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Thursday 10 June 2021
Honduran Man Sentenced to 21 Months in Prison for Unlawful Reentry by an Alien Removed After Conviction of a FelonyRead the Press Release
Gulfport, Miss. – A Honduran national was sentenced yesterday to 21 months in federal prison for unlawful reentry by an alien deported or removed after conviction of a felony, announced Acting U.S. Attorney Darren J. LaMarca and Jason E. Schneider, Acting Chief Patrol Agent of the Border Patrol’s New Orleans Sector.
Williams Perez-Aguirre, 30, was sentenced by U.S. District Judge Taylor B. McNeel in Gulfport. Perez-Aguirre also was ordered to serve three years of supervised release following completion of his prison sentence. He may also face Department of Homeland Security removal proceedings. Perez-Aguirre was convicted after pleading guilty on March 8, 2021.
According to court documents, on January 4, 2021, the U.S. Border Patrol stopped a vehicle driven by Perez-Aguirre, who did not have a driver’s license. Record checks revealed he was an illegal alien with a removal history and he was placed under arrest. Both Perez-Aguirre and one of his passengers, Encaracion Aguirre-Lopez were taken to the Gulfport Border Patrol Station for processing.
Records showed that in 2016, Perez-Aguirre was removed by Immigration and Customs Enforcement from Texas to Honduras. He was later arrested in May 2017 in Arlington, Texas for deadly conduct discharging a firearm at an individual. He was convicted of a Texas state felony and sentenced to two years in prison. He was physically removed again to Honduras on May 17, 2018.
Passenger Encaracion Aguirre-Lopez also pleaded guilty and was convicted of unlawful return of an alien after removal. On May 14, 2021, Aguirre-Lopez was sentenced to “time served” (4 months and 11 days) followed by 1 year of supervised release. Aguirre-Lopez also is subject to removal from the United States
Acting U.S. Attorney for the Southern District of Mississippi, Darren J. LaMarca, praised the investigative work of the U.S. Border Patrol and the U.S. Department of Homeland Security. Assistant United States Attorney Stan Harris prosecuted the case.
Healthcare Practitioners to Pay over $1 Million to Resolve False Claims Act Liability Arising from Billing of P-Stim DevicesRead the Press Release
SAN ANTONIO – Three separate healthcare providers within the Western District of Texas have agreed to pay a collective $1,056,340.50 to resolve liability under the False Claims Act for the alleged improper billing of electro-acupuncture devices.
These providers – Ledger Foot & Ankle, P.A of Harker Heights, Superior Physical Medicine of Round Rock and Precision Spine and Pain Management of San Antonio – billed Medicare and/or TRICARE for the implantation of neuro-stimulators, a surgical procedure that usually requires an operating room and is reimbursable by federal healthcare programs. In these matters, the procedure billed actually involved a non-surgical, non-invasive application of the devices that is non-reimbursable by federal healthcare programs.
Between February 2018 and January 2020, Dr. Harold Ledger, DPM, of Harker Heights, through his practice, Ledger Foot & Ankle, P.A., billed Medicare for the application of ANSiStim devices to beneficiaries as though they were implantable neurostimulators. Certain Medicare beneficiaries were identified as also having TRICARE benefits that were further billed to the program as the secondary insurer. Dr. Ledger will pay a total of $535,000.00 to resolve his liability under the False Claims Act.
Between December 2016 and September 2018, SPR Medical Group (formerly known as Atlas Medical Group), d/b/a Superior Physical Medicine, (“Superior”) billed Medicare for the application of ANSiStim and STIVAX devices as though they were implantable neurostimulators. Following a Medicare audit of two neurostimulation procedures, Superior initiated a full repayment of the Medicare funds received for those two claims and conducted an internal audit of all claims. Superior self-disclosed claims improperly billed and has agreed to pay a total of $338,150.50 to resolve any potential liability under the False Claims Act.
Between March 1 and April 2019, Dr. Yurii Borshch, through his practice Precision Spine and Pain Management, billed Medicare for the application of ANSiStim devices to beneficiaries as though they were implantable neurostimulators. During the pendency of the investigation and settlement negotiations, Dr. Borshch initiated refund payments to Medicare for the identified claims and paid a total of $183,190.00 to resolve potential liability under the False Claims Act.
The settled civil claims are allegations only and do not constitute admissions of liability by any of the identified practitioners.
These matters were investigated by the U.S. Department of Health and Human Services Office of the Inspector General. All three settlements were negotiated on behalf of the government by Assistant U.S. Attorney Erin M. Van De Walle.
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Hartford, Connecticut Man Charged with Federal Drug Felony After FBI Search in Randolph, VermontRead the Press Release
The Office of the United States Attorney for the District of Vermont stated today that Shiquan Mangual, 27, of Hartford, Connecticut was charged by Criminal Complaint in United States District Court for the District of Vermont with possession with intent to distribute controlled substances.
According to the Criminal Complaint, Mangual was arrested by the FBI on June 9, 2021, in connection with a search of a residence in Randolph, Vermont. During the search, agents found several firearms, including a loaded handgun, more than 500 grams of suspected cocaine, more than 100 grams of suspected cocaine base, more than 15 grams of suspected heroin, and more than $7,500 in United States currency.
At Mangual’s initial appearance today before United States Magistrate Judge Kevin J. Doyle, Mangual was ordered detained pending trial. Mangual’s next court appearance has not yet been scheduled. A criminal complaint is only an accusation, and Mangual is presumed innocent unless and until proven guilty.
This matter is being investigated by the FBI in conjunction with the Vermont State Police, the Montpelier Police Department, the Northfield Police Department, the Bureau of Alcohol Tobacco Firearms and Explosives, as well as the Drug Enforcement Administration in Connecticut.
The Assistant United States Attorney handling the prosecution is Michael Drescher. Mangual is represented by Assistant Federal Defender Steven Barth.
Hartford Man Sentenced to 4 Years in Prison for Selling Oxycodone out of His New Britain Grocery StoreRead the Press Release
Leonard C. Boyle, Acting United States Attorney for the District of Connecticut, announced that RAUL CABRERA-VASQUEZ, also known as “Edgar,” 50, of Hartford, was sentenced today by U.S. District Judge Janet C. Hall to 48 months of imprisonment, followed by three years of supervised release, for distributing oxycodone from his New Britain grocery store.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the sentencing occurred via videoconference.
According to court documents and statements made in court, in the summer of 2019, the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department.began investigating individuals who were selling oxycodone pills from Elzier Grocery, located at 1485 Corbin Avenue in New Britain. Cabrera-Vasquez owned and helped operate Elzier Grocery. Between July and December 2019, investigators made multiple controlled purchases of oxycodone pills from Cabrera-Perez and others at the store.
On February 26, 2020, court authorized searches of the Elzier Grocery and a nearby residence revealed more than 1000 oxycodone pills, drug packaging materials, drug ledgers, and approximately $10,000 in cash.
Cabrera-Vasquez was arrested on March 1, 2020. On February 18, 2021, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, oxycodone.
Cabrera-Vasquez, who is released on a $50,000 bond, is required to report to prison on July 7.
This investigation has been conducted by the Drug Enforcement Administration New Haven Tactical Diversion Squad and the New Britain Police Department. The case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Gunman and leader of city and county-wide armed robbery conspiracy pleads guiltyRead the Press Release
ST. LOUIS – Lloyd Wings, 41, of St. Louis, pleaded guilty to seven counts of armed robbery, two counts of brandishing a firearm in furtherance of a crime of armed robbery and one count of conspiracy to commit armed robbery. Wings appeared today before United States District Court Judge Ronnie L. White and admitted that he participated in a conspiracy to commit armed robberies and committed a series of armed robberies.
Beginning in July 2018, Wings and five co-defendants conspired to commit a series of armed robberies in the City of St. Louis. Wings and his co-conspirators would choose a location to rob and drive to the location in separate cars. Once there, the conspirators would enter the business armed with firearms and demand the employees provide the contents of the safe and/or cash registers. The conspirators would take U.S. currency from the businesses by the threatened use of deadly force. Wings and his co-conspirators would also forcibly steal the personal property of customers or employees. They would then flee in their respective vehicles, meet elsewhere, and divide the proceeds of the robberies.
On August 31,2018 Wings and two co-conspirators robbed a Domino's pizza restaurant on Lindell Boulevard. Wings and one of the co-conspirators entered the business through an unlocked employee entrance. Both tried to disguise their identities. They demanded an employee remove money from the cash registers. As he demanded the money, Wings brandished a handgun. A co-conspirator then demanded an employee open the safe. After the safe was opened, the co-conspirator took all of the U.S. currency and fled with Wings and another co-conspirator who drove the getaway car.
On September 3, 2018 Wings and a co-conspirator robbed a Subway sandwich restaurant on South Kingshighway. Wings went into business, produced a purple handgun, jumped over the counter, and demanded employees open the safe. The employees indicated they did not know the safe’s location, so Wings demanded they give him the money from the registers. Wings, while jumping the counter, knocked over an elderly customer causing her physical injury. After getting money from the registers, Wings jumped back over the counter, knocking over an employee, and left. The co-conspirator, who remained in the car during the robbery, drove the getaway car. He knew Wings was armed with a gun and intended to rob the Subway. The co-conspirator drove himself and Wings away from the scene.
On September 9, 2018 Wings and three co-conspirators robbed a Metro PCS store on DeBaliviere Avenue. Wings went into the store, produced a purple handgun, and pointed it at a Metro PCS employee and customers. He demanded money and produced a purple Crown Royal bag. An employee complied and took U.S. currency from the cash register to put into the Crown Royal bag. Wings left the store. One co-conspirator stood outside the store. A co-conspirator drove a getaway car. A third co-conspirator drove a second getaway vehicle.
On September 9, 2018, approximately an hour after robbing the Metro PCS on DeBaliviviere, Wings along with three co-conspirators robbed the Metro PCS located on Page Ave in St. Louis County. After dropping off Wings outside of the business, three co-conspirators waited in the getaway vehicles. Wings entered the Metro PCS store and pointed a handgun at a store employee. While brandishing the firearm, Wings ordered the employee to open the cash register. The employee complied and took U.S. currency from the register. Wings then fled the store with the money, jumped inside one of the getaway vehicles and all co-conspirators fled.
On September 7, 2018 Wings along with one co-conspirator robbed the Family Dollar in the 5900 block of Delmar Boulevard. Wings, armed with a mini-Draco (AK-47 styled assault weapon), entered the store and demanded access to the safe. Wings held multiple customers and employees at gunpoint for almost ten minutes while waiting for the safe to open. He demanded an employee empty the cash drawers and then the safe. He then tried to rob the employee. He fled on foot after the robbery.
On September 10, 2018 Wings, along with his accomplices robbed the Family Dollar located in the 5300 block of Virginia Avenue. Armed with a semiautomatic handgun, Wings entered the store and brandished the gun. He demanded money from the cash register and also robbed an employee.
Judge White has set sentencing for September 14, 2021 at 11:00 a.m.
The Federal Bureau of Investigation, St. Louis Metropolitan Police Department, Pagedale Police Department, North County Cooperative and St. Louis County Police Department investigated this case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Glen Burnie Man Pleads Guilty to False Personation of A U.S. MarshalRead the Press Release
Baltimore, Maryland – Renul Forbes a/k/a “Michael Renul,”, age 32, of Glen Burnie, Maryland, pleaded guilty today to false personation of a U.S. Marshal, an officer of the United States.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division.
According to his guilty plea, from January 2019 to September 26, 2020, Forbes falsely posed as a “Supervisory Deputy” of the United States Marshals Service and possessed a fraudulent seal of the United States Marshals Service.
As detailed in his plea agreement, on September 26, 2020, an Anne Arundel County police officer witnessed Forbes arrive at a Glen Burnie retail store in a vehicle equipped with police lights. Forbes was carrying a firearm on his hip.
Shortly after Forbes exited his vehicle, Forbes approached the AAPD officer and asked whether he worked in the Northern District of the Anne Arundel County Police Department and if Forbes knew a particular police officer, who Forbes identified by name.
While Forbes entered the store, the AAPD officer determined that the rear tag affixed to Forbes’s vehicle belonged to a different vehicle, the windows were tinted, and the vehicle lacked a front tag. The AAPD officer subsequently asked Forbes to identify himself. At that time, Forbes provided a false name and refused to present an official driver’s license as Forbes deemed the officer to be “unqualified” to request his credentials. Forbes not only possessed a fraudulent U.S. Marshals badge pinned on his shoulder, but also possessed a magazine and handcuff carrier.
Forbes attempted to avoid identification by claiming to be a U.S. Marshal working out of Greenbelt and provided the name and contact information of a purported U.S. Marshals Service supervisor. The individual Forbes claimed to be a supervisor was not a supervisor of the U.S. Marshals Service.
Officers later contacted a legitimate U.S. Marshals Service Supervisory Deputy who confirmed Forbes was, in fact, not employed with the U.S. Marshals in any capacity and confirmed the badge that Forbes possessed was fraudulent.
A search of Forbes’s person revealed that he carried three loaded magazines, with several rounds each, and a black Glock-style airsoft gun. Additionally, Forbes’s vehicle was equipped with three USB powered red and blue police lights that were controlled by a control panel on the driver’s seat visor. Within a brown backpack located in the vehicle, authorities discovered loose ammunition and a handgun that was not registered to Forbes. Furthermore, a search of the vehicle’s VIN number was determined to be associated with a New Jersey tag.
Officers subsequently contacted the registered owner of the handgun and discovered the owner met with Forbes on several occasions. The registered handgun owner believed Forbes was a legitimate U.S. Marshal as he openly carried a firearm and a U.S. Marshals badge.
The plea agreement further states that Forbes fraudulently posed as a U.S. Marshal to another Anne Arundel County police officer within a text message and in person in the effort to obtain information about police responses at his apartment complex and general Anne Arundel Police Department business. In order to learn law enforcement rules, regulations, policy and discipline procedures, Forbes falsely claimed to be a U.S. Marshal to a Metropolitan police officer.
Forbes faces a maximum of three years in prison and followed by one year of supervised release for impersonating an officer of the United States. U.S. District Judge Catherine C. Blake has not scheduled a sentencing hearing at this time.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, U.S. Marshals Service, and the Anne Arundel Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary W. Setzer who is prosecuting the case.
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Georgia Man Arrested for Hoax Bomb Threat Concerning Plane on Tarmac at Lehigh Valley International AirportRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Donald Thompson, 43, of Scottdale, Georgia, was arrested and charged by Complaint and Warrant on charges of maliciously conveying false information about an explosive, and false information and hoaxes. If convicted, the defendant faces a maximum possible sentence of fifteen years in prison.
The Complaint alleges that on May 27, 2021, defendant Donald Thompson called into the Lehigh Valley International Airport, Operations Division, located in Allentown, PA, stated that he had a disagreement with his daughter S.T., and claimed she was taking marijuana to an individual in St. Croix aboard a Delta flight. After a short discussion, the Operations Division transferred him to the Delta counter.
The Complaint further alleges that the defendant proceeded to ask a Delta supervisory representative for information about S.T. and her travel. When the Delta representative declined to share the requested information, the defendant allegedly explained that his daughter was trying to smuggle drugs to St. Croix, asked about Delta’s procedures, and asked if they could get his daughter off the airplane. The Delta representative responded that Delta did have a protocol but that it could not be shared with the caller. As alleged, the caller became irate, identified himself as S.T.’s father Donald Thompson, asked what the Delta representative would do if “I told you there was a bomb on the plane,” and hung up the phone.
The Delta representative immediately called law enforcement and corporate security. The airplane was on the tarmac at the time, and the passengers and crew were swiftly deplaned. A search team and bomb dog were deployed to the airplane, and S.T. was screened and questioned by a Lehigh Northampton Airport Authority detective. No drugs or bombs were located on the airplane or on S.T.’s person or luggage.
Donald Thompson was arrested on June 9, 2021 in Georgia and had his initial appearance that same day. A detention hearing has been scheduled for June 14, 2021 in the Northern District of Georgia, after which the defendant will come to the Eastern District of Pennsylvania to face the charges.
“As a result of this defendant's alleged conduct, law enforcement resources were diverted to respond to what they believed was an imminent, terrifying threat to everyone on the plane and in the airport,” said Acting U.S. Attorney Williams. “As this case exemplifies, bomb threats – even hoax bomb threats such as the one alleged to have been made by this defendant – are no laughing matter; they are federal crimes with serious consequences.”
“The FBI and our partners take all threats of violence seriously. With lives potentially at risk, we have to,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Hoax threats consume law enforcement resources needed for actual emergencies and cause serious disruptions for the locations and people targeted. Anyone who pulls something like this should expect the FBI to come knocking. It’s a crime and you will be held accountable.”
The case was investigated by Allentown Resident Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Mary A. Futcher.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Gates County Felon Sentenced for Possessing Firearm Following Drug InvestigationRead the Press Release
RALEIGH, N.C. – Anthony Eugene Kee, of Hobbsville, Gates County, was sentenced today to 18 months in prison for possession of a firearm by a felon. On March 4, 2021, Hayes pled guilty to the charge.
According to court documents and statements made during hearings, the Gates County Sheriff’s Office began investigating the defendant Anthony Kee in February 2020 following citizen complaints about drug activity at his Hobbsville residence. At the time, Kee already had two previous state convictions for drug felonies. After a controlled buy of crack cocaine and surveillance of apparent drug activity, law enforcement obtained a search warrant, which they executed the morning of July 2, 2020.
Kee was home and told officers that he had felt them coming. He said he was not concerned about the drugs but was more worried about having a gun. He then directed officers to a blue Toyota in the front yard sitting on jacks, where they recovered a black Hi-Point 9mm pistol on the floor of the trunk. In the glove compartment and center console, officers also found several rounds of shotgun and 9mm ammunition. In the house and a shed on the property, officers recovered a variety of drug packaging materials and a small amount of marijuana.
Kee was taken to the station, where he waived his rights and agreed to an interview. He admitted to selling cocaine beginning in 2011, although none had been at his house at the time of the search. He said he bought a gun years ago on the streets for protection.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Terrence W. Boyle. The Gates County Sheriff’s Office and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) conducted the investigation. Assistant U.S. Attorney Jake D. Pugh prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 2:20-cr-00047-BO-1.
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Former employee admits to stealing over $400,000Read the Press Release
McALLEN, Texas – The former controlling manager of Lone Star Shredding’s parent company has pleaded guilty to defrauding his employer, announced Acting U.S. Attorney Jennifer B. Lowery.
Lone Star Shredding is a local subsidiary in Mercedes. Its parent company is located in Tennessee.
Brian Janish, 44, admitted to using an unauthorized access device and engaging in other fraudulent activity to steal $403,293.19 between July 2013 and December 2017.
As part of his responsibilities, Janish was in charge of establishing bank accounts and approving expenses for the company. When the company switched banks, Janish failed to close the company’s previous bank account or destroy the corporate credit card issued in his name.
In fact, he charged personal expenses on the company credit card, including travel and online goods. Janish also wrote checks from the company account and withdrew cash for personal use. He attempted to cover his fraud by emailing fake bank statements to the company.
The Morristown, Tennessee, resident also increased his payroll without authorization.
U.S. District Judge Randy Crane accepted the plea and set sentencing for Aug. 19. At that time, Janish faces up to 10 years in prison and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The FBI conducted the investigation. Assistant U.S. Attorneys Rodolfo Ramirez and Stephanie Bauman are prosecuting the case.
Former Supplement Company Owner Pleads Guilty to Unlawful Distribution of Steroid-like DrugsRead the Press Release
ABINGDON, Va. – A New Jersey chiropractor pleaded guilty today to a felony charge relating to the distribution of steroid-like drugs in purported dietary supplements.
According to court documents, Nicholas Andrew Puccio, 41, currently of Columbus, New Jersey, pleaded guilty to introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration (FDA) and consumers. The United States alleged that from 2016 to 2020, Puccio marketed drugs as “dietary supplements” to the bodybuilding and fitness community. The supplements included a product labeled as containing ostarine, a type of synthetic steroid known as a Selective Androgen Receptor Modulator (SARM). The FDA has long warned against the use of SARMs, including stating in a 2017 warning letter to another firm that SARMs had been linked to life-threatening reactions such as liver toxicity, and have the potential to increase the risk of heart attack and stroke.
“Undermining the FDA drug approval process puts consumers at risk, especially when those drugs contain ingredients that can cause harm,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with the FDA to prosecute those who put profit before the public health.”
“When Mr. Puccio marketed unapproved drugs as dietary supplements, he sidestepped important safeguards to protect the public, and must be held accountable,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Our office will continue to closely partner with FDA to ensure safety and effectiveness in our drug supply and prosecute those who flout these rules.”
“Marketing misbranded dietary supplements that contain unapproved drugs is illegal and is a threat to public health,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA's Office of Criminal Investigations. “We remain committed to bringing to justice companies and individuals who attempt to subvert the regulatory functions of the FDA by distributing unapproved, and potentially dangerous, drugs.”
Puccio pleaded guilty before Judge James P. Jones in U.S. District Court for the Western District of Virginia. He is scheduled to be sentenced on Sept. 23, and faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA’s Office of Criminal Investigations is investigating the case.
Assistant U.S. Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Civil Division’s Consumer Protection Branch are prosecuting the case.
Former Supplement Company Owner Pleads Guilty to Unlawful Distribution of Steroid-like DrugsRead the Press Release
A New Jersey chiropractor pleaded guilty today to a felony charge relating to the distribution of steroid-like drugs in purported dietary supplements.
According to court documents, Nicholas Andrew Puccio, 41, currently of Columbus, New Jersey, pleaded guilty to introducing an unapproved new drug into interstate commerce with the intent to defraud and mislead the U.S. Food and Drug Administration (FDA) and consumers. The United States alleged that from 2016 to 2020, Puccio marketed drugs as “dietary supplements” to the bodybuilding and fitness community. The supplements included a product labeled as containing ostarine, a type of synthetic steroid known as a Selective Androgen Receptor Modulator (SARM). The FDA has long warned against the use of SARMs, including stating in a 2017 warning letter to another firm that SARMs had been linked to life-threatening reactions such as liver toxicity, and have the potential to increase the risk of heart attack and stroke.
“Undermining the FDA drug approval process puts consumers at risk, especially when those drugs contain ingredients that can cause harm,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will continue to work closely with the FDA to prosecute those who put profit before the public health.”
“When Mr. Puccio marketed unapproved drugs as dietary supplements, he sidestepped important safeguards to protect the public, and must be held accountable,” said Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia. “Our office will continue to closely partner with FDA to ensure safety and effectiveness in our drug supply and prosecute those who flout these rules.”
“Marketing misbranded dietary supplements that contain unapproved drugs is illegal and is a threat to public health,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA's Office of Criminal Investigations. “We remain committed to bringing to justice companies and individuals who attempt to subvert the regulatory functions of the FDA by distributing unapproved, and potentially dangerous, drugs.”
Puccio pleaded guilty before Judge James P. Jones in U.S. District Court for the Western District of Virginia. He is scheduled to be sentenced on Sept. 23, and faces a maximum penalty of three years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA’s Office of Criminal Investigations is investigating the case.
Assistant U.S. Attorney Randy Ramseyer of the U.S. Attorney’s Office for the Western District of Virginia and Trial Attorney Speare Hodges of the Civil Division’s Consumer Protection Branch are prosecuting the case.
Former Schertz Business Manager Sentenced to Federal Prison for Stealing over $470,000 from EmployerRead the Press Release
SAN ANTONIO – A federal judge sentenced 48-year-old Deanna Bates Wehde of San Antonio today to 49 months in federal prison for stealing over $470,000 from the company she managed.
In addition to the prison term, Chief U.S. District Court Judge Orlando Garcia ordered Wehde to pay $471,006.30 in restitution and be placed on supervised release for a period of three years after completing her prison term.
“Today’s prison sentence reflects the seriousness of the defendant’s breach of her employer’s trust and she is now being held accountable for her crime,” said U.S. Attorney Ashley C. Hoff. “The U.S. Attorney’s Office, working with our law enforcement partners, will continue to identify, investigate and prosecute those who take advantage of their employment positions to steal from and do harm to businesses.”
On July 30, 2020, Wehde pleaded guilty to one count of wire fraud and one count of aggravated identity theft. By pleading guilty, Wehde admitted that while employed by Stone Care of Texas between May 2016 and September 2018, she defrauded the company by using company credit cards issued in the names of former employees for business-related travel to make unauthorized purchases and cash withdrawals for her own personal use and benefit.
“Small businesses play an important part in maintaining and stimulating economic growth in our community,” said Christopher Combs, Special Agent in Charge, FBI, San Antonio Division. “FBI San Antonio is committed to protecting businesses from theft and fraud schemes which threaten their stability and the health of our local economies.”
The FBI investigated this case. Assistant U.S. Attorney William R. Harris prosecuted this case on behalf of the government.
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Former Montgomery County Children’s Swim School Employee Sentenced to Seven Years for Trafficking in Child PornographyRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Danielle Sebenick, 29, of Glenside, PA, was sentenced to seven years in prison, and ten years of supervised release by United States District Court Judge Petrese B. Tucker for her distribution and possession of child pornography.
In May 2019, the defendant pleaded guilty to charges stemming from an investigation into her trafficking in videos of child pornography on the internet during November 2018, while she was employed at Kids First Swim School in Jenkintown, PA.
Authorities identified Sebenick as the administrator of an online site that was dedicated to the sexual abuse and exploitation of children. She used the online site to communicate with other child sex offenders and to traffic in child pornography. At the time that she committed these crimes, Sebenick was six months’ pregnant with her first child; during her online communications with other child sex offenders, Sebenick discussed her plans to sexually abuse her baby as soon as she gave birth. Fortunately, Sebenick was identified by law enforcement, arrested, and incarcerated. She gave birth in prison and the child was placed in the custody of family members.
“Not only did this defendant commit the heinous crime of possessing and distributing child pornography, but she did so while employed at a business that caters to children and while threatening to sexually abuse her own baby,” said Acting U.S. Attorney Williams. “The thought of a mother bringing a child into the world with the plan to abuse him or her, a helpless infant, is almost unfathomable. She will now spend years behind bars where she no longer poses a threat to our community.”
“Today’s sentence reflects the seriousness of the defendant’s crimes and the irrevocable damage she caused,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Homeland Security Investigations will continue to work collectively with our law enforcement partners to investigate and prosecute those who commit the heinous crime of possessing and distributing child pornography.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
The case was investigated by Homeland Security Investigations, the Abington Police Department, and the Montgomery County Criminal Investigation Division, and is being prosecuted by Assistant United States Attorneys Kelly Harrell and Michelle Rotella.
Former Member of New Bedford Latin Kings Chapter Sentenced for Racketeering Conspiracy and Drug Trafficking ChargesRead the Press Release
BOSTON – A former member of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering charges.
Kevin Guadalupe, a/k/a “King K-Milly,” 19, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to time served (14 days) and three years of supervised release. On March 3, 2021, Guadalupe pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Guadalupe participated in an unarmed robbery committed in November 2019 by members of the Latin Kings in New Bedford. During the robbery, which was captured on video, the victim was chased down in the middle of a busy street, thrown to the ground and kicked and beaten by six members of the Latin Kings. At the end of the beating, an item believed to be a wallet or cell phone was taken from the victim’s pants pocket.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Guadalupe is the 31st defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Member of Massachusetts Latin Kings State Leadership Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – The former Secretary of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) was sentenced today on racketeering charges.
Francisco Lopez, a/k/a “King Cisco,” 43, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to nine years in prison and three years of supervised release. In February 2020, Lopez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
During the course of the investigation, Lopez attended numerous meetings of the Latin Kings State Leadership, and hosted meetings at his residence in Chelsea. During these meetings, crimes of violence and the business of the gang were discussed and decided.
Additionally, Lopez sold over 200 grams of cocaine base to a cooperating witness. During the search of the Lopez’s Chelsea residence in December 2019, 50 grams of fentanyl, 50 grams of heroin and a loaded Glock firearm were recovered.
The Latin Kings are a violent gang comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the criminal organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and is motivated by a desire to further its influence and to protect its turf from rival gangs.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Lopez is the 30th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Liverpool Postal Carrier Pleads Guilty to Stealing Gift Cards from MailRead the Press Release
SYRACUSE, NEW YORK – Thomas J. Joslin, age 58, of North Syracuse, New York, pled guilty today in federal court in Syracuse to three felony counts of stealing gift cards from the mail while employed as a carrier with the United States Postal Service, announced Acting United States Attorney Antoinette T. Bacon and Special Agent in Charge Matthew Modafferi, United States Postal Service Office of Inspector General (USPSOIG), Northeast Area Field Office.
In pleading guilty, Joslin admitted that he stole multiple gift cards from mail entrusted to him in Onondaga County between March 2019 and June 2019, including a $160 prepaid Mastercard rebate card; a $300 Dick’s Sporting Goods gift card; and a $40 prepaid Visa card. The defendant admitted that he targeted pieces of mail he believed contained gift cards, and that he used the stolen gift cards to buy different gift cards in an attempt to distance himself from the thefts. Joslin is no longer employed by the U.S. Postal Service.
The charges to which Joslin pled guilty carry a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. The defendant will be sentenced on October 7, 2021, by Senior United States District Judge Frederick J. Scullin, Jr., who presides over the case.
This case is being investigated by USPSOIG, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
Former International UAW President Gary Jones Sentenced to Prison for Embezzling Union FundsRead the Press Release
Gary Jones, the former President of the international United Auto Workers union, was sentenced to 28 months in prison today for conspiring with other UAW officials to embezzle UAW funds and to defraud the United States announced Acting U.S. Attorney Saima S. Mohsin.
Joining in the announcement were Irene Lindow, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Waters, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, Kelly Lewis, Acting Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, and Thomas Murray, District Director, U.S. Department of Labor – Office of Labor-Management Standards.
Gary Jones, 64, of Corsicana, Texas, was sentenced to 28 months in prison, $550,000 in restitution to the UAW, $42,000 restitution to the IRS, forfeiture of $151,377, two years of supervised release, and a $10,000 fine by United States District Judge Paul Borman based on his conviction for conspiring with former UAW President Dennis Williams and other senior UAW officials to embezzle UAW dues money and to defraud the United States through tax evasion between 2010 and September 2019.
Between June 2018 and November 2019, Jones served as the President of the International Union, United Automobile, Aerospace, and Agricultural Workers of America (“UAW”). The UAW represents over 400,000 active members and over 580,000 retired members in more than 600 local unions across the United States. Prior to serving as UAW President, Jones was the Director of UAW Region 5 and a member of the UAW’s International Executive Board from October 2012 through June 2018. The UAW’s Region 5 is headquartered in Hazelwood, Missouri, and covers the tens of thousands of UAW members in Missouri and the sixteen states to the southwest, including California and Texas. Jones was the UAW President during the forty-day strike against the General Motors Company that took place in the fall of 2019.
Jones stands convicted of conspiring with at least six other high-level UAW officials in a multi-year conspiracy to embezzle money from the UAW for the personal benefit of Jones and other senior UAW officials. Jones and other UAW officials concealed personal expenditures in the cost of UAW Region 5 conferences held in Palm Springs, California, Coronado, California, and Lake of the Ozarks, Missouri. Between 2010 and 2018, Jones and other UAW officials submitted fraudulent expense forms seeking reimbursement from the UAW’s Detroit headquarters for expenditures supposedly incurred in connection with Region 5 leadership and training conferences. In truth, however, Jones and his co-conspirators used the conferences to conceal the hundreds of thousands of dollars in UAW funds spent on lavish entertainment and personal spending for the conspirators.
Jones admitted that he and other senior UAW officials used the UAW money to pay for personal expenses, including golf clubs, private villas, cigars, golfing apparel, green fees at golf courses, and high-end liquor and meals costing over $750,000 in UAW funds. For example, during the course of the conspiracy, Jones used UAW money to purchase over $60,000 in cigars and four sets of custom-made golf clubs for the use of high-level UAW officials.
Besides admitting to using the UAW conferences to conceal the fraudulent use of UAW money for personal expenses, Jones also pled guilty to assisting in a conspiracy to embezzle UAW funds from the UAW’s Midwest CAP. The UAW Midwest CAP is one of the UAW’s many Community Action Programs. Jones admitted to accepting over $60,000 in cash from co-conspirator Edward Robinson who cashed over $500,000 in fraudulent UAW Midwest CAP checks and embezzled money from the UAW Labor Employment Training Corporation.
Besides conspiring with other UAW officials to embezzle UAW funds, Jones pled guilty to conspiring with UAW officials to defraud the United States by impeding the Internal Revenue Service in the collection of taxes from Jones and other UAW officials. The conspirators also caused the UAW to file false tax returns with the IRS.
As part of the court’s sentence, Jones was ordered to forfeit $31,000 in cash, a custom-made set of Titleist golf clubs, and various golf clothing and equipment seized from Jones during an August 2019 search of his residence in Canton, Michigan. In addition, Jones has been ordered to pay $550,000 in restitution to the UAW and $42,000 in restitution to the Internal Revenue Service. Finally, the Court ordered Jones to forfeit $83,613 held in Jones’ “Flower Fund” account and $38,644 from Jones’ Members in Solidarity account. Co-defendant Edward Robinson was ordered to pay restitution of $300,000 to the UAW, and co-defendant Dennis Williams paid $132,000 in restitution to the UAW. It is expected that co-defendant Vance Pearson will owe $250,000 in restitution.
Because Jones provided substantial assistance in the investigation of other individuals and entities, the United States sought a lower prison sentence for him.
Jones is the sixteenth defendant convicted in connection with the ongoing criminal investigation into corruption within the UAW or relating to illegal payoffs to UAW officials by FCA executives. The following other individuals have already pleaded guilty to their participation in the scheme and have been sentenced: former FCA Vice President for Employee Relations Alphons Iacobelli (66 months in prison), former FCA Financial Analyst Jerome Durden (15 months in prison), former Director of FCA’s Employee Relations Department Michael Brown (12 months in prison), former senior UAW officials Virdell King (60 days in prison), Keith Mickens (12 months in prison), Nancy A. Johnson (12 months in prison), Monica Morgan, the widow of UAW Vice President General Holiefield (18 months in prison), former UAW Vice President Norwood Jewell (15 months in prison), former senior UAW official Michael Grimes (28 moths), former UAW Midwest CAP President Edward “Nick” Robinson (12 months in prison), former UAW Vice President Joseph Ashton (30 months), and former UAW President Dennis Williams (21 months). In addition, the following UAW official has pleaded guilty and is awaiting sentencing: former UAW Region 5 Director UAW Board member Vance Pearson. The company, FCA US LLC, now known as Stellantis, pleaded guilty in January 2021 to conspiring to violate the Taft-Hartley Act, and the company will be sentenced on June 21, 2021. Former senior UAW official Jeffrey “Paycheck” Pietrzyk passed away before being sentenced.
In December 2020, the United States filed a civil lawsuit against the UAW under the Anti-Fraud Injunction Act based on the criminal investigation of the UAW, FCA US LLC, and FCA’s executives. Subsequently, the United States and the UAW entered into a Consent Decree to settle the lawsuit that was approved by the U.S. District Court. The Court has appointed attorney Neil Barofsky to serve as the Independent Monitor of the UAW for the next six years. The Monitor is tasked with providing federal oversight of the UAW concerning fraud, corruption, and misconduct within the UAW. In addition, the Monitor will conduct and oversee a referendum of all UAW members to determine if the membership wants to adopt a direct election, also known as “one member, one vote,” method of electing the members of the UAW’s International Executive Board.
Acting U.S. Attorney Mohsin commended the outstanding work of the Internal Revenue Service – Criminal Investigations, the U.S. Department of Labor – Office of Labor-Management Standards and Office of Inspector General, and the Federal Bureau of Investigation in conducting a comprehensive criminal investigation into labor corruption activities involving a vital sector of the local and national economy.
“The fact that two former international UAW Presidents will be going to prison after being convicted of embezzling UAW dues money demonstrates that no one is above the law,” said Acting United States Attorney Saima S. Mohsin. “The working men and women of the UAW can feel that justice was done, and that their union is on the road to reform.”
“Instead of serving the interests of the hard-working men and women of the UAW, Jones conspired with senior UAW officials to embezzle more than $1 million in union funds. Jones spent the embezzled funds on extravagant meals, liquor, golf, and personal travel. We will continue to work with our law enforcement partners to protect the financial integrity of labor organizations," stated Irene Lindow, Special Agent-in-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.
“Unions can only be effective if members trust their leadership to work in the best interest of the entire union. Gary Jones and the fifteen leaders convicted over the course of this investigation were clearly unworthy of that trust,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “While this investigation is one step closer to its conclusion, the FBI and our federal partners will remain vigilant in our efforts to expose those who participate in this type of corrupt behavior and bring them to justice.”
“Gary Jones failed to act with integrity as President of the UAW, he stole from the UAW’s membership and attempted to negatively impact the integrity of the U.S. tax system. Today’s sentence holds Jones accountable for his actions,” said Kelly Lewis, Acting Special Agent in Charge, IRS Criminal Investigation, Detroit Field Office. “IRS-Criminal Investigation is dedicated to protecting the integrity of our tax system and working with our law enforcement partners to protect the financial integrity of corporations and labor organizations."
“With today’s sentencing, Gary Jones has solidified his legacy at the UAW as one who chose to abuse his position of trust to enrich himself and other high ranking UAW officials who together conspired to embezzle more than $1 million from the UAW instead of working towards improving the working conditions of his fellow UAW members,” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards. “While the vast majority of union officials do their work diligently and without incident, OLMS will continue to work with its law enforcement partners to hold accountable anyone that unlawfully exploits their union position to enrich themselves without regard to the best interests of union members.”
The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey, Steven Cares, and Adriana Dydell.
Five Individuals, Including Current and Former JetBlue Employees, Charged with Covid-19 Related FraudRead the Press Release
A criminal complaint was unsealed today in federal court in Brooklyn charging Orlando Sanay, Keimi Nunez and his twin brother Keily Nunez, Michael Pimentel Veloz and Fanny Plasencia with wire fraud in connection with false statements they allegedly made to obtain loans pursuant to the Economic Injury Disaster Loan program (“EIDL”). The defendants were arrested today and will make their initial appearances this afternoon before United States Magistrate Judge Roanne L. Mann.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, and Peter C. Fitzhugh, Special Agent-in-Charge, Homeland Security Investigations, New York (HSI), announced the arrests and charge.
“As alleged, the defendants brazenly lied and stole more than $1 million in taxpayer funds from a program designed to help small businesses and their employees who were struggling to stay afloat and make ends meet during the pandemic,” stated Acting United States Attorney Lesko. “Our Office will continue to ensure that criminals who divert pandemic-related relief to line their own pockets are held accountable for their greed.”
“It’s alleged that the five arrested today schemed to defraud the government by falsely obtaining over one million dollars in loans from the Economic Injury Disaster Loan program under the COVID Relief Act. This is a team of fraudsters who didn’t just skim from a government agency, but stole much needed relief from the hands of those who depended on it most,” stated HSI Special Agent-in-Charge Fitzhugh. “HSI New York worked closely with IRS--Criminal Investigations, the SBA’s Office of Inspector General and JetBlue Corporate Security to apprehend these individuals and ensure they face the consequences of their actions.”
The EIDL program provides qualifying small businesses with low-interest loans. The Coronavirus Aid, Relief and Economic Security (“CARES”) Act expanded EIDL to provide economic support to help offset the temporary loss of revenue experienced by businesses due to the COVID-19 pandemic.
As alleged in the complaint, between April 2020 and August 2020, the defendants applied for EIDL loans for eight separate entities. In those applications, the defendants falsely represented the number of employees associated with the entities and misstated the gross revenues for the entities for the 12 months prior to the COVID-19 pandemic. For example, Sanay submitted a loan application to the Small Business Association (“SBA”) in July 2020 claiming that he was the owner and chief executive officer of Sanay Venture Capital LLC (“SVC”). In the application, Sanay falsely claimed that SVC had 26 employees, gross revenues of $839,000 and cost of goods sold of $560,000 for the relevant period. Sanay and Keimy Nunez submitted the application from the IP address of their employer, JetBlue Airways, to the SBA’s online portal. The SBA approved SVC’s application and on August 4, 2020 wired $139,400 to Sanay’s personal bank account. In contrast to the claims made in the application, New York Department of Labor records showed that SVC has never reported having any employees. Internal Revenue Service records further reveal that SVC has never filed a tax return since its formation in 2014. There is no evidence to date that the EIDL funds provided to SVC were used for business purposes. Keily Nunez is no longer employed by JetBlue.
Based on these false representations, the Small Business Administration approved more than $1 million in loans that were deposited into the defendants’ bank accounts.
In addition to making false statements to obtain the loans, the defendants did not use the relief funding for ongoing business expenses as the EIDL program requires. Instead, they withdrew hundreds of thousands of dollars in cash from bank accounts that had received EIDL loan funds.
The charge in the complaint is an allegation, and the defendants are presumed innocent unless and until proven guilty. If convicted, the defendants each face up to 20 years’ imprisonment.
The case is being handled by the Office’s Business and Securities Fraud Section. Department of Justice Trial Attorney Patrick J. Campbell is in charge of the prosecution.
The Defendants:
ORLANDO SANAY
Age: 39
Elizabeth, New JerseyKEILY NUNEZ
Age: 41
Jamaica, New YorkKEIMI NUNEZ
Age: 41
Woodhaven, New YorkMICHAEL PIMENTEL VELOZ
Age: 40
Garfield, New JerseyFANNY PLASENCIA
Age: 20
Jamaica, New YorkE.D.N.Y. Docket No. 21-MJ-668
Five Arrested for Allegedly Laundering Nearly $1 Million from Business Email Compromise FraudRead the Press Release
SAN ANTONIO – A federal grand jury indictment unsealed today charges five individuals for laundering nearly $1 million derived from a Business Email Compromise (BEC) scheme. FBI agents and local authorities arrested the defendants yesterday without incident.
The indictment charges the defendants with one count of conspiracy to commit money laundering: 47-year-old Olufemi Nathaniel Itiowe, aka Baloi Maputo Oldemiro and John Koffi of Brooklyn, New York; 43-year-old Stacey Allison Ault, aka Tammy Botha and Cindy Theron of Brooklyn, New York; 38-year-old Enso Anderson of Long Branch, New Jersey; 33-year-old Edward Chance Johnson of Yukon, Oklahoma; and 52-year-old Bona Wong of Las Vegas, Nevada.
In a BEC scheme, scammers target businesses and individuals making wire transfer payments, especially those employees with access to company finances. The scammers trick the employees into wiring payments to bank accounts they believe belong to trusted partners but that are actually controlled by the fraudsters. Sometimes the scammers use computer intrusion techniques to alter legitimate payment request emails by changing the recipient bank accounts. Sometimes they send spoofed emails that appear to be from trusted partners.
The indictment alleges that the conspirators opened various bank accounts in the U.S. utilizing fraudulent identification documents. The indictment also alleges that the conspirators fraudulently procured funds using the BEC fraud, then worked quickly to withdraw or transfer the funds into various other accounts, which prevented the victims and banks from reversing the transactions. The indictment focuses on funds largely derived from BEC schemes perpetrated against victims in Montana and Texas from October 2018 to September 2019.
U.S. Attorney Ashley C. Hoff and Christopher Combs, Special Agent in Charge, FBI, San Antonio Division, made the announcement.
Conspiracy to commit money laundering calls for up to 20 years in federal prison upon conviction.
The FBI together with the IRS Criminal Investigation, U.S. Postal Inspection Service, New York Police Department, along with FBI New York, FBI Helena, Montana, FBI Oklahoma City and FBI Las Vegas conducted this investigation and made yesterday’s arrests. Assistant U.S. Attorneys Kelly Stephenson and William F. Lewis Jr. are prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendants are presumed innocent until proven guilty in a court of law.
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Fifteen Alleged Gang Members and Associates Charged with Drug Trafficking, Money Laundering and Counterfeiting OffensesRead the Press Release
BOSTON – Fifteen members and associates of a Lowell-based gang, One Family Clique (OFC), have been charged, and 14 were arrested today, for allegedly perpetrating large-scale and long-running drug trafficking and money laundering conspiracies. In the course of the investigation, agents seized or purchased approximately 2.32 kilograms of cocaine, 10.78 kilograms of methamphetamine, 41 grams of fentanyl, 30 grams of MDMA, 513 grams of heroin, $104,396 in cash and three firearms. One defendant remains a fugitive.
As alleged in court documents, in August 2018, law enforcement began investigating OFC in response to a dramatic spike in shootings and gang violence in Lowell. OFC is an alliance between several gangs in and around Lowell with ties to gangs in California and other states. Sarath Yut is the founder and leader of OFC and also a member of the subgroup, Crazy Mob Family gang. In 2018 and 2019, at least 12 incidents of gunfire in the Lowell area are alleged to be attributable to gang-motivated hostilities between OCF and its rivals.
Since at least 2019, Yut, and co-defendants allegedly used the U.S. Postal Service to receive shipments of illegal narcotics, and, in return, to ship cash proceeds to Yut’s sources of supply. It is alleged that Yut maintained stash houses in Lowell, which also served as venues for gang meetings and other events furthering the gang’s illegal activities. In addition, controlled purchases of drugs and a firearm were made from defendants Virak Prum, Peouveasnah Pin and Sambo Buth.
It is further alleged that, in August 2019, Pin and Buth dealt in counterfeit money, by providing “protection” to a cooperating witness, who purported to purchase $100,000 of counterfeit U.S. currency from an undercover agent. Buth and Pin transferred and delivered the counterfeit currency from Cambridge, Mass. to New Hampshire, where it was received by another undercover agent. In a May 2021 undercover operation, defendants Prum, Pin, Samoeun Kem and Richard Sam, allegedly provided “protection” to a shipment, purportedly of drug money from Europe, from black tar heroin sales. The defendants helped pack a shipment of money into a truck and escorted it from New York to New Hampshire.
“We allege that leaders and members of the One Family Clique trafficked drugs and firearms, contributing to the kind of violence we all know destroys communities,” said Acting United States Attorney Nathaniel R. Mendell. “The Lowell Police Department is committed to defending its community, so they joined with federal and state law enforcement partners to conduct an investigation that yielded targeted arrests of key people who we allege were promoting drug distribution and violence in Lowell. The residents of Lowell will enjoy a safer summer thanks to the work of investigators and our prosecutors.”
“Operation Street Roulette is another example of how the FBI and our law enforcement partners work together to dismantle large-scale criminal enterprises that endanger our communities. With today’s removal of illegal narcotics, firearms, and these 15 members and associates of One Family Clique from the streets, the citizens of Lowell are immediately safer,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “We believe this crew jeopardized public safety, and steadily poisoned the parts of Lowell they controlled, dealing large quantities of methamphetamine, cocaine, heroin, and fentanyl, while conspiring to launder their profits to hide what they were doing. We will not cede our cities to drug pushers who have absolutely no regard for the harm and violence they bring into our neighborhoods, and the FBI will stop at nothing to investigate, disrupt, and hold accountable those who try to fill the void left by today’s arrests.”
“In August of 2018, when I was appointed as Superintendent, I vowed to stop the violence in our city,” said Lowell Police Superintendent Kelly Richardson. “Knowing that most of the violence stemmed from illegal drug activity, and knowing that many involved had gone underground, I made it a top priority. Without hesitation the FBI, along with our officers, began a deep and protracted investigation that has led to today's arrests. I would like to thank the FBI and our partner investigative agencies for their ingenuity, tenacity and dedication. This investigation highlights the importance of partnerships. It not only strengthened this partnership but also, most importantly, has made this city safer for its residents, students and visitors.”
“Drug trafficking organizations exist for one reason: to make money,” said Ramsey E. Covington, Acting Special Agent in Charge, IRS Criminal Investigation, Boston Field Office. “By targeting their finances with today’s investigative actions, IRS Criminal Investigation special agents are dismantling these dangerous groups that wreak havoc on our communities.”
“Today’s arrests reflect the ongoing efforts of the U.S. Postal Inspection Service and our law enforcement partners to disrupt Drug Trafficking Organizations in our communities,” said Joshua W. McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division. “Using the U.S. Mail to facilitate drug trafficking and the associated proceeds, will not be tolerated. We will continue to preserve the integrity of the U.S. Mail while also protecting our employees and the American public.”
“DEA is committed to investigating and dismantling violent poly drug trafficking organizations like these operating in the Greater Merrimack Valley area of Massachusetts,” said Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Division. “As we all know, drug trafficking in our communities, along with the gun and physical violence that often accompanies it, is a serious threat to our families and communities. This is unacceptable and will not be allowed to happen. DEA and its local, state and federal partners are dedicated to bringing to justice those that commit these crimes.”
The charge of conspiracy to distribute and to possess with intent to distribute heroin, cocaine base, fentanyl, MDMA, 500 grams or more of cocaine and 500 grams or more of methamphetamine provides for mandatory minimum sentences of five and 10 years and up to life in prison, at least three years and up to life of supervised release, a fine of up to $10 million and forfeiture of assets traceable to the trafficking offenses. The charge of money laundering conspiracy provides for a sentence of up to 20 years in prison, three years of supervised release, a fine of $500,000, or twice the amount of the property involved, whichever is greater, and forfeiture of assets traceable to the laundering offenses. The charge of dealing in counterfeit obligations and securities provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $ 250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, FBI Boston SAC Bonavolonta, Lowell Police Superintendent Richardson, IRS-CI Acting SAC Covington, USPIS Acting Inspector McCallister and DEA Boston SAC Boyle made the announcement. The investigation was led by the FBI’s Merrimack Valley Transnational Organized Crime Task Force and assistance was provided by the DEA-San Jose Task Force and Long Beach and Santa Clara (California) Police Departments. Assistant U.S. Attorneys Timothy Moran, Fred Wyshak, III, and Alexandra W. Amrhein of Mendell’s Criminal Division are prosecuting the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
APPENDIX
The following defendants were indicted by a federal grand jury:
- Sarath Yut, a/k/a “Black,” 34, of Lowell, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine base, fentanyl, MDMA, 500 grams or more of cocaine and 500 grams or more of methamphetamine;
- Virak Prum, a/k/a “Polo,” 34, of Lowell, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine base, fentanyl, methamphetamine, MDMA and 500 grams or more of cocaine;
- Peouveasnah Pin, a/k/a “Poe,” 31, of Lowell, was charged with money laundering conspiracy, dealing in counterfeit obligations or securities and conspiracy to distribute and to possess with intent to distribute heroin, cocaine base, fentanyl, methamphetamine, MDMA and 500 grams or more of cocaine;
- Sambo Buth, a/k/a “Chewy,” 31, of Lowell, was charged with money laundering conspiracy, dealing in counterfeit obligations or securities and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, methamphetamine, MDMA and 40 grams or more of fentanyl;
- Sambath Lay, a/k/a “G,” 34, of Lowell, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Mark Yin, a/k/a “Markass,” 30 of Lowell, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Christopher Phann, a/k/a “Kree,” 29, of Medford, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Darasy Chhim, a/k/a “Mystickal,” 35, of Lowell, was charged with conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Sriphan Keomany, a/k/a “C-Pon,” 43, of Lowell, was charged with conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Vongnaroth Proeung, a/k/a “Sunny,” 32 of Lowell, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Victory Thorn, 34, of Hudson, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Chomroeun Keo, a/k/a “Shrek,” 38, of Lowell, was charged with money laundering conspiracy and conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Gaius Monteyro, a/k/a “G-Made,” 36 of Lowell, was charged with conspiracy to distribute and to possess with intent to distribute heroin, cocaine, cocaine base, fentanyl, methamphetamine and MDMA;
- Samoeun Kem, a/k/a “Crazy One,” 35, of Lowell, was charged with money laundering conspiracy; and
- Richard Sam, a/k/a “Lil Stomper,” 30 of Lowell, was charged with money laundering conspiracy.
Federal Jury Convicts Tampa Man for Offenses Related to 2019 Shooting Near Ybor CityRead the Press Release
Tampa, Florida – A federal jury has found Sergio Antonio Hood (36, Tampa) guilty of possession of ammunition as a convicted felon, obstruction of justice, and attempted witness tampering. Hood faces a maximum penalty of 10 years in federal prison for the ammunition and obstruction offenses, and up to, 20 years’ imprisonment for attempted witness tampering. His sentencing hearing is scheduled for September 9, 2021, at which time the Court will decide issues that could increase Hood’s maximum possible sentence.
Hood had been indicted on December 10, 2020. He has multiple prior convictions, including two federal convictions for possession of firearms as a convicted felon, and three federal convictions for distribution of controlled substances. Hood is also a registered sex offender as the result of a prior conviction for lewd and lascivious battery on a minor.
According to evidence presented at trial, on October 27, 2019, one week after meeting and beginning a relationship with a woman, Hood showed up at her home near Ybor City. Finding her sitting in a parked car with a friend, Hood pushed his assault-style rifle through the open window, pointed it at the woman’s head, and fired. The bullet missed the woman and went through the other side of the car. Hood was arrested on state charges the following day.
At the time of the shooting, Hood was on federal supervised release. As a result, he was transferred to federal custody to address his violations of the conditions of his supervised release. While in jail, Hood created a false alibi and asked a witness to testify falsely at a federal court hearing regarding those violations.
This case was investigated by the Federal Bureau of Investigation and the Tampa Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Daniel George and Risha Asokan.
Federal Grand Jury Indicts Three Defendants on Multiple Drug and Gun ChargesRead 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 a federal grand jury has returned an indictment charging Esteven Matos, 29, of Buffalo, NY, along with Lydia Cortes, 50, and Felix Ayende, 45, both of Lackawanna, NY, with narcotics conspiracy, possessing with intent to distribute methamphetamine and fentanyl, and attempting to possess with intent to distribute cocaine. The charges carry a mandatory minimum penalty of 10 years in prison and a maximum of life. Defendant Esteven Matos is also charged with being a felon in possession of firearms and ammunition and possession of firearms in furtherance of drug trafficking crimes, which carry a mandatory minimum penalty of 15 years in prison to be served consecutive to any other sentence imposed.
Assistant U.S. Attorney Nicholas T. Cooper, who is handling the case, stated that according to the indictment and a previously filed complaint, on October 30, 2020, a federal search warrant was executed on a USPS Priority Mail Parcel addressed to “Antonio Cortes 1326 ELECTRIC Ave. LACKAWANNA, NY 14218.” The package contained one kilogram of cocaine. On November 3, 2020, the parcel, the contents of which were replaced with “sham,” was delivered to 1326 Electric Avenue and taken inside by defendant Ayende. A short time later, investigators conducting surveillance observed defendant Matos arrive at the residence. After Matos arrived, the parcel was opened. A search warrant was then executed at the residence. Investigators seized two loaded firearms, one of which was stolen, approximately 260 grams of fentanyl, 1,451 pills containing methamphetamine, the kilogram of “sham” cocaine, digital scales, sandwich baggies, five cell phones, and over $63,000 in US currency. All three defendants were arrested at that time.
The indictment is the result of an investigation by the U.S. Postal Inspection Service, under the direction of Acting Boston Division Inspector-in-Charge Joshua W. McCallister, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
The fact that a defendant has been charged with a crime is merely an accusation and the defendants are presumed innocent until and unless proven guilty.
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Federal Grand Jury Indicts Buffalo Man for His Role in Scheme to Defraud Medicaid Out of Thousands of DollarsRead 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 a federal grand jury has returned an indictment charging Saleh Mozeb, 65, of Buffalo, NY, with healthcare fraud. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorney Russell T. Ippolito, who is handling the case, stated that according to the indictment and a previously filed complaint, the defendant is a co-owner of Great Lake Transportation, which is a non-emergency medical transportation provider for Medicaid recipients. Great Lake, which has been operating since August 2016, has approximately 15 vehicles in its fleet and employs approximately 20 drivers, primarily providing rides to and from methadone clinics in the Buffalo area. Between September 2016, and December 2020, representatives from Great Lake submitted fraudulent claims for payment to Medicaid, seeking reimbursement for non-emergency transportation allegedly provided by Mozeb. The fraud involved the billing of Medicaid transportation trips that were not actually being performed, and individual rides that were billed as group rides, resulting in a greater reimbursement. The loss to Medicaid was more than $7,000.
The indictment is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the New York State Medicaid Fraud Control Unit, under the direction of New York State Attorney General Letitia James; the New York State Police, Special Investigation Unit, under the direction of Major James Hall; the New York State Department of Financial Services, under the direction of Superintendent Linda A. Lacewell; the New York State Office of Inspector General, under the direction of Inspector General Letizia Tagliafierro; and U.S. Border Patrol, under the direction of Acting Chief Patrol Agent Buffalo Sector Andrew K. Scharnweber.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Farm equipment CEO pleads guilty in multi-million dollar bank fraudRead the Press Release
VALDOSTA, Ga. – A Southwest Georgia businessman and owner of a tractor supply company has pleaded guilty to orchestrating a complicated fraud involving millions of dollars of loans by multiple creditors.
Rickey Carter, 60, of Nashville, Georgia, pleaded guilty to one count bank fraud on Tuesday, June 8, before U.S. District Judge Hugh Lawson. Carter faces a maximum 30 years in prison to be followed by at least five years of supervised release and a $1,000,000 fine. Sentencing is scheduled for September 15. There is no parole in the federal system.
“Rickey Carter’s decision to concoct various illegal schemes to keep his failing business afloat has damaged small businesses, community banks and defrauded the federal government. Carter’s criminal actions will ultimately land him in federal prison,” said Acting U.S. Attorney Peter D. Leary. “FBI and FDIC agents successfully unraveled Carter’s complicated fraud, preventing him from further harming small businesses and bringing him to justice.”
“Carter thought he was smart enough to swindle millions of dollars from these banks, but he wasn’t smart enough to avoid being caught and punished,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “He will be held accountable for the damage he has done, sending a strong message to anyone considering such fraud that it is a serious crime with serious consequences.”
“Rickey Carter’s guilty plea holds him responsible for his actions in fraudulently obtaining millions of dollars in loans from these banks,” said Special Agent in Charge, Kyle A. Myles of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC-OIG). “We remain committed to working with our law enforcement partners to bring to justice those who threaten the integrity of the banking system.”
Carter was the President and CEO of Nashville Tractor (NTI), a business that sold and leased agricultural and construction equipment, attachments and parts. In 2016, he obtained a United States Small Business Administration (SBA) loan with Farmers and Merchants Bank (FMB) in the principal amount of $5,000,000. At the same time, NTI obtained a new line of credit and signed a credit agreement with FMB in the amount of $625,000.
In 2010, Carter had entered into an ongoing Wholesale Financing and Security Agreement with CNH Industrial Capital America, LLC, (CNH) to finance NTI’s purchases of inventory for retail sale or lease. He also entered into a Retail Financing Agreement (RFA) with CNH under which CNH would purchase NTI’s interest in retail installment contracts for the purchase of agricultural and construction equipment with retail customers. The CNH agreement was a primary source of farm and construction equipment inventory for NTI.
Carter was able to continue operations of NTI and other loan arrangements were made with a number of other banks and financing entities. In each instance of a loan with the banks, Carter was required to provide true and complete financial information to the banks and was to provide continuing information for line of credit draws. However, during 2015, NTI began having financial and cash flow issues which made it difficult to make payments due on the loans and to make payroll. During that time, Carter began a practice of selling equipment which it held in trust but not paying the cash over to CNH and other creditors as required. Carter sold at least 88 pieces of equipment valued at more than $1.5 million subject to the security interest of CNH and sold other pieces of equipment securing financing from Kubota Credit Corporation, Ameris Bank, Bank of Alapaha and Diversified Financial Services. As part of the fraudulent scheme, Carter falsified NTI’s financial records in order to inflate the company’s net worth. As a part of falsifying records, on occasion, Carter directed NTI employees to generate payments checks on accounts payable but not send the checks, thereby reducing accounts payable but not deducting the checks from NTI’s accounts. In 2016, Carter falsified documents provided to FMB to secure the SBA loan and line of credit.
Carter also created fraudulent retail installment contracts for the sale or lease of numerous items of equipment with CNH using the names of real people whose information was available to Carter. Those fraudulent contracts generated more than $1.2 million in payments to NTI.
Carter continued through the SBA loan period to provide false and fraudulent information. In total, Carter admitted to being accountable for an intended fraud loss totaling more than $3.5 million but not more than $9.5 million. Carter is responsible for restitution for actual monetary losses caused by the fraud to FMB ($1,227,319.66), SBA ($1,500,000), Ameris Bank ($321,934.50), Bank of Alapaha ($150,000), CNH ($2,782,959.99), KCC ($185,993.32) and Diversified Financial Services ($228,399.92).
The case was investigated by the FBI and FDIC-OIG.
Assistant U.S. Attorney Robert McCullers is prosecuting the case.
Dominican National Pleads Guilty to Identity FraudRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in federal court in Worcester to identity fraud charges and illegal reentry after deportation.
Pedro Wilson Hernandez-Castillo, 49, pleaded guilty to false representation of a Social Security number, aggravated identity theft and unlawful reentry of a deported alien. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Oct. 1, 2021. Hernandez-Castillo was charged in a superseding indictment in February 2021.
On June 15, 2020, Hernandez-Castillo was stopped by a state trooper while driving and asked to provide his identification. The defendant provided the driver’s license and Social Security card of another individual. After determining that the defendant provided false information, the state trooper arrested Hernandez-Castillo.
Hernandez-Castillo illegally re-entered the United States after being deported in August 2018 following a conviction for possession with intent to distribute cocaine and heroin. Hernandez-Castillo was removed from the United States on four previous occasions: December 1998, June 2000, August 2011 and August 2018.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of unlawful reentry after deportation provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory two-year prison sentence that must run consecutively to any other sentence imposed, up to one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Todd Lyons, Field Office Director of Enforcement and Removal Operations, U.S. Immigration and Customs Enforcement, Boston; and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement. Valuable assistance was also provided by the Massachusetts State Police. Assistant U.S. Attorney Lucy Sun of Mendell’s Worcester Branch Office is prosecuting the case.
Dominican National Arrested for Passport FraudRead the Press Release
BOSTON – A Dominican national was arrested today for passport fraud.
Gustavo Vallejo, 47, a Dominican national living in Boston, was indicted in April 2021 on one count of making false statements in a United States passport application. Vallejo made his initial appearance today before U.S. Magistrate Judge Judith G. Dein.
According to the charging document, in July 2011, Vallejo allegedly submitted an application for a U.S. Passport using the personal identifying information of a United States citizen.
The charge of false statements in application and use of passport provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Secret Service, Boston Field Office made the announcement. Assistant U.S. Attorney Charles Dell’Anno of Mendell’s Major Crimes Unit is prosecuting the case.
Des Moines Man Sentenced to 18 Years in Prison for Child Pornography OffenseRead the Press Release
DES MOINES, IA – A Des Moines man was sentenced today to 18 years in prison for producing child pornography.
According to court documents, Michael Aaron Estrada, age 35, used Snapchat in 2019 and 2020 to communicate with a minor who lived in Massachusetts. Estrada knew the minor with whom he was communicating was 15 years old. On multiple dates between August 2019 and June 2020, Estrada knowingly solicited from that minor pictures and videos of the minor engaged in sexually explicit conduct. The minor created “selfie” photos and videos of herself as requested and sent them to Estrada via Snapchat. Separate from the conduct involving the 15-year old, Estrada also downloaded other pictures and videos of child pornography from the internet in 2019 and 2020 and distributed videos of child pornography via the internet in March 2020.
Acting U.S. Attorney Richard D. Westphal of the Southern District of Iowa made the announcement.
The FBI Child Exploitation Task Force and the Iowa Internet Crimes Against Children Task Force investigated the case. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa as part of the United States Department of Justice’s “Project Safe Childhood” initiative, which was started in 2006 as a nationwide 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.
Deer Lodge man sentenced to five years in prison for meth trafficking, firearms crimesRead the Press Release
MISSOULA – A Deer Lodge man who admitted to receiving packages of methamphetamine in the mail for re-distribution and to illegally possessing firearms was sentenced today to five years in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Shawn James Miller, 33, pleaded guilty on Feb. 18 to possession with intent to distribute controlled substances and to prohibited person in possession of a firearm.
U.S. District Judge Dana L. Christensen presided. Miller was detained.
The government alleged in court documents that law enforcement learned Miller was involved in drug trafficking in Montana from about 2017 until 2020. Miller admitted to investigators that he received and possessed packages of meth through the mail for re-distribution. The investigation determined that Miller sent a package containing $4,000 cash to California. The government further alleged Miller aided drug trafficking activities by wiring money to the Dominican Republic and Mexico, in addition to other locations, and that Miller was conservatively responsible for at least two pounds of meth, which is the equivalent of 7,248 doses, in Montana’s communities. Miller also pawned two firearms in Butte in March 2020 after having been convicted of multiple felonies in Montana. Co-defendants Humberto Horiol Medina Villarreal and Charles Joshua Petty have pleaded guilty in the case and are awaiting sentencing.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Montana Division of Criminal Investigation, Butte Police Department, Drug Enforcement Administration, Homeland Security Investigations and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Convicted Felon Sentenced for Possession of a Controlled Substance with Intent to Distribute and Possession of a Firearm in Connection with a Drug Trafficking OffenseRead the Press Release
Memphis, TN – Alfonzo Mitchell, 48, has been sentenced to 106 months in federal prison for possession of a controlled substance with the intent to distribute and possession of a firearm in connection with a drug trafficking offense. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on November 9, 2018, detectives from the Memphis Police Department executed a search warrant at a residence on Busby Avenue. On the top floor in the northwest bedroom, detectives recovered a baggie containing ammunition, a green box of ammunition, a black digital scale, a black magazine with ammunition, and a box of plastic bags. Also, in the same bedroom, detectives recovered more ammunition on top of a dresser, along with a green leafy substance in a plastic bag.
In the kitchen, detectives recovered 3 glass beakers commonly used in making crack cocaine, as well as 2 scales commonly used for weighing narcotics. Detectives also located a blue ‘La Choy’ jar container with a hidden compartment in the bottom which had a plastic bag containing several smaller plastic bags filled with a white powder consistent with cocaine.
In the downstairs living room, detectives recovered a brown bag filled with assorted ammunition, a box of plastic baggies, a plate with a razor and white powder residue, a black Samsung Galaxy Cellular Phone, a gray scale, a box of clear plastic baggies, and a clear jar with a green leafy substance inside. Detectives also recovered a Norinco 7.62X39 caliber rifle and four boxes of ammunition from a closet in the living room. The rifle was loaded with one live round in the chamber and several rounds in the magazine.
In the downstairs northwest bedroom, detectives recovered a hard-white substance in medicine bottles, a green leafy substance in approximately six mason jars, and a pill bottle containing 12 pills. The pills were identified as Oxycodone. Mitchell was unable to provide a prescription. In the same bedroom, detectives also recovered a Strum, Ruger and Co.9 mm caliber pistol. The serial number had been obliterated. Detectives recovered in the downstairs northwest bedroom, a "Planters Peanut" container filled with several plastic baggies filled with a green leafy substance. Alonzo Mitchell had $220 in cash on his person.
Alfonzo Mitchell gave a written statement claiming all narcotics and firearms in the house belonged to him. When asked why he possessed the firearms, the defendant stated, "You have to be ready to go to war if something jumps off." Mitchell also admitted that he sold the marijuana, powder cocaine, and crack cocaine from his residence on Busby Avenue.
On March 12, 2021, Mitchell pled guilty.
On June 9, 2021, U.S. District Judge Jon P. McCalla sentenced Mitchell to 106 months in federal prison to be followed by a three-year supervised release term. There is no parole in the federal system.
This case was investigated by the Memphis Police Department and Project Safe Neighborhoods (PSN) Task Force. PSN, the centerpiece of the Department of Justice’s violent crime reduction efforts is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders works 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.
Assistant U.S. Attorney Wendy K. Cornejo prosecuted this case on behalf of the government.
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Convicted Felon Is Sentenced to 11 Years on Drug and Gun ChargesRead the Press Release
CHARLOTTE, N.C. – Western District of North Carolina Acting U.S. Attorney William T. Stetzer and Montana Acting U.S. Attorney Leif M. Johnson announced today that Wilburn Jonathan Wilson, 26, of Hickory, N.C. was sentenced to 132 months in prison and five years of supervised release on federal drug and gun charges. U.S. District Judge Kenneth D. Bell presided over the hearing.
According to filed court documents and today’s sentencing hearing, in 2016, Wilson was convicted in North Carolina of possession of a stolen firearm. As a result of that conviction, Wilson is prohibited from possessing firearms or ammunition. According to court records, in March 2020, law enforcement learned that Wilson was selling firearms illegally in and around Catawba County. Court records show that, between March and July 2020, Wilson sold 26 illegal firearms, including rifles, shotguns and handguns, and hundreds of rounds of ammunition. During the same time period, Wilson also possessed and distributed methamphetamine in the Hickory area.
According to court records, in April 2020, law enforcement in Montana conducted a traffic stop of the vehicle Wilson was driving for excessive speeding. Law enforcement executed a search warrant and seized from Wilson’s vehicle narcotics, a semi-automatic rifle with a full 30 round magazine, and two 12-gauge shotgun shells. Subsequently, Wilson was charged by the U.S. Attorney’s Office for the District of Montana with federal firearm violations.
In November 2020, Wilson pleaded guilty to possession of a firearm by a felon and distribution and possession with intent to distribute methamphetamine in connection with his federal case in the Western District of North Carolina. In March 2021, Wilson pleaded guilty to possession of a firearm by a prohibited person, after the federal case pending against Wilson in Montana was transferred to the Western District of North Carolina.
Wilson is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the U.S. Attorney’s Office for the District of Montana for its continued coordination and assistance in this case, and commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the North Carolina State Bureau of Investigation, the Montana Highway Patrol, the Catawba County Sheriff’s Office, the Stillwater County Sheriff’s Office in Montana, the Hickory Police Department, and the Long View Police Department for their investigation of the case.
Assistant U.S. Attorney Christopher Hess of the U.S. Attorney’s Office in Charlotte was in charge of Wilson’s prosecution in North Carolina. Wilson’s case in Montana was handled by Assistant U.S. Attorney Brendan P. McCarthy of the U.S. Attorney’s Office in Billings.
Cocaine trafficking sends Bozeman man to prison for eight yearsRead the Press Release
MISSOULA – A Bozeman man who admitted to trafficking cocaine after an investigation determined he received packages of cocaine and large amounts of cash was sentenced today to eight years in prison and to seven years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Luis Alberto Rocha, 38, pleaded guilty on Feb. 12 to conspiracy to distribute cocaine.
U.S. District Judge Dana L. Christensen presided. Rocha was detained.
In court documents filed in the case, the government alleged that in September 2019, the Missouri River Drug Task Force in Bozeman received information that Rocha was involved in the distribution of drugs, was moving a lot of weight and had a source of supply in Texas. In April 2020, the U.S. Postal Inspection Service noticed packages scheduled for delivery to Rocha’s residence in Belgrade and to his former residence in Bozeman. The investigation determined that a total of 14 packages had been delivered from California, Texas and Arizona since July 2019.
In July 2020, the postal inspector searched two packages pursuant to search warrants and found $27,000 in currency in one package and $62,000 in currency in a second package. On Aug. 17, 2020, another package addressed to Rocha’s former Bozeman residence was searched pursuant to a warrant, and investigators found it contained about 6.5 pounds of cocaine. The delivery of the package was delayed because of the investigation, and agents learned that someone checked on the status of the package more than 300 times from an internet provider address that was registered to Rocha.
Assistant U.S. Attorney Timothy J. Racicot prosecuted the case, which was investigated by the FBI, Missouri River Drug Task Force and U.S. Postal Inspection Service.
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Chief Operating Officer of network security company charged with cyberattack on Gwinnett Medical CenterRead the Press Release
ATLANTA - Vikas Singla has been arraigned on charges arising out of a cyberattack conducted on Gwinnett Medical Center in 2018. Singla was indicted by a federal grand jury on June 8, 2021.
“Cyberattacks that target important infrastructure, like healthcare, pose a serious threat to public health and safety,” said Acting U.S. Attorney Kurt R. Erskine. “In this case, Singla allegedly compromised Gwinnett Medical Center’s operations in part for his own personal gain.”
“Criminal disruptions of hospital computer networks can have tragic consequences,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to holding accountable those who endanger the lives of patients by damaging computers that are essential in the operation of our healthcare system.”
“This cyberattack on a hospital not only could have had disastrous consequences, but patient’s personal information was also compromised,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “The FBI and our law enforcement partners are determined to hold accountable, those who allegedly put peoples health and safety at risk while driven by greed.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Vikas Singla, the Chief Operating Officer of a metro-Atlanta network security company that served the healthcare industry, allegedly conducted a cyberattack on Gwinnett Medical Center that involved:
- Disrupting phone service,
- Obtaining information from a digitizing device, and
- Disrupting network printer service.
The indictment further alleges that the cyberattack was conducted, in part, for financial gain.
Vikas Singla, 45, of Marietta, Georgia, made his initial appearance before U.S. Magistrate Judge Linda T. Walker. Singla was charged with 17 counts of intentional damage to a protected computer and one count of obtaining information from a protected computer. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Samir Kaushal and Trial Attorney Brian Mund of the U.S. Department of Justice, Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Chief Operating Officer of Network Security Company Charged with Cyberattack on Medical CenterRead the Press Release
A Georgia man was arraigned today on charges arising out of a cyberattack conducted on Gwinnett Medical Center in 2018.
According to the indictment, Vikas Singla, 45, of Marietta, the chief operating officer of a metro-Atlanta network security company that served the health care industry, allegedly conducted a cyberattack on Gwinnett Medical Center that involved (i) disrupting phone service, (ii) obtaining information from a digitizing device, and (iii) disrupting network printer service. The indictment further alleges that the cyberattack was conducted, in part, for financial gain.
“Criminal disruptions of hospital computer networks can have tragic consequences,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “The department is committed to holding accountable those who endanger the lives of patients by damaging computers that are essential in the operation of our health care system.”
“Cyberattacks that target important infrastructure, like health care, pose a serious threat to public health and safety,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “In this case, Singla allegedly compromised Gwinnett Medical Center’s operations in part for his own personal gain.”
“This cyberattack on a hospital not only could have had disastrous consequences, but patients' personal information was also compromised,” said Special Agent in Charge Chris Hacker of the FBI’s Atlanta Field Office. “The FBI and our law enforcement partners are determined to hold accountable, those who allegedly put people’s health and safety at risk while driven by greed.”
Singla was indicted by a federal grand jury Tuesday and made his initial court appearance today before U.S. Magistrate Judge Linda T. Walker of the U.S. District Court for the Northern District of Georgia. The defendant is charged with 17 counts of intentional damage to a protected computer, each of which carries a maximum penalty of 10 years’ imprisonment, and one count of obtaining information by computer from a protected computer, which carries a maximum penalty of five years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FBI is investigating this case.
Trial Attorney Brian Mund of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Samir Kaushal for the Northern District of Georgia and are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Carroll County Woman Pleads Guilty to Supplemental Security Income FraudRead the Press Release
ABINGDON, Va. – A Carroll County woman pleaded guilty today to Supplemental Security Income fraud after receiving disability benefits for more than two years for which she was not entitled.
According to court documents, Jessica Lynn Hawks, previously known as Jessica Lynn Wardwell, 37, received benefits from the Social Security Administration for which she was not entitled. Hawks admitted today that from February 7, 2014 to August 1, 2016, she received $21,858 in Supplemental Security Income disability benefits of behalf of a minor child that was no longer in her custody. Hawks agreed under penalty of perjury that she would use all disability benefits made to her as the representative payee for her minor child’s needs. She also agreed to notify the Social Security Administration of any change in her child’s living arrangements or care. However, when Hawks lost custody of her child in February 2014, she never informed the Social Security Administration that the minor child was no longer in her care and instead converted the disability benefits she received on the minor’s behalf for her own benefit.
Hawks pleaded guilty to knowingly and willfully converting Supplemental Security Income disability benefits received for the use and benefit of another, in violation of Title 42, United States Code, Section 1383a(a)(4). She is scheduled to be sentenced on September 28, 2021 and faces a period of incarceration of zero to six months, pursuant to a written plea agreement entered with the government.
Acting U.S. Attorney Daniel P. Bubar of the Western District of Virginia made the announcement.
The Office of the Inspector General – Social Security Administration is investigating the case.
Assistant U.S. Attorney Lena Busscher is prosecuting the case.
Canadian truck driver admits drug trafficking crime after U.S. Customs and Border Protection finds 211 pounds of cocaine in trailer load of bananasRead the Press Release
GREAT FALLS – A Canadian truck driver admitted to a drug trafficking crime today after U.S. Customs and Border Protection agents found 211 pounds of cocaine in a trailer load of load of bananas during an inspection as the driver was attempting to enter Canada, Acting U.S. Attorney Leif M. Johnson said.
Gurpal Singh Gill, 39, of Calgary, Alberta, Canada, pleaded guilty to possession with intent to distribute cocaine as charged in a superseding information. Gill faces a mandatory minimum five years to 40 years in prison, a $5 million fine and at least four years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Sept. 30. Gill was detained pending further proceedings.
In court documents filed in the case, the government alleged that on Jan. 30, CBP officers at the Sweetgrass Port of Entry, in Toole County, were targeting commercial drivers destined for Canada from the United States. At about 8 p.m., officers observed a freightliner semi-truck with Alberta license plates traveling north on Interstate 15 at the Sweetgrass Port of Entry. Officers identified Gill as the driver and sole occupant of the semi-truck. Upon initial inspection, officers learned Gill was transporting a load of fresh bananas from California to Calgary. However, a missing rear seal on the truck’s trailer led to a secondary inspection. Officers observed seven unmarked boxes sitting on top of bananas in the back of the trailer. The unmarked boxes were a different color and size from the boxes of bananas. Officers opened the boxes and found a white powdery substance that appeared to be cocaine. An analysis by the Drug Enforcement Administration determined the packages contained about 211 pounds of cocaine.
Assistant U.S. Attorney Jessica A. Betley is prosecuting the case, which was investigated by Homeland Security Investigations and U.S. Customs and Border Protection.
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California Prison Inmate and 3 Accomplices Indicted for $1.2M Unemployment Insurance Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — A 16-count indictment was unsealed Wednesday charging Kenneth Ray Hawkins, 47, of Tracy; Jacqueline Marie Marquez, 34, formerly of Las Vegas; Alyssa Marie Jones, 32, of Barstow; and Ebony Chanel Jones, 20, of Barstow, with conspiracy to commit mail fraud and mail fraud, Acting U.S. Attorney Phillip A. Talbert announced.
A federal grand jury returned the indictment on May 13. According to court documents, between June 2020 and January 2021, the four defendants conspired to execute and executed a scheme to defraud by filing fraudulent unemployment insurance claims with the California Employment Development Department (EDD), seeking Pandemic Unemployment Assistance benefits under the CARES Act. During the conspiracy, Hawkins was an inmate at the Deuel Vocational Institution (DVI), a California state prison in Tracy, California. Hawkins collected identity information, including names and Social Security numbers, of California prison inmates and other individuals and used the identities and an unauthorized cellphone to file fraudulent unemployment insurance claims from his jail cell. The claims represented, among other things, that the claimants had recently lost employment from businesses or were unable to find employment due to the COVID-19 pandemic. These claims were fraudulent because, for example, the inmates were incarcerated, not recently employed, and ineligible for unemployment insurance benefits.
In the applications, Hawkins requested that the benefits be mailed to various California addresses that were under the control of one or more co-conspirators. EDD approved dozens of the fraudulent claims and authorized Bank of America to mail out EDD debit cards containing benefits. Co-defendants Marquez, Alyssa Jones, and Ebony Jones then obtained the EDD debit cards and used them to withdraw the benefits at ATMs throughout California for the benefit of the conspirators. The scheme sought over $1.2 million and resulted in EDD paying out over $900,000.
This case is the product of an investigation by the U.S. Postal Inspection Service, the California Department of Corrections and Rehabilitation Office of Correctional Safety, the DVI Investigative Services Unit, and EDD – Investigation Division. Special Assistant U.S. Attorney Robert J. Artuz is prosecuting the case.
Alyssa Jones and Ebony Jones recently made their initial appearances in the Central District of California and were released on bond to appear in the Eastern District of California. Marquez has not yet made her initial appearance in federal court. Hawkins remains in state prison for an unrelated conviction.
If convicted, each defendant faces a maximum statutory penalty of 20 years in prison and a $250,000 fine on each of the 16 counts. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Butte man sentenced to more than 15 years in prison for meth trafficking, firearms and money laundering crimesRead the Press Release
MISSOULA – A Butte man who admitted conspiring to traffic methamphetamine in Montana, wiring the drug proceeds to California and Mexico and illegally possessing firearms was sentenced today to 15 years and eight months in prison followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Joshua Jay Schroeder, 40, pleaded guilty on Aug. 24, 2020 to conspiracy to possess with intent to distribute meth, felon in possession of a firearm and conspiracy to commit money laundering.
U.S. District Judge Dana L. Christensen presided. Schroeder was detained.
In court documents filed in the case, the government alleged that law enforcement became aware that Schroeder was involved in drug trafficking in and around Montana. In April 2019, an undercover agent purchased meth from Schroeder, and by June 2019, law enforcement found multiple pounds of meth mailed to Schroeder, all of which was meant for distribution in Montana. In a search of Schroeder’s house, agents found 44 grams of meth and a digital scale. In addition, investigators found a total of five firearms in Schroeder’s vehicle. Schroeder possessed the firearms after having been convicted of multiple felonies in Montana. Schroeder admitted to law enforcement that he accepted packages of meth for redistribution and helped in collecting and wiring money used in drug trafficking. Financial records showed that Schroeder wired drug money from Montana to Mexico and California.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Butte County Man Charged with Distribution of HeroinRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a two-count indictment today against Aaron Rex, 57, of Oroville, charging him with two counts of distributing heroin, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Rex distributed heroin on two occasions in 2020.
This case is the product of an investigation by the Drug Enforcement Administration and the Butte County Interagency Narcotics Task Force. Assistant U.S. Attorney Ross Pearson is prosecuting the case.
If convicted, Rex faces a maximum sentence of up to 20 years in prison on each distribution count and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Butler County Couple Sentenced to Prison on Fraud and Tax ChargesRead the Press Release
PITTSBURGH – A married couple from Butler County, Pennsylvania, has been sentenced in federal court on fraud and tax charges, Acting United States Attorney Stephen R, Kaufman announced today.
Stephanie J. Roskovski, 51, of Butler, PA, pleaded guilty in May 2020 to one count of mail fraud and one count of filing a false income tax return and was sentenced to 51 months in prison and three years of supervised release. Scott A. Roskovski, 52, also of Butler, PA, pleaded guilty previously to one count of filing a false income tax return and one count of submitting a false loan application to a bank. He was sentenced to 30 months in prison and two years of supervised release. Both defendants were sentenced by United States District Court Judge William S. Stickman IV. The court will issue an order of restitution within 90 days.
Acting U.S. Attorney Kaufman said, “Stephanie Roskovski took advantage of her trusted position as the second in command at Butler Health System (d/b/a Butler Memorial Hospital) to steal over $1.3 million from the Hospital, a non-profit organization. She and her husband then used the embezzled money to fund an extravagant lifestyle. They also committed fraud upon a financial institution and filed false tax returns. Today is the day that justice came to the Roskovskis for their criminal actions.”
“The Postal Inspection Service will continue to ensure that criminals are held accountable for their greed. These sentences are an example of the commitment of law enforcement working together to bring Scott and Stephanie Roskovski to justice for committing mail fraud and other crimes.” stated Inspector-in-Charge Lesley Allison.
“These cases were all about greed,” said Joleen Simpson, Acting Special Agent in Charge of IRS-Criminal Investigation. “That greed caused the Roskovskis to commit tax fraud and other crimes, which ultimately resulted in the penalties they received today. These sentencings should be a deterrent to other would-be criminals, knowing that Special Agents from IRS-CI and our law enforcement partners are fully committed to bringing offenders like this to justice.”
“The Roskovskis knew what they were doing was wrong,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “They embezzled money to line their own pockets and live a lavish lifestyle. They are now convicted felons and will serve time for their crimes. Hopefully today's sentencing will bring some closure to the community and send the message that the FBI takes our responsibility to stop those who set out to commit fraud and use it for their own personal gain very seriously. It simply won’t be tolerated.”
According to information provided to the court, from April 2011 through December 2017, Stephanie Roskovski, while serving as the Chief Operating Officer for Butler Health System (BHS), embezzled in excess of $1.3 million from her employer. She used her corporate credit card to make personal purchases that she disguised as business expenses, submitted falsified reimbursement requests claiming purchases she made on a personal credit card were for business, and obtained hundreds of merchant gift cards worth more than $350,000, falsely claiming they were for distribution to “focus groups” or physicians, and which she and her husband used for purely personal purposes. During that time, Stephanie’s husband, Scott Roskovski, was employed as a detective with the Butler County District Attorney’s Office. Ironically, he investigated financial crimes including theft and fraud. The defendants spent most of the stolen funds on lavish vacations, renovations to their home, and the purchase and operation of a motocross track, “Switchback MX LLC”, located
in Butler County. The defendants failed to report the fraud proceeds as income on their annual income tax returns jointly filed with the Internal Revenue Service. Additionally, after the couple lost their respective jobs, the defendants submitted a materially false loan application to S&T Bank to refinance the Switchback business and to purchase a bulldozer. S&T Bank extended two loans, the first for $1,128,227, and the second for $55,384, based upon the false information.The court was advised that the total loss resulting from the mail fraud scheme perpetrated against BHS is approximately $1,331,884, and the total tax loss to the IRS is approximately $397,342.
Assistant United States Attorney Carolyn J. Bloch prosecuted this case on behalf of the government.
The U.S. Postal Inspection Service, the Internal Revenue Service, Criminal Investigation, and the Federal Bureau of Investigation conducted the investigation leading to the prosecution of Scott and Stephanie Roskovski.
Beaverton Man Sentenced for Laser Assault on Federal Officer During Portland ProtestRead the Press Release
PORTLAND, Ore.—A Beaverton, Oregon man was sentenced today for shining a high-powered green laser at a uniformed Federal Protective Service (FPS) officer providing security at the Mark O. Hatfield U.S. Courthouse during a protest in July 2020.
Andrew Steven Faulkner, 25, was sentenced to three years’ federal probation to include six months of home detention and 40 hours of community service.
According to court documents, in the early morning hours of July 5, 2020, Faulkner shined a high-powered green laser at an FPS officer working as a member of the security team at the Hatfield Federal Courthouse. The officer was struck in the eye by the laser and quickly moved to avoid prolonged exposure. The officer was able to identify Faulkner and observed him shining the laser in the direction of other officers. When officers approached Faulkner, he attempted to flee, but was ultimately apprehended. The laser, a SDLaser 303 with a warning label cautioning direct eye exposure, was located in Faulkner’s possession.
On July 6, 2020, Faulkner was charged by criminal information with one count of misdemeanor assault on a federal officer. He pleaded guilty to the charge on January 13, 2021.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by FPS and the FBI. Assistant U.S. Attorney Ashley R. Cadotte prosecuted the case.
Beaverton Man Sentenced to Federal Prison for Threat Against Whistleblower’s AttorneyRead the Press Release
BAY CITY – Brittan J. Atkinson, 54 of Beaverton, was sentenced today to one year and one day in federal prison for sending threatening communications to a Washington, D.C. attorney, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit, Michigan.
Atkinson was sentenced by United States District Judge Thomas Ludington in Bay City, Michigan
According to court records, on November 7, 2019, Atkinson knowingly and willingly sent an email via the internet to an attorney in Washington, D.C. known to represent a federal whistleblower. The email contained threats to harm the victim stating, “[a]ll traitors must die miserable deaths” and “[t]hose that represent traitors shall meet the same fate[.]” Atkinson told the attorney, “we will hunt you down and bleed you out like the pigs you are.” Atkinson’s threat continued, “[k]eep looking over your shoulder, we know who you are, where you live, and who you associate with, we are all strangers in a crowd to you[.]” Upon receiving the threat, the attorney contacted the FBI who immediately began an investigation and identified Atkinson as the sender of the email. Atkinson was arrested pursuant to an indictment in February 20, 2020. On December 1, 2020, Atkinson pleaded guilty to making an interstate communication of a threat to injure.
“The actions in this case are very alarming,” stated Acting US Attorney Mohsin. “Once free speech crosses the line and becomes a threat, you can rest assured that the full extent of the law will be brought to bear. No one should be threatened for simply doing their job.”
"This sentence should send a message that you cannot hide behind a computer keyboard and make threats against another person with impunity," said Timothy Waters, Special Agent in Charge of the FBI in Michigan. "The First Amendment does not protect those who threaten violence against another person. Those threats are taken seriously, will be fully investigated, and people will be held accountable."
This case was investigated by special agents of the FBI and was prosecuted by Assistant United States Attorney Anthony Vance.
Barren County Man Charged with Drug Trafficking and Illegal Possession of FirearmsRead the Press Release
BOWLING GREEN, KY – A federal grand jury in Bowling Green returned an indictment yesterday charging a Barren County man with drug trafficking and illegal possession of firearms.
According to court documents, Eric R. Sturgeon, 40, of Cave City, KY, was found on or about November 12, 2020, in Barren County, KY to possess with the intent to distribute fifty (50) grams or more of a mixture or substance containing a detectible amount of methamphetamine. Sturgeon is also charged with possessing two handguns on the same date after he had been convicted of a felony, and in furtherance of his drug trafficking.
Sturgeon is also charged with possessing with the intent to distribute fifty (50) grams or more of a mixture or substance containing a detectible amount of methamphetamine, on or about May 6, 2021, in Warren County, KY. On this same date, Sturgeon possessed a different handgun after he had been convicted of a felony and possessed the handgun in furtherance of his drug trafficking.
Sturgeon is charged with two counts of Possession with the Intent to Distribute Methamphetamine, two counts of Possession of a Firearm by a Prohibited Person, and two counts of Possession of a Firearm in Furtherance of Drug Trafficking. If convicted, he faces a mandatory minimum of 10 years in prison. There is no parole in the federal system. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Michael A. Bennett of the Western District of Kentucky and the Bureau of Alcohol, Tobacco and Firearm (ATF), made the announcement.
The ATF, Barren River Drug Task Force, and Bowling Green/Warren County Drug Task Force are investigating the case.
Assistant U.S. Attorney Mark J. Yurchisin II of the Bowling Green U.S. Attorney’s Office is prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Baltimore Man Facing Federal Charges for Sex Trafficking of a MinorRead the Press Release
Greenbelt, Maryland – A federal criminal complaint has been filed charging Kyle David Robinson, age 28, of Baltimore, Maryland, on the federal charges of sex trafficking of a minor. At today’s initial appearance in U.S. District Court in Greenbelt, U.S. Magistrate Judge Charles B. Day ordered that Robinson be detained pending trial.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI).
According to the affidavit filed in support of the criminal complaint, HSI special agents learned that an individual in Baltimore had access to two teenage females—one a minor—for the purpose of commercial sex. Agents learned that the telephone number allegedly used to communicate with clients interested in engaging in commercial sex acts with the teenage females was associated with Kyle Robinson.
On June 1, 2021, an undercover agent (UCA) contacted Robinson on the previously identified phone number. Robinson allegedly stated, “I got girls,” early in the conversation and stated to the UCA several times during the call that “they young.” The male explained that he had two teenagers available and the cost for an hour with both would be $1,000. The UCA offered to pay $500 for ½ an hour, and the male agreed. A tentative date of June 3, 2021 was agreed upon, and the affidavit alleges that Robinson stated that the meeting would have to occur before 7:30 p.m. due to conditions of one of the teenagers. When the UCA asked if the girls were “that young” that they have to get home, Robinson allegedly stated “yeah, for one of them it’s like that bro.” After the phone call, the UCA received sexually explicit images of one girl and an image of a younger looking girl wearing a crop top.
As detailed in the affidavit, over the next several days, the UCA exchanged phone calls and text messages with Robinson concerning the scheduled commercial sex date. On June 3, 2021, Robinson advised the UCA that he was on his way but only had the older girl with him as he was not able to reach the younger girl. The UCA requested that they postpone the commercial sex date until both girls were available. Later that evening, Robinson allegedly confirmed that he found the younger girl and that she would be available on June 7, 2021. After several more calls and text messages, Robinson agreed to meet the UCA at a hotel. At approximately 4:10, Robinson came to the UCA’s room with the minor female, who Robinson stated was fifteen years old. After agreeing to accept $740 for an hour with the minor female, the UCA paid Robinson and law enforcement entered the room and secured Robinson and the minor female. Law enforcement executed search warrants on Robinson and his residence. Law enforcement recovered $740 in cash, which was still in Robinson’s hand, his cell phone from his front pocket, and a key fob and four keys, which fit the vehicle he had driven to the location. Robinson was arrested for sex trafficking of a minor.
The young female that Robinson had brought to the hotel to engage in commercial sex with the UCA was identified as a 14-year-old 8th grader.
If convicted, Robinson faces a mandatory minimum sentence of 10 years in federal prison and up to life in prison for sex trafficking of a minor. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
This case was investigated by law enforcement agencies that are members of the Maryland Human Trafficking Task Force, formed in 2007 to discover and rescue victims of human trafficking while identifying and prosecuting offenders. Members include federal, state and local law enforcement, as well as victim service providers and local community members. For more information about the Maryland Human Trafficking Task Force, please visit http://www.mdhumantrafficking.org/.
Report suspected instances of human trafficking to HSI's tip line at 866-DHS-2ICE (1-866-347-2423) or by completing its online tip form. Both are staffed around the clock by investigators.
United States Attorney Jonathan F. Lenzner commended the HSI for its work in the investigation and thanked the Baltimore County Police Department, the Baltimore Police Department, the Howard County Police Department, and ICE Enforcement Removal Operations for their assistance. Mr. Lenzner thanked Assistant U.S. Attorney Mary Setzer who is prosecuting the case.
For more information about the Maryland U.S. Attorney’s Office, its priorities and, resources for victims of human trafficking, please visit http://www.justice.gov/usao/md/priorities_human.html.
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Avis Budget Group to Pay $10.1 Million to Settle False Claims Act Allegations for Overcharging United States on Rental VehiclesRead the Press Release
NEWARK, N.J. – Avis Budget Group Inc. (Avis Budget), which includes its wholly-owned brands Avis Car Rental, Budget Car Rental, and Payless Car Rental, will pay $10.1 million to resolve allegations that it violated the False Claims Act by overcharging the United States in connection with rental vehicles, Acting U.S. Attorney Rachael A. Honig announced today.
According to the contentions of the United States contained in the settlement agreement:
Avis Budget made false claims in connection with obtaining payments under an agreement with the United States managed by the Department of Defense Travel Management Office. From Jan. 1, 2014, through Dec. 31, 2019, Avis Budget submitted false claims and received payment from the United States for unallowable supplemental charges to car rentals, including collision damage waiver/loss damage waiver insurance; supplemental liability coverage/additional liability insurance; personal accident insurance; personal effects coverage/personal effects protection; and late turn-in fees. In addition to being unallowable, some of the fees Avis Budget charged were already included in the government rental rate.
Acting U.S. Attorney Honig credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service, Northeast Field Office, under the direction of Special Agent in Charge Patrick J. Hegarty; Regional Agent in Charge for the New Jersey Resident Agency, Richard Monticello; Regional Agent in Charge for the St. Louis Resident Agency, Mitch Berry, and personnel of the Department of Defense, Defense Travel Management Office, under the direction of Director William R. Mansell Jr., with the investigation leading to the settlement.
The United States is represented by Assistant U.S. Attorney Mark C. Orlowski of the U.S. Attorney’s Government Fraud Unit in Newark.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Associate Medical Director of Baltimore County Pain Management Practice Pleads Guilty to Accepting Kick-BacksRead the Press Release
Baltimore, Maryland – Howard Hoffberg, M.D., age 65, of Reisterstown, Maryland, pleaded guilty on June 9, 2021, to the federal charge of conspiracy to violate the anti-kickback statutes, in connection with a scheme to accept payments from a pharmaceutical company in exchange for prescribing a drug the company marketed for breakthrough pain in cancer patients for off-label purposes.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Special Agent in Charge Maureen Dixon, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
According to his guilty plea, Howard Hoffberg, is a doctor and was licensed to practice medicine in the State of Maryland. He served as the Associate Medical Director and part-owner of Rosen-Hoffberg Rehabilitation and Pain Management (the “Practice”). The Practice’s Medical Director was Norman Rosen, who worked primarily at the Practice’s Towson, Maryland locations. Hoffberg principally worked at the Practice’s location in Owings Mills, Maryland, but at times also was at the Practice’s locations in Towson, Maryland.
Hoffberg was a Medicare provider and submitted claims to Medicare, which is federal healthcare program. In September 2011, Hoffberg certified to Medicare that he would comply with Medicare rules and regulations, including that he would refrain from violating the federal anti-kickback statute. Further, in August 2013, Hoffberg certified to the U.S. Food and Drug Administration (“FDA”), as part of his ability to prescribe drugs known as Transmucosal Immediate Release Fentanyl (“TIRF”) drugs, that: (a) he understood TIRF drugs are indicated only for the management of breakthrough pain in cancer patients; (b) he understood that TIRF drugs can be abused by patients; and (c) he understood that one TIRF drug is not interchangeable with another TIRF drug.
As detailed in his plea agreement, starting in June 2012, Hoffberg solicited and received kickbacks and bribes for himself in the form of payments from Insys Therapeutics, Inc. (“Insys”) (a pharmaceutical company) and related entities. In January 2012, the FDA approved Insys’s application to sell and market a TIRF drug named Subsys to treat cancer patients experiencing break-through pain, which is a sudden onset of pain in cancer patients that cannot be controlled with their usual treatment regimen. Subsys is a potent opioid designed to rapidly enter a patient’s bloodstream upon being sprayed under the tongue. Subsys contains fentanyl, which is a synthetic opioid pain reliever that has a high potential for abuse and addiction.
According to the plea agreement, because of the limited number of cancer patients experiencing breakthrough pain who fit the FDA-approved criteria, Insys devised an illegal kickback and bribery scheme to induce Hoffberg and others to prescribe Subsys off-label for conditions other than breakthrough pain in cancer patients. In order to conceal and disguise that kickbacks and bribes were being paid to Hoffberg to prescribe Subsys, Insys falsely designated the payments to Hoffberg as “honoraria” for purportedly providing educational programs about Subsys (the “Speakers Bureau Program”). Hoffberg admitted that his participation in the Speakers Bureau Program was a sham. Hoffberg often made these presentations at high-end restaurants, and to staff at the Practice and/or to persons who could not even prescribe controlled substances. Hoffberg knew that these presentations were not designed to promote any bona fide educational initiative about Subsys but rather were required to receive the honoraria.
Hoffberg was paid $66,600 by Insys and knew that these payments were kickbacks and bribes that were paid, at least in part, to induce Hoffberg to prescribe, or in exchange for Hoffberg prescribing, Subsys. As part of the scheme, through January 2018 Hoffberg prescribed Subsys to patients of the Practice who were not suffering from cancer, some of whose insurance coverage was paid for, in whole or in part, by a federal healthcare program. Further, Hoffberg admitted that he switched several other patients to Subsys from another fentanyl-based drug because of the kickbacks he received from Insys, even though he previously certified that TIRF drugs were not interchangeable.
Hoffberg faces a maximum sentence of five years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for September 29, 2021 at 11:00 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI, the DEA, HHS-OIG, and the Baltimore County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Jason D. Medinger, who is prosecuting the case.
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Armed Carjacker Who Fled to Mississippi Enters Guilty PleaRead the Press Release
Memphis, TN – Billy Drain, 38, has pleaded guilty to carjacking and brandishing a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the guilty plea today.
According to information presented in court, on February 24, 2020, the victim, J.K., advised that a male suspect who he knew as "Eric" asked him for a ride. The victim recognized Eric as the brother of a friend who had recently passed away. The suspect was accompanied by an unknown female. The victim drove the suspects to various locations in Memphis, when they decided to carjack the victim. The male suspect pulled out a silver 9mm handgun and pointed it at the victim and said, "mane get out the car right now or I'll kill you." The suspects drove off with his car, a silver 2008 Chrysler PT Cruiser, his phone, and house keys.
On March 15, 2020, officers and deputies in Yazoo City, Mississippi, observed Drain, (who was known to them to have outstanding warrants), driving a silver 2008 PT Cruiser. They engaged in a vehicle pursuit, when Drain attempted to ram the police vehicles. Ultimately, Drain crashed the vehicle and ran towards a nearby house. Once inside the home, Drain grabbed a 1-year-old baby, holding the baby hostage as the police attempted to arrest him. Drain was holding the baby by the throat and a cell phone to the baby's head, as if the phone was a weapon. Law enforcement safely recovered the baby and subdued Drain.
The vehicle Drain wrecked was determined to be the same vehicle stolen from the victim J.K. who later identified Drain as the suspect. Drain's full name is Billy Voneric Drain. Charges in Mississippi against Drain are still pending.
On June 9, 2021, Drain entered a guilty plea to both charges in the indictment.
Sentencing is scheduled for September 9, 2021, before U.S. District Judge Jon P. McCalla.
This case was investigated by the Memphis Police Department’s Violent Crimes Unit (VCU) and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Elizabeth J. Rogers and Special Assistant U.S. Attorney Samuel D. Winnig are prosecuting this case on behalf of the government. SAUSA Winnig is currently assigned from the Shelby County District Attorney General’s Office for the purpose of prosecuting violent crimes and firearms offenses in federal court.
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Albuquerque man charged in federal court with drug trafficking and firearms possessionRead the Press Release
ALBUQUERQUE, N.M. – Orlando “Orly” Roybal, 39, of Albuquerque, was charged in federal court on June 7 with possession with intent to distribute methamphetamine and fentanyl, possession of firearms in furtherance of drug trafficking and being a felon in possession of firearms and ammunition. Roybal will remain in custody pending trial.
According to a criminal complaint, on June 2 agents with the FBI’s Albuquerque Violent Crime Gang Task Force (VCGTF) and the New Mexico State Police executed a search warrant on an apartment allegedly used by Roybal. At the time, Roybal was serving a term of supervised release for a prior conviction for being a felon in possession of a firearm and had registered a different address with his probation officer.
Among the items allegedly located by agents during the search were 2.9 pounds of methamphetamine, 41 fentanyl tablets, a dozen firearms, several ammunition magazines and more than a thousand rounds of ammunition. As a previously convicted felon, Roybal cannot legally possess firearms or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Roybal faces a minimum of 10 years and up to life in prison.
The Albuquerque VCGTF investigated this case with assistance from the Bernalillo County Sheriff’s Office and the New Mexico State Police. Assistant U.S. Attorney Alexander M. Uballez is prosecuting the case.
Wednesday 9 June 2021
Wilmington Man Sentenced to 10 Years for Gun OffenseRead the Press Release
WILMINGTON, N.C. – A Wilmington man was sentenced today to 120 months in prison, and 3 years of supervised release for possessing a firearm while being a prohibited person and in connection with another felony offense. On September 30, 2020, Herbert Anthony Sloan pled guilty to the charge.
According to court documents and other information presented in court, late on July 13, 2019, Sloan, 34, entered a home in Wilmington with a firearm. Sloan was purportedly looking for a female who was not home. Sloan remained at the residence with the female’s mother, however, and displayed a firearm while in the mother’s bedroom. The mother reported being scared, feeling threatened and believed she was unable to leave. The daughter learned of the situation and called 911. Responding officers found Sloan on the sidewalk just outside the home and recovered a loaded .38 caliber pistol from Sloan’s waistband. Sloan later tried to obstruct the investigation by pressuring the mother and her daughter to drop the charges.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Wilmington office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Wilmington Police Department (WPD) investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00150-D.
Westford Man Pleads Guilty to Bank Fraud Conspiracy and National Firearms Act ViolationRead the Press Release
BOSTON – A Westford man pleaded guilty yesterday in federal court in Boston to conspiring to commit bank fraud and possessing an unregistered firearm.
Bin Lu, 49, pleaded guilty to one count of conspiracy to commit bank fraud and one count of possession of an unregistered firearm before U.S. District Court Judge George A. O’Toole Jr., who scheduled sentencing for Nov. 10, 2021. Lu was arrested and charged in January 2021 with conspiracy to violate provisions of the National Firearms Act (NFA).
According to the charging documents, Lu and, allegedly, co-conspirator Daniel Whitman sought to build a large indoor shooting range, which would serve both regional and international customers, as well as offer shooting clinics and other services. Lu and his co-conspirator brought in a Chinese investor, who contributed several million dollars to the project. However, in applying for loans from federally insured financial institutions, Lu and, allegedly, his co-conspirators hid the true source of their initial funding from the banks and filed false documents in connection with their loan applications.
Lu also possessed a firearm that had been modified by the addition of a folding stock, resulting in its classification as a short-barreled rifle (SBR) under the NFA. The SBR was not registered to Lu in the National Firearms Registration and Transfer Record as required by the NFA.
On June 3, 2021, Whitman was indicted on charges of bank fraud and violations of the NFA and is awaiting trial.
The charge of conspiracy to commit bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million, or twice the gross gain or loss, whichever is greater. The charge of possession of an unregistered firearm provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $10,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Jonathan Davidson, Special Agent in Charge of U.S. Department of State’s Diplomatic Security Service, Boston Field Office; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service in Boston; and Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston made the announcement. The Westford Police Department provided special assistance in this case. Assistant U.S. Attorney Eugenia M. Carris, Deputy Chief of Mendell’s Public Corruption & Special Prosecutions Unit, is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Waterbury Man Sentenced to 33 Months in Prison for Possessing Child Sex Abuse ImagesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut announced that JOHN T. PERUGINI, 79, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 33 months of imprisonment, followed by a lifetime term of supervised release, for possessing child sex abuses images.
According to court documents and statements made in court, Homeland Security Investigations received information that Perugini had been paying for access to a commercial website that contained child sex abuse images and videos. On October 29, 2019, agents seized Perugini’s computer equipment, including multiple external storage devices, from his residence. Analysis of one of Perugini’s external storage devices revealed numerous images and videos of child sex abuse.
Perugini was arrested in a federal criminal complaint on November 8, 2019. On December 14, 2020, he pleaded guilty to one count of possession of child pornography.
Perugini, who is released on a $50,000 bond, is required to report to prison on July 21, 2021.
This matter was investigated by Homeland Security Investigations (HSI) with the assistance of the Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorneys Maria del Pilar Gonzalez and Brendan Keefe.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.