Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
26 July 2021
Armed Drug Trafficker Going to PrisonRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Alton Dunn, 31, of Rochester, NY, who was convicted of possessing with intent to distribute marijuana and possession of a firearm and ammunition by a convicted felon, was sentenced to serve 72 months in prison by U.S. District Judge David G. Larimer.
Assistant U.S. Attorney Charles Moynihan, who handled the case, stated that the defendant was arrested on July 31, 2018, after officers from the Rochester Police Department, who were patrolling the area of Child Street in Rochester, saw a Lincoln Navigator with a license plate cover obscuring the vehicle’s license plate. Officers pulled the Navigator to the side of the road, approached the vehicle, and identified Dunn, who had been convicted of Robbery in the Second Degree in 2007, as the driver. Officers also learned he did not have a valid driver’s license. After ordering him to exit the Navigator, officers searched the defendant and found a small plastic vial of marijuana in his pocket. Officers could also smell marijuana coming from inside the vehicle. During a search of the vehicle, a loaded semiautomatic handgun, with a defaced serial number, and a bag containing 41 vials of marijuana were recovered. Dunn admitted that he intended to distribute the marijuana.
The matter was brought by the United States Attorney’s Office as part of its Project Safe Neighborhoods (PSN) initiative. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.The sentencing is the result of an investigation by the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division.
# # # #
24 July 2021
Lincoln Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
Acting United States Attorney Jan Sharp announced that Jerah S. Stovall, 35, of Lincoln, Nebraska, was sentenced today by United States District Court Judge John M. Gerrard to 19 years and seven months in federal prison for conspiracy to distribute and possess with intent to distribute 500 grams or more of methamphetamine mixture and an unspecified amount of marijuana, after a conviction for a serious drug felony, between January of 2015 and May of 2020. Following her prison term, Stovall will serve five years on supervised release. There is no parole in the federal system.
Information provided to law enforcement indicated that Stovall was responsible for the distribution of at least five kilograms (11 pounds) of methamphetamine mixture and at least 20 kilograms (44 pounds) of marijuana in the Lincoln area. On April 9, 2020, a search warrant was executed at the Lincoln residence of Stovall and Jason Mullen. During that search, officers found approximately 2/3 ounce of methamphetamine and approximately six ounces of marijuana as well as a digital scale, packaging materials and a .380 caliber handgun with ammunition. Stovall’s purse had over $1,000 in cash in it. On May 1, 2020, officers were looking for Mullen on an outstanding warrant, and they saw Stovall with Mullen and a third person. Stovall’s driver’s license was suspended, so her car was seized and searched, resulting in the finding of more than ¼ ounce of marijuana in her make-up bag. Mullen was also found to be in possession of a small amount of marijuana and some cash.
Stovall had a 2013 conviction from Scotts Bluff County for Distribution of Methamphetamine.
Mullen also pled guilty to the conspiracy charge with a prior serious drug felony conviction and is scheduled for sentencing in August of 2021.
This case was investigated by the Lincoln/Lancaster County Narcotics Task Force and the Drug Enforcement Administration (DEA).
Former North Texas Mayor and Land Developer Husband Convicted in Public Corruption TrialRead the Press Release
SHERMAN, Texas – The former mayor of Richardson, Texas, and a land developer she married during the case's investigation, have been convicted of federal bribery and tax fraud violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Laura Jordan, also known as Laura Maczka, 56, and Mark Jordan, 54, both of Plano, Texas were found guilty by a jury following a three-week trial before U.S. District Judge Amos Mazzant III. Both defendants were found guilty of bribery concerning a program receiving federal funds, conspiracy to commit bribery concerning a program receiving federal funds, tax fraud, and conspiracy to commit tax fraud.
“The cornerstone of a representative democracy is that citizens can rely on their elected officials to wield their official powers in a way that furthers the best interests of the community, rather than to benefit their friends and cronies,” said Acting U.S. Attorney Nicholas J. Ganjei. “Today’s verdict will go a long way towards bolstering public confidence in the integrity of our democratic institutions and promoting open and honest governance. I thank the jury for their service and commend the investigative and prosecutorial team for their tenacity and professionalism.”
“Ultimately, the trust of the citizens of Richardson was betrayed by Laura and Mark Jordan,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno. “Our elected officials are held to the highest standards, and Laura Jordan traded her responsibility to serve her constituents to enjoy a stream of financial benefits. The FBI and our partners will continue to ensure that those who violate their obligation to the public are held fully accountable.”
According to information presented in court, from May 2013 through April 2015, Maczka was the mayor of Richardson, Texas, and Jordan was a land developer. Maczka and Jordan conspired to devise and execute a scheme to commit bribery. Maczka, contrary to her campaign promises, supported and repeatedly voted for controversial zoning changes sought by Jordan, ultimately allowing for the construction of over 1,000 new apartments in Richardson near other Richardson neighborhoods. In exchange, Jordan paid Maczka over $18,000 in cash, an additional $40,000 by check, and paid for over $24,000 in renovations to Maczka’s home. Jordan also paid for luxury hotel stays and airfare upgrades for Maczka, and provided Maczka lucrative employment at one of Jordan’s companies. According to court testimony, Maczka and Jordan failed to disclose to the public that they had coordinated to affect the zoning changes Jordan wanted and that Jordan had provided a stream of benefits to Maczka.
Maczka and Jordan were indicted by a federal grand jury on May 10, 2018. Maczka and Jordan each face up to 10 years in federal prison. The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors. Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Heather Rattan, Sean Taylor, Brent Andrus, and other attorneys from the Plano branch office.
###
Former Lincoln Correctional Officer Convicted for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Trevor Hansen, 30, of Lincoln, Nebraska, was sentenced today in Lincoln by United States District Judge John M. Gerrard for distribution of child pornography. Hansen was sentenced to 5 years and 3 months in prison and 6 years of supervised release with special conditions. There is no parole in the federal system. Hansen was additionally ordered to pay $9,000 in restitution.
This case began when Homeland Security Investigations (“HSI”) in Nebraska received a cyber tip indicating that Kik user “MOOSE2356” (later identified as Hansen) uploaded a child pornography file on June 11, 2019. On July 1, 2020, HSI received a second cyber tip indicating that Snapchat user “MOOSE3257” (also later identified as Hansen) had uploaded child pornography. On August 17, 2020, HSI executed a search warrant at Hansen’s residence. During the execution of the search warrant, HSI seized Hansen’s smart phone and smart watch. Hansen also agreed to be interviewed. He admitted to viewing child pornography and that child pornography would be found on his cell phone. A review of Hansen’s cell phone revealed approximately 307 image files of child pornography. The examination of his cell phone also revealed text messages in which Hansen exchanged child pornography files with other people in quid pro quo type exchanges.
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.
This case was investigated by Homeland Security Investigations.
23 July 2021
“Very Dangerous Person” from Waterloo Sentenced to Eight Years in Federal PrisonRead the Press Release
A man with multiple prior convictions involving violence was sentenced today to eight years in federal prison.
Trenton Sliekers, age 28, from Waterloo, Iowa, received the prison term after a guilty plea to possessing a firearm as a felon. Statements at sentencing indicated that Sliekers used the firearm to shoot six times from a motorcycle at a residence that was then occupied by multiple people, including children. Documents at sentencing noted that one of the bullets lodged in a couch cushion.
At sentencing, the judge noted that Sliekers was a “violent man” and “very dangerous person” who had at least three prior crimes involving violence and who kept on “committing crime after crime after crime.” The judge further found that Sliekers posed a “danger” and was “likely to reoffend.”
Sliekers was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sliekers was sentenced to 96 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system. Sliekers is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Waterloo Police Department and the Federal Bureau of Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2062-CJW-MAR.
Follow us on Twitter @USAO_NDIA.
West Sacramento Couple Indicted for Mail Fraud and Identity TheftRead the Press Release
SACRAMENTO, Calif. — A 12-count indictment was unsealed today charging West Sacramento residents Kimberly Acevedo, 50, and Philip Rich, 49, with mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices, Acting U.S. Attorney Phillip A. Talbert announced.
According to the indictment, between March 2019 and March 2021, Acevedo and Rich perpetrated a mail fraud scheme that involved theft of U.S. mail, identity theft, and unlawful possession of dozens of stolen bank cards. Generally, Acevedo and Rich obtained the personally identifiable information (PII) of victims and used that information to apply for new credit cards, debit cards, checkbooks, and other financial instruments to be sent to the victims’ real home addresses. The defendants then submitted change-of-address requests to USPS at www.usps.com using the victims’ PII. These change-of-address requests rerouted the victims’ mail to defendants’ shared home address, where they would open the mail and use its contents to make fraudulent purchases and cash fraudulent checks.
This case is the product of an investigation by the U.S. Postal Inspection Service and the Yolo County Sheriff’s Office. Assistant U.S. Attorney Denise N. Yasinow and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.
If convicted, Acevedo and Rich both face a maximum statutory penalty of 20 years in prison for mail fraud, five years in prison for possessing stolen mail, and 10 years in prison for possessing more than 15 unauthorized access devices. The defendants also face a mandatory additional sentence of two years in prison if convicted of aggravated identity theft and a maximum fine of $250,000 on each count. 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; defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Virginia-Based Crip Gang Member Sentenced to 15-Years in Prison for Participating in Armed Home Invasion Robbery Conspiracy in Sonoma CountyRead the Press Release
SAN FRANCISCO – Aaron McArthur, aka Gangster Boogie, aka “G Boogie,” aka “Boogie,” aka “Suave,” was sentenced today to 15 years in prison and ordered to pay over $20,000 in restitution for his role in a conspiracy to commit armed home invasion robberies in Sonoma County, announced Acting United States Attorney Stephanie M. Hinds and FBI Special Agent in Charge Craig D. Fair. The sentence was handed down by the Honorable Edward M. Chen, U.S. District Judge.
McArthur, 31, of Virginia, pleaded guilty to the charge on April 21, 2021. According to his plea agreement, McArthur admitted that beginning in January 2018, he agreed with others to commit home invasion robberies in Northern California. The object of the robberies was to steal marijuana and the cash proceeds of marijuana sales. McArthur acknowledged that he recruited two groups of co-conspirators to travel from his home state of Virginia to meet with additional co-conspirators in Northern California where home invasion robberies would be committed. According to the plea agreement, McArthur explained to recruits how he previously had obtained marijuana and firearms from participating in Northern California home invasion robberies including how he coordinated the robberies with a contact in California, how the robberies were conducted, and how the marijuana and guns were shipped back to him in Virginia. McArthur admitted he knew it was reasonably foreseeable his co-conspirators would possess and use firearms to carry out the crimes.
The plea agreement describes how the two sets of McArthur’s recruits each participated in two home invasion robberies. The first pair of robberies occurred on February 8, 2018. After recruiting four individuals and helping to organize their travel from Virginia to Northern California, McArthur’s recruits were joined in California by a California-based co-conspirator. At approximately 4:22 a.m., the co-conspirators, wearing masks and carrying guns, kicked in the door of a residence in Santa Rosa and demanded money and marijuana from the residents. A co-conspirator struck one of the residents with a pistol, shot another resident in the arm, and stole several pounds of marijuana. Later the same morning, the robbers invaded a second home, shot and killed one of the residents in the house, and stole several firearms. Four of the co-conspirators were captured by law enforcement the same day and the fifth was captured about four months later.
The second pair of robberies occurred March 12, 2018. McArthur admitted that he again recruited four co-conspirators and arranged for their transportation to Northern California. McArthur assigned one individual to take the lead and maintained constant communication with the co-conspirators leading to the home invasion robberies. The first robbery occurred at 3:00 AM; the co-conspirators entered a residence in Petaluma, struck and tied up an occupant, and searched for marijuana and cash. After leaving the home, the co-conspirators entered a second home, tied up the occupant, and again demanded marijuana and cash. During the robbery, the co-conspirators encountered a neighbor who was brought inside the residence, tied up, and struck several times.
A federal grand jury indicted McArthur on June 13, 2019, charging him with one count of conspiracy to commit robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a); one count of conspiracy to possess with intent to distribute marijuana, in violation of 21 U.S.C. § 846; and four substantive counts of robbery and attempted robbery affecting interstate commerce, in violation of 18 U.S.C. § 1951(a). McArthur pleaded guilty to the conspiracy count and the remaining counts were dismissed.
In addition to the prison term, Judge Chen also sentenced the defendant to a three-year period of supervised release and ordered that the defendant pay restitution of $20,275.73 to the victims of his crimes. The defendant was arrested in Virginia on August 16, 2019, and has been in continuous federal custody since his arrest; he will begin to serve his prison term immediately.
Assistant U.S. Attorney Christiaan H. Highsmith is prosecuting the case with the assistance of Alice Pai. The prosecution is the result of an investigation by the FBI, the Drug Enforcement Administration, and the Sonoma County Sheriff’s Office.
This investigation and prosecution is part of OCDETF, which identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Virginia man admits to drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Terry William Jimenez Morales, of Strasburg, Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Morales, 26, pleaded guilty today to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride.” Morales admitted to having more than 85 grams of cocaine hydrochloride in March 2019 in Jefferson County.
Morales faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Eastern Panhandle Drug Task Force, a HIDTA-funded initiative, and the Ranson Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Vice President of Modesto Hells Angels Motorcycle Club Pleads Guilty to Drug Trafficking ChargesRead the Press Release
FRESNO, Calif. — Michael Shafer, 33, of Modesto, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Shafer was the Vice President of the Hells Angels Motorcycle Club in Modesto in 2019. As part of a years-long investigation into the Hells Angels Motorcycle Club, investigators obtained a court-authorized wiretap for Shafer’s phone. The wiretapped calls and messages showed that Shafer was conspiring to distribute marijuana and heroin. Specifically, in April 2019, Shafer conspired with a former Hells Angels member who was incarcerated in Pleasant Valley State Prison to smuggle heroin into prison.
This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.
Shafer is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 22. Shafer faces a maximum statutory penalty of 40 years in prison, a mandatory minimum sentence of five years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
United States Attorney's Office District of Arizona June 2021 Immigration and Border Crimes ReportRead the Press Release
I. Illegal Reentry After Deportation (8 U.S.C. 1326)
241 individuals were charged in June with illegal reentry
A. 178 of those 241 individuals had previously been convicted of non-immigration criminal offenses in the U.S.
Of the 178 individuals with non-immigration criminal records:
1. 40 had violent crime convictions, including:
6 individuals had homicide convictions
8 individuals had sex offense convictions
6 individuals had domestic violence convictions2. 10 had property crime convictions
3. 36 had DUI convictions
4. 90 had drug crime convictions
B. 108 of those 241 individuals had been deported three or more times
II. Alien Smuggling (8 U.S.C. 1324)
74 individuals were charged in June with alien smuggling
III. Illegal Entry (Criminal Consequence Initiative) (8 U.S.C. 1325)
0 individuals were charged in June with illegal entry on the CCI calendar
Criminal conviction information is based on preliminary criminal history reports provided by the arresting agency.
These numbers represent United States Attorney's Office prosecutions only. These numbers do not include individuals apprehended by immigration enforcement officials and subjected solely to administrative process.
*The Department of Homeland Security instituted a policy in March 2020 of expeditiously returning aliens who illegally enter the United States rather than detaining them. The decreased number of individuals presented to this Office for prosecution coincides with the implementation of that policy and other COVID-19 related border restrictions.
RELEASE NUMBER: 2021-045_June Immigration and Border Crimes Report
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.UNO Graduate Student Sentenced for Child EnticementRead the Press Release
Acting United States Attorney Jan W. Sharp announced that Zhijun Xia, age 30, of China, was sentenced today to 210 months’ imprisonment by United States District Court Judge John M. Gerrard for Coercion and Enticement of a Minor. There is no parole in the federal system. After his release, Xia will be on supervised release for 5 years and be required to register as a sex offender. Additionally, Xia was ordered to pay $3,000 in restitution. Xia will be deported back to China after serving his sentence.
Judge Gerrard noted in pronouncing this sentence and recognizing the trauma the victim suffered that “It’s the Court’s hope the victim knows these incidents should not shape her life.”
Between June 1, 2018 to February 28, 2020, Xia was a graduate student at the University of Nebraska Omaha. Xia is a Chinese national. Xia met the victim’s mother who hired Xia to tutor the victim in the Chinese language. Xia began tutoring the victim in June of 2018. Xia met the victim in person for the tutoring sessions and began communicating with the victim over the social media application WeChat. Xia began inquiring over WeChat about the victim’s sexual history.
On July 10, 2018, the victim attended a summer camp at the University of Nebraska in Lincoln, Nebraska. Xia messaged the victim over the Internet using WeChat about his plan to visit her in Lincoln on July 11. During this conversation, Xia discussed various forms of birth control with the victim in response to the victim relaying her fears of becoming pregnant while in high school. Xia reserved a room at the Red Roof Inn and Suites in Lincoln for the night of July 11. Xia picked up the victim from the University of Nebraska campus and took the victim to the Red Roof Inn, where he subjected the victim to sexual penetration. Xia was 27 years of age and the victim was 15 years of age. It is a crime under Nebraska State law for someone over the age of 25 to subject someone between the ages of 12 and 16 to sexual penetration. Immediately following this incident, Xia continued to message the victim on WeChat regarding the July 11 incident.
Xia has also pled guilty to one count of First Degree Sexual Assault in the District Court of Douglas County, Nebraska for events occurring with the same victim in Omaha. He is scheduled to be sentenced on that case on August 25, 2021.
FBI Omaha Special Agent in Charge Eugene Kowel said, “The family of Zhijun Xia’s victim trusted him as an academic and tutor. He used that trust to prey on a teenage girl. His sentence today serves as an example of FBI Omaha’s unwavering commitment to work with our law enforcement partners to investigate and prosecute anyone who victimizes children.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by the Federal Bureau of Investigation, Omaha Police Department, the University of Nebraska-Omaha Police Department, and the Lincoln Police Department.
U.S. Attorney Announces Results of First 2 Weeks of Federal Violence Prevention and Elimination Response (VIPER) Task ForceRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today the results of the first two weeks of the Federal Violence Prevention and Elimination Response (VIPER) Task Force, a 60-day surge aimed at removing violent gun offenders from the streets of Rochester and Buffalo to enhance public safety and reduce violent crime. For the period between July 7 and July 22, 2021, the following combined results were achieved in Rochester and Buffalo through VIPER:
• Total Arrests – 138 o Firearm Related Arrests - 45 o Narcotics Related Arrests - 45 o Violent Felony Arrests - 38
• Total Illegal Firearms Seized - 22
• Defendants Adopted for Federal Prosecution - 15 (with 21 additional defendants currently under review for federal prosecution).“All residents in both Rochester and Buffalo deserve, and are entitled, to feel safe in their own homes,” stated U.S. Attorney Kennedy. “Our efforts are designed to remove the worst of the worst from the streets of our communities, and the guns from their hands, so that residents can do just that. The tremendous coordination between federal, state, and local law enforcement combined with the outstanding cooperation we have received from the community have combined thus far to produce some pretty remarkable results.”
Representative Investigations and Federal Prosecutions in both Rochester and Buffalo:
Among the cases charged federal in Rochester, NY, was Raquon Lewis, 24, of Rochester, NY, who was charged by criminal complaint with two separate incidents of being a felon-in-possession of a firearm. According to the criminal complaint, on June 24, 2021, at approximately 2:00 p.m., Rochester Police Officers responded to a call for multiple “shots fired” in the area of the North Union Street/Lays Alley/Weld Street. Prior to the call, numerous civilians were congregating in the area for the funeral procession/celebration of life for 26-year-old Lavar Beard, who was murdered there two days earlier. Given heightened tensions surrounding the murder, several Rochester Police officers were already assigned to the area to monitor the gathering and personally heard multiple gunshots being fired. The eruption in gunfire resulted in at least one person being struck with non-life threatening injuries. At least two firearms were recovered at the scene, as well as numerous casings.
Immediately prior to these gunshots, defendant Lewis was observed, via city blue light cameras, standing with others in front of “Awsan Grocery,” located at the intersection of North Union and Weld Streets, facing east. Another male walked up behind Lewis and pointed a gun point-blank at Lewis’ head. As a result, everyone in the area, including Lewis, fled the area in all directions. Lewis was observed running behind the store and west bound on Weld Street to his vehicle. As Lewis was running, he collided with several other individuals who were involved in the melee, causing him to fall to the ground near the rear of his car. As he fell, Lewis dropped a 9mm semiautomatic pistol loaded with 18 rounds of ammunition.
On July 16, 2021, a search warrant was executed at Lewis’ residence on Travers Circle in Rochester. During the search, investigators found a loaded 9mm pistol in a couch where Lewis had been sitting. Investigators also recovered approximately $2,395 in cash on Lewis’ person. In addition, quantities of crack cocaine, cocaine, and three electronic scales were also recovered. In 2013, Lewis was convicted of Attempted Criminal Possession of a Weapon in New York State Court and is legally prohibited from possessing a firearm.
In Buffalo, Michael Johnson, 43, of Buffalo, NY, was charged by criminal complaint with possession with intent to distribute fentanyl, possession of a firearm in furtherance of drug trafficking crimes and being a felon in possession of a firearm. According to the criminal complaint, On July 21, 2021, investigators from the Erie County Sheriff’s Office and Buffalo Police Intelligence Unit set up surveillance in the vicinity of the defendant’s Rogers Avenue residence and observed Johnson carrying a blue shopping bag out of the residence and entering the front passenger seat of a vehicle bearing Ohio plates. Law enforcement executed a traffic stop and Johnson initially provided a false name. Johnson was ordered out of the vehicle but refused and struggled with law enforcement. While law enforcement attempted to remove the defendant, officers observed the blue shopping bag inside the vehicle. During a search of the vehicle, investigators recovered a loaded 9mm handgun from inside the blue shopping bag, approximately 28 grams of suspected fentanyl, ammunition, unidentified pills, and a digital scale. Investigators then executed a search warrant at Johnson’s Rogers Avenue residence and recovered a revolver, ammunition, and a digital scale. In March 2008, Johnson was convicted in Albany County Court of Attempted Criminal Sale of a Controlled Substance in the 3rd Degree, and as a result is legally prohibited from possessing a firearm.
The VIPER Task Force involves enhanced information sharing, enhanced proactive investigations and prosecutions, and the improvement relations between the community and law enforcement.
Members of the VIPER Task Force include the United States Attorney’s Office, under the direction U.S. Attorney James P. Kennedy, Jr.; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the United States Marshals Service, under the direction of Marshal Charles Salina; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division. VIPER Task Force members in Rochester also include: the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan. VIPER Task Force members in Buffalo also include: the Erie County District Attorney’s Office, under the direction of District Attorney John Flynn; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; and the Buffalo Police Department, under the direction of Chief Byron Lockwood.
# # # #
Twenty-Seven Defendants Charged in Joint Federal and State Investigation of Drug Trafficking OrganizationRead the Press Release
DES MOINES, IOWA -- Twenty-seven defendants are facing federal criminal charges as part of a joint federal and state investigation of a heroin and fentanyl drug trafficking organization. Most of these defendants were arrested on July 21, 2021; three individuals have yet to be arrested.
These defendants are charged with federal drug offenses in two criminal indictments:
- Malek Shawn Holmes, age 21, of Des Moines
- Pierre Fontain Black, age 30, of Des Moines
- Deshawn Levell Greer, age 29, of Des Moines
- Desmond Lamar Howard, age 30, of Des Moines
- Carl Murphy, age 52, of Chicago, Illinois
- Earl Otis Clay, III, age 29, of Des Moines
- Gregory Izell Spight, age 42, of Des Moines
- Michael Byrd, age 28, of Chicago, Illinois
- Azim Abdul-Ahad, age 22, of Des Moines
- Ronald Harris, age 35, of Des Moines
- Derrick Fleming, age 27, of Chicago, Illinois
- Patrick Staples, age 28, of Chicago, Illinois
- Brandon Reed, age 28, of Chicago, Illinois
- Tabaris Brown, age 22, of Des Moines
- Dandre Cox, age 21, of Des Moines
- Daeante Dewayne Neely, age 28, of Des Moines
- Elijah Seymour, age 33, of Des Moines
- Felicia Olson, age 29, of Des Moines
- Sarah Hume, age 39, of Des Moines
- Andrew Price, age 29, of Des Moines
- Jason Beaman, age 46, of Knoxville
- Jamisha Canada, age 44, of Des Moines
- Tonie Canada, age 39, of Des Moines
- Rickey’a Dee Jackson, age 22, of Des Moines
- Devante Jave Taylor, age 26, of Des Moines
- Tyler Robert Wood, age 30, of Des Moines
- Zakar Jeffrey, age 28, of Des Moines
All defendants arrested on July 21 have or will soon appear in federal court on the charges.
The charges stem from a months’ long investigation into heroin and fentanyl distribution within the Des Moines area. The charges carry maximum penalties of up to life imprisonment, with a ten- year mandatory minimum prison term as to Malek Holmes, and five-year mandatory minimum prison terms as to Pierre Black, Deshawn Greer, Carl Murphy, Earl Clay, III, Gregory Spight, Michael Byrd, Azim Abdul-Ahad, Ronald Harris, Derrick Fleming, Patrick Staples, Brandon Reed, Tabaris Brown, Daeante Neely, Felicia Olson, Andrew Price, Jason Beaman, Jamisha Canada, and Tonie Canada. The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The charges were announced by Richard D. Westphal, Acting United States Attorney for the Southern District of Iowa. Investigating and assisting agencies include: the Mid-Iowa Narcotics Enforcement Task Force; Central Iowa Gang Task Force; Des Moines Police Department; Iowa Division of Narcotics Enforcement; Polk County Sheriff’s Office; Bureau of Alcohol, Tobacco, Firearms, and Explosives; Iowa State Patrol; Iowa Division of Intelligence and Fusion Center; Iowa State Patrol SWAT; United States Marshals Service; Central Iowa Drug Task Force; Drug Enforcement Agency; Mid-Iowa Narcotics Enforcement Task Force East; Homeland Security Investigations; Altoona Police Department; Story County Sheriff’s Office; Ames Police Department; Norwalk Police Department; West Des Moines Police Department; Ankeny Police Department; METRO Star; SERT; Iowa 5th Judicial District; Federal Bureau of Investigation Chicago; Federal Bureau of Investigation Kansas City; Federal Bureau of Investigation Minneapolis; Federal Bureau of Investigation Omaha; and the Organized Crime Drug Enforcement Task Forces (OCDETF).
OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Tulsa Man Charged for Enticing a Minor and Child PornographyRead the Press Release
A 28-year-old Tulsa man was charged in federal court today after he allegedly enticed a 16-year-old and received sexually explicit pictures and videos of the girl, announced Acting U.S. Attorney Clint Johnson.
Alexander Nicholaus Sweet, of Tulsa, made an initial appearance today in federal court after being charged by Criminal Complaint with coercion and enticement of a minor, production of child pornography, receipt of child pornography and possession of child pornography. Sweet will next appear in court for a detention hearing on July 30.
The FBI Oklahoma City Field Office requests any other possible victims to contact the agency at 405-290-7770.
According to the affidavit filed with the Complaint, in December 2020, the FBI received information that Sweet was in an intimate relationship with a 16-year-old girl and was in possession of sexually explicit images of the victim that is considered child pornography. The information was allegedly corroborated during a resulting investigation.
The defendant also allegedly bragged about dating underage girls on multiple social media platforms.
The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Edward Snow and Christopher Nassar are prosecuting the case.
This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.
Trenton Woman Admits Distributing Fentanyl that Caused Death of Monmouth County WomanRead the Press Release
NEWARK, N.J. – A Trenton, New Jersey woman today admitted distributing fentanyl that caused the death of a Monmouth county woman, Acting U.S. Attorney Rachael A. Honig announced.
Tarashanna Blake, 33, pleaded guilty before U.S. District Judge Kevin McNulty to an information charging her with one count of distribution and possession with intent to distribute fentanyl relating to the overdose death of a Monmouth County woman.
According to the documents filed in this case and statements made in court:
On May 15, 2018, a 39-year old woman from Englishtown, referred to in court as Victim-1, texted Blake seeking to buy heroin. Blake and Victim-1 discussed the “stamp” or “brand” of heroin Blake was selling and the purchase price. They agreed to meet at a location around Englishtown to complete the sale. Blake obtained the “CAMEL”-stamped heroin and traveled to the agreed upon location and sold to Victim-1 a controlled substance packaged like heroin, which was later determined to be fentanyl. That afternoon, Englishtown police responded to a location in Englishtown on a report of an overdose death of a female. Upon their arrival, Englishtown police discovered Victim-1, and in Victim-1’s possession were several wax folds of suspected heroin stamped “CAMEL” and empty wax folds stamped “CAMEL.” Laboratory analysis of these wax folds bearing the “CAMEL” stamp determined the substance to be fentanyl, a much more potent narcotic than heroin. An autopsy of Victim-1 found her cause of death to be acute fentanyl toxicity.
For distributing and possessing fentanyl, Blake faces a maximum penalty of 20 years in prison and a $1 million fine, and, because the offense resulted in death, she is subject to significant sentencing enhancements. Sentencing is scheduled for Dec. 3, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; detectives from the Monmouth County Prosecutor’s Office, under the direction of Acting Prosecutor Lori Linskey; the Englishtown Police Department, under the direction of Peter S. Cooke Jr.; and Trenton Police Department’s Narcotics Task Force, under the direction of Acting Police Director Steve Wilson, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ryan L. O’Neill, of the Office’s Health Care Fraud Unit.
Three Sentenced in Bank Fraud of Government Housing Assistance ProgramRead the Press Release
Greenville, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that three South Carolinians have been sentenced by a federal judge after pleading guilty to bank fraud charges in schemes that defrauded the federal government’s Troubled Asset Relief Program (TARP).
Marvette Thompson Easterling, 54, of Gaffney; Keylon Wright, 40, of Simpsonville; and Joshua David Armato, 37, of Georgia; admitted that they knowingly defrauded a program established to help homeowners at risk of mortgage loan default and foreclosure of thousands of dollars.
U.S. District Judge Bruce Howe Hendricks ordered each defendant to a sentence of time served followed by five years of supervised release and the repayment of the stolen funds for the felony charges.
“Stealing from the federal government, particularly from programs that help the least fortunate in America, will not be tolerated,” said Acting U.S. Attorney DeHart. “Our office appreciates the investigative work of the Special Inspector General for TARP (SIGTARP) and will continue to work with SIGTARP to protect American tax dollars.”
“With today’s sentencing, SIGTARP and the United States Attorney’s Office have brought justice for defendants who defraud and steal from the Hardest Hit Fund, a federal program that helps unemployed homeowners stay in their home,” said Special Inspector General Christy Goldsmith Romero. “Easterling, Wright, and Armato separately lied to get thousands of federal dollars for mortgage assistance, concealing that they did not live in the house and concealing rental income. Now they are convicted of fraud and must repay the stolen funds.”
Evidence presented in court showed that through false and fraudulent pretenses, representations, and promises, Easterling obtained funds from SC Housing, a federally funded mortgage payment assistance program that provided eligible homeowners with temporary mortgage assistance so that they could avoid foreclosure and stay in their homes. Easterling concealed and failed to notify SC Housing of monthly rental income she received for the property as well as the non-owner-occupied status of the property in order to receive and use federal funds to which she was not eligible.
Additional evidence presented in court further showed that Wright executed a similar scheme for a property in Mauldin, while Armato executed a similar scheme for a property in Simpsonville. Wright and Armato concealed and failed to notify SC Housing of the non-owner occupied statuses of their properties and the rental of the properties to unrelated third parties in order to receive and use federal funds to which they were not eligible.
The cases were investigated by Special Inspector General for TARP (SIGTARP), an independent law enforcement agency used to investigate fraud, waste, and abuse related to the TARP bailout.
Assistant United States Attorney Winston Marosek prosecuted the cases.
#####
Three Orlando Men Sentenced for Robbery of Cellphone StoreRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron has sentenced Tauri Benjamin Rivas Nunez (23, Orlando) to 11 years and 3 months in federal prison for aiding and abetting the robbery of a cellphone store and aiding and abetting the brandishing of a firearm during the robbery. Rivas Nunez had been found guilty by a federal jury on May 12, 2021. His co-defendants, Victor Hugo Castillo Vallejo (29, Orlando) and Luis Miguel Valdez Mendez (28, Orlando), previously pleaded guilty and were sentenced to federal prison sentences on July 14, 2021. Castillo Vallejo was sentenced to 7 years and 6 months in federal prison for aiding and abetting the robbery and aiding and abetting the brandishing of a firearm. Valdez Mendez was sentenced to 5 years in federal prison for aiding and abetting the robbery.
According to evidence presented at trial, on August 10, 2019, Rivas Nunez, Valdez Mendez, and a co-defendant entered a T-Mobile store located at 5420 Deep Lake Road in Oviedo. Rivas Nunez placed an employee in a chokehold, while a co-defendant took another employee into a back room at gunpoint and ordered the employee to empty a safe containing cellphones and merchandise. Valdez Mendez maintained control of a customer who was present inside the store during the robbery. Rivas Nunez removed money from the cash register and the three individuals ran from the store with the stolen items. Castillo Vallejo waited outside the store during the robbery and acted as a getaway driver. Rivas Nunez, Castillo Vallejo, and Valdez Mendez were located immediately after the robbery at a home in Orlando. The stolen merchandise was recovered from the residence, along with the firearm used during the robbery.
This case was investigated by the Federal Bureau of Investigation, the Seminole County Sheriff’s Office, and the Orange County Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Daniel P. Jancha and Chauncey A. Bratt.
Texas Resident Sentenced to Probation for Marijuana in Carry-On Bag Upon His Arrival at Cyril E. King Airport on St. ThomasRead the Press Release
St. Thomas, USVI –United States Attorney Gretchen C.F. Shappert announced today that Lequan Jaheem Pemberton, 26, a resident of Austin, TX, was sentenced to two years’ probation for possession with intent to distribute marijuana.
According to court documents, on December 21, 2020 Customs and Border Protection (CBP) Officers were conducting baggage exams on an American Airlines flight arriving from Miami, FL and passenger Lequan Jaheem Pemberton was selected for a secondary bag examination. During a preliminary bag exam of Pemberton’s carry-on luggage, the inspection revealed several plastic wrapped bundles. After CBP Officers discovered the bundles, Pemberton was referred to the secondary CBP inspection area. Further inspection of the bundles revealed that Pemberton’s carry-on bag contained a green leafy substance that tested positive for marijuana. The marijuana weighed approximately 4.01 kilograms. Lequan Jaheem Pemberton was read his Miranda Rights and waived his rights. During questioning by HSI, Pemberton stated that the marijuana belonged to him, and he claimed that he intended to smoke it.
This case was investigated by the Department of Homeland Security and prosecuted by Assistant United States Attorney Juan Albino.
Texas Business Owner Pleads Guilty to Tax FraudRead the Press Release
A Texas resident pleaded guilty Thursday to filing a false individual income tax return.
According to court documents, between January 2009 and December 2014, Charles D. Holley, aka Charlei Diwan Holley, owned and operated a data brokerage business. As part of this business, Holley purchased data information from state motor vehicle agencies, which she re-sold to various buyers. Holley set up bank accounts in which to deposit the proceeds of her business activity, including an offshore bank account in Nicosia, Cyprus. In February 2012, Holley filed a false individual tax return with the IRS that did not disclose that she was engaged in or receiving income from her data brokerage business. In total, Holley caused a tax loss to the IRS of $202,196.
Holley is scheduled to be sentenced on Oct. 20. She faces a possible maximum penalty of three years in prison, as well as a period of supervised release, restitution and monetary penalties. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Jennifer Lowery for the Southern District of Texas made the announcement.
IRS-Criminal Investigation is investigating the case.
Trial Attorneys Robert Kemins and Ignacio Perez De La Cruz of the Tax Division are prosecuting the case.
Stoughton Man Sentenced on Drug Distribution ChargesRead the Press Release
BOSTON – A Stoughton man with ties to the Orchard Gardens housing development in Roxbury was sentenced yesterday in federal court in Boston on drug trafficking charges.
Dashawn Matthews, 31, was sentenced by U.S. District Court Judge William G. Young to 30 months in prison and three years of supervised release. On Dec. 14, 2020, Matthews pleaded guilty to distribution and possession with intent to distribute fentanyl and cocaine base (also known as crack cocaine).
During an investigation into drug trafficking and violence in the Orchard Gardens housing development, a cooperating witness and an undercover police officer made eight purchases of fentanyl, crack cocaine or both from Matthews. In total, between May and August 2019, Matthews distributed approximately 120 grams of fentanyl and 98 grams of crack cocaine. Most of the sales took place a short distance away from the Orchard Gardens housing development.
Acting United States Attorney Nathaniel R. Mendell; James Ferguson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit prosecuted the case.
Spectracare Health Systems, Inc. Agrees to Pay $1 MillionRead the Press Release
Montgomery, Alabama – On July 23, 2021, a notice of dismissal was filed indicating that SpectraCare Health Systems, Inc. (“SpectraCare”) agreed to pay $1 million dollars to resolve a federal qui tam lawsuit alleging that it violated the False Claims Act, announced Acting United States Attorney Sandra J. Stewart. The Government’s multi-year investigation, which spawned from a whistleblower complaint, investigated whether SpectraCare knowingly violated the False Claims Act by improperly billing Alabama Medicaid for Basic Living Skills services, and by failing to return overpayments to the Alabama Medicaid Agency, which constitutes a “reverse false claim” actionable under 3729(a)(1)(G) of the False Claims Act.
SpectraCare Health Systems, Inc. is a 501(c)(3) nonprofit organization headquartered in Dothan, Alabama, which provides integrated healthcare services, including developmental disability services, intermediate care medical services, behavioral health services, and preventative programs to a range of patients. The company is contracted by the Alabama Department of Mental Health to provide services, which are paid for by the Alabama Medicaid Agency.
This lawsuit was initially filed in the United States District Court for the Middle District of Alabama by a former SpectraCare employee under the qui tam, or whistleblower, provisions of the False Claims Act. Pursuant to these provisions, a private citizen can bring suit on behalf of the United States and share in any recovery. The United States will receive $743,193.00 of the $1 million dollar settlement, 19% of which will go to the relator as her share of the Government’s recovery in the matter. The remaining $256,807.00 will be paid to the Alabama Medicaid Agency.
The settlement resolves allegations that, from October 1, 2012 through December 31, 2019, SpectraCare (1) knowingly submitted to Medicaid claims for reimbursement for services that were billed without complete and correct documentation, billed in duplicate, over-billed, or otherwise improperly billed, and/or (2) knowingly made, used, or caused to be made or used, false records or statements material to SpectraCare’s obligation to return overpayments to Medicaid based on such improper billing procedures, and/or (3) knowingly, intentionally, or recklessly failed to repay, or to exercise reasonable diligence to determine whether it was obligated to repay, Medicaid for SpectraCare’s improper claim submissions and their attendant overpayments.
This Affirmative Civil Enforcement matter was handled by Assistant United States Attorney Samantha R. Miller and the Civil Health Care Fraud Investigator of the United States Attorney’s Office, with assistance from Assistant Attorney General James Hartin of the Office of the General Counsel for the Alabama Medicaid Agency. The case was investigated in conjunction with the Office of Inspector General for the United States Department of Health and Human Services. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Slidell Woman Pleads Guilty to Conspiracy to Commit Mail FraudRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that JILL LEWIS (“LEWIS”), age 40, resident of Slidell, Louisiana, entered a plea of guilty on July 21, 2021 to Conspiracy to Commit Mail fraud, in violation of Title 18, United States Code, Section 371, arising out of her involvement in a postal fraud scheme.
According to today’s guilty plea, beginning on or before January 31, 2014, through in or around January 2016, LEWIS and a co-conspirator conspired to submit numerous false insurance claims for reimbursement to the United States Postal Service (“USPS”), causing the USPS to mail checks to LEWIS and a co-conspirator for approximately $42,000. For example, LEWIS and a co-conspirator falsely represented to the USPS that they had sent expensive jewelry and other items through the mail and that the USPS lost the items. In connection with the false claims, LEWIS and a co-conspirator submitted forged invoices from retailers to the USPS to support the reimbursement amounts. The false claims and forged documents caused the USPS to send the reimbursement checks to LEWIS and a co-conspirator through the mail.
LEWIS faces a maximum sentence of five (5) years imprisonment, and a fine of up to $250,000.00 or twice the gross gain to the defendant or twice the gross loss to any person of the offense under Title 18, United States Code, Section 3571. After any term of imprisonment that may be imposed, LEWIS also faces a term of supervised release of up to (3) three years. Per the terms of the plea, restitution to the USPS in the amount of approximately $42,749.74 is owed.
Sentencing is scheduled for December 1, 2021 before U.S. District Judge Sarah S. Vance.
The U.S. Attorney’s Office would like to acknowledge the work of the United States Postal Service, Office of Inspector General, for its work in investigating this case. The case is being prosecuted by Assistant United States Attorney Shirin Hakimzadeh.
Serial Robber Sentenced to 13 Years in Federal PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paula Xinis sentenced Shaykh Abdul-Majid, age 34, of Washington, D.C. to 13 years in federal prison, followed by five years of supervised release, for committing a series of armed robberies and for brandishing a firearm in relation to a violent crime.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Malik Aziz of the Prince George’s County Police Department.
According to his plea agreement, from March 28, 2020 to July 5, 2020 Abdul-Majid committed at least four robberies in which he posed as a customer before pointing a semi-automatic handgun at a victim employee, demanding store proceeds, and obtaining funds.
Specifically, on July 5, 2020, Abdul-Majid posed as a customer at a Kettering, Maryland business and pointed a silver and black handgun at a victim employee while demanding store proceeds. The victim employee complied with the demands and gave Abdul-Majid $200 in store funds. Abdul-Majid then instructed the victim employee to move to the store’s back storage area. Fearing that he would be shot, the victim employee attempted to remove the handgun from Abdul-Majid’s possession. During the struggle for the handgun, two rounds of ammunition were discharged. Neither round struck the victim employee, but his hands and fingers were badly cut as he tried to prevent the handgun’s slide from racking as casings were ejected. After the struggle, Abdul-Majid fled on foot with the stolen funds. In each robbery, Abdul-Majid drove the same vehicle with identifying Washington, D.C. registration plates.
As stated in the plea agreement, on July 7, 2020, detectives located Abdul-Majid’s vehicle in Washington, D.C. while Abdul-Majid was inside the vehicle. Upon seeing law enforcement, Abdul-Majid fled from his vehicle on foot. While a K-9 search was being conducted, Abdul-Majid announced his presence to law enforcement as the K-9 was searching the area where he was hiding. Abdul-Majid was then taken into custody.
Law enforcement executed a search warrant on Abdul-Majid’s vehicle and recovered a black-colored ball cap with the word “SLANE” stitched above the bill as well as a red glove. Both items are consistent with the items worn by Abdul-Majid in two of the robberies. Officers also recovered a victim’s wallet, five cell phones, a silver and black handgun, and $43.00 in cash.
In total, the four victim businesses Abdul-Majid robbed experienced a loss of at least $8,550.
Acting United States Attorney Jonathan F. Lenzner praised the FBI and the Prince George’s County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Kelly O. Hayes who prosecuted the case.
# # #
Sentencing of drug trafficker wraps up prosecution of Richmond County narcotics conspiracyRead the Press Release
AUGUSTA, GA: With the sentencing of the lead defendant, the prosecution of a major Richmond County drug trafficking conspiracy has resulted in convictions of all eight defendants – including a man and two sons.
Terrance Quain Freeman, 50, of Augusta, was sentenced to 100 months in federal prison after pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Chief Judge J. Randal Hall also ordered Freeman to pay a fine of $2,500 and serve four years of supervised release after completion of his prison sentence. There is no parole in the federal system.
“Multiple law enforcement partners at all levels worked together to identify, infiltrate and terminate this conspiracy that imported significant amounts of illegal drugs into the Richmond County area,” said Acting U.S. Attorney Estes. “This sentence slams the prison door on poison profiteers who no longer will plague the greater Augusta community.”
The 2019 indictments in USA v. Freeman, et. al., a two-year investigation initiated by the Richmond County Sheriff’s Office and the U.S. Drug Enforcement Administration, with assistance from the Columbia County Sheriff’s Office and the Aiken County Sheriff’s Office, identified Freeman as the leader of a drug trafficking conspiracy in the Augusta area. Mario Hubbard, 45, of Atlanta, was found to be Freeman’s source of supply for cocaine. The conspiracy involved the sale of kilograms of cocaine, as well as amounts of crack cocaine marijuana.
During the investigation of Operation Snowfall – so named because of the large quantities of powder cocaine involved – DEA agents and sheriff’s office investigators seized more than $500,000 in cash, more than two kilos of cocaine, 32 grams of crack cocaine and more than 9 pounds of marijuana, along with eight firearms.
Hubbard previously pled guilty to an Information charging him with Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana, and Conspiracy to Commit Money Laundering. The plea subjects Hubbard to a statutory sentence of up to 40 years in prison, and he has agreed to the forfeiture of a residence in Smyrna alleged to have been purchased with drug trafficking proceeds.
Six other defendants previously pled guilty in the investigation, including:
- Timothy Jeremy Myers, 33, of Augusta, sentenced to 96 months in prison followed by three years of supervised release and ordered to pay a fine of $1,500 after pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana;
- Timothy Dale Reid, 53, of Augusta, awaiting sentencing after pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana. Reid is a half-brother of Terrance Freeman.
- Willie Antonio Bass, 37, of Augusta, sentenced to 48 months in prison followed by three years of supervised release and ordered to pay a fine of $1,500 after pleading guilty to Possession of a Firearm by a Convicted Felon;
- Tyquain Freeman, 29, of Augusta, sentenced to 70 months in prison followed by three years of supervised release and ordered to pay a fine of $1,500 after pleading guilty to Conspiracy to Possess with Intent to Distribute and To Distribute Cocaine and Marijuana. He is a son of Terrance Freeman.
- Christopher Chin, 36, of Augusta, sentenced to 151 months in prison followed by three years of supervised release and ordered to pay a fine of $1,500 after pleading guilty to Possession with Intent to Distribute Cocaine, Crack Cocaine and Marijuana; and,
- Quieaton Freeman, 22, of Augusta, awaiting sentencing after pleading guilty to Possession of Firearms by an Illegal Drug User. He is a son of Terrance Freeman.
More than a dozen other defendants faced state charges in the investigation.
“The sentencing of the lead defendant in this case closes the door on an organization that once profited from peddling cocaine in the Richmond County area,” said Robert J. Murphy, Special Agent in Charge of the DEA Atlanta Field Division. “DEA and its law enforcement partners worked tirelessly to ensure that Richmond County citizens trust their community is a safe place to live. Terrance Freeman will spend well-deserved time in prison.”
“I applaud the federal and local partners who assisted in this investigation,” said Richmond County Sheriff Richard Roundtree. “Targeting organizations will have the greatest impact on the drug trade, and we remind area citizens that these multijurisdictional efforts will continue.”
The case was investigated under the Organized Crime Drug Enforcement Task Forces (OCDETF). OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
The investigation was conducted by the U.S. Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Richmond County Sheriff’s Office, the Columbia County Sheriff’s Office, the Aiken County Sheriff’s Office, the Dekalb County HIDTA Task Force, the Greene County Sheriff’s Office, and the Georgia National Guard Counterdrug Task Force, and prosecuted for the United States by Assistant U.S. Attorneys Patricia G. Rhodes and Hank Syms.
Round Rock Man Sentenced to Life in Prison for Sexual Abuse of ChildrenRead the Press Release
PHOENIX, Ariz. – On Wednesday, Robert Jim, 59, of Round Rock, Arizona, was sentenced by U.S. District Judge David G. Campbell to life in prison, plus ten years. Jim, a registered sex offender, was previously found guilty by a jury of aggravated sexual abuse of two children.
The sexual abuse took place on the Navajo Nation Indian Reservation, where Jim and the victims are tribal members.
The Federal Bureau of Investigation and the Navajo Nation Department of Criminal Investigation conducted the investigation in this case. Assistant U.S. Attorneys Tracy Van Buskirk and Kiyoko Patterson, District of Arizona, Phoenix, handled the prosecution.
CASE NUMBER: CR-18-8225-PCT-DGC
RELEASE NUMBER: 2021-044_Jim# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Rip crew gets significant sentences for multiple violent crimesRead the Press Release
HOUSTON – Three illegal aliens from Central America have been ordered to prison following their multiple convictions involving conspiracy to rob a drug dealer, drug trafficking, as well as firearms and immigration offenses, announced Acting U.S. Jennifer B. Lowery.
The jury deliberated for less than four hours before convicting Nestor Henriquez-Parada, aka Homie, 37, Edwin Martinez-Brilia, aka Jarrito, 42, and Josue Marquez-Oseguera, aka Nahun, 37, Sept. 4, 2019, following a nearly three-week trial. Christain Benjhamin Martinez-Meraz, aka Peludo, 39, pleaded guilty in the middle of trial. All had repeatedly and unlawfully re-entered the United States.
Today, U.S. District Judge David Hittner handed Martinez-Meraz a 220-month sentence, while Martinez-Brilia and Marquez-Oseguera received respective total sentences of 205 and 210 months in federal prison. Not U.S. citizens, all are expected to again face removal following their incarceration. At the hearing, the court heard evidence about numerous robberies they committed prior to their arrests for these charges, multiple previous deportations and other convictions. One of those noted was a violent assault Martinez-Brilia committed against his wife.
Henriquez-Parada is set for sentencing July 30.
The four men were “Tumbadores” known to be part of a “rip crew” who engage in armed robberies of game rooms, drug dealers, alien smugglers and human traffickers.
During trial, the jury heard from a total of 24 witnesses and saw 38 exhibits.
The jury heard the crew was involved in several robberies, or “rips,” in the Houston area.
Martinez-Meraz decided to plan a robbery of a local drug dealer and employed the three others as his crew. They thought a pickup truck was coming to Houston from Mexico and contained 25 kilograms of cocaine and five kilograms of meth, but later heard drugs were actually located at a residence in Houston. They went there armed with a sledgehammer and three loaded firearms, one of which had an extended magazine.
Martinez-Brilia was the armed getaway driver, while the other three forced their way into the house. Marquez-Oseguera was armed with a sledgehammer and used it to knock down several doors in the house while Martinez-Meraz and Henrinquez-Parada were armed with firearms. They eventually broke into a closet and found what they thought were drugs. Law enforcement apprehended them as they were preparing to move the narcotics to the truck.
Authorities later executed a search of Martinez-Meraz’s residence and recovered additional drugs, a loaded assault rifle and several other magazines containing ammunition.
All have been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations conducted the investigation along with Houston Police Department, Texas Department of Public Safety and Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorneys Adam Laurence Goldman and Lisa Marie Collins are prosecuting the case.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man convicted Possession of a Firearm by a Prohibited Person was sentenced by Jeffrey L. Viken, U.S. District Judge.
Kyle Martin, age 29, was sentenced on July 12, 2021, to 22 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100.00 special assessment to the Federal Crime Victims Fund.
The conviction stems from Martin, who is a previously convicted felon and prohibited from possessing firearms, being found in possession of a Smith & Wesson, model 581, .357 Magnum caliber, double-action revolver, which was found after Martin came into contact with law enforcement in March 2020 in Rapid City.
This case is part of Project Safe Neighborhood (PSN), the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Martin was immediately remanded to the custody of the U.S. Marshals Service.
Pensacola Man Sentenced to Eleven Years in Federal Prison for Child Exploitation CrimesRead the Press Release
PENSACOLA, FLORIDA – On Thursday afternoon, David E. Merry, 60, of Pensacola, was sentenced to eleven years in prison on federal charges related to his receipt of child pornography. The sentence, which followed his guilty plea, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
Court documents reflect, in February 2019, officers with the Pensacola Police Department received information from the National Center for Missing and Exploited Children that a particular online account with Google maintained child pornography. Homeland Security Investigations and the Pensacola Police Department were able to geo-locate the criminal activity of Merry to Pensacola. The Pensacola Police Department, through a records check, confirmed that Merry was a suspect in two prior child exploitation investigations in 2016 and 2017. Law enforcement obtained a search warrant for Merry’s Google account, identifying the child pornography he maintained in the cloud. Law enforcement then obtained and executed a search warrant at Merry’s residence, resulting in the seizure of multiple electronic devices. A forensic review of the seized items revealed thousands of images of child pornography. Merry was arrested and released on bond conditions. While on release, probation officers suspected that Merry continued his illicit activity, and federal agents were able to seize his newly obtained cellular telephone and search it pursuant to a warrant. Additional images of child pornography were located, and Merry was taken into custody without bond. He has been in custody awaiting sentencing since that time.
During the sentencing hearing, United States District Court Judge M. Casey Rodgers considered a prior offense in which Merry was identified as having sexually exploited a minor female.
“The abuse committed by this child predator has come to an end as a result of the vigilant efforts of our law enforcement partners,” stated Acting U.S. Attorney Coody. “We will continue to work tirelessly with our law enforcement partners to ensure that those who engage in such heinous conduct will be held accountable for their actions.”
“Merry will now face accountability for his continued delight in the disgusting images of children being exploited,” said Acting Special Agent in Charge Kevin Sibley, who oversees Homeland Security Investigations (HSI) operations in Northern Florida. “Every time one of these images is shared or viewed it revictimizes an innocent person.”
“This sentence is an example of the great partnership between Pensacola Police and the U.S. Department of Justice,” said Pensacola Police Chief Eric Randall. This team is determined to hold those fully accountable who seek to do harm to our children.”
Following his 11-year term of imprisonment, Merry will be supervised by the United States Probation Office for the rest of his life.
The case was investigated by United States Homeland Security Investigations, the Pensacola Police Department, and the North Florida Internet Crimes Against Children Task Force. The case was prosecuted by Assistant United States Attorneys David L. Goldberg and Meredith L. Steer.
The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Pair Sentenced for Fraud Against Fort Wayne Company and Ordered to Pay $2.9 Million in RestitutionRead the Press Release
FORT WAYNE – Brian Nordan, 44, and Dustin Coleman, 43, both of Cassopolis, Michigan, were sentenced by United States District Court Judge Damon R. Leichty upon their pleas of guilty to wire fraud, announced Acting U.S. Attorney Tina L. Nommay.
Brian Nordan was sentenced to 42 months in prison, 2 years of supervised release and ordered to pay $2,981,357.05 in restitution.
Dustin Coleman was sentenced to 6 months in prison, 12 months of supervised release and ordered to pay 149,756.00 in restitution.
In March 2006, a dentist and owner of a local dental practice hired Brian Nordan to work as the chief marketing officer and general manager of the dental practice. Eventually, Nordan was trusted to take on even more responsibility for the day-to-day management of the dental practice. In this role, Nordan was eventually paid an annual salary of $250,000.00 per year. As general manager, Nordan was trusted to make decisions in the best interests of the dental practice and its over 100 employees.
In the spring of 2018, the owner of the dental practice became aware that Nordan had been fraudulently misappropriating funds from the dental practice for years through multiple schemes. Forensic accountants discovered that, among other mechanisms of fraud, Nordan had made use of company funds (through company credit cards and reimbursement checks) to pay for unauthorized personal expenses, used company funds to pay his personal credit cards, paid wages and benefits to his husband and sister when they were not actually working for the company, and had made unauthorized investments with his employer's money into a toothpaste company of which he was one of the owners, which sold toothpaste back to the dental practice at greatly marked-up rates. A forensic accounting determined the total fraud loss from Nordan’s fraudulent schemes, self-dealing, and unauthorized enrichment of family members to be $3,038,857.05.
Coleman was Nordan’s domestic partner and eventual spouse who was hired by Nordan in 2012 to work on marketing for the business. Although it was found he did some work for the business, the dentist-owner of the practice did not know nor approve of Coleman’s employment. From 2016-2018, Coleman received $149,756.00 in wages and benefits to which he was not entitled as a result of this “ghost employment” scheme.
This case was investigated by the FBI’s Indiana Financial Crimes Task Force with the assistance of the Organized Crime and Corruption Unit of the Indiana State Police. This case was prosecuted by Acting United States Attorney Tina L. Nommay and Assistant United States Attorneys Sarah E. Nokes and Luke N. Reilander.
###
Owner of Tax Preparation Business Sentenced to Federal Prison for Defrauding the Internal Revenue ServiceRead the Press Release
SHREVEPORT, La. – Angelena Adams, 52, of Princeton, Louisiana, was sentenced today by United States District Judge Elizabeth E. Foote to spend 27 months in prison, followed by 1 year of supervised release and restitution to be paid in the amount of $188,328, for defrauding the Internal Revenue Service (IRS), Acting United States Attorney Alexander C. Van Hook announced.
Angelena Adams, a.k.a Angelena Morris, was indicted by a federal grand jury on tax fraud charges in May 2020. She pleaded guilty on March 15, 2021 to making and subscribing to a false return. Adams worked in the tax return preparation business from 2008 through 2015. Beginning in 2012 and continuing through 2015, Adams opened and operated Angie’s Tax Service, a tax return preparation business in Ringgold, Louisiana.
Angie’s Tax Service prepared and submitted client tax returns electronically to the IRS. The business income from Angie’s Tax Service was deposited into Adams’ personal bank account. Adams did not report the income from the business on her Form 1040, U.S. Individual Income Tax Return for tax years 2013, 2014 and 2015 which, as a result, greatly reduced her adjusted gross income for those tax years. On or about October 15, 2014, Adams completed and filed a false tax return for tax year 2013 stating that her adjusted gross income in 2013 was $166,011, when in truth and in fact, her adjusted gross income was substantially more than that, with gross receipts totaling $702,855 during 2013 for tax return preparation.
The IRS – Criminal Investigation conducted the investigation and Assistant U.S. Attorney Jessica D. Cassidy prosecuted the case.
# # #
One Officer, Two Sergeants, and a Lieutenant Charged in Connection with Assault of a Federal Pretrial DetaineeRead the Press Release
NEWARK, N.J. – One Essex County correctional officer, two sergeants, and one lieutenant were indicted for civil rights violations in connection with the assault of a federal pretrial detainee, Acting U.S. Attorney Rachael A. Honig announced today.
Officer Damion James, 41, was charged with assaulting the pretrial detainee in violation of his civil rights. Sgt. Herman Pride, 51, Sgt. Jennifer Whitley, 38, and Lt. Nicholas Palma, 46, were charged with failing to intervene to stop the assault. Sgt. Whitley was additionally charged with submitting a false report to cover up the assault. All four defendants will be arraigned on a date to be determined.
According to documents filed in this case:
On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility (ECCF) squirted a mixture of urine, yogurt, and milk onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where James assaulted the detainee, striking him multiple times in the body and face. Pride, Whitley, and Palma watched the assault, but none of them intervened to stop it.
Two days after the assault, the detainee was taken to the emergency room at University Hospital in Newark. He was diagnosed with large swelling and tenderness in the right side of his face and discoloration and bruising around his right eye.
The defendants all were required to submit documentation regarding their use of force. None of them submitted any such reports. Instead, Whitley submitted a report falsely indicating that no force had been used, when, in fact, Whitley, Pride, and Palma had watched James repeatedly assault the pretrial detainee. Officer Angel Chaparro previously pleaded guilty to his role in the submission of the false report.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the Essex County Correctional Facility Internal Affairs Bureau, under the direction of Director Alfaro Ortiz and the Office of the Warden, with the investigation leading to the charges.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Ohio Man Sentenced to Federal Prison for Drug CrimeRead the Press Release
CHARLESTON, W.Va. – A Cleveland, Ohio man was sentenced today to 37 months in federal prison for a drug crime. James Lavan, 45, previously pleaded guilty to possession with intent to distribute heroin.
According to court documents and statements made in court, Lavan admitted that on June 12, 2019, members of the Charleston Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) executed a search warrant on his girlfriend’s vehicle and seized over 70 grams of heroin from his tool bag in the truck. Lavan admitted he intended to sell the heroin. During the search, law enforcement officers also recovered two firearms.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department and the Drug Enforcement Administration (DEA).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorneys Nowles Heinrich, Jeremy B. Wolfe and former Assistant United States Attorney Ryan A. Saunders handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:19-cr-00233.
###
North Carolina Tax Preparer Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
A North Carolina return preparer was sentenced today to 15 months in prison for conspiring to defraud the IRS.
According to court documents and statements made in court, from 2012 through 2016, Audrey Renetta Odom, of Durham, conspired with Karen Jones and Andrea Pasley to prepare false returns for clients. The returns fraudulently lowered the clients’ tax liabilities or inflated their refunds by claiming false education credits or dependents or by manipulating the clients’ income to qualify for larger earned income tax credits. Odom admitted that some clients were charged up to $2,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the tax loss is over $1.2 million.
Jones pleaded guilty to conspiracy to defraud the IRS on Nov. 5, 2020, and was sentenced to 22 months in prison for her role in the conspiracy. Pasley pleaded guilty to conspiracy to defraud the IRS on May 6 and is scheduled to be sentenced on Oct. 29.
In addition to the term of imprisonment, U.S. District Judge William L. Osteen Jr. ordered Odom to serve three years of supervised release and to pay approximately $1,239,847 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division prosecuted the case.
North Carolina Tax Preparer Sentenced to Prison for Conspiring to Defraud the IRSRead the Press Release
WASHINGTON – A North Carolina return preparer was sentenced today to 15 months in prison for conspiring to defraud the IRS.
According to court documents and statements made in court, from 2012 through 2016, Audrey Renetta Odom, of Durham, conspired with Karen Jones and Andrea Pasley to prepare false returns for clients. The returns fraudulently lowered the clients’ tax liabilities or inflated their refunds by claiming false education credits or dependents or by manipulating the clients’ income to qualify for larger earned income tax credits. Odom admitted that some clients were charged up to $2,000 for preparing returns. Based on an analysis of the falsely claimed education credits, the tax loss is over $1.2 million.
Jones pleaded guilty to conspiracy to defraud the IRS on Nov. 5, 2020, and was sentenced to 22 months in prison for her role in the conspiracy. Pasley pleaded guilty to conspiracy to defraud the IRS on May 6 and is scheduled to be sentenced on Oct. 29.
In addition to the term of imprisonment, U.S. District Judge William L. Osteen Jr. ordered Odom to serve three years of supervised release and to pay approximately $1,239,847 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina made the announcement.
IRS-Criminal Investigation investigated the case.
Assistant Chief Todd Ellinwood and Trial Attorney Kavitha Bondada of the Tax Division prosecuted the case.
###
New York Man Pleads Guilty to Passing Altered Postal Money Orders and TheftRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that ANTHONY SMALLS, age 32, of New York, New York, pleaded guilty on July 22, 2021 to conspiracy to pass altered U.S. Postal money orders, passing altered U.S. Postal money orders and possessing stolen U.S. government property today before United States District Court Judge Carl J. Barbier of the Eastern District of Louisiana.
According to court records, SMALLS and a co-defendant who has not yet pled, travelled from New York to Louisiana in October of 2019 to cash stolen U.S. Postal money orders that had been altered to show amounts worth hundreds of dollars. SMALLS and the co-defendant cashed two such postal money orders in Kenner and Metairie, LA. When arrested, the defendants also possessed 58 U.S. Postal money orders that they had stolen from an Ascension Parish U.S. Post Office the day before.
SMALLS faces a sentence of up to ten years in prison on the possession of stolen U.S. government property charge and up to five years in prison for each of the Postal money order charges. SMALLS also faces for each of the three charges up to $250,000 in fines, a mandatory $100 special assessment fee and up to three years of supervised release. Sentencing is set for October 28, 2021.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, along with assistance from the Louisiana State Police - Criminal Investigations Department, Jefferson Parish Sheriff’s Office and Ascension Parish Sheriff’s Office, in investigating this matter. Assistant U.S. Attorney Edward J. Rivera is in charge of the prosecution.
* * *
New Orleans Man Pleads Guilty to Carjackings and Weapons ChargesRead the Press Release
NEW ORLEANS, LOUISIANA - U.S. Attorney Duane A. Evans announced that defendant KAHLIQ WILLIAMS, of New Orleans, Louisiana, pled guilty on July 20, 2021 before U.S. District Court Judge Greg G. Guidry to carjacking, brandishing a firearm in furtherance of a crime of violence, and burglary of a federal firearms licensee.
Specifically, WILLIAMS pled guilty to Counts One through Four of the Indictment. WILLIAMS pled guilty to Count One and Four, which charge him with two separate carjackings, both in violation of Title 18, United States Code, Section 2119(1). WILLIAMS also pled guilty to Count Two, which charges him with brandishing a firearm in furtherance of a crime of violence, that is, a carjacking, in violation of Title 18, United States Code, Section 924(c)(1)(A)(ii). Finally, WILLIAMS pled guilty to Count Three, which charges him with burglary of a Federal Firearms Licensee (“FFL”), in violation of Title 18, United States Code, Section 922(u).
As to Counts One and Four, WILLIAMS faces a maximum sentence of 15 years imprisonment, a fine of up to $250,000, and up to three years supervised release. As to Count Two, WILLIAMS faces a mandatory minimum sentence of seven years up to a maximum of life imprisonment, to be run consecutive to any other sentence imposed, a fine of up to $250,000 and up to three years of supervised release. Finally, as to Count Three, WILLIAMS faces a maximum sentence of 10 years imprisonment, a fine of up to $250,000, and up to three years supervised release. WILLIAMS faces a mandatory $100 special assessment cost for each count of conviction and his sentencing is scheduled for October 19, 2021.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice's violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Evans praised the work of the Bureau of Alcohol, Tobacco, and Firearms. The case is being prosecuted by Assistant United States Attorney Inga Petrovich of the Violent Crime Unit of the U.S. Attorney's Office.
New Jersey Man Indicted on Child Pornography ChargesRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Middletown, New Jersey, man has been indicted by a federal grand jury for Receipt of Child Pornography and Possession of Child Pornography.
James W. Williams, age 26, was indicted on May 20, 2021. Williams appeared before U.S. Magistrate Judge Daneta Wollmann on July 16, 2021, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in federal prison and/or a $250,000 fine, up to lifetime supervised release, and $100 to the Federal Crime Victims Fund for each charge. Restitution may also be ordered.
The charges relate to Williams receiving and possessing computer images of child pornography between November 2019 and December 2020 in South Dakota. The charges are merely accusations and Williams is presumed innocent until and unless proven guilty.
The investigation is a joint effort between Homeland Security Investigations, the South Dakota Division of Criminal Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Heather Sazama is prosecuting the case.
Williams was released on bond pending trial. A trial date has been set for September 21, 2021.
New Jersey Man Convicted of Conspiring to Defraud IRS in Mortgage-Withholding Tax SchemeRead the Press Release
A federal jury convicted a New Jersey man today of conspiring with individuals in Georgia, North Carolina, Virginia and New York in a “mortgage recovery” tax fraud scheme and for assisting in the filing of false returns, among other tax offenses.
According to court documents and evidence presented at trial, from March 2015 through 2016, John Barry Jr., of Pemberton, and his co-conspirators falsely represented to clients that they could extinguish their outstanding mortgage debts by obtaining tax refunds. To carry out the scheme, Barry and his co-conspirators filed forms with the IRS that fraudulently claimed that financial institutions had withheld and paid over to the IRS substantial taxes on behalf of Barry’s clients, even though no such payments had occurred. Barry then directed clients to file false tax returns that claimed significant refunds based upon the bogus tax withholdings. These false withholding claims caused the IRS to issue more than $3 million in refunds to clients. Barry typically charged each client a fee of between 20 and 35 percent of the refund the client obtained, and then split fees with some co-conspirators.
In addition to his participation in the “mortgage recovery scheme,” Barry did not file his own 2016 return despite earning income in excess of filing threshold, nor did Barry report or pay taxes on the income generated from the scheme in that tax year.
Barry is scheduled to be sentenced on December 1 and faces a maximum penalty of five years’ imprisonment for conspiracy to defraud the IRS, three years’ imprisonment for each count of aiding and assisting the filing of false tax returns, three years’ imprisonment for obstructing the internal revenue laws, and one year of imprisonment for failing to file a tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigations investigated the case.
Trial Attorneys Sean M. Green and Samuel B. Bean of the Justice Department’s Tax Division are prosecuting the case.
Mount Olive Father and Son Sentenced to over 14 Years in Federal Prison for Possession with Intent to Distribute MethamphetamineRead the Press Release
Hattiesburg, Miss. – A Mount Olive father and son were both sentenced today to 170 months in federal prison for possession with intent to distribute methamphetamine, announced Acting U.S. Attorney Darren J. LaMarca and Brad Byerley, Special Agent in Charge of the Drug Enforcement Administration.
According to court documents, Steven Lawrence Hand, 53, and Steven Tyler Hand, 29, of Mount Olive, sold methamphetamine to an individual on multiple occasions in August of 2019 and both were found to be in possession of additional methamphetamine during a search of their respective residences on July 23, 2020.
The defendants were indicted by a federal grand jury and both pled guilty to one count of possession with intent to distribute 50 grams or more of a mixture or substance containing a detectable amount of methamphetamine.
The case is the result of an extensive Organized Crime Drug Enforcement Task Forces (OCDETF) investigation, dubbed “Operation: Bulldog,” which began as an operation targeting illegal methamphetamine distribution in south Mississippi. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
The Drug Enforcement Administration and the Mississippi Bureau of Narcotics investigated the case.
Assistant U.S. Attorney Keesha D. Middleton prosecuted the case.
Manager of Marijuana Cultivation on Shasta Trinity National Forest Sentenced to 10 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — Filemon Padilla Martinez, 56, of Mexico, was sentenced Thursday by U.S. District Judge Morrison C. England Jr. to 10 years in prison for conspiring to manufacture marijuana and depredation of federal lands, Acting U.S. Attorney Phillip A. Talbert announced.
Judge England also ordered Padilla Martinez to pay $24,778 in restitution.
According to court documents, Padilla Martinez conspired with three co-defendants to grow marijuana in the Tomhead Mountain area in Shasta-Trinity National Forest. Padilla Martinez recruited, trained, and supplied two of these co-defendants, whom he left to live and work on the site while he stayed either at a nearby stash house or at his residence in Ione, California. The marijuana grow on Tomhead Mountain consisted of 1,054 marijuana plants.
This case is the product of an investigation by the U.S. Forest Service, the Tehama County Sheriff’s Department, and the California Department of Fish and Wildlife with assistance from the Amador County Sheriff’s Office and the California Department of Justice. Assistant U.S. Attorney Adrian T. Kinsella is prosecuting the case.
Oscar Francisco-Diego and Francisco Gomez Sanchez, two of Padilla Martinez’s co-defendants, have been previously sentenced for their role in the conspiracy. Timothy Charles Wilson, the remaining co-defendant, is currently pending trial. The charges against Wilson are only allegations; he is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Man Who “Systematically Groomed” a Child for Sexual Gratification Sentenced to over Twenty-Eight Years in PrisonRead the Press Release
A man who took photographs of a child performing a sex act was sentenced today to more than twenty-eight years in federal prison.
Terrance Sullivan, age 63, from Waterloo, Iowa, received the prison term after a March 8, 2021 guilty plea to the sexual exploitation of a child.
At the guilty plea, Sullivan admitted that in September of 2019, he photographed a minor engaged in sexually explicit conduct with a Nikon digital camera. At sentencing, the judge noted that Sullivan “systematically groomed” the child to “obtain her trust” for his own sexual gratification. Sullivan’s actions required thoughtful planning, as he locked the door behind him in order to orchestrate taking photographs of the child, which he admitted he knew he should not be doing but thought it was fun.
Sullivan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Sullivan was sentenced to 346 months’ imprisonment and fined $100. He was also assessed additional assessments of $5,000. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
Sullivan is being held in the United States Marshal’s custody until he can be transported to a federal prison. The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Waterloo Police Department.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2021.
Follow us on Twitter @USAO_NDIA.
Leader of Drug Trafficking Organization ArrestedRead the Press Release
CAMDEN, N.J. – A leader of a drug trafficking organization operating in southern New Jersey and Philadelphia, Pennsylvania, was arrested after previously being charged for his role in a drug distribution conspiracy, Acting U.S. Attorney Rachael A. Honig announced today.
Glen Long, aka “Bless,” 27, of Philadelphia, made his initial appearance before U.S. Magistrate Judge Karen M. Williams in Camden federal court later today. Long was charged in March 2021 with one count of conspiring to distribute crystal methamphetamine and heroin.
According to documents filed in this case and statements made in court:
Using undercover agents, consensual recordings, controlled drug purchases, electronic surveillance, search warrants, and several court-authorized wiretaps, DEA special agents and task force officers conducted a months-long investigation of a drug trafficking organization led by Long. Long oversaw the organization and directed his conspirators to distribute large quantities of various types of drugs to others.
Thirteen other people have been charged via criminal complaints for their roles in this drug distribution conspiracy. Each defendant, including Long, faces one count of conspiracy that is punishable by a mandatory minimum of 10 years in prison and a maximum of life in prison and a $10 million fine.
Long also faces separate drug charges in an indictment pending in the Eastern District of Pennsylvania for which he was has been ordered detained pending trial.
Acting U.S. Attorney Honig credited special agents with the Drug Enforcement Administration, Newark Division, under the direction of Special Agent in Charge Susan A. Gibson, with the investigation leading to the charges against Long and his conspirators. She also thanked the U.S. Attorney’s Office for the Eastern District of Pennsylvania; Drug Enforcement Administration, Philadelphia Division; U.S. Department of Homeland Security – Homeland Security Investigations; U.S. Marshals Service; FBI; Bensalem Police Department; Berlin Borough Police Department; Berlin Township Police Department; Bucks County District Attorney’s Office; Camden County Prosecutor’s Office; Clayton Police Department; Delaware County District Attorney’s Office Narcotics Task Force; Deptford Township Police Department; Gloucester County Prosecutor’s Office; Gloucester Township Police Department; New Jersey State Police; New Jersey National Guard Counter Drug Task Force; Pennsylvania State Police; Pennsville Police Department; and Winslow Township Police Department for their assistance.This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The government is represented by Assistant U.S. Attorney Jeffrey Bender of the U.S. Attorney’s Office in Camden.
The charges and allegations contained in the complaints and indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Lauderdale Man Sentenced to Six Years in Prison for Illegally Possessing a FirearmRead the Press Release
Jackson, Miss. – A Lauderdale, Mississippi man was sentenced today to 72 months in prison for being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, Levi Gibbs, Jr., 51, knowingly and intentionally possessed a firearm after having been convicted of a felony offense. On March 27, 2020, officers of the Meridian Police Department stopped a vehicle being driven by Gibbs after an officer observed Gibbs crossing over the center line of the road and speeding. When an officer approached the passenger side of the vehicle, he saw a pistol in an ankle holster on Gibbs’ right leg. The officer checked Gibbs’ criminal record and discovered that Gibbs was a convicted felon. In fact, Gibbs has multiple felony convictions, several of which are for drug crimes. Gibbs is currently under indictment from the Circuit Court of Lowndes County, Mississippi for Armed Robbery. As a convicted felon it is against federal law for Gibbs to possess any firearm.
The Federal Bureau of Investigation and the Meridian Police Department investigated the case.
Assistant U.S. Attorney Charles W. Kirkham prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Las Vegas Resident Sentenced for Robbing Two U.S. Postal Service Mail CarriersRead the Press Release
LAS VEGAS, Nev. — A Las Vegas resident was sentenced Thursday to two years in prison for robbing two U.S. Postal Service (USPS) mail carriers while they were delivering the mail.
According to court documents, on January 18, 2020, Rodolfo Rafael Rodriguez-Silva, 21, and another individual — each wearing a ski mask — robbed a USPS mail carrier who was delivering mail. Rodriguez-Silva intimidated the mail carrier while the other person stole mail from the USPS vehicle. One week later on January 25, Rodriguez-Silva accosted another USPS mail carrier while wearing a mask. Rodriguez-Silva stated to the mail carrier, who was delivering mail in North Las Vegas: “I don’t want to hurt you, get to the side of the vehicle.” An individual with Rodriguez-Silva then stole mail from the USPS vehicle.
Rodriguez-Silva pleaded guilty in November 2020 to two counts of robbery of mail, money, or property of the United States. In addition to the prison term, U.S. District Judge Richard F. Boulware II sentenced Rodriguez-Silva to two years of supervised release.
Acting U.S. Attorney Christopher Chiou for the District of Nevada made the announcement.
This case was investigated by the U.S. Postal Inspection Service. Assistant U.S. Attorneys Kimberly Frayn and Daniel Clarkson prosecuted the case.
###
Laredo man admits to smuggling meth in fire extinguishersRead the Press Release
LAREDO, Texas – A 40-year-old Laredo man has entered a guilty plea to conspiracy to possess with intent to distribute meth, announced Acting U.S. Attorney Jennifer B. Lowery.
Between Oct. 10-26, 2016, Jesus Gabriel Vara-Perez conspired with others to deliver fire extinguishers containing approximately 24 kilograms of meth to Atlanta, Georgia. He also admitted he received $8,000 for his participation in the meth transportation.
He was arrested in Laredo Sept. 23, 2020, at which time he was in possession of more fire extinguishers containing an additional 17 kilograms of meth.
The drugs had a combined estimated street value of more than $320,000.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date yet to be determined. At that time, Vara-Perez faces up to life in prison and a possible $10 million maximum fine. He was taken into custody pending that hearing.
The Drug Enforcement Administration conducted the investigation. Assistant U.S. Attorney José Angel Moreno is prosecuting the case.
Knoxville and Chattanooga Gang Members Convicted of Drug, Firearm, and Money LaunderingRead the Press Release
KNOXVILLE, Tenn. – On July 23, 2021, a federal jury convicted Alim Turner, 23, Ushery Stewart, 22, Ronald Turner, 25, Kedaris Gilmore, 23, Mahlon Prater, Jr., 25, and Trevor Cox, 22, all of Knoxville, TN, and Demetrius Bibbs, 29, of Chattanooga, TN, of conspiring to distribute various controlled substances, including methamphetamine, heroin, fentanyl, marijuana, oxycodone, alprazolam, and buprenorphine. The jury also convicted various defendants, including Jyshon Forbes, 27, of Knoxville, of conspiracy to commit money laundering. In addition, multiple defendants were convicted of the possession of firearms in furtherance of drug trafficking offenses, and numerous other counts involving the illegal distribution of drugs and unlawful possession of firearms in East Tennessee.
The verdict follows a two-week trial in front of United States District Judge Thomas A. Varlan in which all eight defendants were tried together. The defendants face varying terms of imprisonment of up to life in prison and $10,000,000 in fines. Sentencing hearings for all eight defendants will be set for early 2022.
According to court documents, seven other charged members of the conspiracy previously pleaded guilty. The second superseding indictment resulted from an investigation conducted by the Federal Bureau of Investigation, United States Postal Inspection Service, Knoxville Police Department, Cleveland Police Department, Chattanooga Police Department, Hamilton County Sheriff’s Office, the Tennessee Department of Corrections, and the Tennessee Highway Patrol. The Tennessee Bureau of Investigation, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives also assisted in this investigation by conducting drug and firearms analysis on seized evidence in the case.
The proof presented at trial revealed that seven of the defendants were members of the Unknown Ghost Vice Lords in Knoxville and another defendant, Demetrius Bibbs, was a member of the Black P Stone Bloods in Chattanooga. The proof also showed that the members of the Unknown Ghost Vice Lords distributed kilogram quantities of methamphetamine and other drugs in the Knoxville and Chattanooga areas.
"This prosecution is part of the Department of Justice's comprehensive strategy to reduce violence and increase safety in the community by disrupting and dismantling violent criminal organizations that distribute highly addictive, dangerous, and deadly drugs, such as fentanyl and methamphetamine," said Acting United States Attorney Francis M. Hamilton III.
“This verdict demonstrates the FBI’s commitment to investigate violent criminal organizations and individuals who engage in this type of illegal activity. The teamwork between our agents and state and local law enforcement partners ensured there are fewer predators endangering and victimizing the vulnerable and innocent members of our community,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
“This conviction is the result of the vigorous cumulative efforts of the Knoxville Police Department and its law enforcement and prosecutorial partners to address violent crime head on and make our community safer. By bringing addictive and deadly drugs into our area, these drug trafficking organizations are directly responsible for unimaginable tragedy and senseless violence that fragments families and destabilizes communities. In addition to our Organized Crime Unit investigators and various law enforcement partners, I want to specifically commend the U.S. Attorney’s Office for the Eastern District of Tennessee for their extraordinary work on this case,” said Eve Thomas, Chief, Knoxville Police Department.
Assistant United States Attorneys David P. Lewen, Jr. and Brent N. Jones represented the United States.
This case was part of the Department's Organized Crime Drug Enforcement Task Force (OCDETF) and the HIDTA programs. OCDETF is the primary weapon of the United States against the highest level drug trafficking organizations operating within the United States, importing drugs into the United States, or laundering the proceeds of drug trafficking. The HIDTA program enhances and coordinates drug control efforts among local, State, and Federal law enforcement agencies. The program provides agencies with coordination, equipment, technology, and additional resources to combat drug trafficking and its harmful consequences in critical regions of the United States.
This case was also brought as part of Project Safe Neighborhoods (PSN), a comprehensive national program that brings together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. This program provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community faces.
###
Justice Department Obtains $50,000 Settlement Against Dallas Towing Company for Illegally Selling Five Cars Owned by U.S. ServicemembersRead the Press Release
The Justice Department today announced that Dallas towing company United Tows LLC has agreed to enter into a consent order to resolve allegations that it illegally sold five servicemember-owned vehicles, in violation of the Servicemembers Civil Relief Act (SCRA).
The SCRA is a federal law that provides a variety of financial and housing protections to members of the U.S. military. The law prohibits a towing company from selling a vehicle owned by a servicemember unless it first obtains a court order allowing it to do so.
The department filed a lawsuit against United Tows on Sept. 28, 2020, alleging that the company auctioned a car belonging to a man who was attending U.S. Air Force basic training in San Antonio, Texas. The complaint alleges that when the servicemember learned that his vehicle had been towed, he contacted United Tows and told them that he was out of town on active duty. According to the complaint, the owner of United Tows responded by telling the servicemember that she did not believe that he was in the military. United Tows sold the vehicle at auction without a court order while the servicemember was still completing his training requirements.
A subsequent investigation by the department revealed that United Tows had illegally sold at least four other vehicles owned by active duty servicemembers between Oct. 4, 2014, and April 26, 2019.
Under the proposed settlement, which is subject to approval by the U.S. District Court for the Northern District of Texas, United Tows must adopt new policies and implement new training requirements. United Tows will also be required to pay a total of $50,000: $20,000 in compensation to the originally identified servicemember; a $20,000 fund to be shared by the four additional servicemembers; and a $10,000 civil penalty to the U.S. Treasury.
“United Tows not only disregarded the legal rights of servicemembers, it made hurtful and dismissive comments about a member’s military service,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “The members of our armed forces selflessly devote themselves to the defense of our nation and are deserving of our respect and utmost consideration. The Department of Justice remains committed to the vigorous enforcement of the SCRA and all other laws that protect our servicemembers.”
“United Tows violated a victim’s rights while he was selflessly serving his country,” said Acting U.S. Attorney Prerak Shah for the Northern District of Texas. “We were appalled to learn that this Airman came home from basic training to find his car sold at auction. The men and women of our armed forces represent the best among us, and we are proud to enforce the SCRA and other laws designed to protect them.”
Servicemembers and their dependents who believe their SCRA rights have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations can be found at http://legalassistance.law.af.mil/.
The Justice Department’s enforcement of the SCRA is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section and U.S. Attorney’s Offices throughout the country. Since 2011, the department has obtained over $474 million in monetary relief for over 120,000 servicemembers through its enforcement of the SCRA. Additional information on department’s enforcement of the SCRA and other laws protecting servicemembers is available at www.servicemembers.gov.
Interface Rehab to Pay $2 Million to Resolve False Claims Act AllegationsRead the Press Release
Interface Rehab (Interface), headquartered and operating in California, has agreed to pay $2 million to resolve allegations that it violated the False Claims Act by causing the submission of claims to Medicare for rehabilitation therapy services that were not reasonable or necessary.
The settlement resolves allegations that, from Jan. 1, 2006, through Oct. 10, 2014, Interface knowingly submitted or caused the submission of false claims for medically unreasonable and unnecessary “Ultra High” levels of rehabilitation therapy for Medicare Part A residents at 11 Skilled Nursing Facilities. These facilities include Colonial Care Center, Covina Rehabilitation Center, Crenshaw Nursing Home, Green Acres Lodge, Imperial Care Center, Laurel Convalescent Hospital, Live Oak Rehabilitation Center, Longwood Manor Convalescent Hospital, Monterey Care Center, San Gabriel Convalescent Center, and Whittier Pacific Care Center. In July 2020, the Department of Justice announced that Longwood Management Corporation and 27 affiliated skilled nursing facilities agreed to pay $16.7 million to the United States to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare for rehabilitation therapy services that were not reasonable or necessary. The settlement announced today resolves Interface’s role in that alleged conduct.
During the relevant time period, Medicare reimbursed skilled nursing facilities at a daily rate that reflected the skilled therapy and nursing needs of qualifying patients. The greater the patient’s needs, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities was for “Ultra High” therapy patients, who required a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational or speech therapy), one of which had to be provided five days a week.
The United States contends that Interface pressured therapists to increase the amount of therapy provided to patients in order to meet pre-planned targets for Medicare revenue. These alleged targets could only be achieved by billing for a high percentage of patients at the “Ultra High” level without regard to patients’ individualized needs.
“This settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded health care programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Brian M. Boynton for the Department of Justice’s Civil Division. “Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they provide therapy services based on maximizing revenue rather than the interests of their patients.”
“The claims that patients required ultra-high levels of care appear to be driven solely by a desire to send ultra-high bills to Medicare,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “This case is further proof that the government will vigorously pursue those who attempt to cheat the taxpayer-funded system that pays for medical care for millions of Americans, sometimes with the help of whistleblowers who shine a light on fraud.”
“Our agency will continue to aggressively investigate health care providers that attempt to boost their profits by falsely billing federal health care programs for medically unnecessary services,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will not tolerate such fraud schemes, which undermine medical decision-making and the public's trust in the health profession.”
“This multimillion-dollar settlement agreement signifies an important conclusion to the government’s investigation into Interface Rehab’s dubious business practices that tainted the integrity of federal healthcare programs, including the Department of Defense's TRICARE program, by unnecessarily inflating costs,” said Paul K. Sternal, Deputy Director of the Defense Criminal Investigative Service (DCIS). “DCIS is committed to working with its law enforcement partners to protect the healthcare interests of our military service members, their families and American taxpayers.”
This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Keith Pennetti, a former Director of Rehab at Interface. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Pennetti will receive $360,000 of the settlement proceeds. The qui tam case is captioned United States ex rel. Pennetti v. Interface Rehab, et al., No. CV-14-4133 (C.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California, with assistance from the HHS-OIG and DCIS.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Trial Attorney Amy Likoff and Assistant U.S. Attorney John Lee of the U.S. Attorney’s Office for the Central District of California.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Interface Rehab to Pay $2 Million to Resolve Allegations It Caused Medicare Submissions for Unnecessary or Unreasonable ServicesRead the Press Release
LOS ANGELES – Interface Rehab (Interface), headquartered and operating in Orange County, has agreed to pay $2 million to resolve allegations that it violated the False Claims Act by causing the submission of claims to Medicare for rehabilitation therapy services that were not reasonable or necessary.
The settlement resolves allegations that, from January 1, 2006, through October 10, 2014, the Placentia-based Interface knowingly submitted or caused the submission of false claims for medically unreasonable and unnecessary “Ultra High” levels of rehabilitation therapy for Medicare Part A residents at 11 Skilled Nursing Facilities. These facilities include Colonial Care Center, Covina Rehabilitation Center, Crenshaw Nursing Home, Green Acres Lodge, Imperial Care Center, Laurel Convalescent Hospital, Live Oak Rehabilitation Center, Longwood Manor Convalescent Hospital, Monterey Care Center, San Gabriel Convalescent Center, and Whittier Pacific Care Center.
In July 2020, the Department of Justice announced that Longwood Management Corporation and 27 affiliated skilled nursing facilities agreed to pay $16.7 million to the United States to resolve allegations that they violated the False Claims Act by submitting false claims to Medicare for rehabilitation therapy services that were not reasonable or necessary. The settlement announced today resolves Interface’s role in that alleged conduct.
During the relevant time period, Medicare reimbursed skilled nursing facilities at a daily rate that reflected the skilled therapy and nursing needs of qualifying patients. The greater the patient’s needs, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities was for “Ultra High” therapy patients, who required a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, or speech therapy), one of which had to be provided five days a week.
The United States contends that Interface pressured therapists to increase the amount of therapy provided to patients in order to meet pre-planned targets for Medicare revenue. These alleged targets could only be achieved by billing for a high percentage of patients at the “Ultra High” level without regard to patients’ individualized needs.
“The claims that patients required ultra-high levels of care appear to be driven solely by a desire to send ultra-high bills to Medicare,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “This case is further proof that the government will vigorously pursue those who attempt to cheat the taxpayer-funded system that pays for medical care for millions of Americans, sometimes with the help of whistleblowers who shine a light on fraud.”
“This settlement reflects our continuing efforts to protect patients and taxpayers by ensuring that the care provided to beneficiaries of government-funded health care programs is dictated by clinical needs, not a provider’s fiscal interests,” said Acting Assistant Attorney General Brian M. Boynton for the Department of Justice’s Civil Division. “Rehabilitation therapy companies provide important services to our vulnerable elderly population, but they will be held to account if they provide therapy services based on maximizing revenue rather than the interests of their patients.”
“Our agency will continue to aggressively investigate health care providers that attempt to boost their profits by falsely billing federal health care programs for medically unnecessary services,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We will not tolerate such fraud schemes, which undermine medical decision-making and the public's trust in the health profession.”
“This multi-million dollar settlement agreement signifies an important conclusion to the government's investigation into Interface Rehab’s dubious business practices that tainted the integrity of federal healthcare programs, including the Department of Defense's TRICARE program, by unnecessarily inflating costs, ” said Paul K. Sternal, Deputy Director of the Defense Criminal Investigative Service (DCIS). “DCIS is committed to working with its law enforcement partners to protect the healthcare interests of our military service members, their families, and American taxpayers.”
This civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act by Keith Pennetti, a former Director of Rehab at Interface. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. Mr. Pennetti, will receive $360,000 of the settlement proceeds. The qui tam case is captioned United States ex rel. Pennetti v. Interface Rehab, et al., No. CV-14-4133 (C.D. Cal.).
The resolution obtained in this matter was the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the Central District of California with assistance from the U.S. Department of Health and Human Services Office of Inspector General and the Defense Criminal Investigative Service.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The matter was investigated by Assistant United States Attorney John E. Lee of the Civil Division’s Civil Fraud Section and Justice Department Trial Attorney Amy Likoff.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on July 20 was:
Mark Eugene Benton, 60, of Billings, on charges of prohibited person in possession of a firearm and ammunition. If convicted of the most serious crime, Benton faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Benton was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-32.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on July 21 was:
Brocktin Russo, 31, of Great Falls, on charges of possession with intent to distribute heroin. If convicted of the most serious crime, Russo faces a mandatory minimum 10 years to life in prison, a $10 million fine and five years of supervised release. Russo was detained pending further proceedings. The Russell Country Drug Task Force and Great Falls Police Department investigated the case. PACER case reference. 21-41.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
XXX