and five years in prison and a $250,000 fine for conspiracy. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Jackson County Man Pleads Guilty to Possession of a Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
Gulfport, Mississippi – A Jackson County man pleaded guilty to possession of a short-barreled shotgun in furtherance of a drug trafficking crime, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, on November 18, 2020, Shawn Wayne Ethridge, 37, of Jackson County, sold methamphetamine and a short-barreled shotgun to an individual in Jackson County.
Ethridge is scheduled to be sentenced on November 4, 2021. He faces a minimum sentence of 10 years imprisonment and a maximum sentence of life imprisonment. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case.
Assistant U.S. Attorney Jonathan Buckner is prosecuting the case.
Indian National Arrested for $2.3 Million Elder Fraud SchemeRead the Press Release
NEWARK, N.J. – An Indian national was arrested today in connection with a scheme to fraudulently obtain at least $2.3 million from elderly victims by impersonating fraud prevention representatives from United States banks, Acting U.S. Attorney Rachael A. Honig announced.
Ashish Bajaj, 28, of India, is charged by complaint with conspiracy to commit wire fraud. He appeared this afternoon before U.S. Magistrate Judge Joe L. Webster in federal court in the Middle District of North Carolina and was detained pending his initial appearance in the District of New Jersey.
“As alleged in the complaint, this defendant and his co-conspirators took advantage of elderly victims by posing as trusted bank employees who could help the victims catch fraudsters. In fact, the defendant and his co-conspirators were the fraudsters,” Acting U.S. Attorney Honig stated. “Detecting and preventing elder fraud continues to be a priority for this Office, whether the defendants reside in the United States or operate out of call centers located overseas. Together with our law enforcement partners, we will track them down and bring them to justice.”
“Unfortunately, it has become a regular occurrence for our citizens to be duped into giving up their hard-earned money by someone pretending to work for a bank, a fraud detection company, or even a law enforcement agency,” Special Agent in Charge George M. Crouch Jr. said. “These unscrupulous schemers keep evolving and push every button until they hit the one that will earn them the confidence of their victims or one that they can use to scare and intimidate. While the FBI will continue its relentless pursuit of scammers, the public’s best defense is to remain aware and take extra precautions before handing over money, such as by checking, first, with the supposed entity on the other end of the line. If you have an elderly loved one, educate them so they won’t become the next victim.”
According to documents filed in this case and statements made in court:
From at least as early as in or around April 2020 through in or around July 2021, Bajaj and his co-conspirators received at least $2.3 million in fraudulently obtained funds by impersonating fraud prevention representatives from banks located in the United States. Bajaj and his co-conspirators targeted elderly victims. They told the victims that they worked at a “hub” for multiple financial institutions’ fraud departments and they were reaching out because the victims’ bank accounts had been hacked.
Bajaj and the co-conspirators then asked the victims to assist with their fraud prevention efforts by setting up “sting” operations to catch the fraudsters who had allegedly hacked the victims’ bank accounts. The requested assistance included initiating various wire transactions to various bank accounts, including bank accounts in India, ultimately resulting in a loss to the victims. Over the course of the investigation, law enforcement has identified multiple victims of this scheme, including victims in New Jersey and California.
The count of wire fraud conspiracy is punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
Acting U.S. Attorney Honig credited special agents and intelligence analysts of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark. She also thanked the FBI Charlotte Field Office, under the direction of Special Agent in Charge Robert R. Wells, for its assistance leading to Bajaj’s arrest.
Additional victims associated with Bajaj’s conduct may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Huntington Man Pleads Guilty to Federal Fentanyl OffenseRead the Press Release
HUNTINGTON, W.Va. – A Huntington man who was caught with fentanyl earlier this year pleaded guilty to a federal drug crime. James Lennon Pace, 32, pleaded guilty to possession with intent to distribute 40 grams or more of fentanyl.
According to court documents, law enforcement officers executed a search warrant on March 16, 2021 at Pace’s residence located on Charleston Avenue in Huntington. Pace was present just prior to the search and arrested on an unrelated warrant. During the search, officers seized fentanyl, three firearms, and items used to prepare fentanyl for distribution. Pace admitted that he possessed the firearms and that he intended to distribute the fentanyl.
Pace faces a mandatory minimum of five years and up to 40 years in federal prison when he is sentenced on November 1, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:21-cr-00104.
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Hudson County Man Admits Drug Distribution ChargesRead the Press Release
NEWARK, N.J. - A Hudson County, New Jersey, man today admitted possessing with intent to distribute heroin, cocaine and cocaine base, Acting U.S. Attorney Rachael A. Honig announced.
Hason Armfield, 43, of Jersey City, New Jersey, pleaded guilty by videoconference before U.S. District Judge Kevin McNulty to an indictment charging him with possessing with intent to distribute heroin, cocaine and cocaine base.
According to documents filed in this case and statements made in court:
Armfield’s residence was searched as part of an investigation by the Drug Enforcement Administration (DEA) and the Jersey City Police Department. Law enforcement officers found heroin, cocaine, cocaine base, drug paraphernalia, and U.S. currency.
The charge to which Armfield pleaded guilty carries a maximum sentence of 20 years imprisonment and a $1 million fine. Sentencing is scheduled for Dec. 6, 2021.
Acting U.S. Attorney Honig credited agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson, and members of the Jersey City Police Department, under the direction of Public Safety Director James Shea, with the investigation leading to today’s guilty plea.
This investigation was conducted as part of the Jersey City Violent Crime Initiative (VCI). The VCI was formed in 2018 by the U.S. Attorney’s Office for the District of New Jersey, the Hudson County Prosecutor’s Office, and the Jersey City Police Department, for the sole purpose of combatting violent crime in and around Jersey City. As part of this partnership, federal, state, county, and city agencies collaborate to strategize and prioritize the prosecution of violent offenders who endanger the community. The VCI is composed of the U.S. Attorney’s Office, the FBI, the ATF, the Drug Enforcement Administration’s (DEA) New Jersey Division, the U.S. Marshals, the Jersey City Police Department, the Hudson County Prosecutor’s Office, the Hudson County Sheriff’s Office, New Jersey State Parole Board, the Hudson County Jail, and the New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit in the U.S. Attorney’s Office in Newark.
Hamburg Man Pleads Guilty to Stalking A Local News ReporterRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Paul E. Lubienecki, 63, of Hamburg, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to stalking. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorneys Aaron J. Mango and Charles M. Kruly, who is handling the case, stated that the defendant harassed and intimidated Victim 1, a local television reporter, causing the victim to be in reasonable fear of death and serious bodily injury, and causing substantial emotional distress. Specifically, on six separate occasions between August 20, 2019, and February 4, 2020, Lubienecki left harassing and threatening voicemails for Victim 1 relating to the victim’s reporting on the Catholic Diocese of Buffalo, which appeared on Channel 7 WKBW. The defendant left these voicemails with the intent to harass and intimidate Victim 1. Lubienecki used a TracFone cellular telephone with a phone number that appeared as “unknown” when he left these voicemails.
“While the First Amendment guarantees freedoms regarding both religion and expression,” stated U.S. Attorney Kennedy, “it does not protect a pattern of conduct—such as that admitted to by this defendant—which causes substantial emotional distress or creates a reasonable fear of the death or serious bodily injury to another.”
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the East Aurora Police Department, under the direction of Chief Shane Krieger.
Sentencing is scheduled for November 9, 2021, at 12:30 p.m. before Judge Arcara.
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Gaithersburg Man Pleads Guilty to Laundering More Than $6 Million Taken from Victims of Elder Romance SchemeRead the Press Release
Greenbelt, Maryland – Lesley Annor, age 23, of Gaithersburg, Maryland, pleaded guilty today to conspiracy to commit money laundering, in connection with a romance scheme in which conspiracy members induced elderly and isolated victims to send money to co-conspirators based on romantic assertions and other misrepresentations. Annor and his co-conspirators received and laundered the payments from the victims.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Director in Charge Timothy R. Slater of the Federal Bureau of Investigation - Washington Field Office (FBI); Postal Inspector in Charge Daniel Adame of the U.S. Postal Inspection Service - Washington Division (USPIS); and Special Agent in Charge Matthew R. Stohler of the United States Secret Service - Washington Field Office (USSS).
According to his guilty plea, between May 2017 and October 2020, Annor participated in a romance scheme in which his co-conspirators targeted elderly victims online, typically through social media, dating websites, e-mail, and online applications. Once the conspiracy members convinced the victims to trust them, the conspiracy members would instruct the victims to send money to bank accounts and physical addresses linked to Annor and conspiracy members. Conspirators often received 10 percent of the victim’s money and sent the remainder of the money to co-conspirators located in Ghana.
For example, in June 2019, Victim 4, a man born in 1962, met a woman on a popular dating website whom he thought to be named “Anita”. According to Victim 4, after a week of communicating on the dating website, Anita confessed her love for Victim 4 and told him that she would relocate from Germany to the United States to be with Victim 4. Anita then informed Victim 4 that as a result of her parents’ death, she was to receive an inheritance. However, there were various fees that needed to be paid in order to obtain the inheritance. Anita further told Victim 4 that her grandfather was helping her with the inheritance. According to Victim 4, Anita also told Victim 4 that two conspiracy members were accountants for Anita's grandfather and that Victim 4 should send money to the addresses linked to the two co-conspirators.
In September 2019, Victim 4 cashed out his 401 (k) retirement account, purchased two cashier's checks totaling approximately $201,000, and mailed the cashier's checks to conspiracy members at Annor’s residence. According to the plea agreement, bank records show that multiple cashier's checks and money orders totaling $206,500 from Victim 4 were deposited into three different bank accounts that conspiracy members opened in their own names.
Over the course of the scheme, Annor and his co-conspirators laundered over $6,200,000 through approximately 34 bank accounts at 11 different financial institutions. At least $447,872 in victim payments were made into personal bank accounts controlled by Annor.
Annor has been in custody since his arrest on November 16, 2020.
Annor faces a maximum sentence of 20 years in federal prison followed by three years of supervised release for money laundering. U.S. District Judge George J. Hazel has scheduled sentencing for October 29, 2021 at 10:00 a.m.
The Department of Justice runs the National Elder Fraud Hotline at 1-833-FRAUD-11 (1-833-372-8311), has an interactive tool for elders who have been financially exploited to help determine to which agency they should report their incident, and also a senior scam alert website. Victims are encouraged to file a complaint online with the FBI’s Internet Crime Complaint Center at this website or by calling 1-800-225-5324. Elder fraud complaints may be filed with the FTC at www.ftccomplaintassistant.gov or at 877-FTC-HELP.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, USPIS, and the USSS for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Leah B. Grossi and Thomas P. Windom and Special Assistant United States Attorney Jessica C. Harvey from the Department of Justice’s Public Integrity Section, who are prosecuting the case.
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Former Nike Marketing Manager Sentenced in Scheme to Defraud CompanyRead the Press Release
PORTLAND, Ore.—A former marketing manager at Nike, Inc. was sentenced to more than two-and-a-half years in federal prison today for perpetrating a scheme to defraud his former employer and a childhood friend.
Errol Andam, 47, formerly of Beaverton, Oregon, was sentenced to 31 months in federal prison and 3 years of supervised release. Andam was also ordered to pay more than $1.6 million in restitution. The Internal Revenue Service had already seized $212,838 in criminally-derived proceeds from Andam, and those were forfeited as well.
According to court documents, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton. Most recently, Andam worked as a manager in the company’s North American Retail Brand Marketing division wherein he managed the design, build-out, and operation of “pop-up” retail venues, temporary Nike shops situated near and tailored to sports competitions and other special events around the U.S.
In the summer of 2016, Andam recruited a childhood friend to establish a company to design and build the pop-up venues as an independent contractor for Nike. Andam used his authority as a manager at Nike to ensure that his friend’s company was consistently awarded the contracts for these jobs. Though he had no formal role in his friend’s company, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing invoices to Nike.
To conceal his role in the scheme, Andam used an alter ego, “Frank Little,” to invoice Nike and manage the contract company’s account with Square, Inc., a California-based provider of mobile credit-card-processing services. In 2016, Andam also renewed the lapsed registration of an Oregon-based limited liability corporation (LLC) he owned so that he could use the defunct entity as a shell company to funnel the proceeds diverted from Nike and his friend’s company to accounts under his personal control.
Beginning in September 2016, Andam caused credit-card sales at various pop-up venues around the U.S. to be run through card readers associated with a Square account owned by his friend’s company. These proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon. Andam represented to both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed to his friend’s company. In truth, Andam simply pocketed the proceeds and, as “Frank Little,” invoiced Nike for the full cost of the contracted services.
From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use. In July 2018, Andam submitted a fake financial statement from his LLC in support of a residential mortgage loan application. The financial statement falsely reflected as revenue checks for $194,000 drawn on a bank account owned by his friend’s business. Andam forged his friend’s signature on one of the checks and withdrew much of that money without his friend’s knowledge.
On February 4, 2021, Andam was charged by criminal information with wire fraud, money laundering, and making false statements on a loan application. On April 12, 2021, he pleaded guilty to all three charges.
This case was investigated by IRS Criminal Investigation and the FBI. It was prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Former Georgia deputy sentenced to prison for possessing unregistered firearms resulting from FBI-led violent extremist group investigationRead the Press Release
MACON, Ga. – A former Georgia Sheriff’s deputy was sentenced to prison for possessing unregistered firearms resulting from an FBI-led investigation into a violent extremist group.
Cody Richard Griggers, 28, of Montrose, Georgia, was sentenced to serve 44 months in federal prison to be followed by one year of supervised release by U.S. District Judge Tilman “Tripp” Self after pleading guilty to possession of an unregistered firearm. There is no parole in the federal system.
“Law enforcement officers should be above reproach, and the vast majority of them are. Cody Griggers disgraced that trust by espousing violent extremism and possessing a cache of unregistered weapons while on duty, including a machine gun with a silencer and obliterated serial number,” said Acting U.S. Attorney Peter D. Leary. “Officers are never above the laws they swear to uphold, and I thank our law enforcement partners for helping us hold this disgraced former deputy accountable.”
“This former law enforcement officer violated his oath of office in many ways, the most egregious was by threatening the very citizens he was sworn to protect with his words of racially motivated violence,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now he is being held accountable by serving time in prison and never being able to wear the blue again.”
“Investigating and prosecuting the illegal possession of unregistered machineguns is a key part of ATF’s mission to protect communities from the illegal use of such firearms,” said Assistant Special Agent in Charge John Schmidt, ATF Atlanta Field Division. “This successful prosecution is the culmination of the joint investigation by ATF, the Wilkinson County Sheriff’s Office and FBI and restores the public’s confidence in those who are entrusted to serve and protect our communities.”
According to court documents, FBI agents discovered a group text with Griggers, who was a Deputy with the Wilkinson County Sheriff’s Office, as part of a California investigation into a man making violent political statements on social media. In the group text, Griggers made statements that he was manufacturing and acquiring illegal firearms, explosives and suppressors. He also expressed viewpoints consistent with racially motivated violent extremism, including the use of racial slurs, slurs against homosexuals and making frequent positive references to the Nazi holocaust.
On November 19, 2020, agents executed a search warrant at Griggers’ residence and searched his Wilkinson County Sheriff’s Office duty vehicle. Inside his duty vehicle, officers found multiple firearms, including a machinegun with an obliterated serial number. The machinegun was not issued to the defendant, and he was not allowed to have the weapon in his law enforcement car. An unregistered short barrel shotgun was found in his home. In all, between the defendant’s residence and duty vehicle, officers found 11 illegal firearms.
The case was investigated by FBI, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Wilkinson County Sheriff’s Office.
Assistant U.S. Attorney Will R. Keyes prosecuted the case for the Government.
Former CEO of Comprehensive Pain Specialists Resolves Civil Lawsuit with United StatesRead the Press Release
NASHVILLE – John Davis, 43, of Franklin, Tennessee, and the former CEO of Anesthesia Services Associates, PLLC d/b/a Comprehensive Pain Specialists (“CPS”), agreed to a permanent voluntary exclusion from participation in federal procurement and non-procurement programs as part of an agreement to resolve the United States’ civil claims against him, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
CPS, which was based in Brentwood, Tennessee, at one point operated over 40 pain clinics and had operations in 12 states, until it shut down in 2018. On July 22, 2019, the United States filed a Consolidated Complaint in Intervention in the United States District Court for the Middle District of Tennessee against Davis, as well as CPS and other CPS executives, alleging, among other things, that Davis submitted false claims for medically unnecessary and/or non-reimbursable testing and acupuncture (the “Civil Action”).
As part of the settlement, Davis also agreed not to be employed in any industry or field in which he could, either directly or indirectly, submit claims seeking reimbursement from Medicare and other Federal health care programs.
In April 2019, Davis was convicted for his role in a $4 million Medicare Kickback scheme. After a seven-day trial, a jury convicted Davis of one count of conspiracy to defraud the United States and violate the Anti-Kickback Statute as well as seven counts of violating the Anti-Kickback Statute. In July 2020, Davis was sentenced on the criminal charges to 42 months in prison. Earlier this year, Davis’ sentence was commuted by then-President Donald J. Trump.
The United States previously resolved its claims against CPS, its owners, and a former manager. This settlement resolves the remaining allegations against Davis and results in the dismissal of the Civil Action.
The Civil Action was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office. This case was investigated by the Department of Health and Human Services, Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Kara F. Sweet represented the United States.
The Civil Action is captioned United States and the State of Tennessee ex. rel. Suzanne Alt, et al. v. Anesthesia Services Associates, PLLC, et al., Case No. 3:16-cv-00549 (M.D. Tenn.). The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Federal Jury Convicts Minneapolis Felon of Illegal Possession of a Firearm, AmmunitionRead the Press Release
ST. PAUL, Minn. – A federal jury convicted a Minneapolis man for illegal possession of a firearm and ammunition after a shooting incident that took place in broad daylight, announced Acting U.S. Attorney W. Anders Folk.
Following a four-day trial before Judge Wilhelmina M. Wright, Johnnie Lamar Haynes, 33, was convicted of one count of possessing a firearm as a felon and one count of possessing ammunition as a felon.
According to the evidence presented at trial, on August 5, 2019, Minneapolis police officers responded to a shots-fired call at a gas station near Lowry Avenue and Logan Avenue North in Minneapolis. Upon arrival, officers found 11 discharged cartridge casings on the street in front of the gas station. Video surveillance footage showed Haynes interacting with two men inside the gas station. After leaving the gas station the two other men got in a vehicle and drove off. Minutes later, the two men circled the block in their vehicle and returned to the gas station. Haynes then began shooting at the vehicle as it drove off. A nearby business was in the line of Haynes’s gunfire and was struck by multiple rounds. Surveillance video footage from the business captured the bullets entering the building, causing employees to duck and take shelter.
“This defendant discharged a firearm near a busy intersection in broad daylight, showing total disregard for human life,” said Acting U.S. Attorney W. Anders Folk. “This type of brazen gun violence is unacceptable in our communities and must be stopped.”
Because Haynes has prior felony convictions in Hennepin County, he is prohibited under federal law from possessing firearms or ammunition at any time. Haynes faces up to ten years in prison on each count. At sentencing, a federal district court judge will determine the sentence accounting for the U.S. Sentencing Guidelines and other statutory factors. A sentencing date has yet to be scheduled.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Minneapolis Police Department.
This case was tried by Assistant U.S. Attorney Thomas Calhoun-Lopez.
Essex County Man Admits Unlawfully Possessing Firearm and Conspiring to Defraud Banks of over $250,000 Using Stolen Credit Cards and Blank ChecksRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted illegally possessing a firearm and conspiring to defraud two banks of $250,000 using stolen credit cards and blank checks, Acting U.S. Attorney Rachael A. Honig announced.
Tamir Duval, 22, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an indictment charging him with one count of illegal possession of a firearm, and to an information charging him with conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
On July 27, 2020, Duval unlawfully possessed a Taurus PT740 semi-automatic handgun loaded with seven hollow nose rounds of ammunition. The firearm had been reported stolen from Gastonia, Georgia. Duval was previously convicted in Essex County Superior Court of receiving stolen property, a felony under state law.
From August 2018 through January 2020, Duval and others engaged in a scheme to use stolen credit cards and checks to fraudulently make purchases and withdraw money from two banks, leaving the banks to bear the losses of the scheme.
The credit cards and blank checks were stolen from various New Jersey-based postal facilities and never reached their intended recipients. Duval and his conspirators use the credit cards and checks to make unauthorized purchases at various retail stores and withdraw cash from automated teller machines (ATMs) in New Jersey and elsewhere. Duval and his conspirators altered the date, payee, and amount of the stolen checks prior to deposit and then fraudulently withdrew money at various ATMs from third-party account holders’ accounts.
Five of Duval’s conspirators – Nasheed Jackson, Alexander Varice, Dashawn Duncan, Allen Varice, and Qshaun Brown-Guinyard – previously pleaded guilty to their roles in the scheme and have been sentenced or are awaiting sentencing.
The charge of illegal possession of a firearm carries a maximum penalty of 10 years in prison and a fine of $250,000. The charge of conspiracy to commit bank fraud carries a maximum penalty of 30 years in prison and a fine of $1 million. Sentencing is scheduled for Dec. 20, 2021.
Acting U.S. Attorney Honig credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; the East Orange Police Department, under the direction of Chief Phyllis Bindi; inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins in Newark; and special agents of the U.S. Attorney’s Office, under the direction of Special Agent in Charge Thomas Mahoney, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Blake Coppotelli of the U.S. Attorney’s Office Economic Crimes Unit in Newark.
Essex County Man Admits Role in Armed CarjackingRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted his role in a carjacking in which a firearm was brandished, Acting U.S. Attorney Rachael A. Honig announced.
Jared Walker, 24, of Newark, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to a three-count indictment charging him with carjacking, possession of a firearm by a convicted felon, and brandishing a firearm during and in relation to a crime of violence. Walker remains detained pending sentencing.
According to documents filed in this case and statements made in court:
On Jan. 6, 2020, the driver of a 2008 Ford E-350 van was carjacked at gunpoint in Newark. Walker approached the van, which was parked in Newark, and drove it away while the victim was still inside. Walker brandished a firearm during the carjacking. The victim ultimately escaped from the vehicle, and Walker was apprehended a short time later. When law enforcement recovered the gun, officers discovered that it was loaded with 13 rounds of ammunition. In 2015, Walker was convicted of unlawful possession of a handgun in New Jersey Superior Court – a felony offense – and is prohibited under federal law from possessing firearms and ammunition.
The carjacking charge carries a maximum potential sentence of 15 years in prison. The charge of possessing a firearm after having been convicted of a felony offense carries a maximum potential sentence of 10 years in prison. The brandishing of a firearm during a crime of violence charge carries a mandatory minimum prison sentence of seven years, and a maximum sentence of life imprisonment, which must run consecutively to any term of imprisonment imposed on the other charges. Each of the charged offenses also carries a maximum potential fine of $250,000. Sentencing is scheduled for Dec. 14, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, and officers of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Samantha C. Fasanello of the Violent Crimes Unit.
East Bay Man is Sentenced to 18 Years in Prison for Conspiracy to Commit Arson in Connection with Scheme to Firebomb People on His Enemies ListRead the Press Release
SAN FRANCISCO – David Jah was sentenced today to 216 months in prison for conspiracy to commit arson, in connection with a scheme to firebomb the properties of several people on his enemies list, announced Acting United States Attorney Stephanie M. Hinds; United States Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge, San Francisco Division, Patrick T. Gorman; and Federal Bureau of Investigation (FBI) Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable William H. Alsup, U.S. District Judge.
"When Mr. Jah was unable to achieve his objectives in court, he turned to violence,” said Acting U.S Attorney Hinds. “That is never acceptable. Upholding the rule of law and the safety of the community is of the utmost importance, which is why we will continue to aggressively investigate and punish those who attempt to impede justice through violent intimidation.”
“Arson is a dangerous act of violence which poses a significant threat to the community,” said Special Agent in Charge Gorman. “ATF continuously works diligently toward securing public safety. The defendant in this case conspired to commit horrific acts of violence on unsuspecting members of this community. I am thankful that no one was seriously injured or killed as a result of these crimes. This sentencing will undoubtedly send a message to anyone who considers conducting these types of violent acts that they will not be tolerated. ATF will continue to work alongside our law enforcement partners to ensure crimes of this nature are investigated and prosecuted.”
"David Jah conspired to use extreme levels of violence to intimidate and retaliate against his perceived enemies. Thanks to the collaboration between the FBI, ATF, and our local law enforcement partners, we were able to put a stop to these violent attacks," said FBI Special Agent in Charge Craig Fair.
According to the evidence submitted at trial, Jah, 47, of Concord, conspired with Kristopher Alexis-Clark, 27, of Vallejo, and Dennis Williams, 41, of Fairfield, to conduct multiple firebombings targeting the residences of people on Jah's enemies list. The list contained the addresses of six individuals who Jah believed had wronged him, including the following:
• Two attorneys involved in the sale of his childhood home, to which Jah objected.
• The attorney who prosecuted the forcible detainer action removing Jah from his childhood home.
• The purchaser of Jah's childhood home.
• Jah's former neighbor at that home, with whom Jah had had several disagreements.
• A San Francisco Deputy City Attorney who represented the San Francisco Police Department in an excessive force lawsuit filed by Jah's son.The evidence at trial demonstrated that the charged conspiracy began in October 2018, when Jah met a prostitute on a mobile dating application, who put him in touch with Alexis-Clark. Jah then provided the enemies list to Alexis-Clark, who recruited Williams to join the scheme. Over the next three weeks, Alexis-Clark and Williams drove by three of the homes on Jah’s enemies list in the middle of the night and attempted to throw Molotov cocktails through their windows. According to text messages found on Jah’s phone, Jah offered them $800 to $5,000 to carry out these attacks.
Hours before the first attack, Jah instructed an associate of his to send a text message to Alexis-Clark that read: “Light it up, call when done completely.” Shortly thereafter, on October 21, 2018, Alexis-Clark and Williams mistakenly firebombed the next-door neighbor of one of the intended victims by throwing a lit Molotov cocktail through the front window of their home, setting the living room on fire.
Then, on October 31, 2018, all three co-conspirators met in a casino in Pacheco to discuss further attacks. A few days later, on November 3, 2018, Alexis-Clark and Williams firebombed the homes of two more victims.
Aside from the three arson attacks carried out by Alexis-Clark and Williams, the jury heard evidence of two additional prior Molotov cocktail attacks against individuals on Jah’s enemies list. In addition, in its sentencing memorandum, the government requested that the court also consider evidence that Jah had orchestrated four additional arson attacks (for a total nine arson attacks) as well as two drive-by shootings over the period from March 2016 through November 2018. The attacks occurred throughout the Bay Area at addresses in San Francisco, Lafayette, Danville, and Oakland. The government’s sentencing memorandum provides a description of each of Jah’s attacks. According to the government, no one was seriously hurt, but the absence of physical injuries was “solely due to the incompetence of the men [Jah] hired to carry out these attacks.”
The evidence showed that Jah orchestrated these attacks in an attempt to punish and intimidate those he held responsible for removing him from his childhood home in the Richmond District of San Francisco.
According to the memorandum, Jah explained in a social media post that, at least with respect to one of his victims, his intention was to “terrorize.” The sentencing memorandum also argues that, after arranging for the attacks, Jah took multiple steps to impede the administration of justice by, among other things, intimidating his co-defendants to give false testimony, and directing one co-defendant to sign a declaration falsely denying he conspired with Jah.
On October 29, 2020, a federal grand jury issued a second superseding indictment charging Jah with one count of conspiring to commit arson, in violation of 18 U.S.C. §§ 844(i) and (n). On May 13, 2021, after a week-long trial, a federal jury found Jah guilty of the charge.
In addition to the prison term, Judge Alsup also sentenced the defendant to a 3-year term of supervised release. The defendant has been in federal custody since January of 2019 and will begin serving the prison term immediately.
Alexis-Clark and Williams both have pleaded guilty to, but have not yet been sentenced for, crimes regarding their respective roles in the scheme.
Assistant U.S. Attorneys Kevin Rubino and Kevin Barry are prosecuting this case with assistance from Ralph Banchstubbs. The prosecution results from an investigation by the ATF and FBI with help from the police departments of San Francisco, Vallejo, Lafayette, Tiburon, and Danville.
EDVA to Participate in Community Events During National Night OutRead the Press Release
RICHMOND, Va. – The U.S. Attorney’s Office for the Eastern District of Virginia (EDVA) will join community organizers, neighbors, and law enforcement partners to participate in National Night Out events this evening, August 3. During this year’s National Night Out, Acting U.S. Attorney Raj Parekh will attend community events in the Richmond area with Chief of Richmond Police, Gerald M. Smith.
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“Participating in community-based events and strengthening the bonds of trust and friendship with the residents we serve are essential to our crime reduction efforts across the Eastern District of Virginia,” said Acting U.S. Attorney Raj Parekh. “We are committed to working closely with our communities to keep our neighborhoods safe, eliminate injustices, and protect civil rights and civil liberties. When we stand united with our neighbors in looking out for each other, we can make meaningful, long-lasting improvements in the safety of our cities and streets.”
National Night Out is a community-building and crime prevention program that promotes partnerships and camaraderie between law enforcement and the communities they serve to make our neighborhoods safer places to live. National Night Out was established in 1984 with funding from the Bureau of Justice Assistance of the U.S. Department of Justice. The program is administered by the National Association of Town Watch, a nationwide non-profit organization.
During National Night Out, community involvement in crime prevention is generated through a variety of local events that help strengthen neighborhood spirit and unity, such as block parties, cookouts, festivals, parades, safety demonstrations, seminars, youth events, visits from emergency personnel, and more. National Night Out sends a message that neighbors are united and working together to keep their communities and each other safe.
This year, National Night Out organizers are expecting over 16,000 communities and millions of people from all 50 states, U.S. territories, and military bases worldwide to take part in community events. The program concludes annually on the first Tuesday of August in most areas of the country.
EDVA staff members have been encouraged to participate in community events located in or around the Office’s Alexandria, Richmond, Norfolk, and Newport News Divisions. For more information, visit https://natw.org/ or click on each of the preceding links for examples of National Night Out Events taking place across the Eastern District of Virginia.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Downstate Corporate Secretary Pleads Guilty to Willfully Failing to Pay over $930,000 in Payroll Taxes Withheld from EmployeesRead the Press Release
WILMINGTON, Del. – David C. Weiss, U.S. Attorney for the District of Delaware, announced that a Harrington, Delaware woman pleaded guilty today to intentionally failing to pay employment taxes on behalf of a local business. U.S. District Court Judge Leonard P. Stark accepted the plea.
According to court documents, Sara Collins, 49, served as the Corporate Secretary of a plumbing, heating, and air conditioning business for over twenty years. Collins was responsible for overseeing payroll disbursement and filing tax documents on behalf of the business. Each pay period, the business withheld taxes from its employees’ paychecks, including federal income taxes and Medicare and Social security taxes. Beginning in the first quarter of 2013 through the last quarter of 2019, Collins failed to file quarterly forms with the Internal Revenue Service (“IRS”) and paid fewer than $37,000 in payroll taxes for that entire six-year period. In total, Collins failed to pay over $930,000 owed to the IRS by the business.
Collins pleaded guilty to five counts of willful failure to pay over tax and faces a maximum penalty of five years in federal prison for each count when sentenced on November 17, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. Judge Stark will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Weiss stated, “Ms. Collins abused her position of trust by diverting employee tax obligations to line her own pockets. In so doing, she put her employer and fellow employees at risk. My office is committed to working with IRS Criminal Investigation to prosecute those who evade legal responsibilities to their employees and the federal government by misdirecting paycheck withholdings for personal gain.”
“Ms. Collins was entrusted to file the company’s payroll tax returns and remit the relevant taxes and she purposely failed to do so,” said Joleen Simpson, Acting Special Agent in Charge of IRS-Criminal Investigation. “This is a serious offense that results in the loss of significant tax revenue to the United States government each year.”
This case is the result of an investigation conducted by the IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Ruth Mandelbaum.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER by searching for Case No. 1:21-cr-00047-LPS.
Defendant Convicted in Federal Court of Heroin Trafficking OffensesRead the Press Release
Acting United States Attorney Richard Frohling of the Eastern District of Wisconsin announced that following a jury trial concluding on July 30, 2021, Royel Page, age 31, was convicted of conspiracy to possess with intent to distribute and to distribute more than 100 grams of heroin, as well as twelve counts of attempting to possess with intent to deliver heroin.
This case was part of a long-term federal drug investigation based out of Milwaukee. Page was one of twelve defendants charged in federal court with conspiracy related to the distribution of heroin, cocaine, and fentanyl. In September 2017, law enforcement officers executed 14 federal search warrants in Milwaukee targeting members of this organization. Law enforcement recovered approximately 25 ounces of heroin, some of which was mixed with fentanyl, cocaine, five firearms, in excess of $150,000 in United States currency, and two kilo presses. Approximately 250 federal, state, and local officers participated in these arrests and search warrants.
As a result of his conviction for conspiracy to distribute heroin, Page faces up to 40 years in prison, with a mandatory minimum sentence of five years in prison. Page is set to be sentenced in November 2021.
The investigating agencies in this case included the Drug Enforcement Administration, Wisconsin Department of Justice - Division of Criminal Investigation, North Central High Intensity Drug Trafficking Area, City of Milwaukee Police Department, Department of Homeland Security - Homeland Security Investigation / Enforcement Removal Operations, Bureau of Alcohol, Tobacco, and Firearms, Federal Bureau of Investigation, United States Marshals Service, U.S. Immigration and Customs Enforcement, Wisconsin State Patrol, Milwaukee County Sheriff’s Department, Racine County Sheriff’s Department, Waukesha County Sheriff’s Department, Waukesha County Metro Drug Enforcement Unit, Wauwatosa Police Department, Greenfield Police Department, West Allis Police Department, and the New Berlin Police Department.
This case was prosecuted by Assistant United States Attorneys Gail J. Hoffman and Elizabeth M. Monfils.
For Additional Information Contact:
Public Information Officer Kenneth Gales 414-297-1700
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Davenport Man Sentenced to 210 Months in Prison for Production and Receipt of Child PornographyRead the Press Release
DAVENPORT, IOWA – A Davenport man was sentenced on Wednesday, July 28, 2021, by United States District Court Chief Judge John A. Jarvey to 210 months in federal prison for production and receipt of child pornography.
According to court documents, Keith Allen Shrum, age 32, admitted he sexually abused a child, produced child pornography related to that sexual abuse, and received child pornography over the internet. Shrum came to the attention of law enforcement after sexual text messages between Shrum and the minor victim were discovered. Shrum initially denied inappropriate contact with the child, but eventually admitted to law enforcement the sexual contact had been going on for approximately one year. During the execution of search warrants, Shrum was found in possession of thousands of images of child pornography dating back to 2016. Following Shrum’s prison sentence he will be required to serve a ten-year term of supervised release and register as a sex offender.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Davenport Police Department.
This matter was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the U.S. Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nation-wide effort to combine law enforcement investigations and prosecutions, community action, and public awareness in order to reduce the incidence of sexual exploitation of children. Any persons having knowledge of a child being sexually abused are encouraged to call the Iowa Sexual Abuse Hotline at 1-800-284-7821.
Couple Sentenced for Feigning Blindness for VA & Social Security BenefitsRead the Press Release
WICHITA, KAN. – A husband and wife from Hutchinson, Kansas, have been sentenced for deceiving the federal government about a medical condition to receive benefit payments. Addison Lewis, 41, and Brandi Lewis, 38, each received five years of probation after pleading guilty to one count of Theft of Government Property.
From 2013 to 2018, Addison Lewis misrepresented himself as having cortical visual blindness to the Department of Veterans Affairs (VA). In turn, the VA increased his benefits amount. Addison Lewis admitted misleading the VA by exaggerating symptoms and impairment attributed to cortical visual blindness. Brandi Lewis intentionally provided inaccurate information to the VA to support her husband’s false claim.The court ordered the Lewises to pay $111,510 in restitution to the Social Security Administration and $131,972 in restitution to the VA.
The Department of Veterans Affairs, Office of Inspector General (VA-OIG) Criminal Investigations Division and the Social Security Administration, Office of Inspector General investigated the case.
Assistant U.S. Attorney Mona Furst prosecuted the case.
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Convicted Felon Sentenced to 8 Years in Prison for Illegal Firearm PossessionRead the Press Release
BIRMINGHAM, Ala. – A federal judge today sentenced a convicted felon for illegally possessing a firearm, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
U.S. District Court Judge Abdul K. Kallon sentenced Reginald Lamar Bonner, 43, of Birmingham, to 96 months in prison on one count of possession of a firearm by a prohibited person. Bonner pleaded guilty in April 2021 to unlawfully possessing a Springfield .45 caliber pistol on April 24, 2020. Bonner is prohibited from having a firearm because of prior felony convictions. In January 2017, Bonner pleaded guilty to being a felon in possession of a firearm and possession of a stolen firearm and was still serving his sentence on that case when he committed the current offense.
Judge Kallon ordered the 96-month sentence to be served consecutively to a 24-month federal revocation sentence on the earlier case.
“Prosecuting those who illegally possess firearms is part of our strategy for reducing violent crime,” said U.S. Attorney Escalona. “We are grateful to the Birmingham Police Department and ATF for their efforts to take guns off the street and make our communities safer.”
“The partnerships with the public safety departments and the U.S. Attorney’s Office were crucial in reducing the potential for violent crime in this case,” Special Agent in Charge Mickey French stated.
The ATF investigated the case along with the Birmingham Police Department. Assistant U.S. Attorney Kristy Peoples prosecuted 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.
Butler Man Sentenced to Six Years in Prison in Connection with Theft of Approximately $1.5 Million from Former EmployerRead the Press Release
PITTSBURGH, Pa. – A resident of Butler, Pennsylvania, was sentenced in federal court following his earlier guilty plea to one count of wire fraud, Acting United States Attorney Stephen R. Kaufman announced today.
United States District Judge J. Nicholas Ranjan sentenced Paul Harmon, 64, to six years of imprisonment followed by three years of supervised release.
During his plea hearing on January 26, 2021, Harmon admitted that for over 40 years he was the corporate controller for Butler-based Fuellgraf Electric Company, and an affiliated company, Technical Management Associates (collectively, “Fuellgraf”), which supplied electricians and related services to a variety of industrial and commercial business customers located primarily in Pennsylvania and Florida. As controller, Harmon admitted that he exercised day-to-day responsibility for and control over Fuellgraf’s finance, accounting, and treasury functions. He also maintained check-writing authority for Fuellgraf’s business bank accounts and control of Fuellgraf’s internal books and records.
Between at least October 2009 and his termination in December 2018, Harmon admitted that he misappropriated approximately $1.5 million in Fuellgraf funds and concealed his theft through manipulation of Fuellgraf’s books and records. As part of Harmon’s scheme to defraud Fuellgraf, he admitted stealing funds in a variety of ways, including by: causing the company to issue over $470,000 in duplicate or inflated payroll disbursements to Harmon, initiating electronic payments toward his personal credit card balances totaling approximately $500,000, issuing approximately $10,000 in corporate checks to pay his personal credit card balances, issuing almost $80,000 in corporate checks to himself, and misappropriating $200,000 in corporate checks written to cash. In addition, Harmon admitted that he issued Fuellgraf corporate checks to an entity he controlled, PM Accounting, totaling more than $200,000, for purported accounting work performed on behalf of Fuellgraf, when, in fact, no such work occurred. Harmon concealed his misappropriation by creating hundreds of false entries in Fuellgraf’s books and records that masked the true nature and purpose of the expenditures.
As part of his sentence, Harmon also must pay restitution to Fuellgraf in the amount of $1,466,456.71.
Assistant United States Attorney Eric G. Olshan prosecuted this case on behalf of the government. The Federal Bureau of Investigation conducted the investigation leading to the charge in this case.
Burlington Man Sentenced to 20 Years in Prison for Methamphetamine OffenseRead the Press Release
DAVENPORT, IOWA – On Wednesday, July 28, 2021, a Burlington man was sentenced by United States District Court Chief Judge John A. Jarvey to 20 years in federal prison for distributing methamphetamine.
According to court documents, Gerald Victor Terry, age 50, admitted to distributing ice methamphetamine in Burlington. Terry had several prior criminal convictions and was on State of Iowa parole for two felony convictions at the time of this offense. After Terry’s prison term he will serve five years of supervised release.
Acting United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. This case was investigated by the Southeast Iowa Narcotics Taskforce, Burlington Police Department, Des Moines County Sheriff’s Office, Iowa Division of Narcotics Enforcement, and the Drug Enforcement Administration.
Boise Woman Pleads Guilty to Importation of Bath SaltsRead the Press Release
BOISE – Jennifer Niemann, 34, of Boise, pleaded guilty to importation of a controlled substance, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Niemann was indicted by a federal grand jury in Boise on April 14, 2021.
According to court records, the United States Customs and Border Protection intercepted a parcel at the International Mail Facility in San Francisco, California. The parcel contained α-PHP, a bath salt analogue. The package was addressed to Jennifer Niemann in Boise, Idaho and originated from the Netherlands. As a part of a Homeland Security Investigations-led inquiry, agents and United States Postal Inspectors interviewed Niemann on July 1, 2019, Niemann admitted to using Bitcoin to purchase the α-PHP online.
Niemann faces a maximum sentence of 20 years in federal prison, a one million dollar fine, and at least three years of supervised release. Sentencing is set for October 20, 2021, before Chief U.S. District Judge David C. Nye at the federal courthouse in Boise.
Acting U.S. Attorney Gonzalez credited the efforts of the United States Customs and Border Protection, Homeland Security Investigations, and the United States Postal Inspection Service, which led to the charges.
This case was prosecuted by the Special Assistant United States Attorney hired by the Ada County Prosecuting Attorney’s Office with funds provided by the High Intensity Drug Trafficking Areas (HIDTA) program. HIDTA is part of the Office of National Drug Control Policy (ONDCP) created by Congress with the Anti-Drug Abuse Act of 1988. It provides assistance to federal, state, and local law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States. Idaho is part of the Oregon-Idaho HIDTA. The Idaho HIDTA is a collaboration of local, multi-jurisdictional law enforcement drug task forces, and prosecuting agencies dedicated to addressing regional drug trafficking organizations that operate in Ada, Canyon, Bannock, Kootenai, and Malheur Counties.
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Baker Man Sentenced to 112 Months in Federal Prison for Gun and Drug ChargesRead the Press Release
Acting United States Attorney Ellison C. Travis announced that U.S. District Judge John W. deGravelles sentenced Brian Spears, age 43, of Baker, Louisiana, to 112 months in federal prison following his convictions for possession with the intent to distribute heroin, methamphetamine, Xanax and Tramadol and possession of a firearm in furtherance of a drug trafficking crime. The Court further sentenced Jones to serve 3 years of supervised release following his term of imprisonment and ordered that the firearms involved be forfeited.
According to admissions as part of his guilty plea, on November 4, 2019, deputies with the East Baton Rouge Parish Sheriff’s Office sought and obtained a search warrant for Spears’ residence based on learning Spears was selling illegal drugs from his residence. On November 12, 2019, EBRSO deputies observed Spears leave his residence and drive to a nearby house a few blocks away. Deputies followed Spears and arrested him as he exited from his vehicle. A loaded AK-47 was found on the driver’s floorboard of Spears’ vehicle.
EBRSO deputies then executed the search warrant of Spears’ residence, where they found 90.8 grams of heroin, 2.6 grams of methamphetamine, 16 dose units of Xanax, and 2 dose units of Tramadol, a digital scale, and a loaded Glock 21, 9mm handgun. EBRSO also found three children under the age of 10 in the home alone when they arrived. Spears’ residence is less than 900 yards from an East Baton Rouge Parish school. Both the Ak-47 and the Glock 21 were loaded with extended round magazines.
Acting U.S. Attorney Travis stated, “This conviction and sentence of a repeat offender reaffirms our commitment to fight violence by investigating, arresting, and prosecuting convicted criminals who decide to illegally possess firearms and sell drugs. Great credit goes to our partnership with local authorities for this result. I want to thank our prosecutor, the ATF, and the East Baton Rouge Sheriff’s Office for their work on this case.”
“One of ATF’s primary missions is to investigate illegal possession of firearms by violent offenders,” said ATF New Orleans Field Division Special Agent in Charge Kurt Thielhorn. “The sentence imposed today is an example of ATF’s partnership with the East Baton Rouge Sheriff’s Office to identify and investigate individuals that plague our communities with gun violence and drugs.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the East Baton Rouge Sheriff’s Office. It was prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
Attorney General Garland Joins Acting U.S. Attorney Phillips at National Night Out CelebrationsRead the Press Release
WASHINGTON – The U.S. Attorney’s Office for the District of Columbia today joined community and law enforcement partners in celebrating National Night Out, with Attorney General Merrick B. Garland and Acting U.S. Attorney Channing D. Phillips participating in an event at the Washington Nationals Youth Baseball Academy in Southeast Washington.
More than 200 people turned out for the celebration of community collaboration, held at the baseball academy, located in the Sixth Police District. Thousands more gathered across the city and nation, with senior Justice Department officials and U.S. Attorneys taking part in a Department-wide effort to bring attention to events that build stronger community-police relations. The activities in the District of Columbia were led by the Metropolitan Police Department (MPD), which sponsored events in all seven police districts.
“Law enforcement is most effective when it has the trust and support of the communities it serves,” said Attorney General Garland. “That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“National Night Out is an opportunity for us to show our appreciation to the many people in neighborhoods throughout the District of Columbia for the assistance they provide in promoting public safety,” said Acting U.S. Attorney Phillips. “We depend upon their cooperation and vigilance and have a long history of working together to benefit the community.”
National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. In most areas of the country, the program culminates annually on the first Tuesday of August. National Night Out organizers expect to hold more than 16,000 community events around the country this year.
Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement. National Night Out enhances the relationship between neighbors and law enforcement while bringing back a true sense of community.
The Washington Nationals Youth Baseball Academy, at 3675 Ely Place SE, is a nine-acre education and recreation campus in the Fort Dupont Park area. It is a centerpiece of Nationals Philanthropies, the official charitable arm of the Washington Nationals. Events there ran from afternoon into early evening and included a moon bounce, kickball, baseball tutorial sessions, food, entertainment, and information from government and community partners.
Wendy Pohlhaus, Director of the Community Engagement Section for the U.S. Attorney’s Office, joined District of Columbia officials, MPD, and federal law enforcement partners at one of the many other National Night Out events, a kickoff event at the Kennedy Recreation Center, 1401 Seventh St. NW, in the Third Police District. She leads a team of prosecutors and community engagement specialists, including Community Engagement Specialist Baretta Francis, who participated along with Attorney General Garland and Acting U.S. Attorney Phillips at the baseball academy event. The Community Engagement Section sponsors events year-round, including a recent youth summit that focused on the prevention of gun violence and the dangers of opioids.
Albuquerque man charged with drug trafficking and firearms violationRead the Press Release
ALBUQUERQUE, N.M. – Richard “Fat Jesus” Wheeler, 38, of Albuquerque, made an initial appearance in federal court on July 29 on charges of distribution of methamphetamine and carrying a firearm in furtherance of drug trafficking. Wheeler waived a detention hearing and will remain in custody pending trial.
According to a criminal complaint, on three occasions from July 16 through July 22, Wheeler allegedly sold a total of approximately 773 grams of methamphetamine to an undercover agent in Albuquerque. During the transaction on July 16, Wheeler was allegedly armed with a pistol in plain view of the agent.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Wheeler faces a minimum of five years and up to life in prison
The FBI’s Albuquerque Violent Crime Gang Task Force (VCGTF) investigated this case. Assistant United States Attorneys Jaymie L. Roybal and Alexander Uballez are prosecuting the case.
Acting U.S. Attorney Saima Mohsin to Take Part in National Night OutRead the Press Release
Detroit, MI – Acting U.S. Attorney Saima Mohsin will join law enforcement, community leaders and residents on Tuesday, August 3rd at several locations throughout Detroit to celebrate the National Night Out crime and drug prevention events.
National Night Out is a community-building and crime prevention campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Thousands of communities nationwide will participate in neighborhood block parties, festivals, cookouts, safety demonstrations, seminars, and activities that heighten crime and drug prevention awareness and generate support for and participation in local anticrime efforts. Events such as these help to strengthen neighborhood spirit, police-community partnerships, and demonstrate a shared commitment for strong and safe communities.
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
“National Night Out is a time for law enforcement, community leaders and residents to join together in the fight against crime in our communities. These types of events help to strengthen our resolve to root out crime and build stronger and safer communities,” said Acting US Attorney Mohsin. “I’m proud to stand shoulder-to-shoulder with our stakeholders to support safer streets.”
DPD Chief White stated, "National Night Out provides another opportunity to connect with our community and to build relationships based on trust and respect. It also illustrates our commitment to reduce crime and improve the quality of life for our residents through community policing. We look forward to joining millions across America including law enforcement members to mark this momentous event. We are #OneDetroit!”
Mrs. Mohsin will appear at Detroit Police precincts all throughout the city.Acting U.S. Attorney Bruce D. Brandler Encourages Participation in National Night OutRead the Press Release
HARRISBURG- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Assistant U.S. Attorneys will join law enforcement, community leaders and residents on Tuesday, August 3rd at various event locations to celebrate the 37th Annual National Night Out.
The events Assistant U.S. Attorneys plan to attend are:
- Harrisburg Bureau of Police at Camp Curtain Academy Football Field in Harrisburg from 5:00 p.m. to 9:00 p.m.;
- Lebanon City Police Department at the Salvation Army building on Guilford Street in Lebanon from 6:00 p.m. to 8:00 p.m.;
- Derry Township Police Department on West Caracas Avenue in Hershey from 6:00 p.m. to 8:00 p.m.; and
- York City Police Department at numerous locations throughout the city from 6:00 p.m. to 8:00 p.m.
National Night Out is a community-building campaign that promotes collaborative law enforcement-community partnerships and neighborhood camaraderie. Communities nationwide will participate in neighborhood festivals, block parties, and cookouts, which provides a great opportunity to bring police and neighbors together under positive circumstances.
“National Night Out signifies the essential role the community plays in effective law enforcement” stated Acting U.S. Attorney Bruce Brandler. “We are pleased to join with our local law enforcement partners and the communities we serve to promote this important program.”
“Keeping our communities safe is a top Justice Department priority, as it is for state, local and Tribal police departments across the country,” said Attorney General Merrick B. Garland. “Law enforcement is most effective when it has the trust and support of the communities it serves. That is why events like National Night Out are so important and effective; they help to bridge the gap between neighbors and their police departments in a positive and informal setting.”
National Night Out events will be held in several communities throughout the Middle District of Pennsylvania. For more information about National Night Out, visit their website www.natw.org
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2 August 2021
West Hollywood Man Sentenced to over 12 Years in Prison for Real Estate Fraud Scheme that Victimized More Than 2,000 HomeownersRead the Press Release
LOS ANGELES – A West Hollywood man was sentenced today to 152 months in federal prison for orchestrating a real estate fraud scheme that victimized more than 2,000 homeowners, involved fraudulent filings that affected the title to properties across the country and caused more than $7 million in losses.
Patrick Joseph Soria, 35, was sentenced by United States District Judge Dale S. Fischer, who called Soria “a skillful conman who created a very sophisticated scheme.” Judge Fischer also stated, “This is not the largest case I have presided over in terms of dollars, but it is the most brazen and heartless.”
A restitution hearing is scheduled for October 25. Soria pleaded guilty on March 2 to one count of conspiracy to commit wire fraud and one count of contempt of court.
From January 2015 to June 2018, Soria stole money from homeowners and would-be home buyers through a two-pronged scheme.
Firstly, Soria hijacked title to properties through fraudulent title filings done at county recorders’ offices around the country. He faked the filings to make it appear that he owned the properties, and then “sold” the properties to victims who thought they were buying the homes from the true owner. In fact, Soria never owned the homes, and he instead used the victims’ “purchase” money for his own personal expenses, including escort services, stays at luxury hotels, and Bentley and Lamborghini car rentals.
In the second part of the scheme, Soria convinced homeowners that he could help them with their mortgages, either by assisting them with a loan modification or by taking over their mortgage from their lender, with the promised result, either way, of reducing their mortgage payments. He told them that he had achieved success in this area in the past, and he convinced them that he was trying to help them, often befriending them to gain their trust and give them hope. But as Judge Fischer stated at today’s hearing, “Mr. Soria turned their hopes into a nightmare.”
After gaining the victims’ trust, Soria convinced homeowners to stop paying their real lender and to start paying him. Through yet more fraudulent filings, Soria deceived his victims into believing he had taken over their mortgages. He also falsely lulled victims into doing nothing to protect themselves when they started receiving foreclosure and eviction notices. Many of the homeowners targeted in the scheme lost their homes.
As part of the fraud, Soria used company names such as HBSC US and Deutsche Mellon National Asset LLC, designed to trick homeowners into thinking that these companies were real. He also took advantage of the complex mix of lenders, trustees, beneficiaries, and servicers in the mortgage market, and the assignments of mortgage loans between entities, to confuse homeowners and to make it seem as if he did in fact own the properties and mortgages.
More than 2,000 individuals were victimized through this scheme. Soria admitted in court documents that losses totaled more than $7.6 million. In addition to causing losses to individual homeowners, the fraud scheme also victimized numerous lenders who held mortgages on, or other interests in, properties targeted in the scheme.
The targeted properties were located nationwide, including in Texas, New York, Nevada, and in the California cities of Vernon, Beverly Hills, Santa Ana, Yorba Linda, Anaheim and elsewhere.
In a related matter, Soria committed numerous acts of contempt of court in a related civil case before Judge Fischer, Nationstar Mortgage LLC v. Patrick Soria, et al., 18-cv-03041-DSF-RAO (C.D. Cal.), including willfully spending funds subject to an asset freeze. The contempt resulted in his incarceration in 2018, and criminal charges filed by the Court in 2019 by way of an Order to Show Cause.
This matter was investigated by the FBI and the Federal Housing Finance Agency – Office of Inspector General, with assistance from the Los Angeles Police Department; the Beverly Hills Police Department; the Los Angeles County Sheriff’s Department; the San Joaquin County District Attorney’s Office, the Ventura County District Attorney’s Office; and the Orange County District Attorney’s Office.
Assistant United States Attorney Kerry L. Quinn of the Major Frauds Section prosecuted this case.
United States Attorney's Office for the Eastern District of Oklahoma Obtains Twenty-Eight Indictments from Federal Grand JuriesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced federal grand juries sitting in Muskogee recently completed two separate July sessions and returned twenty-eight (five under seal) felony indictments, including six superseding indictments.
The Eastern District of Oklahoma has experienced a dramatic increase in Indian Country cases for federal prosecution due to the U.S. Supreme Court decision of McGirt v. Oklahoma and recent Oklahoma Court of Criminal Appeals rulings. These opinions determined the reservations of the Five Civilized Tribes were never disestablished by Congress, and therefore, the United States has primary federal jurisdiction to prosecute major crimes committed by—or against—Native Americans occurring within the 26 counties of the Eastern District of Oklahoma. In response to the caseload rise, a second grand jury was empaneled in the Eastern District in the month of July.
From the two grand jury sessions in July, twenty-three indictments were publicly filed and five remain sealed pending arrest of the charged defendants. All but three of the unsealed charges involve crimes arising out of Indian Country. Four of the unsealed indictments are for murder or involuntary manslaughter, six are for sex crimes, and the balance contain allegations of assault with a dangerous weapon or resulting in serious bodily injury, assault with intent to commit murder, kidnapping, burglary, firearm violations, and robbery. The three unsealed non-Indian Country indictments involve possession with intent to distribute methamphetamine and firearm violations.
The following indictments were returned by the federal grand juries and filed in the United States District Court for the Eastern District of Oklahoma. The information listed in brackets is the county and reservation where the crime(s) allegedly occurred.
Murder:
United States v. Wendy Dawn Johnson – Count 1: Involuntary Manslaughter in Indian Country, 18 U.S.C. §§ 1112, 1151 & 1153 [McIntosh County – Muscogee (Creek) Nation Reservation]
United States v. Tyler Jay Mullins (superseding indictment) – Count 1: Murder in Indian Country, 18 U.S.C. §§ 1111(a), 1151 & 1153; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i),(ii) & (iii); Count 3: Causing the Death and Murder of a Person in the Course of a Violation to Title 18 U.S.C. § 924(c), 18 U.S.C. § 924(j)(1) [Pontotoc County – Chickasaw Nation Reservation]
United States v. Michael Lee Wolfe and Carlos Allen Locust (superseding indictment) – Count 1: Murder in Indian Country – 18 U.S.C. §§ 1111(a), 1151, 1153 & 2 [Adair County – Cherokee Nation Reservation]
United States v. Allysa Lynn Turner – Count 1: Murder in Indian Country, 18 U.S.C. §§ 1111(a), 1151 & 1152; Count 2: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. § 924(c)(1)(A)(i)(ii)(iii); Count 3: Causing the Death of a Person in the Course of a Violation to Title 18, United States Code, Section 924(c), 18 U.S.C. § 924(j)(1); Forfeiture Allegation, 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Latimer County – Choctaw Nation Reservation]
Sexual Assault:
United States v. Jimmy Dean Altom – Count 1: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 2241(c) 2246(2)(D), 1151 & 1152; Count 2: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243(a), 2246(2)(A), 1151 & 1152; Count 3: Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(1), 2246(2)(A), 1151 & 1152; Count 4: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243(a), 2246(2)(D), 1151 & 1152 [Atoka County– Choctaw Nation Reservation]
United States v. Dallas Tyler Ewton – Counts 1 and 2: Aggravated Sexual Abuse of a Child in Indian Country, §§ 1151, 1153, 2241(c) & 2246(2)(B); Count 3: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246(2)(C); Counts 4 and 5: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246(2)(B); Count 6: Aggravated Sexual Abuse of a Child in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246(2)(C); Counts 7 and 8: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(a) & 2246(2)(B); Count 9: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(a) & 2246(2)(C); Counts 10 and 11: Sexual Abuse of a Ward in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(b) & 2246(2)(B); Count 12: Sexual Abuse of a Ward in Indian Country, 18 U.S.C. §§ 1151, 1153, 2243(b) & 2246(2)(C); Counts 13 and 14: Abusive Sexual Contact in Indian Country, 18 U.S.C. §§ 1151, 1153, 2244(a)(3) & 2246(3); Counts 15 and 16: Abusive Sexual Contact in Indian Country, 18 U.S.C. §§ 1151, 1153, 2244(a)(4) & 2246(3); Count 17: Tampering with a Witness in Indian Country, 18 U.S.C. §§ 1151, 1153 & 1512(a)(2)(c) [Okmulgee County – Muscogee (Creek) Nation Reservation]
United States v. Damian Wade Baldridge – Counts 1, 3 and 6: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Counts 2 and 5: Assault Resulting in Substantial Bodily Injury to a Spouse, Intimate Partner or Dating Partner in Indian Country, 18 U.S.C. §§ 113(a)(7), 1151 & 115; Count 4: Kidnapping in Indian Country, 18 U.S.C. §§ 1201 (a)(2), 1151 & 1153; Count 7: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 1151, 1153, 2241(a) & 2246 (2)(C) [Cherokee County – Cherokee Nation Reservation]
United States v. Levi Cody Root, Sr. (superseding indictment) – Count 1: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 2241(c), 2246(2)(A), 1151 & 1152; Count 2: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 2241(c), 2246(2)(B), 1151 & 1152; Count 3: Aggravated Sexual Abuse in Indian Country, 18 U.S.C. §§ 2241(c), 2246(2)(D), 1151 & 1153; Count 4: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243, 2246(2)(B), 1151 & 1152; Count 5: Sexual Abuse of a Minor in Indian Country, 18 U.S.C. §§ 2243, 2246(2)(D), 1151 & 1152 [Seminole County – Seminole Nation Reservation]
United States v. Tyler James Stephens (second superseding indictment) – Count 1: Stalking, 18 U.S.C. § 2261(2)(B); Count 2: Extortionate Interstate Communications, 18 U.S.C. § 875(d); Counts 3 and 4: Video Voyeurism in Indian Country (Misdemeanor), 18 U.S.C. §§ 1151, 1152 & 1801(a); Count 5: Attempted First Degree Burglary in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. §§ 44 & 1431; Count 6: Attempted Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(1), 2246(2)(A), 1151 & 1153; Counts 7 and 8: First Degree Burglary in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1431 [McIntosh County – Muscogee (Creek) Nation Reservation]
United States v. Brooke Lynn Davidson and Henry Charles Littlebear Redhat (superseding indictment) – Count 1: Child Neglect in Indian Country, 18 U.S.C. §§ 1151 & 1153 & 21 O. S. A. § 843.5(C); Count 2: Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(2), 2246(2)(A), 1151 & 1153; Count 3: Sexual Abuse in Indian Country, 18 U.S.C. §§ 2242(2), 2246(2)(B), 1151 & 1153; Count 4: Abusive Sexual Contact in Indian Country, 18 U.S.C. §§ 2244(a)(2), 2246(3), 1151 & 1153 [Carter County – Chickasaw Nation Reservation]
Other violent crime in Indian Country:
United States v. v. Francisco Perez – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1152; Count 3: Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i)(ii)(iii); Forfeiture Allegation, 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Leflore County – Choctaw Nation Reservation]
United States v. Lakota Watson – Count 1: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 2: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 3: Use, Carry, Brandish and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i),(ii),(iii) [Okmulgee County – Muscogee (Creek) Nation Reservation]
United States v. Andre Lavell Tatum – Count 1: Assault with Intent to Murder in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151, & 1152; Count 2: Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151 & 1152; Count 3: Discharging a Firearm during a Crime of Violence, 18 U.S.C. § 942(c)(1)(A)(iii) [Muskogee County – Muscogee (Creek) Nation Reservation]
United States v. Shawn Claude Rose – Count: 1 Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 2: Assault Resulting in Serious Bodily Injury In Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 and 1153; Count 3: Assault with a Dangerous, with Intent to do Great Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 4: Assault Resulting in Serious Bodily Injury In Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Adair County – Cherokee Nation Reservation]
United States v. Shawn Claude Rose - Count 1: Assault with Intent to Commit Murder in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151 & 1153; Count 2: Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 3: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 4: Assault with a Dangerous Weapon in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1153; Count 5: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153; Count 6: Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. § 924(c)(1)(A)(i)(ii)(iii) [Adair County – Cherokee Nation Reservation]
United States v. Nathan Delann Horner – Count 1: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 2: Assault Resulting in Serious Bodily Injury in Indian Country, 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Bryan County – Choctaw Nation Reservation]
United States v. Antonio Morice Brooks – Count 1: Assault with Intent to Commit Murder in Indian Country, 18 U.S.C. §§ 113(a)(1), 1151 & 1152; Count 2: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151 & 1152; Count 3: Use, Carry, Brandish, and Discharge of a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i)(ii)(iii); Count 4: Felon in Possession of Ammunition, 18 U.S.C. §§ 922(g)(1) & 924(a)(2) [Atoka County – Choctaw Nation Reservation]
United States v. Aaron Isaiah Johnson (superseding indictment) – Count 1: Kidnapping in Indian Country, 18 U.S.C. §§ 1201(a)(2), 1151, 1153 & 1201(a)(2) & 2; Count 2: Robbery in Indian Country, 18 U.S.C. §§ 2111, 1151, 1153 & 2; Count 3: Use, Carry and Brandish of Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A) & (ii) & 2; Count 4: Conspiracy to Commit Robbery in Indian Country, 18 U.S.C. § 371; Count 5: Assault with a Dangerous Weapon with Intent to do Bodily Harm in Indian Country, 18 U.S.C. §§ 113(a)(3), 1151, 1153 & 2; Count 6: Robbery in Indian Country, 18 U.S.C. §§ 2111, 1151, 1153 & 2; Count 7: Use, Carry and Brandish of Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i) & (ii) & 2; Count 8: Burglary in the Second Degree in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(A); Count 9: Burglary in the Second Degree in Indian Country, 18 U.S.C. §§ 1151, 1153 & 21 O.S.A. § 1435(A) [Muskogee County and Wagoner County – Muscogee (Creek) Nation Reservation]
United States v. Kaleb Lee Oss – Count 1: Assault Resulting in Serious Bodily Injury, 18 U.S.C. §§ 113(a)(6), 1151 & 1153 [Pittsburg County – Choctaw Nation Reservation]
United States v. Kaleb Lee Oss - Count 1: First Degree Burglary in Indian Country, Title 18 U.S.C. §§ 13, 1151, 1153 & 21 O.S.A. § 1431; Count 2: Robbery in Indian Country, 18 U.S.C. §§ 2111, 1151 & 1153; Count 3: Use, Carry, and Brandish a Firearm During and in Relation to a Crime of Violence, 18 U.S.C. §§ 924(c)(1)(A)(i)(ii), 1151 & 1153; Count 4: Felon in Possession of a Firearm, 18 U.S.C. §§ 922(g)(1) & 924(a)(2); [Pittsburg County – Choctaw Nation Reservation]
Non-Indian Country offenses:
United States v. Jagger Levi Gordon – Count 1: Possession with Intent to Distribute Methamphetamine, 21 U.S.C. § 841(b)(1)(B)(viii); Count 2: Use/Discharge of Firearm During and in Relation to Drug Trafficking Offense; 18 U.S.C. § 924(c)(1)(A); Count 3: Possession of Firearm w/ Silencer in Furtherance of Drug Trafficking Offense, 18 U.S.C. § 924(c)(1)(B); Count 4: Possession of Firearm by a Felon, 18 U.S.C. § 922(g)(1); Count 5: Possession of Unregistered Firearm Silencer, 26 U.S.C. § 5861(d) [Okmulgee County]
United States v. Jeremy Don Harrison – Count 1: Possession with Intent to Distribute Methamphetamine, 21 U.S.C. §§ 841(a)(1), 841(b)(1)(c) & 2; Count 2: Possession of a Firearm in Furtherance of a Drug Trafficking Crime, 18 U.S.C. §§ 924(c)(1)(A), & 2; Count 3: Felon in Possession of a Firearm, 18 U.S.C. §§ 922(g)(1) & 924(a)(2); Count 4: Possession of a Stolen Firearm, 18 U.S.C. §§ 922(j) & 924(a)(2) & 2 [Seminole County]
United States v. Jeremy Chad Gilliland (superseding indictment) – Count 1: Possession of a Firearm by a Person Convicted in any Court of a Misdemeanor Crime of Domestic Violence, 18 U.S.C. §§ 922(g)(9) & 924(a)(2); Count 2: Possession of Unregistered Firearm, 26 U.S.C. §§ 5845, 5861(d) & 5871; Forfeiture Allegation – 18 U.S.C. § 924(d) & 28 U.S.C. § 2461(c) [Carter County]
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
U.S. Attorney Kennedy Announces Results of VIPER Task Force Through July 30, 2021Read the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr., announced today the cumulative results of the Federal Violence Prevention and Elimination Response (VIPER) Task Force, a 60-day surge aimed at removing violent gun offenders from the streets of Rochester and Buffalo to enhance public safety and reduce violent crime. For the slightly over three-week period between July 7 and July 30, 2021, the following results were achieved in Rochester, Buffalo, and Niagara Falls through VIPER:
• District Wide o Firearm Related Arrests – 125 o Narcotics Related Arrests - 217 o Violent Felony Arrests - 142 o Firearms Seized - 68
• Rochester o Firearm Related Arrests - 69 o Narcotics Related Arrests - 41 o Violent Felony Arrests - 86 o Firearms Seized - 51
• Buffalo/Niagara Falls o Firearm Related Arrests - 56 o Narcotics Related Arrests - 176 o Violent Felony Arrests - 56 o Firearms Seized - 17To date, 18 defendants have been adopted for federal prosecution, and 52 other defendant’s arrests are currently being reviewed to determine whether federal prosecution is appropriate.
“These latest numbers suggest that the all hands-on-deck, collaborative approach promoted by the VIPER Task Force is yielding positive results,” stated U.S. Attorney Kennedy. “Violent offenders, drug traffickers, and those with illegal guns are—or, at least, should be—starting to realize that they are the focus not only of the attention of every law enforcer in our community—but the attention of a growing number of community members themselves. Hopefully, that realization will cause those considering whether illegally to possess or use a gun to think twice and help them to recognize that they will only find lasting respect and protection once they choose to put the gun down.”
The VIPER Task Force involves enhanced information sharing, enhanced proactive investigations and prosecutions, and the improvement relations between the community and law enforcement.
Members of the VIPER Task Force include the United States Attorney’s Office, under the direction U.S. Attorney James P. Kennedy, Jr.; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the United States Marshals Service, under the direction of Marshal Charles Salina; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Immigration and Customs Enforcement, Enforcement and Removal Operations, under the direction of Acting Field Office Director Robert F. Judge; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division. VIPER Task Force members in Rochester also include: the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan. VIPER Task Force members in Buffalo also include: the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Chief Byron Lockwood.
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Two MSC Gayane Crew Members Sentenced for Conspiracy to Smuggle $1 Billion Worth of Cocaine into the United StatesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Ivan Durasevic, 31, and Nenad Ilic, 41, both of Montenegro, were sentenced by United States District Court Judge Harvey Bartle III, on charges of conspiracy to possess with intent to distribute cocaine on a vessel subject to the jurisdiction of the United States. Durasevic was sentenced to six and a half years in prison and two years of supervised release. Ilic was sentenced to seven years in prison followed by two years of supervised release.
Durasevic and Ilic worked on board the MSC Gayane, a commercial shipping vessel, as crew members; Durasevic was the second officer and Ilic was the engineer cadet. For months in early 2019, Durasevic, and Ilic conspired with others to engage in a bulk cocaine smuggling scheme. On multiple occasions during the MSC Gayane’s voyage and while at sea, crew members including the defendants helped load bulk packages of cocaine onto the vessel from speedboats that approached the vessel in the middle of the night under cover of darkness. Crew members used the vessel’s crane to hoist cargo nets full of cocaine onto the vessel and then stashed the cocaine in the vessel’s shipping containers; they bent railings on the ship and pulled back doors on the shipping containers so they could fit the huge quantities of cocaine into the containers. After hiding the drugs among legitimate cargo, crew members used fake seals to reseal the shipping containers in which they had stashed the cocaine in order to disguise their clandestine activities and contraband. Durasevic and Ilic operated mobile “narco” phones to coordinate the bulk cocaine smuggling with others on land and recruited other crew members while at sea to assist in the scheme.
On June 17, 2019, federal, state, and local law enforcement agents boarded the MSC Gayane when it arrived at Packer Marine Terminal in Philadelphia and seized about 20 tons of cocaine worth over $1 billion U.S. dollars from its shipping containers in one of the largest drug seizures in U.S. history.
Five other crew members from the MSC Gayane involved in this smuggling scheme were arrested, pleaded guilty to conspiracy to possess with intent to distribute cocaine, and have previously been sentenced based on their participation in the scheme. These crew members include Bosko Markovic, 39, of Montenegro, the ship’s chief officer; Vladimir Penda, 27, of Montenegro, the fourth engineer; Stefan Bojevic, 29, of Serbia, the assistant reeferman; Fonofaavae Tiasaga, 29, of Samoa, an able seaman; and Laauli Pulu, 34, of Samoa, an ordinary seaman. A sixth crew member, Aleksandar Kavaja, 27, of Montenegro, the electrician, pleaded guilty and is awaiting sentencing.
“As the sentences for the illegal conduct in this case continue to happen, they serve as a reminder that drug smuggling operations will be uncovered one way or another,” said Acting U.S. Attorney Williams. “Prosecutors in our Office have been working non-stop to pursue justice since the MSC Gayane docked in the port of Philadelphia over two years ago, and we will not stop until the case is closed.”
The case is being investigated by Homeland Security Investigations and the United States Customs and Border Protection, together with a multi-agency team of federal, state, and local partners.
Three Men Admit to Stealing from ATMs & Gas Pumps, Staging a Fake Car Accident in Nationwide Fraud, Money Laundering SchemeRead the Press Release
SAN DIEGO – Three more men pleaded guilty today to engaging in a years-long, nation-wide fraud conspiracy that stole victims’ financial information from ATMs and gas pumps in San Diego and across the country, and then used the stolen information to make fake credit and debit cards. All told, six defendants have now admitted to participating in that conspiracy, and in a related money laundering conspiracy, that netted over a million dollars in ill-gotten gains.
In sentencing one of the coconspirators on April 21, 2021, the Honorable Michael M. Anello observed that the conspiracy constituted “a very, very serious and longstanding criminal enterprise.”
One defendant, Arsen Galstyan, pleaded guilty to engaging a conspiracy to commit access device fraud: essentially, using fake debit and credit cards. The remaining two defendants—brothers Davit and Vahram Simonyan—admitted to participating in a money laundering conspiracy that laundered the proceeds of access device fraud and other crimes.
In their plea agreements, the defendants admitted that their scheme inflicted actual and intended losses of at least $1.2 million. The Simonyan brothers each admitted to obtaining over $642,000 in stolen money over the course of the conspiracy, which stretched from 2017 to 2020. They also acknowledged structuring their withdrawals from the banks to avoid bank reporting requirements. For example, in one month alone, the Simonyan brothers allegedly withdrew $91,500 in cash from a single bank account. Davit Simonyan admitted that he and a co-conspirator possessed 75 fake debit and credit cards on just a single day in 2018.
Davit Simonyan also staged a phony car accident in order to commit insurance fraud, according to his plea agreement. He planned an accident involving cars insured by two of his codefendants, including Arsen Galstyan, who also pleaded guilty today. Then Simonyan had one of the damaged vehicles repaired at a collision shop owned by an unindicted co-conspirator who kicked back thousands of dollars in payment from the insurance company to Simonyan and his brother as part of their money laundering scheme. Davit Simonyan admitted that by staging a car accident, his conduct involved the reckless risk of a serious bodily injury.
The indictment alleges that the coconspirators worked together to steal unwitting victims’ credit and debit card information by using skimming devices installed in common points of sale such as gas pumps and ATMs. With the stolen information in hand, the conspirators made a host of unauthorized cards that they then used to buy postal money orders and make withdrawals from victims’ accounts.
“People should be able to use a gas pump or an ATM without fear that a criminal will steal their identities and their savings,” said Acting U.S. Attorney Randy Grossman. “This office will ensure that identity thieves, fraudsters and money launderers are held accountable for victimizing our community.” Grossman commended Assistant U.S. Attorney Nicholas Pilchak and the federal agents who diligently pursued this matter.
“Members of the public should remain vigilant as skimming crimes continue to be prevalent,” said Brian Lewin, Special Agent in Charge of the U.S. Secret Service San Diego field office. “The Secret Service is proud to work with our law enforcement and public safety partners to prevent future crimes like this.”
“The U.S. Postal Inspection remains unwavering in its mission to arrest those who intend to utilize the Postal Service as part of a criminal enterprise,” noted Carroll Harris, Inspector in Charge of the Los Angeles Division. “The customers of the Postal Service can be assured the Post Office still remains a safe and secure location to conduct business.”
On April 21, 2021, co-defendant Arsen Minasyan was sentenced by the Honorable Michael M. Anello to 37 months in custody. He was ordered to forfeit $75,145.90 and to pay restitution to victims in the amount of $109,834.14.
The remaining defendant, Gor Plavchyan, is scheduled to be in court next for a change of plea on Friday, August 6, 2021.
The defendants who pleaded guilty today will appear for sentencing on November 3, 2021 at 9:30 a.m. before U.S. District Court Judge Michael Anello.
Anyone who believes that they may be a victim of this offense can visit the U.S. Department of Justice’s large case website for more information: www.justice.gov/largecases.
DEFENDANTS Age Case Number 20cr314-MMA
1. Davit Simonyan 30 Residence: Glendale, California
2. Vahram Simonyan 34 Residence: Glendale, California
3. Arsen Minasyan 34 Residence: Terminal Island FCI
4. Gor Plavchyan 26 Residence: Winnetka, California
5. Arsen Galstyan 40 Residence: Glendale, California
6. Mukuch Mkrtchyan 32 Residence: Fair Oaks, California
7. Smbat Shahinyan 41 Residence: Glendale, CaliforniaSUMMARY OF CHARGES
Conspiracy to Launder Monetary Instruments, in violation of Title 18, United States Code, Section 1956(h) (Defendants 1 through 3 only)
Maximum Penalty: twenty years in prison; fine of $500,000 or twice the value of the property involvedConspiracy to Possess Fifteen or More Unauthorized Access Devices, in violation of Title 18, United States Code, Sections 1029(b)(2), 1029(a)(3), and 1029(c)(1)(A)(i) (Defendants 1 and 3–7 only)
Maximum Penalty: five years in prison; fine of $250,000 or twice the gross gain or lossINVESTIGATING AGENCIES
United States Secret Service
U.S. Postal Inspection Service*The charges and allegations contained in an indictment are merely accusations. The defendants are considered innocent unless and until proven guilty
Texas Woman Pleads Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that GENETTA ISREAL (“ISREAL”), age 53, of Houston, Texas, pled guilty today to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans. Thus far, twenty-six (26) of the thirty-three (33) indicted defendants have tendered guilty pleas in federal court.
Damien Labeaud, Mario Solomon, Larry Williams, and ISREAL were charged with staging an accident on June 12, 2017, occurring on Chef Menteur Highway near the Danziger Bridge in New Orleans. Labeaud and Larry Williams planned to stage an automobile accident to obtain money through fraud. During their planning, Labeaud told Larry Williams that he had an Attorney who would handle everything. Larry Williams recruited ISREAL and another individual (now deceased) to participate in the fraudulent scheme. To execute the scheme, Larry Williams borrowed a Chevrolet Trailblazer, and that Labeaud drove the Trailblazer, which he then used to collide with a 2015 Peterbilt tractor-trailer. After the staged accident, Labeaud fled the scene and Larry Williams got behind the wheel to make it appear that he was driving the Trailblazer during the staged accident. Solomon picked up Labeaud after the staged accident. Larry Williams told the New Orleans Police Department (“NOPD”) that he was the driver of the Trailblazer and that the tractor-trailer was at fault. After the staged accident, Labeaud introduced Larry Williams and ISREAL to Attorney A.
Larry Williams and ISREAL were treated by doctors and healthcare providers at the direction of Attorney A. On June 12, 2018, Attorney A’s firm filed the Larry Williams Lawsuit in Civil District Court (“CDC”) for the Parish of Orleans and on September 14, 2018, Attorney A’s firm demanded approximately $60,000.00 in settlement for the deceased passenger and approximately $56,155.00 in settlement for ISREAL. After the suit was filed, Larry Williams and ISREAL each provided false testimony in depositions taken in conjunction with the lawsuit filed by Attorney A’s firm.
ISREAL faces a maximum sentence of five (5) years imprisonment and/or a fine of up to $250,000 or the greater of twice the gross gain to the defendant or twice the gross loss to any person under Title 18, United States Code, Section 3571, up to three (3) years of supervised release and a mandatory $100.00 special assessment fee. Sentencing will occur before U.S. District Judge Eldon E. Fallon on November 4, 2021.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; and Assistant U.S. Attorney Maria Carboni.
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Spokane Man Sentenced to 70 Months for Bank Fraud Conspiracy, Mail Theft, and Aggravated Identity TheftRead the Press Release
Spokane – Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that Jonny Shineflew, age 48, of Spokane, Washington, was sentenced to a 70-month term of imprisonment after pleading guilty on March 25, 2021, to one count of Conspiracy to Commit Bank Fraud, one count of Mail Theft, and one count of Aggravated Identity Theft. United States District Judge Thomas O. Rice also imposed a five-year term of court supervision after Shineflew is released from federal prison.
According to information disclosed during court proceedings, between March 15 and July 31, 2018, Shineflew entered into an agreement with co-defendants and others to commit bank fraud. Shineflew and his co-defendants unlawfully obtained checks, altered the stolen checks, and presented the altered checks for payment at financial institutions and businesses for the use and benefit of the members of the conspiracy. Shineflew and his co-conspirators utilized computer equipment and printers to create false identifications to be used in connection with presenting the fraudulent checks for payment, at times using the identities of real people without their knowledge or consent. Shineflew was recorded passing some of the fraudulent checks on security video.
During a search of Shineflew’s apartment, which he shared with other members of the conspiracy, investigators seized computers, printers, blank identification cards, stolen checks, lists with personal identifying information for third parties, and empty envelopes for commercial checks stolen from the mail, issued in the total amount of $458,498.00. The conspiracy resulted in $29,453.15 of actual loss.
Shineflew was the last remaining defendant in this case to be sentenced. Angus Johnston, 36, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, Mail Theft, and Aggravated Identity Theft, and was sentenced to 60 months; Michael Slater, 48, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, and was sentenced to 21 months; Anthony Wright, 36, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, and was sentenced to 7 months; Jordan Yates, 26, of Spokane, Washington, pleaded guilty to Conspiracy to Commit Bank Fraud, and was sentenced to 99 days; Jared Pilon, 34, of Spokane, Washington, Tabitha Shineflew, 32, of Spokane, Washington, Britney McDaniel, 30, of Spokane, Washington, Andrianna McCrea, 30, of Spokane, Washington, and Tyler Bordelon, 30, of Mead, Washington, each pleaded guilty to Conspiracy to Commit Bank Fraud and were sentenced to time served. All these defendants were sentenced to a five-year term of court supervision following release from custody and ordered to pay restitution.
Acting United States Attorney Harrington said, “The sentence imposed sends a strong message. Crimes such as bank fraud, mail theft, and identity theft should not be taken lightly. The United States Attorney’s Office for the Eastern District of Washington and our federal, state, local and Tribal law enforcement partners will continue to work closely and bring to justice those individuals who may engage in such conduct. I commend the work of the United States Postal Inspector’s Office and Spokane County Sheriff’s Office who investigated this case.”
This case was investigated by the United States Postal Inspector’s Office, in cooperation with the Spokane County Sheriff’s Office. The case was prosecuted by Ann T. Wick, Assistant United States Attorney for the Eastern District of Washington.
Safety Harbor Man Who Distributed Fentanyl Causing Death to One Individual and Serious Injury to Another Sentenced to 20 Years in Federal PrisonRead the Press Release
Tampa, FL – U.S. District Judge William Jung has sentenced David Burkes (52, Safety Harbor) to 20 years’ imprisonment for distributing narcotics, resulting in death to one individual and seriously bodily injury to another.
Burkes had pleaded guilty on April 21, 2021.
According to the plea agreement, beginning on August 12, 2019, Burkes distributed fentanyl and acetyl fentanyl to two individuals (J.B. and B.G.). Both individuals snorted the substance, lost control of the vehicle they had been driving, and overdosed in a parking lot. Medical personnel responded to the scene and successfully revived B.G. The second individual (J.B.) died.
Between August 13 and 15, 2019, after the fatal overdose, Burkes continued to distribute narcotics, this time to undercover officers. The substances he distributed to the officers tested positive for fentanyl.
On August 25, 2019, Burkes was arrested by deputies from the Pinellas County Sheriff’s Office. The following day, agents executed a federal search warrant on Burke’s residence and car. The agents recovered methamphetamines, fentanyl, cocaine, and items used for packaging and distributing narcotics.
The Medical Examiner’s Office for Pasco and Pinellas Counties determined that the deceased individual’s cause of death was fentanyl toxicity.
This case was investigated by the Drug Enforcement Administration and the Pinellas County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Diego F. Novaes.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
Providence Man Charged in Schemes to Defraud RI Businesses, MA FoundationRead the Press Release
PROVIDENCE, R.I. – A Providence man has been charged in federal court based on allegations that he orchestrated schemes to defraud Rhode Island businesses and a Massachusetts foundation of tens of thousands of dollars by depositing fraudulent checks drawn on the entities and quickly withdrawing the funds before it was determined by the banks that the checks were bogus, announced Acting United States Attorney Richard B. Myrus.
The government has alleged that Rachon Waite, 31, known to some as “RJ,” 31, made social media solicitations seeking persons willing to provide him with their debit cards and personal identifying number (PIN), and/or access to their bank accounts so that he could deposit fraudulent checks as part of the scheme, promising to pay them for the use of this account information.
Waite made an initial appearance in federal court this afternoon, charged by way of a federal criminal complaint with wire fraud, bank fraud, access device (ATM) fraud, and aggravated identity theft.
According to court documents, in early March 2021, a Bristol-based engineering company reported to the Bristol Police Department that a fraudulent check drawn on their business account in the amount of $23,754 had been cashed. An investigation determined that the check had been made out to and was deposited into a Coventry resident’s bank account. The bank account holder told investigators that he responded to a solicitation posted on social media by a person he came to know as “RJ,” and provided “RJ” with his debit card and PIN. The account holder agreed to let “RJ” use his bank account to deposit checks and withdraw funds, in return receiving a portion of the amount of money withdrawn. On March 19, 2021, the account holder saw that his account was overdrawn by approximately $24,000. The next day the account was closed by the bank and the remaining funds were kept by the bank, including funds from the account holder’s paycheck. The account holder was unable to contact “RJ” again and his debit card was never returned.
According to court documents, at in early March, a Wrentham, Massachusetts-based foundation reported to Wrentham Police that two fraudulent checks totaling nearly $15,000 were drawn on the foundation’s bank account and cashed. Two individuals whose accounts were identified by law enforcement as allegedly used to assist in the fraud described a similar scheme to that which defrauded the Bristol engineering company. They too communicated with “RJ” and provided him with their debit cards and PINs, in return for the promise of a portion of funds deposited into and withdrawn from their accounts. A description of the person with whom the account holders met with matched the description of the person who allegedly facilitated the fraud against the Bristol company.
A Coventry woman who allegedly provided “RJ” with her debit card and PIN was allegedly paid $2,000 for the use of her banking information when “RJ” withdrew $7,000 from the woman’s account. He allegedly deposited a fraudulent foundation check for $7,417,14. A Johnston man who allegedly provided his ATM card and PIN to “RJ” never heard from “RJ” again. It is alleged that Waite deposited a fraudulent foundation check for $7,117.40 into the Johnston man’s account and withdrew most of the funds.
Rachon Waite was released to the custody of OpenDoors RI following his initial appearance in U.S. District Court. A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant United States Attorney Denise M. Barton.
The matter was investigated by the FBI, Bristol Police Department, and Wrentham Police Department.
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Previously convicted felon pleads guilty to federal firearms chargeRead the Press Release
ALBUQUERQUE, N.M. – Eduardo Zazueta, 25, pleaded guilty on July 30 in federal court to being a felon in possession of a firearm and ammunition. Zazueta will remain in custody pending sentencing, which has not been scheduled.
Zazueta was indicted on Nov. 17, 2020. According to the indictment and other court records, on Sept. 30, 2020, in Bernalillo County, New Mexico, Zazueta sold a 9mm handgun to an undercover agent. Zazueta had been convicted previously of possession of a controlled substance and trafficking in controlled substances. As a previously convicted felon, Zazueta cannot legally possess firearms or ammunition.
Zazueta faces up to 10 years in prison.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated this case. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Previously Deported Alien Sentenced to 12 Months’ Imprisonment for Illegal Re-EntryRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on July 30, 2021, Pablo Ramirez-Hernandez, age 35, was sentenced to 12 months and one day of imprisonment followed by one-year of supervised release, by United States District Court Judge Christopher C. Conner for illegal re-entry of a previously deported alien.
According to Acting United States Attorney Bruce D. Brandler, Ramirez-Hernandez previously pleaded guilty to having illegally reentered the United States sometime after his last removal in August 2009 after eluding examination or inspection by immigration officers.
This matter was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Joanne M. Sanderson prosecuted the case.
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Port Arthur Felon Guilty of Federal Firearms ViolationRead the Press Release
BEAUMONT, Texas – A Port Arthur man has pleaded guilty to a federal firearms violation in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Jesus Antonio Ceja, 30, pleaded guilty to being a felon in possession of a firearm today before U.S. District Judge Marcia A. Crone.
“I am grateful for the good work of the Port Arthur Police Department and the ATF in bringing this matter to a successful conclusion,” said Acting U.S. Attorney Nicholas J. Ganjei. “Violent felons cannot be allowed to possess firearms, and today’s guilty plea represents another step forward in making the streets of Port Arthur safer.”
According to court documents, on Feb. 9, 2020, law enforcement officers observed a vehicle stopped at an intersection in 5200 block of 15th Street in Port Arthur. As the officer approached the vehicle, he saw the driver, later identified as Ceja, with his head down. The officer drove towards the vehicle to see if the driver was in need of assistance, at which time Ceja looked at the officer and accelerated away at a high rate of speed. As the officer turned around to follow the vehicle, he saw that Ceja had crashed his vehicle into a pole at the nearby intersection of Lewis and Lakeview streets. Ceja repeatedly reached under the seat and ignored commands to show his hands and exit the vehicle. After the officer opened the passenger door, Ceja exited the vehicle and crawled on top of it, refusing to come down. Once other officers arrived, Ceja came down off the car and told officers there was methamphetamine and a firearm in the car. Further investigation revealed Ceja was a convicted felon having previously been found guilty of felony escape in Jefferson County in 2008. As a convicted felon, Ceja is prohibited from owning or possessing firearms or ammunition.
Ceja was indicted by a federal grand jury on April 27, 2021. He faces up to 10 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
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 being investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Philadelphia Man Charged with Forcible Sex Trafficking of Multiple Victims Including a MinorRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kevin Smith, 27, of Philadelphia, PA, was charged by Indictment with sex trafficking by force and sex trafficking a minor. The charges against the defendant stem from his operation of a sex trafficking ring in Philadelphia and the surrounding region—including Bucks and Delaware counties.
The Indictment alleges that for about seven days at the end of September 2019, Smith knowingly recruited, enticed, harbored, transported, maintained a minor for the purposes of forcing that minor to engage in commercial sex acts in Philadelphia. It also alleges that Smith operated a sex trafficking enterprise at various times over a period of two years from July 2015 to July 2017, during which he used physical threats to force three different young adult victims to have sex for money.
“The crimes Smith is accused of committing are some of the most devastating to victims that our office prosecutes,” said Acting U.S. Attorney Williams. “Allegedly, this defendant forced four young people, one a minor child, to sell their bodies for his financial gain. We will continue to work collectively to investigate these destructive crimes against the most vulnerable victims.”
“Using physical threats to control another human being, to force them into sexual exploitation, is unconscionable,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Kevin Smith allegedly did just that to three young women — and a child. The FBI will never stop working to find and help trafficked victims, to protect them from further abuse and keep their traffickers from hurting anyone else.”
If convicted, the defendant faces a maximum possible sentence of life in prison.
The case was investigated by the Federal Bureau of Investigation, with assistance from the Delaware County District Attorney’s Office, the Bensalem Police Department, the Media Borough Police Department, the Tinicum Township Police Department and the Philadelphia Police Department. The case is being prosecuted by Assistant United States Attorneys David Metcalf and Brittany Jones.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pasadena Man Sentenced to 25 Years in Federal Prison for Shooting and Killing Victim During a Carjacking in South BaltimoreRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Collin Davis, age 34, of Pasadena, Maryland, to 25 years in federal prison, followed by five years of supervised release, for the federal charge of carjacking resulting in death, related to Davis’ carjacking and murder in Baltimore of an individual who he knew and had attempted to carjack.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
“Collin Davis will spend 25 years in federal prison because he brutally murdered another human being with a firearm in the process of trying to carjack him,” said Acting U.S. Attorney Jonathan Lenzner. “This is the kind of senseless violence that is plaguing our communities. This sentence demonstrates we will always hold murderers like Davis accountable.”
According to his guilty plea, on September 15, 2018, the victim drove to Curtis Bay, Maryland to pick up Davis. After Davis entered the victim’s vehicle, Davis and the victim traveled to Severn, Maryland, where the victim lived. Approximately one hour later, the two drove back to Curtis Bay. At some point during the drive, the victim’s vehicle was stopped, and Davis took control of the victim’s vehicle by force. Davis handcuffed the victim by tying a shirt around the victim’s hands behind the victim’s back. Davis’s DNA was left behind on the car’s steering wheel and inside the knot of the shirt used to tie the victim’s hands.
As detailed in the plea agreement, while Davis drove the victim’s car back to Curtis Bay, the victim attempted to break free from the makeshift handcuffs. The vehicle was stopped near the 5100 block of Curtis Avenue and Davis shot the victim five times with lethal intent. The victim died as a result of the gunshot wounds. Davis admitted that the victim died as a result of his carjacking of the victim’s car.
A witness observed the victim’s body being dragged from the vehicle onto the street and called law enforcement. Police officers responding to the call discovered the victim’s body in the street.
After abandoning the victim’s body, Davis parked the victim’s vehicle in an alley almost directly behind an apartment where Davis had lived only weeks before the murder. Davis then fled the Curtis Bay area. The following day, law enforcement discovered the victim’s vehicle, which contained bullet holes from the murder the night before.
Davis was arrested in November 2018.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the FBI, and the Baltimore Police Department for their work in the investigation and thanked the Office of the State’s Attorney for Baltimore City for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Patricia McLane and Lindsey McCulley, who prosecuted the case.
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Palm Beach man found guilty of receiving child pornography and transporting minor for sexRead the Press Release
Miami, Florida – Following a bench trial in West Palm Beach last week, United States District Judge Donald Middlebrooks found a Palm Beach county man guilty of receiving child pornography and transporting a minor with intent to engage in criminal sexual activity.
At trial, Assistant U.S. Attorneys Elena Smukler and Dayron Silverio proved that 39-year-old Mauricio Gonzalez was involved in an unlawful sexual relationship with a 17-year-old Bahamian girl who was being sex trafficked. According to the evidence they presented at trial, the victim was in the United States in 2020. During that time, Gonzalez had sex with the girl on several occasions. The two then began an unlawful sexual and “romantic” relationship, which continued after the victim left the United States. While the victim was in the Bahamas, Gonzalez requested sexual images from her, asked her to participate in live sexual video streams, and otherwise primed their relationship so as to convince the girl to produce sexualized digital content. Ultimately, the victim recorded a sexually explicit video of herself and sent it to Gonzalez through a messenger application. Gonzalez flew the victim from the Bahamas to the United States for sex.
Judge Middlebrooks will sentence Gonzalez on October 4, at 10:30 a.m., at the West Palm Beach federal courthouse. He faces a maximum of life imprisonment, with a 10 year minimum mandatory for transportation of a minor with intent to engage in criminal sexual activity and a 5 year minimum mandatory for receipt of child pornography.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, and Anthony Salisbury, Special Agent in Charge, Homeland Security Investigations (HSI), Miami Field Office, made the announcement.
HSI Miami and Palm Beach County Sheriff’s Office investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov, under case no. 21-cr-80087.
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Orangevale Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Daniel Wayne Benner, 35, pleaded guilty today to distribution of child pornography, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, between July 3 and 5, 2019, Benner distributed child pornography, using the Kik Messenger app. Benner used a smartphone, the internet, and Kik messenger to distribute to a person located in Arkansas a video and still images depicting minors engaging in sexually explicit conduct.. At the time of his arrest, Benner’s publicly accessible Facebook profile included a picture of a “My Little Pony” costume with a caption reading, “Rainbow Dash is looking to come to your birthday party, and she brings candy and music … contact me for quotes / She will travel anywhere in Sacramento County.” Benner stated that he and two friends were going to start a birthday party business but were unable to secure any customers.
This case is the product of an investigation by the FBI and the Internet Crimes Against Children Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Christina McCall is prosecuting the case.
Benner is scheduled to be sentenced by U.S. District Judge Kimberly J. Mueller on Oct. 25, 2021. Benner faces a mandatory minimum sentence of five years and a maximum statutory penalty of 20 years in prison, a $250,000 fine, and up to a lifetime of supervised release. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
North Georgia Health Clinic and its CEO agree to pay $130,000.00 to settle False Claims Act allegations that they issued medically unnecessary opioid prescriptionsRead the Press Release
ATLANTA – North Georgia Healthcare Center, Inc. (“NGHC”), a Ringgold, Georgia, based nonprofit corporation and healthcare provider, as well as its CEO, Delaine Hunter, have agreed to pay $130,000.00 dollars to settle allegations that they violated the False Claims Act by causing the submission – between January 1, 2012 and September 10, 2018 – of medically unnecessary claims for Schedule II controlled substances to the United States and State of Georgia. Specifically, the Complaint alleges that Dr. Gary Smith, a former NGHC physician, improperly prescribed opioids without appropriate medical review and judgment of medical necessity.
“Medical professionals are trusted to prescribe controlled substances in compliance with the law and in a manner that protects the health and safety of their patients,” said Acting U.S. Attorney Kurt R. Erskine. “We will continue to vigorously pursue those who breach that trust using every tool at our disposal.”
“Healthcare fraud is not a victimless crime, with fraudsters often preying on beneficiaries across the country. Especially insidious is the fraud committed by heath care practitioners who are trusted to prescribe only medically necessary, quality services to patients,” said Special Agent in Charge Derrick L. Jackson of the Department of Health and Human Services Office of Inspector General. “Working closely with our law enforcement partners, our agency will continue to protect the public by holding those responsible for such schemes responsible for their actions.”
“We are fighting the opioid epidemic on many fronts, including holding those accountable who improperly prescribe without appropriate medical review and judgment,” said Georgia Attorney General Chris Carr. “These types of allegations will receive our full attention because of the potential harm to Georgians and the improper use of taxpayer dollars.”
“The opioid addiction crisis in this country affects everyone to include the military and their families,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “This settlement is another step forward in striking at the heart of physician assisted addiction and holding those medical professionals accountable for unethical service.”
To be reimbursable under Government insurance programs such as Medicare, Medicaid and Tricare, drugs prescribed by a physician must be (1) rendered pursuant to the prescriber’s medical judgment, and (2) reasonable and medically necessary. Additionally, under Georgia law, only physicians – and not mid-level practitioners such as physician assistants – can write prescriptions for Schedule II drugs, which includes, but is not limited to, opioids such as oxycodone and hydrocodone. Where a physician assistant interacts with a patient and concludes that the patient requires a Schedule II drug, the doctor that supervises the physician assistant must concur that the pertinent Schedule II drug is medically necessity and must sign the associated prescription.
The Government alleges that physician assistants – and not Dr. Smith –saw most of the patients at NGHC. Dr. Smith only visited NGHC one afternoon per week, and rarely saw patients or reviewed their charts. The Government further alleges that Dr. Smith routinely signed stacks of prescriptions (which included, but were not limited to, prescriptions for Schedule II drugs) for patients that he had neither seen nor otherwise evaluated. Finally, the Government alleges that NGHC’s CEO failed to promptly address this behavior once alerted to it by several NGHC employees.
Dr. Smith, in a separate settlement agreement with the United States Department of Health and Human Services – Office of Inspector General, has agreed to a voluntary 10 year exclusion from participation in all federal healthcare programs. As result, both Dr. Smith and any provider using Dr. Smith’s services will be unable to obtain reimbursement for care provided to any patients insured under a government healthcare program, such as Medicare, Medicaid and Tricare.
The settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by a former NGHC employee under the qui tam or whistleblower provisions of the False Claims Act, which permit private citizens to bring lawsuits on behalf of the United States and obtain a portion of the government’s recovery. The case is captioned United States and Georgia ex rel. Krysta Mangrum v. LabCorp, et al. (Civil Action No. 1-18-cv-312). The claims resolved by this settlement are allegations only and there has been no determination of liability.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the Georgia Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services – Office of Inspector General and the Defense Criminal Investigative Service of the U.S. Department of Defense – Office of Inspector General.
Assistant U.S. Attorney Paris A. Wynn and Assistant Attorney General Sara Vann handled this matter.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is https://www.justice.gov/usao-ndga/.
North Carolina Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Winston-Salem, North Carolina, tax preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return and to filing a false personal income tax return.
According to court documents, from 2014 to 2019, Nicholas Laws managed the Winston-Salem branch of Tax Mind, a tax-return preparation business. During that period, Laws prepared fraudulent returns for clients that reported false wages and business incomes to increase the clients’ refunds. Laws charged additional fees to prepare false returns with fees occasionally exceeding $1,000. Laws also filed a false personal income tax return for 2014 and did not file tax returns reporting his income for 2015 through 2019, despite having an obligation to do so. Laws intended to cause a tax loss to the IRS of $2,934,891.
Laws is scheduled to be sentenced on Oct. 20, 2021. Laws faces a statutory maximum sentence of three years in prison for assisting in the preparation of a false tax return and three years in prison for filing a false personal income tax return, as well as a period of supervised release, restitution and monetary penalties. Laws agreed in his plea agreement to pay restitution to the IRS in the amount of $184,072. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina are prosecuting the case.
North Carolina Tax Preparer Pleads Guilty to Preparing False ReturnsRead the Press Release
A Winston-Salem, North Carolina, tax preparer pleaded guilty today to aiding and assisting in the preparation of a false tax return and to filing a false personal income tax return.
According to court documents, from 2014 to 2019, Nicholas Laws managed the Winston-Salem branch of Tax Mind, a tax-return preparation business. During that period, Laws prepared fraudulent returns for clients that reported false wages and business incomes to increase the clients’ refunds. Laws charged additional fees to prepare false returns with fees occasionally exceeding $1,000. Laws also filed a false personal income tax return for 2014 and did not file tax returns reporting his income for 2015 through 2019, despite having an obligation to do so. Laws intended to cause a tax loss to the IRS of $2,934,891.
Laws is scheduled to be sentenced on Oct. 20, 2021. Laws faces a statutory maximum sentence of three years in prison for assisting in the preparation of a false tax return and three years in prison for filing a false personal income tax return, as well as a period of supervised release, restitution and monetary penalties. Laws agreed in his plea agreement to pay restitution to the IRS in the amount of $184,072. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Brian Flanagan and Kevin Schneider of the Tax Division and Assistant U.S. Attorney Cliff Barrett of the Middle District of North Carolina are prosecuting the case.
New Orleans Man Pleads Guilty to Violating the Federal Controlled Substances Act and the Federal Gun Control ActRead the Press Release
NEW ORLEANS, LOUISIANA – RONALD JACOBS, age 38, of New Orleans, Louisiana, pleaded guilty today before the Honorable Jay C. Zainey to an indictment charging him with violating the Federal Controlled Substances Act and the Federal Gun Control Act, announced U.S. Attorney Duane A. Evans.
According to the court records, JACOBS was arrested after concerned citizens reported his vehicle stopped in a travel lane on Williams Boulevard in Kenner. Kenner Police responded and found JACOBS asleep in the vehicle with what appeared to be drugs in his lap. When the officers made contact with JACOBS, he attempted to flee by ramming his vehicle into the officers’ vehicles and was reaching for an area in his truck where the officers later found a pistol. In addition to the loaded gun, officers also located 14 grams of crack, a digital scale, a razor blade, and about $1,100. JACOBS admitted that he possessed the crack for distribution.
Sentencing is scheduled for November 2, 2021. On the possession of crack with the intent to distribute charge, JACOBS faces a term of imprisonment of up to twenty years, a fine of up to $1,000,000, and at least three years of supervised release. On the related gun charge, JACOBS faces a term of imprisonment of at least five years up to life in prison, which must run consecutively to any term of imprisonment on the drug charge, a fine of up to $250,000, and up to five years of supervised release. There is also a mandatory special assessment of $100 per count.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Kenner Police Department and Special Agents of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF). The prosecution is being handled by Assistant United States Attorney David Haller.
New Jersey Man Sentenced to Prison after Pleading Guilty to Posting Restricted Information to Social MediaRead the Press Release
PITTSBURGH - A resident of Paramus, New Jersey, pleaded guilty and was sentenced in federal court in relation to a charge of making restricted information publicly available, Acting United States Attorney Stephen R. Kaufman announced today.
William Kaetz, age 56, pleaded guilty to one count before United States District Judge J. Nicholas Ranjan.
In connection with the guilty plea, the court was advised that on October 18, 2020, Kaetz publicly posted the home address of a United States District Court Judge to the social media sites Facebook and Twitter, and did so with the intent to threaten or intimidate, or with the intent and knowledge that others would use the information to threaten or intimidate, said judge.
Following the guilty plea hearing, Judge Ranjan sentenced Kaetz to a term of imprisonment of 16 months, with three years’ supervised release and a fine of $5000.
Assistant United States Attorneys Tonya Sulia Goodman and Cindy K. Chung prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation and the United States Marshals Service for the investigation leading to the successful prosecution of Kaetz.
Navajo man sentenced to two years in prison for assault with a dangerous weapon in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Darrin Begay, 29, and an enrolled member of the Navajo Nation, was sentenced by a federal judge on July 27 to two years and three months in prison for assault with a dangerous weapon in Indian Country. Begay pleaded guilty on Dec. 16, 2020.
According to his plea agreement and other court records, Begay had been living in an inoperable car on the property of his girlfriend’s family in Shiprock, New Mexico, on the Navajo Nation. Begay was not allowed in his girlfriend’s family’s home. The night of August 22, 2020, after arguing via text messages with his girlfriend, identified in court records as Jane Doe, Begay went to her bedroom window and threatened to break the window if she did not let him in. She relented and let him in through the window, but they argued because she did not want him there.
Jane Doe eventually fell asleep, but upon waking in the morning found that her necklace and other belongings were missing. An argument ensued and Begay pulled a pocketknife from his pocket and slashed her right leg. Jane Doe left the house, but Begay followed her, knocked her down and kicked her multiple times. Begay again threatened her with a pocketknife. Navajo Police arrived and arrested Begay at the scene. Jane Doe was transported to the Northern Navajo Medical Center in Shiprock where she was treated for her injuries.
Upon his release from prison, Begay will be subject to two years of supervised release.
The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Navajo Department of Criminal Investigations. Assistant U.S. Attorney Alexander F. Flores prosecuted the case.