Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 2 June 2021
Rochester Man Sentenced to 13 Years in Prison for Chinappi's Gun Store BurglariesRead 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 Luis D. Marcano-Agosto, 36, of Rochester, NY, who was convicted of theft of firearms from a Federal Firearms Licensee and possession of firearms by a convicted felon, was sentenced to serve 156 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay $41,500 in restitution to August Chinappi, the victim of the burglary and the former owner of Chinappi’s Firearms & Supplies.
Assistant U.S. Attorney Brett A. Harvey, who handled the case, stated that Marcano-Agosto, along with co-defendants Dakota Sarfaty and Marcos D. Guzman, broke into Chinappi’s Firearms & Supplies – a gun store located at 5016 West Ridge Road in Spencerport, NY – in the early morning hours on August 16, 2018, and stole a total of 87 firearms. Sarfaty entered the basement through the hole in the wall and, together with Marcano-Agosto and Guzman, stole the guns, almost all of which were handguns. Thereafter, Guzman, Sarfaty and Marcano-Agosto sold many of the firearms on the streets of Rochester. Sarfaty also previously broke into Chinappi’s Firearms & Supplies and stole six firearms on August 12, 2018.
To date, approximately 31 of the stolen firearms have been recovered by law enforcement. The remainder of the stolen firearms have not yet been recovered.
Sarfaty was convicted and sentenced to serve 175 months in prison, while Guzman was convicted and sentenced to serve 240 months in prison.
The sentencing is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; and the Rochester Police Department, under the direction of Chief Cynthia Herrion-Sullivan.
# # # #
Richfield Man Sentenced to Prison for Arson of Target Corporation HeadquartersRead the Press Release
ST. PAUL, Minn. – A Richfield man was sentenced today to 33 months in prison followed by two years of supervised release for conspiring to commit arson of the Target Corporation’s headquarters building.
According to court documents, on Wednesday, August 26, 2020, Minneapolis experienced arson, rioting, and looting in response to false rumors regarding police involvement in the death of a murder suspect. After law enforcement released video footage demonstrating that the rumor was clearly false, Shador Tommie Cortez Jackson, 24, gathered with other rioters downtown. Jackson joined a crowd outside Target Corporation’s corporate headquarters building located at 1000 Nicollet Mall (“Target Headquarters”). Jackson used a construction sign to break through the glass doors into the building. After breaching the doors and entering the building, Jackson intentionally set a fire on a counter inside the mailroom. Jackson also attempted to light a second fire in the mailroom on top of cardboard boxes using a lighter and a bottle of ignitable liquid.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Patrick J. Schiltz sentenced the defendant.
This case is the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Minneapolis Fire Department, and the Minneapolis, Bloomington, and Richfield Police Departments.
Assistant U.S. Attorneys Chelsea A. Walcker, Alexander D. Chiquoine, and Joseph S. Teirab prosecuted the case.
Registered Sex Offender Sentenced to 144 Months for Possessing Child PornographyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Anthony A. Atkins, 47, Webster, Wisconsin, was sentenced today by U.S. District Judge William M. Conley to 144 months in federal prison for possessing child pornography. This term of imprisonment will be followed by 15 years of supervised release. Atkins pleaded guilty to this charge on February 9, 2021.
On June 15, 2020, a probation officer took possession of three phones from Atkins, who was not allowed to have them. She did a preliminary search of the phones, observed what she believed to be child pornography, and turned the phones over to law enforcement. Law enforcement officials obtained a search warrant for the phones and found numerous images of child pornography.
In sentencing Atkins, Judge Conley expressed concern that Atkins had a sexual interest in children for the last 25 years and committed hands-on offenses in the past. Judge Conley also noted it was at least the third time Atkins violated his sex offender registry notification requirements.
The charge against Atkins was the result of an investigation conducted by the Burnett County Sheriff’s Office and the Wisconsin Department of Justice Division of Criminal Investigation. The prosecution of the case has been handled by Assistant U.S. Attorney Elizabeth Altman.
Region’s Top Federal Law Enforcement Officials Issue Plea to Migrants: Don’t Trust your Life to SmugglersRead the Press Release
Media Relations Director Kelly Thornton (619) 546-9726
NEWS RELEASE SUMMARY – June 2, 2021
SAN DIEGO – Following a wave of smuggling-related deaths in the region, San Diego’s top federal law enforcement officials made an emotional plea to migrants contemplating an illegal journey across the border: Don’t risk your life.
In less than a three-week span, four lives were lost and dozens of people had to be rescued from rough seas and hospitalized after multiple maritime smuggling events went terribly wrong.
“We are appealing to every person who is considering a desperate, perilous journey into the United States, whether in a boat, on foot, or crammed in the trunk of a car,” said Acting U.S. Attorney Randy Grossman. “Don’t do it. Do not put your life in the hands of smugglers. These people do not care about you. They will jam way too many people on a boat or in a car, just to make more money. They will direct you to hike in remote areas in dangerous weather conditions without adequate food, water or clothes. Smugglers care nothing for their customers. They care only about maximum profit.”
There were 25 migrant deaths in border areas in San Diego and Imperial counties from October through April, compared to 29 in all of FY 2020.
“Crossing the border illegally is extremely dangerous. Regardless of the crossing method, your life is at risk when placed in the hands of ruthless smugglers,” said U.S. Border Patrol San Diego Sector Acting Deputy Chief Patrol Agent Scott Garrett. “Smugglers will abandon their victims at the first sign of trouble, viewing them only as an expendable commodity.”
In the last three months, a number of people have been charged, entered guilty pleas, or received sentences in connection with smuggling deaths:
On Friday, May 28, a federal grand jury returned an indictment against Antonio Hurtado, the alleged captain of the boat that ran aground off Point Loma on May 2. In that incident, three people drowned and 30 were rescued in a heroic effort by U.S. Coast Guard, San Diego Lifeguards, and Border Patrol. Hurtado was charged with Attempted Bringing in Aliens Resulting in Death and other crimes. Many of the survivors who were interviewed by authorities said they had paid between $15,000 and $18,500 to be smuggled into the United States on the vessel.
In another case, today an indictment was returned charging Victor Alfonso Soto Aguilar and Jose Ramon Geraldo Romero with the same crime - Bringing in Aliens Resulting in Death. On May 20, one person died and other individuals were rescued in another maritime smuggling event. In predawn darkness, United States Border Patrol agents spotted numerous individuals in the ocean near La Jolla. A panga boat was also seen in the vicinity traveling further north. Border Patrol saw that the individuals in the ocean were in serious distress and desperately needed assistance. Lifeguards immediately responded and rescued eight people from the water. The panga then eventually came into shore near the Children’s Pool. A submerged victim was found nearby and did not survive. The migrants rescued from the water admitted that they were paying between $12,000 and $15,000 to be smuggled into the United States.
The tragedies are not limited to the ocean. Yesterday, Leobardo Soto-Toledo pleaded guilty to immigration crimes in January of this year involving a group of 14 migrants entering the United States through an underground drainage pipe during heavy rains. One man drowned and a woman was found floating unconscious; she was resuscitated by a Border Patrol Agent and treated at a hospital.
In April, two brothers from Chihuahua, Mexico, were sentenced in federal court to 5 1/2 years in prison for smuggling three sisters across treacherous terrain along the U.S.-Mexico border in an ill-fated trek that resulted in the tragic deaths of all threeyoung women. One of those sisters was the mother of a young child.
In March, Neil Edwin Valera, a U.S. citizen who resided in Tijuana, was sentenced to five years in prison in connection with the deaths of three Chinese migrants, including a mother and her 15-year-old son, who were found in the trunk of Valera’s BMW.
Also in March, Jose Cruz Noguez of Mexicali, Mexico, was indicted by a federal grand jury on immigration charges related to a March 2, 2021 smuggling event that led to the deaths of 13 Mexican and Guatemalan nationals in a crash of an overloaded vehicle near Holtville, California. That case is pending.
Grossman praised the prosecutors on these cases for their excellent work, and he thanked U.S. Border Patrol, Customs and Border Protection, Homeland Security Investigations and the Coast Guard, as well as the San Diego Lifeguards. “You put your own lives on the line to rescue migrants in distress whether in the desert, the mountains or the ocean. You are heroes and we are all grateful for your efforts to protect everyone in our community irrespective of their immigration status.”
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Randolph County man sentenced for meth distributionRead the Press Release
ELKINS, WEST VIRGINIA – Matthew Logan Lipscomb, of Kerens, West Virginia, was sentenced today to 76 months of incarceration for drug charges, Acting U.S. Attorney Randolph J. Bernard announced.
Lipscomb, 30, pled guilty to one count of “Distribution of Methamphetamine” in November 2019. Lipscomb admitted to selling methamphetamine, also known as “crystal meth” and “ice,” for $650 in April 2019 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. District Judge Thomas S. Kleeh presided.
Plantation Man Who Used Child Pornography to Find “Sexual Nirvana” Sentenced to over 10 Years in PrisonRead the Press Release
Miami, Florida – A Plantation man convicted of possessing over 5,000 electronic images and videos depicting the sexual exploitation of children was sentenced today to 121 months in federal prison by U.S. District Judge Rodolfo A. Ruiz II, who sits in Ft. Lauderdale.
Tyler Washington, 26, used a social networking application to communicate with others who shared his interest in child pornography. Washington provided access to his collection of child sexual abuse material to users who agreed to send him videos of themselves masturbating to Washington’s collection. During one chat session that involved masturbating to a child sex abuse video, Washington claimed that the activity was “sexual nirvana” for him. On March 25, 2021, Washington pled guilty to possessing child sexual abuse material.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida and Special Agent in Charge Anthony Salisbury of the Department of Homeland Security, Homeland Security Investigations (HSI), announced the sentence.
Homeland Security Investigations (HSI) Fort Lauderdale investigated the case with assistance from the Broward Sheriff’s Office, Plantation Police Department, and the Florida Department of Law Enforcement, all of which are members of the South Florida Internet Crimes Against Children Task Force.
Assistant U.S. Attorney Ajay Alexander prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov under case number 21-cr-60068.
###
Physician Pleads Guilty in Medicaid Fraud ConspiracyRead the Press Release
A California man pleaded guilty today to conspiracy to commit health care fraud.
According to court documents, Keyvan Amirikhorheh, M.D, 61, of Seal Beach, worked as a physician at Los Angeles Community Clinic. Together with his co-defendants, Amirikhorheh defrauded the Family Planning, Access, Care and Treatment (Family PACT) program administered by Medi-Cal, the California Medicaid program, by submitting and causing the submission of fraudulent claims for family planning services, diagnostic testing, and prescriptions for non-existent patients.
Amirikhorheh is the final defendant to plead guilty. Hilda Haroutunian, 61, of Sun Valley, California pleaded guilty on Sept. 25, 2020, and is scheduled to be sentenced on Dec. 17; Lorraine Watson, 57, a physician’s assistant, of Valley Village, California, pleaded guilty on Oct. 9, 2020, and is scheduled to be sentenced on Sept. 10; Edmond Sarkisyan, 41, of North Hollywood, California, pleaded guilty on Jan. 29, and is scheduled to be sentenced on July 16; and Noem Sarkisyan, 65, of North Hollywood, California, pleaded guilty on March 5, 2020, and is scheduled to be sentenced on Sept. 3.
As alleged in court documents, between approximately March 2016 and April 2019, Los Angeles Community Clinic and associated laboratories and pharmacies submitted approximately $8,406,204 in claims to Medi-Cal and were paid approximately $6,660,028 as the result of this fraudulent scheme.
Amirikhorheh pleaded guilty to conspiracy to commit health care fraud. He is scheduled to be sentenced on Oct. 1, and faces a maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Tracy L. Wilkison of the Central District of California; Assistant Director in Charge Kristi Koons Johnson of the FBI’s Los Angeles Field Office; Special Agent in Charge Timothy DeFrancesca of the U.S. Department of Health and Human Services Office of the Inspector General’s (HHS-OIG) Los Angeles Regional Office; and Special Agent in Charge Kris Lyle of the California Department of Justice made the announcement.
The FBI, Department of Health and Human Services-Office of Inspector General, and California Department of Justice are investigating the case, which was charged as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California.
Trial Attorneys Alexis Gregorian and Claire Yan of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program nearly $19 billion.
Pewaukee Man Sentenced for his Role in Directing COVID-19 Relief Fraud SchemeRead the Press Release
Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin joined Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and other federal officials in announcing that on June 2, 2021, Thomas Smith (age 46) of Pewaukee, Wisconsin, was sentenced to 57 months’ imprisonment for fraudulently obtaining over $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Smith will also be required to spend two years on supervised release following his prison sentence and was ordered to pay $ 960,000 in restitution.
Smith pleaded guilty to this offense on February23, 2021. According to court documents, Smith fraudulently sought over $1.2 million in PPP loans through applications to a federally insured financial institution on behalf of eight different companies. According to his plea agreement, Smith caused fraudulent loan applications to be submitted that made numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans. Smith then directed his co-conspirators to send him portions of the PPP funds within days of receiving them and used the proceeds for personal expenses, he admitted.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
###
For further information contact: Public Information Officer
(414) 297-1700
Follow us on Twitter
Parkersburg Man Pleads Guilty to Federal Drug and Gun CrimesRead the Press Release
CHARLESTON, W.Va. – Shaun Price, 41, of Parkersburg pleaded guilty today to federal drug and gun crimes.
According to court documents, on December 7, 2020 an officer with the South Charleston Police Department attempted a traffic stop on Price’s vehicle in Cross Lanes. Price fled and led law enforcement in a high speed pursuit. The pursuit began in Cross Lanes and ended in South Charleston where officers were able to stop Price’s vehicle by using spike-strips. Officers recovered approximately 7.85 grams of meth and a loaded 9mm Taurus PT111 handgun from the vehicle. Price admitted that he intended to sell the methamphetamine and that he possessed the firearm to protect his drugs and money.
Price pleaded guilty to possession with intent to distribute five grams or more of methamphetamine and possession of a firearm in furtherance of a drug trafficking crime and faces a mandatory minimum of 10 years and up to life in prison when sentenced on September 2, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the Drug Enforcement Administration (DEA) and the South Charleston Police Department.
Assistant United States Attorney Nick Miller is handling the prosecution. Senior United States District Court Judge John T. Copenhaver, Jr. presided over the hearing.
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. 2:21-cr-00051.
###
Owner of Jacksonville Tax Preparation Business Sentenced to Federal Prison for Tax FraudRead the Press Release
Jacksonville, Florida – U.S. District Marcia Morales Howard has sentenced Kenyan Shondre Scott to 18 months in federal prison for aiding and assisting others with the filing of fraudulent tax returns and for filing fraudulent tax returns on his own behalf. Scott was also ordered to pay restitution to the United States for a tax loss of $553,403. He had pleaded guilty on February 24, 2021.
According to court documents and facts presented at his sentencing hearing, Scott was the owner and operator of a Jacksonville tax return preparation business, which he had opened in 2009. Between February 2014 and April 2018, Scott prepared and filed tax returns for others in which he falsely claimed, among other things, that the taxpayers had owned businesses and had incurred deductible business expenses, were entitled to general business tax credits and educational tax credits, and had incurred deductible unreimbursed employee expenses. These representations were false and substantially increased the clients’ tax refunds.
On his own tax returns, Scott significantly underreported the income he had earned from his tax preparation business as shown in the following chart:
Tax Year
Reported Adjusted Gross Income
Tax
Refund Claimed
Approximate True Adjusted Gross Income
Approximate Taxes Owed on True AGI
2013
$43,691
$51
$97,846
$36,928
2014
$39,552
$50
$279,898
$108,033
2015
$37,943
$49
$151,216
$57,230
2016
$28,072
$44
$193,898
$72,681
“We want everyone who files a tax return to take advantage of the deductions and credits to which they are entitled by law; however, no one is entitled to defraud the government," said Special Agent in Charge Brian Payne of IRS Criminal Investigation. “Today's sentencing of Kenyan Scott demonstrates that protecting taxpayer money is a matter we take very seriously. IRS Criminal Investigation will continue to vigorously pursue those who unjustly line their own pockets by preparing false claims for refunds for themselves and others.”
This case was investigated by the Internal Revenue Service – Criminal Investigation. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Operation River Fork Defendant Pleads Guilty to Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – A Woonsocket man, one of eighteen individuals arrested during a ten-month Project Safe Neighborhoods drugs and firearms investigation in Woonsocket, Providence, and Cranston in 2020, that resulted in the recovery of six loaded firearms and more than a kilo of crack cocaine, pleaded guilty today to a charge of distributing crack cocaine.
Bradley Dewalt, 29, admitted to the court that on February 27, 2020, at the direction of another person, already the subject of a Rhode Island FBI Safe Streets Gang Task Force investigation termed “Operation River Fork,” he contacted an individual seeking to arrange for the purchase of crack cocaine. Dewalt and that person met later that day in Bellingham, MA, where Dewalt sold the individual an ounce of crack cocaine for $1,150.
Dewalt, previously convicted on assault, drug trafficking, and firearm charges, and charged in this matter on October 6, 2020, by way of a federal criminal complaint, appeared today before U.S. District Court Judge Mary S. McElroy and pleaded guilty to distribution of crack cocaine. He is scheduled to be sentenced on August 17, 2020.
Anthony Medeiros, 30, of Woonsocket, the person that arranged for the contact between Dewalt and the person seeking to purchase crack cocaine, pleaded guilty in federal court on May 6, 2021, to conspiracy to distribute cocaine base and three counts of distribution of cocaine base. He is scheduled to be sentenced on July 27, 2021.
Dewalt's and Medeiros’s guilty pleas are announced by Acting United States Attorney Richard B. Myrus.
The cases are being prosecuted by Assistant United States Attorney Stacey P. Veroni.
These cases are being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The Rhode Island FBI Safe Streets Gang Task Force consists of agents and law enforcement officers from the FBI, United States Marshals Service, Central Falls Police Department, Cranston Police Department, Pawtucket Police Department, Providence Police Department, West Warwick Police Department, Woonsocket Police Department, and Rhode Island State Police.
###
Omaha Man Sentenced to 8 years for Distribution of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Joseph Knipe, age 43, of Omaha, Nebraska, was sentenced today in federal court in Omaha for distribution of child pornography. United States District Judge Brian C. Buescher sentenced Knipe to 8 years of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Knipe will begin a 10-year term of supervised release and will also be required to register as a sex offender.
On May 3, 2017, Knipe used his online DropBox account to transfer images of child pornography to other DropBox users. Agents later executed a search warrant of Knipe’s DropBox account and located about 2,000 images and 1,000 videos of child pornography. On October 31, 2019, agents executed a search warrant at Knipe’s residence in Omaha. Agents located a USB card containing about 105 images of child pornography. Knipe admitted to possessing child pornography.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and 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.justice.gov/psc.
The case was investigated by the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
Old Orchard Beach Man Pleads Guilty to Stealing Government PropertyRead the Press Release
PORTLAND, Maine: An Old Orchard Beach man pleaded guilty in federal court today to theft of government property, Acting U.S. Attorney Donald E. Clark announced.
According to court records, from about April 2014 to June 2016, Michael Gamash, 64, took scrap metal belonging to the U.S. Navy from dumpsters located on the Portsmouth Naval Shipyard (PNSY) and sold the metal to two area metal dealers. Gamash was an employee of PNSY at the time. When investigators from the Naval Criminal Investigative Service (NCIS) interviewed him, he admitted routinely taking scrap metal items from several dumpsters at PNSY and selling the metal. He acknowledged that he knew it was illegal to take the metal and sell it for his personal profit. In total, he received approximately $60,000 for the metal he took from PNSY.
Gamash faces up to 10 years in prison and a fine of up to $250,000. He also faces up to three years of supervised release. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
NCIS investigated the case.
Oconto Falls Woman Indicted on Federal Firearm ChargeRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 2, 2021, a federal grand jury returned an indictment against Amber L. Bayer (age: 29) of Oconto Falls, Wisconsin.
The indictment alleges Bayer made a false statement to a licensed firearms dealer in violation of Title 18, United States Code, Sections 922(a)(6) and 924(a)(2). On or about December 4, 2020, Bayer is alleged to have misled a representative of Dunham’s Sports in Marinette, Wisconsin, by falsely claiming that she was purchasing a 9mm firearm for herself when, in fact, she was purchasing the firearm for another individual.
If convicted of the offense, Bayer faces a maximum penalty of up to ten years imprisonment and a $250,000 fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Marinette Police Department, the Marinette County Sheriff’s Office, and the Menominee (Michigan) Police Department. It will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
###
For further information contact:
Public Information Officer
(414) 297-1700
Follow us on Twitter
North Carolina man sentenced for ginseng violationRead the Press Release
ELKINS, WEST VIRGINIA – David Changhyub Lee, of Raleigh, North Carolina, was sentenced today to one year probation and a fine of $4,250 for aiding and abetting the illegal transportation of ginseng across state lines, Acting U.S. Attorney Randolph J. Bernard announced.
Lee, 35, pled guilty to one count of “Interstate Transportation of Ginseng in Violation of State Law – Aiding and Abetting” in December 2020. Lee admitted to facilitating and purchasing nearly 15 pounds of ginseng for a total of $4250 from Randolph County and elsewhere and transported it to North Carolina.
This case was in violation of the federal Lacey Act (16 USC § 3371 et seq.), which prohibits the taking and interstate trafficking of protected plants and animals in violation of state law. Under 16 USC § 3373, it's a felony if the plant's market value exceeds $350.00. West Virginia's ginseng statute (WV Code 19-1A-3a) has various requirements for the ginseng market. One requirement is that ginseng not be transported to another state absent a certificate of origin from the West Virginia Division of Forestry.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The U.S. Fish and Wildlife Service and the West Virginia Natural Resources Police investigated.
U.S. District Judge Thomas S. Kleeh presided.
Nigerian National Arrested for Scheme to Conduct Cyber Intrusions to Steal Payroll DepositsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Jonathan D. Larsen, Special Agent in Charge of the New York Field Office of the Internal Revenue Service, Criminal Investigation (“IRS-CI”), announced today the arrest of CHARLES ONUS for charges in connection with a scheme to conduct cyber intrusions of multiple user accounts maintained by a company that provides human resources and payroll services to employers across the United States, in order to steal payroll deposits. ONUS was previously arrested on April 14, 2021, in San Francisco and detained, and he will be presented later today in Manhattan federal court before Magistrate Judge Sarah L. Cave. The case is assigned to U.S. District Judge Paul G. Gardephe.
Manhattan U.S. Attorney Audrey Strauss said: “Charles Onus allegedly participated in a scheme that stole nearly $1 million by hacking into a payroll processing company’s system to access user accounts and divert payroll to prepaid debit cards he controlled. As alleged, Onus did this as effectively as someone who commits bank burglary, but with no need for a blowtorch or bolt-cutters. Thanks to the FBI and IRS-CI, Onus is in custody and facing serious federal charges.”
FBI Assistant Director William F. Sweeney Jr. said: “Cyber intrusions ripple through everything our society relies upon – this one impacted people’s paychecks. The FBI’s goal is to prevent cyber criminals from causing harm and holding them accountable, but we can’t do it alone. Companies need to continuously improve their cyber hygiene and awareness. Taking steps like training the workforce to protect and frequently change passwords, and to use different login credentials across platforms, can have an impact. Each one of us, from the individual citizen to the biggest corporation, plays a critical role in defending the nation from cyberattacks.”
IRS-CI Special Agent in Charge Jonathan D. Larsen said: “IRS Criminal Investigation will always work with our law enforcement partners to track down those who try to breach our country’s tax and financial infrastructure. We will continually endeavor to bring to justice criminals who think they can comfortably steal from victims in America while hiding behind their computer screens.”
According to allegations in the Indictment filed in federal court[1]:
From at least in or about July 2017 through at least in or about 2018, ONUS participated in a scheme to conduct cyber intrusions of multiple user accounts maintained by a company that provides human resources and payroll services to employers across the United States (the “Company”), in order to steal payroll deposits processed by the Company.
During the course of the scheme, unauthorized access was obtained to over 5,500 Company user accounts through a cyber intrusion technique referred to as “credential stuffing.” During a credential stuffing attack, a cyber threat actor collects stolen credentials, or username and password pairs, obtained from other large-scale data breaches of other companies. The threat actor then systematically attempts to use those stolen credentials to obtain unauthorized access to accounts held by the same user with other companies and providers, to compromise accounts where the user has maintained the same password.
After ONUS successfully gained unauthorized access to a Company user account, he changed the bank account information designated by the user of the account so that ONUS would receive the user’s payroll to a prepaid debit card that was under ONUS’s control.
From at least in or about July 2017 through at least in or about 2018, at least approximately 5,500 Company user accounts were compromised and more than approximately $800,000 in payroll funds were fraudulently diverted to prepaid debit cards, including those under the control of ONUS. The compromised Company user accounts were associated with employers whose payroll was processed by the Company, including employers located in the Southern District of New York.
* * *
ONUS, 34, a resident and national of the Federal Republic of Nigeria, was charged with one count of computer fraud for causing damage to a protected computer, which carries a maximum sentence of 10 years in prison; one count of computer fraud for unauthorized access to a protected computer to further intended fraud, and one count of receipt of stolen money, each of which carries a maximum sentence of five years in prison; one count of wire fraud, which carries a maximum sentence of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed.
The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI and IRS-CI. Ms. Strauss also thanked the New York City Police Department, the FBI New York Cyber Task Force, U.S. Customs and Border Protection, and the FBI Field Office in San Francisco for their assistance in the investigation of this case.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Sagar K. Ravi is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Nevada Man Admits Traveling to Pittsburgh for Sex with a MinorRead the Press Release
PITTSBURGH - A former resident of North Las Vegas, Nevada, pleaded guilty in federal court to one count of travel with intent to engage in illicit sexual conduct, Acting United States Attorney Stephen R. Kaufman announced today.
Renad Bautista, age 31, pleaded guilty to one count before Senior United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that on or about Dec. 5, 2019, until Dec. 9, 2019, Bautista travelled from Las Vegas to Pittsburgh with a motivating purpose of engaging in illicit sexual conduct with a minor whom he had been messaging on social media.
Judge Conti scheduled sentencing for September 21, 2021. The law provides for a total sentence of not more than 30 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Heidi M. Grogan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the West Mifflin Police Department conducted the investigation that led to the prosecution of Bautista.
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.justice.gov/psc.
Montana Man Indicted on Federal Hate Crime and Firearm ChargesRead the Press Release
A federal grand jury in Billings, Montana, returned an indictment on May 20 charging a Montana man with hate crime and firearm violations for allegedly firing a gun into an individual’s house and threatening the individual with violent, homophobic slurs.
According to court documents, John Russell Howald, 44, of Basin, is charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and with the use of a firearm during and in relation to a crime of violence. The indictment alleges that on March 22, 2020, in Basin, Howald attempted to injure an individual because of their actual and perceived sexual orientation by discharging a firearm into the individual’s house, stating that he wanted to “get rid of the lesbians [and] gays.” The offense included an attempt to kill the individual.
Howald is scheduled for an arraignment on June 29 before a U.S. Magistrate Judge in Great Falls. If convicted, Howald faces up to life in prison on the hate crime charge and a mandatory minimum of 10 years in prison, consecutive to any other sentence, on the firearm charge.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Leif M. Johnson of the District of Montana made the announcement.
Assistant U.S. Attorney Brendan McCarthy of the District of Montana and Trial Attorney Eric Peffley of Civil Rights Division’s Criminal Section are prosecuting the case. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Jefferson County Sheriff’s Office investigated the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
Montana Man Indicted on Federal Hate Crime and Firearm ChargesRead the Press Release
WASHINGTON - A federal grand jury in Billings, Montana, returned an indictment on May 20 charging a Montana man with hate crime and firearm violations for allegedly firing a gun into an individual’s house and threatening the individual with violent, homophobic slurs.
According to court documents, John Russell Howald, 44, of Basin, is charged with violating the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, and with the use of a firearm during and in relation to a crime of violence. The indictment alleges that on March 22, 2020, in Basin, Howald attempted to injure an individual because of their actual and perceived sexual orientation by discharging a firearm into the individual’s house, stating that he wanted to “get rid of the lesbians [and] gays.” The offense included an attempt to kill the individual.
Howald is scheduled for an arraignment on June 29 before a U.S. Magistrate Judge in Great Falls. If convicted, Howald faces up to life in prison on the hate crime charge and a mandatory minimum of 10 years in prison, consecutive to any other sentence, on the firearm charge.
A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division and Acting U.S. Attorney Leif M. Johnson of the District of Montana made the announcement.
Assistant U.S. Attorney Brendan McCarthy of the District of Montana and Trial Attorney Eric Peffley of Civil Rights Division’s Criminal Section are prosecuting the case. The FBI, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Jefferson County Sheriff’s Office investigated the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
For more information and resources on the department’s efforts to combat hate crimes, visit www.justice.gov/hatecrimes.
Missoula man sentenced to more than 12 years in prison for trafficking meth in Flathead and Missoula countiesRead the Press Release
MISSOULA – A Missoula man who admitted to trafficking large quantities of methamphetamine in Flathead and Missoula counties was sentenced today to 12 years and seven months in prison followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Dylan Roy Mace, 29, pleaded guilty on Feb. 10 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
In court documents filed in the case, the government alleged that for about a year, beginning in November 2019, Mace and others conspired to distribute meth. Law enforcement began investigating Mace after receiving information that he was distributing ounce quantities of meth and was a partner with Leon Kavis in distributing the drug. Kavis has pleaded guilty to a conspiracy crime and is awaiting sentencing. Investigators learned from individuals that Mace sold meth in ounce quantities, received one-pound deliveries of meth on a weekly basis and that he and Kavis had been provided with 12 to 14 pounds of meth. Fourteen pounds of meth is the equivalent of about 50,736 doses. The government further alleged that Mace and Kavis used an East Missoula location to obtain and distribute meth. Law enforcement intercepted a package containing about five pounds of meth that was to have been delivered to the East Missoula location.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force and the Missoula Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Michigan Man Living in the Philippines Sentenced to 78 Months in Prison for Child Exploitation OffenseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JASON KELLER, 35, was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 78 months of imprisonment, followed by five years of supervised release, for coercing a minor girl to send him sexually explicit photos of herself through the internet.
According to court documents and statements made in court, in September 2018, Keller, while living in the Philippines, used the moniker “Eddie Buttered Toast” to contact a 14-year-old female in Connecticut and claim that he was a 17-year-old boy from Colorado. Keller then sent the minor victim numerous grooming emails that eventually coaxed the minor victim into sending photos of herself engaged in sexually explicit conduct to Keller. Some of the emails Keller sent to the minor victim included sexually explicit images of himself.
On December 19, 2018, a grand jury in New Haven returned an indictment charging Keller. Keller was located and arrested in the Philippines in June 2019. He was removed from the Philippines and returned to the U.S. on December 12, 2019. He has been detained since his arrest.
On December 2, 2020, Keller pleaded guilty to one count of receipt of child pornography.
Keller formerly resided in Dearborn Heights, Michigan.
This matter was investigated by Homeland Security Investigations (HSI) and the U.S. Marshals Service, International Investigations Branch, with the assistance of the Philippine Bureau of Immigration, Fugitive Search Unit. The case was prosecuted by Assistant U.S. Attorney Lauren Clark.
Acting U.S. Attorney Boyle thanked the U.S. Department of Justice’s Office of International Affairs for its assistance in this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Meth trafficking sends Missoula man to prison for 100 monthsRead the Press Release
MISSOULA – A Missoula man who admitted to possessing with the intent to distribute methamphetamine after law enforcement officers found the drug in his hotel room was sentenced today to 100 months in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Demetrius Demon McVay-Hite, 36, pleaded guilty on Jan. 26 to possession with intent to distribute meth.
U.S. District Judge Donald W. Molloy presided.
In court documents filed in the case, the government alleged that on March 1, 2020, Missoula Police Department officers executed a Montana search warrant on McVay-Hite’s hotel room and recovered more than one ounce of meth. During an investigation, law enforcement learned from numerous individuals that McVay-Hite was involved in distributing meth.
Assistant U.S. Attorney Tara J. Elliott prosecuted the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force and the Missoula Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Mescalero man pleads guilty abusive sexual contact with a childRead the Press Release
ALBUQUERQUE, N.M. – Troy Douglas Blaylock, Sr., 58, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, pleaded guilty on June 1 in federal court to knowingly engaging in sexual contact with a minor under 12 years old in Indian Country. Blaylock will remain in custody pending sentencing.
In the plea agreement, Blaylock admitted to engaging in sex with a nine-year old victim at his residence on the Mescalero Apache Reservation on or about August 20, 2020. The victim is also an enrolled member of the Mescalero Apache Tribe.
By the terms of the agreement, Blaylock faces 22 years in federal prison.
The FBI investigated this case with assistance from the Bureau of Indian Affairs. Assistant U.S. Attorneys Marisa A. Ong and Dustin Segovia are prosecuting the case.
Medical Doctor Sentenced for Drug Trafficking and Health Care Fraud OffensesRead the Press Release
KNOXVILLE, Tenn. – On May 27, 2021, Michael LaPaglia, 49, was sentenced to 18 months imprisonment by the Honorable Katherine A. Crytzer in the United States District Court for the Eastern District of Tennessee at Knoxville. LaPaglia was also ordered to pay restitution to the health care providers who were victims in this case.
According to documents filed with the court, LaPaglia, a medical doctor, who previously lost his authorization to write prescriptions for controlled substances, had pleaded guilty to an information charging him with one count of conspiring to distribute controlled substances and one count of making a material false statement in connection with the delivery of health care benefits. The charges stem from LaPaglia’s involvement in a mobile Suboxone clinic through which LaPaglia issued prescriptions for Suboxone, Clonazepam, diazepam, and Pregabalin in the name of another doctor.
In the spring of 2018, in the Eastern District of Tennessee, investigators with Federal Bureau of Investigation ("FBI") and Department of Health and Human Services ("HHS") responded to a complaint that LaPaglia was issuing prescriptions for Suboxone without the authority to do so. Investigators learned that LaPaglia would meet patients at his home and in parking lots where, without any meaningful examination, LaPaglia would give the drug customers prescriptions (signed by another doctor) for controlled substances. Customers were charged $300 cash per monthly visit. The customers would then take their prescriptions to be filled at pharmacies, where a number of them used their health insurance to pay for the controlled substances.
"The public places great trust in our medical professionals, and our office is committed to safeguarding that trust through the vigorous enforcement of federal laws," said Acting United States Attorney Francis M. Hamilton III. "Doctors are supposed to help people, not hurt them, and those who abuse their position by illegally prescribing opioids will be prosecuted."
"Tennessee remains at the epicenter of the opioid crisis. Opioid abuse destroys lives, and it devastates families. It is extremely disappointing when caregivers allow greed and selfishness to violate their oath to help those in need. The FBI along with our federal, state, and local partners will continue to investigate and hold those accountable to face the consequences of their actions,” said Joseph E. Carrico, Special Agent-in-Charge of the Knoxville office of the Federal Bureau of Investigation.
"Protecting the health and safety of Medicare and Medicaid patients is our number one priority,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "This provider’s reckless actions not only eluded his prescribing restrictions but endangered the health and safety of these patients."
The charges were the result of an investigation by FBI, HHS, and the Drug Enforcement Administration (DEA). This case was brought as part of the Opioid Fraud and Abuse initiative, a comprehensive national strategy that focuses on investigations and prosecutions of medical providers who prescribe opioids outside of the course of professional medical practice and for no legitimate purpose.
Assistant United States Attorneys Anne-Marie Svolto and David Lewen represented the United States.
###
Manhattan U.S. Attorney Files Suit Against Eleven Skilled Nursing Facilities and Their Management Company, Owner, and A Senior Employee for Fraudulently Billing Medicare for Unnecessary ServicesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Scott J. Lampert, Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of the Inspector General (“HHS-OIG”), announced today that the United States has filed a civil healthcare fraud lawsuit against ISSAC LAUFER, TAMI WHITNEY, MONTCLAIR CARE CENTER, INC., EAST ROCKAWAY CENTER LLC, EXCEL AT WOODBURY FOR REHABILITATION AND NURSING, LLC, LONG ISLAND CARE CENTER INC., TREETOPS REHABILITATION & CARE CENTER LLC, SUTTON PARK CENTER FOR NURSING & REHABILITATION, LLC, SUFFOLK RESTORATIVE THERAPY & NURSING, LLC, OASIS REHABILITATION AND NURSING, LLC, FOREST MANOR CARE CENTER, INC., SURGE REHABILITATION & NURSING LLC, QUANTUM REHABILITATION & NURSING LLC, and PARAGON MANAGEMENT SNF LLC (collectively the “Defendants”). The lawsuit seeks damages and civil penalties under the False Claims Act for fraudulently billing Medicare for unreasonable and unnecessary services provided to patients at eleven skilled nursing facilities located in New York (the “Facilities”).
The complaint alleges that, during the period from at least January 2010 through September 2019, Defendants systematically kept patients at the Facilities longer than necessary in order to maximize the amount billed to Medicare for the patients’ stays. During those stays, the Facilities systematically put patients on higher levels of rehabilitation therapy than necessary based on their actual clinical needs in order to bill Medicare at the highest rate. ISSAC LAUFER, who is a part owner of ten of the eleven Facilities and operates all eleven Facilities through PARAGON MANAGEMENT SNF LLC, and TAMI WHITNEY, the Coordinator of Rehabilitation Services for the Facilities, instructed and pressured staff to engage in these fraudulent practices. As a result, according to the complaint, the Facilities submitted, or caused to be submitted, false claims for payment for rehabilitation services that were unreasonable and unnecessary, or in some cases, did not even involve the provision of skilled therapy.
U.S. Attorney Audrey Strauss said: “As alleged, ISSAC LAUFER, TAMI WHITNEY and the skilled nursing facilities ISSAC LAUFER owns and/or operates prioritized profits above their obligation to focus on their patients’ actual medical needs. In clear violation of the governing regulations, the Defendants fraudulently inflated their Medicare reimbursements by unnecessarily prolonging patient stays and billing for therapy that offered little or no clinical benefit. This Office will continue vigorously to pursue companies and individuals who engage in these practices at the expense of the public fisc.”
HHS-OIG Special Agent in Charge Scott J. Lampert said: “The Medicare program is designed to protect both beneficiaries and taxpayers. When medical providers bill for unnecessary or improper services, patient care is put at risk and the financial integrity of our federal health care system is compromised. Working with our law enforcement partners, we will continue to ensure that medical providers are held accountable for their billing practices and the services they provide.”
The following allegations are based on the Complaint that was filed in White Plains federal court today:
The eleven facility defendants are skilled nursing facilities located in the New York metropolitan area. LAUFER is a part owner of ten of the eleven Facilities and operates all eleven Facilities through PARAGON MANAGEMENT SNF LLC. WHITNEY is the Coordinator of Rehabilitation Services for the Facilities and as such is involved in decisions regarding the provision of, and billing for, rehabilitation services.
From at least January 2010 through September 2019, the Defendants systematically kept Medicare patients at the Facilities longer than reasonable or necessary, and put those patients on higher levels of rehabilitation therapy than reasonable or necessary. These practices were designed to increase the amounts billed to Medicare beyond what was justified based on patients’ clinical needs. In some instances, the Facilities went so far as to intentionally limit patients’ progress in order to create the appearance of a continued need for services. In one instance, WHITNEY reported to LAUFER that the Facilities should not allow patients to go to the bathroom by themselves because they would then “think they are ready to go home.”
LAUFER and WHITNEY directed the Facilities to engage in this conduct. Specifically, WHITNEY carefully tracked the length of stay for each Medicare patient and expected staff at the Facilities to justify discharges scheduled to take place before the patient’s stay approached 100 days—the maximum compensable by Medicare. Together with management at the Facilities, WHITNEY devised strategies for extending patient stays, including giving patients unnecessary tests to gauge their balance proficiency at the point they were ready for discharge to create a pretext for extending their stays. WHITNEY reported on the success of these “discharge prevention” measures to Laufer, noting both areas where these measures succeeded and those where the Facilities had to work harder to prolong patient stays—such as for patients who were “younger and smarter” or “high level.” LAUFER, in turn, received daily updates from the Facilities reporting the number of Medicare patients who had been discharged, and, on a number of occasions, instructed WHITNEY to curb discharges. LAUFER gave these instructions without any information about the patients’ clinical needs and made explicit that they were designed to increase revenue.
WHITNEY, with LAUFER’S knowledge, also instructed the Facilities to provide virtually all Medicare patients with therapy at the “Ultra High”—i.e., highest billing—level, without regard to the patients’ needs or whether, due to their conditions, they could benefit from this intense therapy. To qualify for the Ultra High level, a patient must receive at least 720 minutes of skilled therapy services (i.e., physical, occupational or speech therapy requiring the services of a trained therapist) per week. Employees understood that there was virtually no wiggle room when it came to determining how much rehabilitation therapy a patient would receive. The pressure to provide this level of therapy in turn led the Facilities to bill for services that did not actually qualify as skilled therapy and thus were not eligible for Medicare reimbursement (such as simply moving the limbs of patients with severe cognitive impairments or assisting with routine self-care tasks).
LAUFER and WHITNEY’S efforts to keep Medicare patients at the Facilities for as close as possible to 100 days and to provide almost all patients, without regard to need, with therapy at the Ultra High level succeeded. During the relevant period, the Facilities were significant outliers, compared to other skilled nursing facilities, with respect to Medicare patients’ average length of stay and levels of rehabilitation therapy.
These practices resulted in the Facilities submitting claims to Medicare for rehabilitation therapy that was not reasonable or necessary, was billed at a higher rate than appropriate, or did not involve the provision of skilled services and, accordingly, were ineligible for payment. In addition, the Facilities made or used false statements and records that were material to false claims submitted to Medicare for payment for rehabilitation therapy that was unreasonable, unnecessary, or unskilled.
The Government intervened in a private whistleblower lawsuit before the Honorable Cathy Seibel that had previously been filed under seal pursuant to the False Claims Act.
Ms. Strauss thanked HHS-OIG for its assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Jacob Bergman and Rachael Doud are in charge of the case.
Manhattan U.S. Attorney Announces $692,000 Settlement Resolving Fraud Claims Against Contractor and Its Owners for Failing to Comply with DBE Rules on the Tappan Zee Bridge Replacement ProjectRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and Brian C. Gallagher, Acting Special Agent in Charge of the U.S. Department of Transportation Office of Inspector General Northeastern Region (“DOT-OIG”), announced today that the United States filed and settled a civil fraud lawsuit against NAUGHTON ENERGY CORPORATION (“NAUGHTON ENERGY”) and two of its owners, its president, MARIETTE NAUGHTON, and her husband, JOSEPH NAUGHTON (collectively, “Defendants”). NAUGHTON ENERGY, a Pennsylvania-based fuel distributor, supplied diesel fuel to vehicles and equipment used in connection with the federally funded New NY Bridge Project (the “NNYB Project”), a construction project to replace New York’s Governor Malcolm Wilson Tappan Zee Bridge. The settlement resolves the United States’ allegations in a False Claims Act lawsuit that Defendants fraudulently caused the submission of false claims by causing the prime contractor on the NNYB Project (the “Prime Contractor”) to misrepresent compliance with Disadvantaged Business Enterprise (“DBE”) rules, which require participation of businesses owned by women and minorities. Specifically, the United States alleged that NAUGHTON ENERGY, MARIETTE NAUGHTON, and JOSEPH NAUGHTON misrepresented to the Prime Contractor that NAUGHTON ENERGY was solely performing millions of dollars of work on the NNYB Project when in fact much of that work was performed by a non-DBE subcontractor. As part of the settlement approved yesterday by U.S. District Judge Valerie E. Caproni, NAUGHTON ENERGY, MARIETTE NAUGHTON, and JOSEPH NAUGHTON admit and accept responsibility for conduct alleged in the Government’s complaint and, pursuant to the terms of a settlement based on their ability to pay, have agreed to pay $692,000 over the next five years to the United States.
Manhattan U.S. Attorney Audrey Strauss said: “DBE participation goals create opportunities for DBEs to work on federally funded construction projects. When DBEs fail to disclose the involvement of non-DBEs in their work, they effectively divert resources to ineligible firms and undermine the DBE program’s goal of creating an environment in which businesses owned by women and minorities can compete fairly for United States Department of Transportation-assisted contracts.”
USDOT-OIG Acting Special Agent in Charge Brian C. Gallagher, said: “The settlement reached today only strengthens our resolve in pursuing those whose spurious actions prevent the legitimate participation of disadvantaged enterprises (DBE) in federally funded transportation projects. While the integrity of DOT’s DBE program was compromised in this instance, we remain steadfast working alongside our law enforcement and prosecutorial partners to ensure funds designated to support disadvantaged small businesses are used for their intended benefit and purpose.”
As alleged in the Complaint, from August 1, 2013, through January 16, 2020, Defendants caused the submission of false claims for payment to the United States Department of Transportation (the “DOT”). Specifically, Defendants represented that NAUGHTON ENERGY, a certified DBE, provided fuel, trucking, and manpower services without assistance from a subcontractor. The Complaint alleges that, from the outset of their involvement on the NNYB Project, Defendants represented that they could deliver diesel fuel to the work site wholly independently. However, Defendants lacked both a fuel truck with sufficient capacity and employees with the necessary union affiliation to effectively make these deliveries. Defendants, therefore, arranged for a non-DBE subcontractor (“Subcontractor Y”) to supply the required fuel delivery truck (the “Project Truck”) and union personnel. In exchange, Defendants shared half of their profits from the NNYB Project with Subcontractor Y. Defendants never disclosed this arrangement to the Prime Contractor, and instead, made concerted efforts to give the false appearance that NAUGHTON ENERGY performed the work unassisted. These efforts included: (1) arranging a sham transaction wherein Subcontractor Y transferred ownership of the Project Truck, worth over $10,000, to NAUGHTON ENERGY for a mere $1; and (2) placing the owner of Subcontractor Y on NAUGHTON ENERGY’s payroll, to give the false impression that NAUGHTON ENERGY employees performed all of the services at issue. Even after the Prime Contractor’s DBE program manager directly inquired as to Subcontractor Y’s involvement, Defendants continued to falsely state that NAUGHTON ENERGY performed its work without any subcontractor involvement.
As part of the settlement, Defendants admitted conduct alleged in the Complaint, including that:
* Prior to beginning work on the project, Defendants contacted a non-DBE company, Subcontractor Y, to assist NAUGHTON ENERGY with providing diesel fuel services to the Prime Contractor.
* NAUGHTON ENERGY used Subcontractor Y to provide diesel fuel services on the project because: (1) absent an agreement with Subcontractor Y regarding the use of its truck, NAUGHTON ENERGY did not have a fuel delivery truck with sufficient capacity to effectively provide diesel fuel services for the project; and (2) NAUGHTON ENERGY lacked the affiliation with the requisite union necessary to have its own staff work on the project
* Defendants did not disclose this arrangement to the Prime Contractor. Instead, Defendants took the following actions that made it appear that no subcontractor was involved in providing NAUGHTON ENERGY’s services: (1) Defendants negotiated with Subcontractor Y to transfer title of the Project Truck to NAUGHTON ENERGY for $1; and (2) Defendants placed an owner of Subcontractor Y on NAUGHTON ENERGY’s payroll.
* Defendants failed to disclose Subcontractor Y’s involvement in the work performed on the project.
Ms. Strauss praised the outstanding investigative work of DOT-OIG. She also thanked the New York State Office of the Inspector General for its assistance. This case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Jessica Jean Hu is in charge of the case.
Man admits meth trafficking crime after law enforcement seizes 10 pounds of the drug destined for ButteRead the Press Release
MISSOULA – A man accused of trafficking methamphetamine in Montana admitted to charges today after law enforcement recovered a package containing 10 pounds of the drug that was addressed to his residence in Butte, Acting U.S. Attorney Leif M. Johnson said today.
Steven Douglas Shipe, 52, pleaded guilty to conspiracy to possess with intent to distribute meth. Shipe faces a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Sept. 29. Shipe was released pending further proceedings.
The government alleged in court documents that law enforcement learned Shipe was involved in drug trafficking in Montana and purchased about one ounce of meth from Shipe on June 19, 2019. Law enforcement also learned that Shipe was receiving packages of meth in the mail. Investigators recovered a package containing approximately 10 pounds of meth that was addressed to Shipe’s residence in Butte. Ten pounds of meth is the equivalent of 36,240 doses. The drugs were intercepted in Bakersfield, California, and the shipping label reflected that the parcel was sent from another individual in that city. In addition, Shipe used local co-conspirators to arrange and help with the meth deals. In many instances, local co-conspirators would bring prospective buyers to Shipe’s house to complete the transactions.
Assistant U.S. Attorney Ryan G. Weldon is prosecuting the case, which was investigated by the Montana Division of Criminal Investigation, Drug Enforcement Administration, Homeland Security Investigations and the U.S. Postal Service.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
XXX
Man Sentenced to 7 Years for Arson During June 2020 Civil Unrest in MadisonRead the Press Release
MADISON, WIS. – A Madison, Wisconsin man pleaded guilty and was sentenced today on a federal charge of arson during the civil unrest in Madison in June 2020. Marquon Clark, 26, pleaded guilty before U.S. District Judge James D. Peterson, who imposed a sentence of 7 years in federal prison.
On June 24, 2020, Clark threw projectiles through windows of the City-County Building on Martin Luther King Jr. Boulevard in Madison and then threw a lit roll of paper towels through the broken windows. The building, which houses city and county government offices, was occupied by over 250 people at the time, including 182 adults and juveniles being held in the jail. Clark’s actions led to a fire in the City-County Building that resulted in approximately $105,000 in damages and clean-up costs.
“Legitimate protest is a central Constitutional right and American value. Arson is simply not part of any legitimate protest. This crime endangered the lives of everyone in the City-County building including the minors in juvenile detention,” said Timothy M. O’Shea, Acting U.S. Attorney for the Western District of Wisconsin. “We will work with our local, state and federal law enforcement partners to hold accountable those who engage in such conduct without regard for the potentially deadly consequences.”
“Arson is inherently dangerous, and we simply cannot allow it in our communities,” said ATF Special Agent in Charge Terry Henderson, of the St. Paul Field Division. “I hope this sentencing acts as a significant deterrent for others who may consider committing this heinous crime. We are thankful that Clark’s criminal actions did not cost anyone their life and that justice can be served in this case.”
In imposing the sentence, Judge Peterson noted that Clark’s crime was extremely dangerous and created a serious risk of harm to people inside the City-County Building. Judge Peterson also noted that a lengthy prison sentence was warranted in light of Clark’s extensive criminal history, which includes two violent crimes. Judge Peterson also ordered Clark to pay restitution in the full amount of damages and clean-up costs at the City-County Building.
The charge against Clark was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Dane County Sheriff’s Office; Madison Police Department; and the Madison Fire Investigation Team.
Man Sentenced for his Role in Directing COVID-19 Relief Fraud SchemeRead the Press Release
A Wisconsin man was sentenced today to 57 months in prison for fraudulently obtaining over $1 million in Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Thomas Smith, 46, of Pewaukee, pleaded guilty on Feb. 23. According to court documents and statements, Smith fraudulently sought over $1.2 million in PPP loans through applications to a federally insured financial institution on behalf of eight different companies. According to his plea agreement, Smith caused to be submitted fraudulent loan applications containing numerous false and misleading statements about the companies’ respective payroll expenses. Based on these representations, the financial institution approved and funded over $1 million in loans. Smith then directed his co-conspirators to send him portions of the PPP funds.
In addition to the prison sentence, Smith was ordered to pay $960,000 in restitution.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding, and in December 2020, Congress authorized another $284 billion in additional funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses for payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Richard G. Frohling of the Eastern District of Wisconsin; Special Agent in Charge Sharon Johnson of the SBA’s Office of Inspector General (SBA-OIG) Central Region; Special Agent in Charge Robert E. Hughes of the FBI’s Milwaukee Field Office; Acting Special Agent in Charge Fran L. Mace of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); and Executive Special Agent in Charge Kathy Enstrom of the IRS Criminal Investigation (IRS-CI) Chicago Field Office made the announcement.
The FBI, SBA-OIG, FDIC-OIG, and IRS-CI investigated the case.
Trial Attorneys Laura Connelly and Leslie S. Garthwaite of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Stephen Ingraham of the Eastern District of Wisconsin are prosecuting the case.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the PPP began, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Las Vegas Man Sentenced for Stealing Nearly $185,000 from Nevada's Unclaimed Property FundRead the Press Release
LAS VEGAS, Nev. — A Las Vegas man was sentenced on Tuesday to five years and 10 months in prison for assuming others’ identities to steal nearly $185,800 from the Nevada State Treasurer’s Unclaimed Property Fund.
According to court documents, from February 2011 to August 2014, John Badea, 69, and co-defendant Radu Gal, 66, both of Las Vegas, repeatedly stole money belonging to individual victims that had been held in trust by the Nevada State Treasurer’s Unclaimed Property Division. As part of their fraudulent scheme, Badea and Gal searched the Unclaimed Property Division website to identify potential victims who were owed unclaimed property, obtained those victims’ personal identifying information using a ruse, and then submitted fraudulent claims to the Unclaimed Property Division using the victim’s identities.
Badea opened bank accounts in the names of stolen identities and deposited stolen unclaimed property funds into those accounts. He used the stolen funds for personal gain and to further the fraudulent scheme. Through their scheme, Badea and Gal submitted more than 143 false claims and impersonated more than 100 persons. They unlawfully obtained checks from the Unclaimed Property Division totaling approximately $185,872.
Badea pleaded guilty in December 2020 to one count of conspiracy to commit mail fraud, one count of mail fraud, and one count of aggravated identity theft. Badea was sentenced by U.S. District Judge Andrew P. Gordon. Gal pleaded guilty in February 2021 to one count of conspiracy to commit mail fraud and one count of aggravated identity theft. Gal is scheduled to be sentenced on August 4, 2021.
"We are committed to working with our law enforcement partners to pursue those who conspire to steal Social Security numbers and the identities of innocent people for their personal gain,” said Gail S. Ennis, Inspector General of Social Security. "I thank the FBI and the Las Vegas Metropolitan Police Department for their efforts and the United States Attorney’s Office for prosecuting this case.”
Acting U.S. Attorney Christopher Chiou for the District of Nevada, Special Agent in Charge Aaron C. Rouse of the FBI, and Inspector General Ennis of the Social Security Administration’s Office of the Inspector General (SSA OIG) made the announcement.
This case was investigated by the FBI, the SSA OIG, and the Las Vegas Metropolitan Police Department. Assistant U.S. Attorney Kimberly Frayn prosecuted the case.
###
Jury Convicts Virginia Man for Role in Armed RobberyRead the Press Release
RICHMOND, Va. – Last Friday, a federal jury in Richmond convicted Ronnell Kareem Levon Johnson, 27, of Norfolk, for his role in robbing a Sprint Store in Colonial Heights in January 2019.
“As the evidence at trial demonstrated, the defendant and his co-conspirator participated in an armed robbery in which they restrained and frightened the victims,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Thanks to the thorough investigative efforts of our law enforcement partners and the trial team, the defendant has been held accountable for his role in jeopardizing the safety of our community members.”
According to court records and evidence presented at trial, on the afternoon of January 7, 2019, Johnson and his co-conspirator, T.R., traveled from the Norfolk area to Colonial Heights to commit a violent armed robbery of a Sprint Store. During the robbery, T.R. brandished a loaded .40 caliber Ruger semi-automatic pistol and forced two employees into a back room of the store, where he let Johnson in through the back entrance. Johnson entered the store and started gathering Sprint Store merchandise into a bag.
Johnson and T.R. then held the two employees hostage in the back room, and attempted to tie up both employees while they completed the robbery. Due to a time-delay lock on the store’s safe, the defendants had to wait approximately twenty minutes for the safe to open. During that time, two separate customers entered the front of the store. T.R. let one of the employees assist each customer, along with a warning that the employee would be killed if he tried to alert anyone about the crime. The employee followed those instructions and the final customer left without incident. Minutes after the second customer departed, the time-delay lock on the safe opened, allowing Johnson and T.R. to steal dozens of cellular telephones and other store merchandise valued at approximately $25,000.
During a court-authorized search of T.R.’s residence, officers recovered the loaded .40 caliber Ruger semi-automatic pistol used in the robbery, various stolen Sprint Store items, and other evidence. T.R. later pleaded guilty for his role in the armed robbery, as well as additional charges. Using toll records and cellular tower data, law enforcement later identified Johnson as T.R.’s co-conspirator in the armed robbery based on Johnson’s travel to and from the Colonial Heights Sprint Store on January 7, 2019, along with other evidence.
The jury convicted Johnson on one count of robbery affecting commerce. Johnson faces a maximum penalty of 20 years in prison when sentenced on August 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Charlie J. Patterson, Special Agent in Charge of the ATF’s Washington Field Division; Colonel Gary T. Settle, Superintendent of Virginia State Police; and Colonel Jeffrey W. Faries, Chief of Colonial Heights Police, made the announcement after Senior U.S. District Judge Robert E. Payne accepted the verdict. Assistant U.S. Attorneys Kenneth R. Simon, Jr. and Michael Gill are prosecuting 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.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:20-cr-133.
Jefferson Parish Westbank Man Sentenced for Distribution of HeroinRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced today that BRYAN JOSEPH, age 46, was sentenced on a one-count superseding bill of information for distributing heroin in Jefferson Parish. United States District Court Judge Jane Triche Milazzo sentenced JOSEPH to serve 240 months in federal prison. JOSEPH was placed on 3 years of supervised release and ordered to pay a mandatory $100.00 special assessment cost.
According to court documents, on October 14, 2018, deputies with Jefferson Parish Sheriff’s Office were dispatched to a McDonald’s restaurant located in Harvey, Louisiana. When deputies arrived, they were advised that an unresponsive male was found in a bathroom stall. Deputies found an uncapped needle, needle cap, bent spoon and corner of a cellophane bag near the body. Detectives reviewed the store’s video surveillance and saw the victim arrive to the restaurant on a bicycle and enter the bathroom. The victim never exited the bathroom. Subsequently, Jefferson Parish Sheriff’s Office contacted the Federal Bureau of Investigation who then assisted with the investigation. Through the investigation, agents determined that JOSEPH sold the victim a quantity of heroin prior to the victim’s death. Jefferson Parish Forensic Center conducted an autopsy, which concluded that the victim died as a result of the toxic effects of heroin and fentanyl.
After agents identified JOSEPH as a suspect in the victim’s death, they successfully purchased heroin from JOSEPH on October 23, 2018 and October 25, 2018. On October 31, 2018, agents executed a search warrant at JOSEPH’s residence and located approximately 68.8 grams of heroin, approximately 156 grams of marijuana, digital scales and sandwich bags.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation, Gang Task Force, and Jefferson Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Nolan D. Paige was in charge of the prosecution.
* * *
Houston gang member charged for trafficking young teen for sexRead the Press Release
HOUSTON – A local gang member has been ordered into custody on charges of child sex trafficking, announced Acting U.S. Attorney Jennifer Lowery.
Today, U.S. Magistrate Judge Sam Sheldon ordered Porter Bush, 44, Houston, into custody pending further criminal proceedings.
The indictment, returned May 13, alleges Bush trafficked a 14-year-old girl from February to June 2018.
On June 25, 2018, authorities allegedly found and recovered the young girl near the Bissonnet Track after she got into a car with a potential client. The charges allege law enforcement conducted a traffic stop of the vehicle, at which time Bush pretended to be the 14-year-old’s stepfather.
The Bissonnet Track is a known area near 59 Southwest Freeway and Bissonnet Street where traffickers place minor and adult victims for commercial sex, according to the charges.
If convicted, Bush faces a minimum of 10 years and up to life in federal prison as well as a possible $250,000 maximum fine.
The Houston Police Department conducted the investigation as part of the Human Trafficking Rescue Alliance (HTRA).
HTRA law enforcement also includes members of the FBI, Homeland Security Investigations, Texas Attorney General’s Office, IRS-Criminal Investigation, Department of Labor (DOL), DOL – Wage and Hour Division, Department of State, Texas Alcoholic and Beverage Commission, Texas Department of Public Safety, Department of Homeland Security – Office of Inspector General (OIG), Social Security Administration – OIG and Sheriff’s Offices in Harris and Montgomery counties in coordination with District Attorney’s offices in Harris, Montgomery and Fort Bend Counties.
Established in 2004, the United States Attorney’s office in Houston formed HTRA to combine resources with federal, state and local enforcement agencies and prosecutors, as well as non-governmental service organizations to target human traffickers while providing necessary services to those that the traffickers victimized. Since its inception, HTRA has been recognized as both a national and international model in identifying and assisting victims of human trafficking and prosecuting those engaged in trafficking offenses.
Assistant U.S. Attorney Kate Suh is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
Highland Park Police Detective Charged with Conspiring to Distribute Fentanyl-laced HeroinRead the Press Release
A Detective with the Highland Park Police Department and her co-conspirator were charged in a criminal complaint with distributing and conspiring to distribute fentanyl-laced heroin, Acting United States Attorney Saima S. Mohsin announced today.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation.
Tiffany Lipkovitch, 45, of Detroit, and Amber Bellamy, 38, of Detroit, stand charged with distribution and conspiring to distribute controlled substances. Lipkovitch is a detective with the Highland Park Police Department, where she has been a police officer since 2011. According to the complaint, federal agents recorded numerous calls and meetings between Lipkovitch and a confidential source about a drug transaction. Lipkovitch gave the source “samples” or “pictures” of the drugs that were available from her associate, Bellamy, explaining that one was “$80 a gram” and the others were $100 per gram. When Lipkovitch asked what they were diluting or “cuttin” the drugs with, the confidential source responded that people used “fentanyl.” This did not surprise Lipkovitch, who explained that Bellamy was getting “a package of fentanyl . . . from overseas.” Lipkovitch eventually introduced the confidential source to Bellamy, who sold the source 45 grams of a fentanyl / heroin mixture. The confidential source later met with Lipkovitch, who was on duty and in her police uniform, about the transaction, and gave her $300 for facilitating the drug deal.
Acting United States Attorney Mohsin stated, “These charges affirm our office’s commitment to hold all individuals accountable for the distribution of dangerous drugs like heroin and fentanyl.” And, “While the vast majority of our police officers work honorably and faithfully to protect and serve the citizens of this region, our office continues to prosecute those corrupt officers who put their own greed above the public good and abuse their position violate the law.”
Highland Park Mayor Hubert Yopp stated, “We do not condone this type of activity. The citizens of Highland Park have expectations, as they should, that law enforcement officers obey the laws they swore to enforce. Like anyone else in the community, if a person violates the law they should be brought to justice.”
DEA Detroit Special Agent in Charge Keith Martin stated, “While the vast majority of law enforcement officers are honest and hardworking, this officer chose to push a deadly drug onto our streets in exchange for personal profit. We are committed to working with our partners to ensure these individuals are rooted out and brought to justice.”
"The arrests this morning by state and federal agents are an example of the law enforcement community's joint effort in prosecuting police officers that abuse their authority and abandon their oath to serve and protect our communities," said Special Agent in Charge Timothy Waters, Detroit Division of the FBI. "Today shows the commitment of law enforcement to root out police corruption and abuse of authority within its ranks. The officer's betrayal of her sworn duty should not diminish the exemplary work conducted every day by the men and women in law enforcement. This case is an example of the importance the criminal justice system places on prosecuting its own who have abused their positions of trust in dereliction of duty."
The South Oakland Narcotics Intelligence Consortium (SONIC) task force assisted in the investigation. SONIC is a task force of local police departments. The Michigan State Police will continue to provide resources to multi-agency task forces consisting of federal and local partners” stated Michigan State Police F/Lt. Michael Shaw, Second District Public Information Officer. “While any criminal activity is detrimental to our communities, it is far worse when the alleged suspect is a police officer.”
Upon conviction for a violation of Title 21, United States Code, Sections 841 or 846, Lipkovitch and Bellmany face a maximum of twenty years in prison and a fine of up to $1,000,000.
A criminal complaint is only a charge and is not evidence of guilt.
The case was investigated by the FBI Detroit Area Public Corruption Task Force, in collaboration with the SONIC task force and the Drug Enforcement Administration. The case is being prosecuted by Assistant U.S. Attorney Steven Cares.
Guadalajara Man Sentenced to Nearly 20 Years in Federal Prison for Distributing Approximately 21 Kilograms of MethamphetamineRead the Press Release
DEL RIO – U.S. District Judge Alia Moses sentenced 40-year-old Ramon Antonio Yanez-Gonzalez, aka “Junior,” of Guadalajara, Mexico to 235 months in federal prison today for distributing about 21 kilograms of methamphetamine and money laundering.
On July 31, 2018, Yanez-Gonzalez pleaded guilty to one count of conspiracy to possess with intent to distribute methamphetamine. According to court documents, from January 2011 to April 2015, the defendant conspired with others to smuggle methamphetamine into the Eagle Pass area from Mexico and distribute it to San Antonio, Austin and Dallas. On December 12, 2019, Yanez-Gonzalez pleaded guilty to one count of conspiracy to launder monetary instruments that was transferred from the Northern District of Texas. By pleading guilty to that charge, Yanez-Gonzalez admitted that he laundered proceeds from drug sales in December 2012.
During this investigation, authorities seized approximately 17 kilograms of methamphetamine attributable to Yanez-Gonzalez and his organization.
U.S Attorney Ashley C. Hoff of the Western District of Texas, Acting U.S. Attorney Prerak Shah of the Northern District of Texas and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s Houston Field Office made today’s announcement.
Yanez-Gonzalez has remained in federal custody since his arrest on August 28, 2017, in Las Vegas, Nevada.
The DEA together with the FBI, Homeland Security Investigations (HSI), U.S. Border Patrol, Val Verde County Sheriff’s Office, Dallas Police Department and Garland Police Department conducted this Organized Crime Drug Enforcement Task Forces (OCDETF) investigation named “Operation Guatemala Freeze.” 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.
Assistant U.S. Attorneys Sydni Connell, Sarah Spears and Amy Hail prosecuted this case with assistance from Northern District of Texas Assistant U.S. Attorney George Leal.
###
Grant County man sentenced for meth distributionRead the Press Release
ELKINS, WEST VIRGINIA – Lawrence Allen Keplinger, of Lahmansville, West Virginia, was sentenced today to 136 months incarceration for methamphetamine distribution, Acting U.S. Attorney Randolph J. Bernard announced.
Keplinger, 39, pled guilty to one count of “Possession with Intent to Distribute Methamphetamine” involving more than 50 grams of “crystal meth” or “ice.” Keplinger admitted to having more than 50 grams of methamphetamine in March 2019 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the West Virginia State Police investigated
U.S. District Judge Thomas S. Kleeh presided.
Grant County man pleads guilty to meth distributionRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Caleb Haggerty, of Petersburg, West Virginia, plead guilty to a drug distribution charge, Acting United States Attorney Randolph J. Bernard announced.
Haggerty, 36, pleaded guilty today to one count of “Distribution of Methamphetamine.” Haggerty admitted to distributing the methamphetamine in March 2020.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Potomac Highlands Drug Task Force, a HIDTA-funded initiative, and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
U.S. Magistrate Judge Michael John Aloi presided.
Former Financial Advisor Sentenced to Five Years in Prison for FraudRead the Press Release
Fort Myers, Florida – U.S. District Judge John L. Badalamenti today sentenced David Aaron Rockwell (45, Cape Coral) to five years in federal prison for wire fraud and bank fraud. As part of his sentence, the court also entered a money judgment of $1,018,000, the proceeds of his wire and bank fraud.
Rockwell had pleaded guilty on January 14, 2021.
According to court documents, Rockwell, a financial advisor, managed investment and retirement accounts for his clients. Beginning in October 2017, Rockwell began to defraud clients and misappropriated his clients’ funds for his own purpose. Rockwell also defrauded a federally insured bank when he applied for two lines of credit, totaling $700,000, in the names of his clients, without their knowledge or permission. Rockwell forged the clients’ signatures on the loan applications and pledged the clients’ assets as collateral for the loans, all without their knowledge or authorization. Rockwell used the funds that he had obtained from the loans for his own use and benefit.
Furthermore, Rockwell persuaded another client to invest in low-income housing in Florida. However, once the client transferred approximately $400,000 to fund the investment, Rockwell used the money to pay his personal credit cards and to purchase a home.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Yolande G. Viacava.
Former City of Cleveland Demolition Bureau Chief Sentenced to 21 Months for Bribery and ExtortionRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Rufus Taylor, 62, was sentenced today by U.S. District Court Judge Christopher A. Boyko to 21 months imprisonment, one year of supervised release and ordered to pay a $5,000 fine. Taylor, the former head of the city of Cleveland’s Demolition Department, pleaded guilty to bribery in federally funded programs and extortion under color of official right in September of 2018.
According to court documents, from 2012 through 2017, Taylor was employed by the City of Cleveland as Chief of the Demolition Bureau. Among other duties, Taylor was responsible for assigning “board-up” of vacant properties to contractors, emergency demolition jobs and conducting inspections, which had to take place before a contractor could receive payment.
From November of 2013 through September of 2017, court documents state that Taylor received and solicited cash bribes from Contractor 1 and Contractor 2 in exchange for preferential treatment and advantageous information on city of Cleveland demolition projects.
On or about November 2, 2013, through September 1, 2017, Taylor received cash payments from Contractor 1 in return for assistance placing Contractor 1 on the city of Cleveland bid list for a demolition job. Taylor also sought payment from Contractor 1 in return for notification of an emergency demolition job. At various other times between November 2013 and November 2015, Contractor 1 provided Taylor with cash payments.
Additionally, from August of 2015 through July of 2016, Taylor received cash payments from Contractor 2 in return for a list of companies bidding on a demolition job, information concerning the then-current lowest bids for the job and a list of bid numbers for another pending demolition job.
This case was investigated by the Federal Bureau of Investigation, the Department of Housing and Urban Development’s Office of Inspector General and the Internal Revenue Service – Criminal Investigations. This case was prosecuted by Assistant U.S. Attorneys Chelsea Rice and Elliot Morrison.
Fargo Man Sentenced to Federal Prison for His Involvement in a Violent RobberyRead the Press Release
FARGO - Acting United States Attorney Nicholas W. Chase announced today that U.S. District Court Chief Judge Peter D. Welte sentenced Shelton Lee Moseby, IV, age 21, Fargo, ND, to 51 months in federal prison for the charge of Interfere with Commerce by Threats and Violence – Hobbs Act Robbery. Judge Welte also sentenced Moseby to three years of supervised released and $100 in special assessment fees.
On May 30, 2019, Moseby and a group of others robbed a customer seeking commercial sex. Moseby’s co-defendants posted an advertisement on "Skip the Games" promoting prostitution with adult women. The victim arranged to meet an individual for the purpose of commercial sex at an apartment building in Fargo. Using a taser, Moseby and his co-defendants robbed the commercial sex customer by threats of force after he arrived at the apartment building. Moseby sought to take advantage of a customer of commercial sex whom he believed would be unwilling to go to law enforcement if he was robbed, but the victim called 911 immediately following the robbery.
This case was investigated by the Department of Homeland Security Investigation and the Fargo Police Department, and Assistant United States Attorney Jennifer Puhl prosecuted the case.
######
Employee of Autism Services Agency Pleads Guilty to Health Care Fraud and Identity Theft OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JESSICA STUART, 38, of Fairfield, waived her right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to health care fraud and identity theft offenses.
According to court documents and statements made in court, Stuart was employed by Helping Hands Academy, LLC, in Bridgeport, which provided applied behavior analysis services to children diagnosed with Autism Spectrum Disorder (ASD). Helping Hands Academy enrolled as a participating provider in the Connecticut Medicaid Program (“Medicaid”) in approximately September 2018.
Medicaid requires that ASD treatment services be provided under the supervision of a licensed medical practitioner or a Board Certified Behavior Analyst (BCBA), a graduate-level certification in behavior analysis. BCBAs are also required to be credentialed in writing by the state. Stuart does not have a college degree, was not a BCBA or licensed medical practitioner, and did not have any formal training in applied behavior analysis for ASD. Between approximately May 2019 and September 2020, Helping Hands Academy paid Stuart at least $143,0000 and submitted to Medicaid numerous fraudulent claims for applied behavioral analysis services that Stuart performed but was not qualified to provide. Stuart used the name of an individual without the individual’s knowledge or authorization so that Stuart could impersonate a BCBA when she knew she was not a BCBA.
Medicaid suffered a loss of $369,439.96 as a result of Stuart’s conduct.
Stuart pleaded guilty to one count of health care fraud, which carries a maximum term of imprisonment of 10 years, and one count of using false identification in connection with health care fraud, which carries a maximum term of imprisonment of 15 years. Judge Meyer scheduled sentencing for August 31, 2021.
Stuart is released pending sentencing.
On April 28, 2021, Nicole Balkas, the owner of Helping Hands Academy, pleaded guilty to one count of health care fraud. She awaits sentencing.
This investigation is being conducted by the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG) and the Federal Bureau of Investigation.
Acting U.S. Attorney Boyle acknowledged the valuable cooperation of the Connecticut Department of Social Services in the investigation.
This case is being prosecuted by Assistant U.S. Attorney David T. Huang.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Eight Members of Armed Drug Trafficking Organization Charged by Federal IndictmentRead the Press Release
Jacksonville, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging eight individuals with conspiracy to distribute and to possess with the intent to distribute MDMA, also known as “ecstasy” or “molly”, and α‑Pyrrolidinopentiophenone, also known as “alpha-PVP” or “flakka.” If convicted, each faces a maximum penalty of 20 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit property that was used to facilitate the offense or that is traceable to proceeds of the offense, including approximately $185,000 in cash, a 2015 BMW 550i, a 2015 Lexus IS 250, a 2013 Audi A8 L Quattro, a 2020 Ryker Rally Edition motorcycle, two Rolex watches, numerous pieces of jewelry, and five firearms.
The individuals charged in the indictment are: Kimberly Michelle Claridy Walker (44, Jacksonville); Neal Merrell Walker (50, Jacksonville); Marcus Antonio Peterson (35, Lake City); Ramone Lazai Astin (35, Jacksonville); Alfred Eugene Bell (36, Jacksonville); Mar’quez Maurice Mickler (20, Jacksonville); David Lee Geathers (24, Jacksonville); and Brandiesa Tylese Williams (24, Jacksonville).
According to the indictment and other court documents, the defendants were part of an armed drug trafficking organization that distributed illegal narcotics, primarily out of a “trap house” on 14th Street in Jacksonville, beginning in July 2018 and continuing until April 13, 2021, when six of the defendants were arrested. During the course of the conspiracy, the conspirators obtained kilogram quantities of the drugs, which were broken up into small amounts and re-packaged for sale to numerous individuals.
Bank account records and public documents reflect that on two occasions Kimberly Walker and Neal Walker, with the assistance of co-defendants, laundered approximately $98,000 through financial institutions from which they had obtained cashier’s checks to buy tax deeds for five properties in Jacksonville. Bank records also reflect that between June 13, 2019, and November 30, 2020, approximately $330,000 was deposited, almost entirely in cash, into an account in the name of a business entity owned by the Walkers.
An indictment is merely a formal charge that a defendant has violated one or more of the federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the Drug Enforcement Administration, the Jacksonville Sheriff’s Office, the Columbia County Sheriff’s Office, and the Lake City Police Department. It will be prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Edgewood Man Sentenced to 10 Years in Federal Prison for RobberyRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett sentenced Jaquan Day, age 21, of Edgewood, Maryland to 10 years in federal prison, followed by three years of supervised release, on May 27, 2021 for robbing an individual engaged in drug trafficking of controlled substances.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to his plea agreement, on April 25, 2019 Day conspired with at least six others to rob an individual engaged in drug trafficking. After convening at a retail parking lot, Day and his co-conspirators drove to a nearby apartment complex and assaulted three victims including a pregnant woman, a minor male, and an adult male.
Upon arrival, Day and his co-conspirators knocked on the door to ultimately force entry into the unit. As an adult male (Victim 1) opened the door, a co-conspirator ran past the three victims to a rear bedroom where he proceeded to take U.S. currency and a prescription of suboxone. At that time, a second co-conspirator tackled and physically restrained Victim 1. Day proceeded to aim a firearm at an eight-month pregnant female (Victim 2). When Victim 2 attempted to help Victim 3 (a minor male), Day kicked Victim 2 in her abdomen. He then struck Victim 1 repeatedly with his firearm. A third co-conspirator repeatedly asked, “Where’s the money at?” The fourth co-conspirator remained outside as a lookout for law enforcement or witnesses. Once the co-conspirator returned from the bedroom, the intruders fled to their vehicles.
After Day and his co-conspirators left the unit, Victim 2 was treated at a nearby hospital where she underwent an emergency caesarian section to deliver her child as a result of the injuries she obtained from the assault.
Day admitted the robbery followed an unlawful agreement between himself and at least one other person to commit robbery of an individual trafficking marijuana. Day also admitted the objective of the robbery was to obtain marijuana, and that the intruders ultimately took suboxone and Victim 1’s marijuana trafficking proceeds by force.
Co-defendant Tyqwell Booker, age 24, has pleaded guilty to the same offense and is expected to receive a sentence between 60 and 96 months at his sentencing in September 2021. Antoine Rich, age 24, and Jesse Walton Jr., age 49, have been sentenced to 72 months and 30 months in federal prison, respectively.
Acting United States Attorney Jonathan F. Lenzner praised the ATF and the Maryland State Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Charles Austin who prosecuted the case.
# # #
Dominican National Charged with Fentanyl TraffickingRead the Press Release
BOSTON – A Dominican national was charged last week in connection with trafficking fentanyl.
Ana Checo, 39, was charged on May 27, 2021 by criminal complaint with possession with intent to distribute 400 grams or more of fentanyl. Following an initial appearance in federal court in Boston, Checo was detained pending a detention hearing scheduled for June 3, 2021.
According to the charging documents, in 2019, Checo delivered $58,510 in suspected drug proceeds to an undercover officer. In July 2019, a search warrant at Checo’s residence resulted in the recovery of eight kilograms of fentanyl, one of which also contained valeryl fentanyl, a fentanyl analogue. Four kilograms of tramadol, one kilogram of “2C-B”, a schedule I controlled substance, and $18,325 were also seized. In addition, Checo allegedly possessed approximately 55 kilograms of suspected fentanyl and several thousand dollars at the time of her arrest.
The charge of possession with intent to distribute 400 grams or more of fentanyl provides for a sentence of at least 10 years and up to life in prison, at least five years of supervised release and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistant U.S. Attorneys Katherine Ferguson and Lauren Graber of Mendell’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Detroit Man Arrested on Weapons ChargesRead the Press Release
DETROIT – A Detroit man was arrested and charged with being a Felon in Possession of a Firearm, and Possession of a machine gun, announced Acting United States Attorney Saima Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge James Deir, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Charged was Delmarco Craig, 22. Craig is a prior convicted felon and is prohibited from possessing firearms.
According to the criminal complaint and information provided during a court hearing, ATF agents began an investigation into Craig for the illegal possession of firearms. As part of that investigation, agents reviewed an Instagram account utilized by Craig where he would post photographs and live stream videos. In those photographs and videos, Craig is seen posing with several different firearms, including a Glock pistol equipped with a Glock conversion device which, when affixed to a Glock pistol, converts the firearm from a semi-automatic pistol to a fully automatic machine gun.
According to testimony provided during a court hearing, agents executed a federal search warrant at Craig’s residence where they recovered the Glock equipped with a Glock conversion device and six other firearms, two of which were stolen. One of the firearms recovered was a tan and black Palmetto State Armory 5.56 caliber AR rifle with an obliterated serial number partially covered by a black Skull decal. On May 25, 2021, CRAIG streamed an Instagram Live Video in which CRAIG brandishes what appears to be the same rifle. Using the National Integrated Ballistic Information Network (NIBIN), agents were able to connect the firearm to seven (7) shootings since October 2020, including a homicide and double non-fatal shooting on May 25, 2021 at approximately 11:20 pm in the area of 8576 Strathmoor Street in Detroit, Michigan (several hours after the live video). Additionally, NIBIN connected the rifle to a shooting at a CVS on Grand River Avenue on April 16, 2021 in which surveillance video captured the suspect vehicle as a newer model white escalade with black tires and rims and a black grill. During the search warrant at Craig’s residence, agents recovered a stolen 2021 White Cadillac Escalade from the backyard containing a purple LA Dodgers hat frequently worn by CRAIG on Instagram.
“This case highlights how NIBIN is a proven investigative and intelligence tool that allows law enforcement to link firearms from multiple crimes scenes allowing law enforcement to quickly disrupt shooting cycles,” said Acting US Attorney Mohsin. “Criminals should take notice that law enforcement stands ready to remove those terrorizing our neighborhoods.”
“Every trigger-puller in Detroit should be put on notice. Gun Violence in our community will not be tolerated and those who choose to use a firearm to commit any type of violent act will be held to account for their misdeeds,” said Special Agent in Charge James Deir. “NIBIN is the linchpin for ensuring accountability in eradicating gun violence.”
Craig is charged with being a felon in possession of a firearm and possession of a machinegun. If convicted, Craig faces a statutory maximum penalty of 10 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
This case is being investigated by special agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant United States Attorneys Robert VanWert and Trevor Broad.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Dayton residents charged in identity & financial fraud schemeRead the Press Release
DAYTON, Ohio – A federal grand jury has charged two Daytonians with federal crimes related to identity fraud, aggravated identity theft, theft of U.S. mail, Social Security fraud and access device fraud. The defendants allegedly conspired to steal checks, credit cards, debit cards, bank account information and Social Security numbers to enrich themselves.
Myrtle Lynn “Mi Mi” Jackson, 38, and Joshua Dylan “Jo Jo” Chapman, 29, each appeared in federal court today, and U.S. Magistrate Judge Peter B. Silvain, Jr. ordered them both detained pending trial. The case has been assigned to Senior U.S. District Judge Thomas M. Rose.
According to the 17-count indictment returned on May 11, the defendants stole victims’ personal information from occupied and unoccupied residences, vehicles and mailboxes. Jackson and Chapman then allegedly used stolen credit cards, debit cards and checks to illicitly acquire cash, drugs, and other goods and services.
The charging document alleges the co-conspirators used victims’ information to fraudulently apply for personal loans, student loans, unemployment benefits, credit cards, debit cards and checks.
Jackson and Chapman allegedly used the proceeds of their fraud scheme to buy illicit drugs and make purchases at Walmart, Dollar General, Kentucky Fried Chicken and Lees Famous Chicken. It is alleged the fraudulent funds were also used to pay for motel rooms and for gambling activities at a casino in Dayton.
No trial date has been set yet.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio, announced the charges and commended the investigation of the United States Secret Service and Dayton Police Department. Assistant United States Attorney Dwight K. Keller is representing the United States in this case.
An indictment is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
# # #
Couple Who Falsely Claimed to be Farmers Sentenced in $1.1 Million COVID-Relief FraudRead the Press Release
A Florida couple was sentenced to prison today for their participation in a scheme to file four fraudulent loan applications seeking more than $1.1 million in forgivable Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
Latoya Stanley, 38, and Johnny Philus, 33, both of Miami, were sentenced today to 18 and 30 months in prison, respectively. They each pleaded guilty to one count of conspiracy to commit wire fraud on March 8. As set forth in court documents, in Stanley’s PPP application, she claimed to employ 18 individuals from her company, Dream Gurl Beauty Supply LLC. Philus, meanwhile, stated that he employed 29 individuals at his company, Elegance Auto Boutique LLC. In actuality, Stanley and Philus did not employ anyone at their respective companies.
According to court documents, in her EIDL application, Stanley claimed to generate over $800,000 in income and to employ five individuals from a farm based in the yard of her Miami home. In his EIDL application, Philus claimed to generate $400,000 in income and to employ 10 individuals from a farm located in the yard of a small residential home. But, in reality, Stanley and Philus employed no one and the farms did not exist.
As they admitted in their plea agreements, Stanley and Philus worked together to effectuate the fraud and ultimately received over $1 million in funds from the fraudulent PPP and EIDL applications before their schemes were uncovered.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio “Tony” Gonzalez of the Southern District of Florida; Treasury Inspector General for Tax Administration (TIGTA) J. Russell George; Inspector General Hannibal “Mike” Ware of the SBA’s Office of Inspector General (OIG); and Inspector in Charge Joseph Cronin of the U.S. Postal Inspection Service (USPIS) Miami Division made the announcement.
This case was investigated by the SBA-OIG, USPIS, and TIGTA.
Trial Attorney Louis Manzo of the Criminal Division’s Fraud Section is prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small-businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Correctional Officer Admits Signing False Report in Connection with Assault of Federal Pretrial DetaineeRead the Press Release
NEWARK, N.J. – An Essex County correctional officer today admitted signing a false report following another officer’s assault of a federal pretrial detainee, Acting U.S. Attorney Rachael A. Honig announced.
Angel Chaparro, 38, pleaded guilty by videoconference before U.S. District Judge Claire C. Cecchi to an information charging him with filing a false report. Officers Luis Ortiz and Damion James and Sergeant Herman Pride were previously charged by criminal complaint with conspiracy to violate a pretrial detainee’s civil rights. Those charges remain pending.
According to documents filed in this case and statements made in court:
On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility squirted a substance onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where Chaparro, Ortiz, and James began to conduct a strip search of the detainee. They never completed it. Chaparro admitted that during the strip search, James assaulted the detainee, striking him multiple times in his face, head, and chest area. Multiple supervisory officers, including Pride, watched the assault, but no one intervened to stop it. At the end of the assault, Pride said, “Okay, that’s enough.”
Following the assault, the detainee asked for, and was initially denied, medical assistance. Two days later, the detainee was finally 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.
Chaparro admitted that, in connection with the assault, he was given a blank “Strip/ Body Cavity Search Report” to sign. After he signed the blank report, it was ultimately filled out and submitted by a supervising officer. Chaparro admitted that the report was false in that he signed it as “reporting officer,” even though he did not write it. Chaparro also admitted that by signing the report, he falsely indicated that a strip search of the detainee had been completed, when, in fact, the officers never completed the strip search. Chaparro admitted that the report that was ultimately submitted was additionally false because it said “N/A” in the section of the report titled, “If applicable, reason for use of force,” when, in fact, Officer James struck the detainee multiple times while Chaparro, Ortiz, Pride, and other supervising officers watched and did not intervene.
The false report charge to which Chaparro pleaded guilty carries a maximum sentence of 20 years in prison and a fine of $250,000. Sentencing is scheduled for Oct. 20, 2021.
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 today’s guilty plea.
The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.
The charges and allegations in the criminal complaint against the other defendants are merely accusations, and they are presumed innocent unless and until proven guilty.
Charlotte Woman Pleads Guilty to Wire Fraud for Falsely Obtaining Coronavirus Relief LoanRead the Press Release
CHARLOTTE, N.C. – Jasmine Johnnae Clifton, 24, of Charlotte, appeared before U.S. Magistrate Judge David C. Keesler today and pleaded guilty to wire fraud for fraudulently obtaining a COVID-19 loan for almost $150,000 from the U.S. Small Business Administration (SBA), announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Mona Passmore, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), and Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service, which oversees Charlotte, join Acting U.S. Attorney Stetzer in making today’s announcement.
According to filed court documents and today’s plea hearing, Clifton engaged in a scheme to defraud the SBA by obtaining an Economic Injury Disaster Loan (EIDL) based on false information. Court records show that Clifton created Jazzy Jas LLC, an online retail clothing sales business, in April 2019. On July 24, 2020, Clifton submitted a fraudulent loan application to the SBA for Jazzy Jas, despite the fact the company had been dissolved by Clifton several months prior. As a result of the fraudulent application, which included false information about revenues and a fraudulent tax document, Clifton obtained $149,900 in disaster relief funds that were intended to be provided to an existing business harmed by the COVID-19 pandemic. On or about August 14, 2020, the EIDL funds were deposited directly into Clifton’s bank account. Clifton used the government funds to make purchases at multiple diamond stores and at numerous retail stores, including at Nordstrom, Ikea, Neiman Marcus, Rooms To Go, Louis Vuitton, Best Buy and other retail shopping outlets.
Clifton remained on bond following today’s guilty plea. The charge of wire fraud carries a maximum prison term of 20 years and a $500,000 fine. A sentencing date has not been set.
The CARES Act is a federal law enacted March 29, 2020, and it is designed to provide emergency financial assistance to millions of Americans suffering the economic effects caused by the COVID-19 pandemic. The CARES Act established several new temporary programs and provided for the expansion of others, including the EIDL program, which is an SBA program that provides low-interest financing to small businesses, renters, and homeowners in regions affected by declared disasters.
In making today’s announcement Acting U.S. Attorney Stetzer thanked IRS-CI and USPIS for their investigation which led to the charges.
Assistant U.S. Attorney William Bozin, of the U.S. Attorney’s Office in Charlotte, is prosecuting the case.
The Department of Justice and the U.S. Attorney’s Office for the Western District of North Carolina remain vigilant in detecting, investigating, and prosecuting wrongdoing related to the COVID-19 pandemic. If you think you are a victim of coronavirus fraud or have information pertaining to fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or submit a complaint online using the NCDF Web Complaint Form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Carnegie Man Pleads Guilty to Throwing Concrete Pieces and a Pipe at Pittsburgh Police during May 30, 2020 Pittsburgh ProtestRead the Press Release
PITTSBURGH - A resident of Carnegie, Pennsylvania, pleaded guilty to a charge of obstruction of law enforcement during civil disorder, Acting United States Attorney Stephen R. Kaufman announced today.
Andrew Augustyniak-Duncan, 25, pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that on May 30, 2020, Augustyniak-Duncan knowingly and willfully threw projectiles, including pieces of concrete and a pipe, at several Pittsburgh police officers, causing the obstruction, impediment and interference of law enforcement officers engaged in the lawful performance of their official duties.
Judge Schwab scheduled sentencing for Oct. 13, 2021. The law provides for a maximum total sentence of not more than five years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Judge Schwab continued the defendant’s detention pending sentencing,
Assistant United States Attorney Jonathan D. Lusty is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.