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20 July 2021
Former Bureau of Prisons Corrections Officer Pleads Guilty to Sexually Abusing an Inmate and Witness TamperingRead the Press Release
BIRMINGHAM, Ala. – Eric Todd Ellis, 32, a former Bureau of Prisons (BOP) corrections officer at the FCI-Aliceville facility in Aliceville, Alabama, pleaded guilty today in federal court to one count of sexual abuse of a ward and one count of tampering with a witness.
According to court documents, on or about June 11, 2020, Ellis knowingly engaged in a sexual act with a female inmate, while in the back of the laundry room of the prison. At the time, Ellis was on-duty and acting in his capacity as a corrections officer. The female inmate was in official detention and under Ellis’s custodial authority. Ellis subsequently admitted his conduct to another corrections officer.
Thereafter, the U.S. Department of Justice Office of the Inspector General (OIG) began investigating Ellis’s conduct. While that investigation was ongoing, Ellis made the following statements – on a recorded call – to that corrections officer (to whom he had previously admitted his conduct) in reference to the federal investigation and his conduct: “Just tell [the OIG agents], yeah, we’re friends, but, I mean, you hadn’t really talked to me about it. And when you have it’s – I’ve just told you that nothing happened.” Ellis admitted in the plea agreement that he made those statements because was attempting to persuade that other corrections officer to provide false information to OIG agents about his sexual abuse of the female inmate.
“Inmates detained inside jails and prisons have the right to be free from sexual assaults and sexually abusive behavior. The Department of Justice will continue to hold accountable prison employees who exploit their positions of power to sexually abuse individuals in their custody, and then attempt to cover up their misconduct,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Corrections officers who commit sexual assault have no place inside the Bureau of Prisons, and we will continue to fight for justice for victims of these despicable crimes.”
“The Department of Justice strives to maintain a safe, secure, and supportive environment for prison inmates, and one that promotes the successful reentry of inmates into society,” said U.S. Attorney Prim F. Escalona. “My office works closely with the OIG and Civil Rights Division to investigate and prosecute any sexual abuse of inmates by prison employees.”
“Ellis sexually abused an inmate in his custody and then tried to coerce another correctional officer to help him cover up his crime. The DOJ Office of the Inspector General will continue to investigate and bring to justice anyone who engages in this kind of behavior,” said Special Agent in Charge James F. Boyersmith of the Justice Department’s Office of the Inspector General Miami Field Office.
A sentencing hearing is scheduled for October 26.
This case was investigated by the Atlanta Division of the OIG. Executive Assistant U.S. Attorney Robert Posey and Assistant U.S. Attorney Robin Mark of the Northern District of Alabama and Special Litigation Counsel Fara Gold and Trial Attorney Anna Gotfryd of the Criminal Section of the Civil Rights Division of the U.S. Department of Justice are prosecuting the case.
Former Billings rheumatologist settles alleged health care fraud claims for $2 millionRead the Press Release
BILLINGS – A former Billings rheumatologist and his business agreed to settle alleged civil False Claims Act violations regarding his practice for a $2,070,664 total payment, Acting U.S. Attorney Leif M. Johnson said today.
Dr. Enrico Arguelles, a former rheumatologist, and his business, Arthritis and Osteoporosis Center (AOC), which closed in September 2018, entered into a civil settlement agreement with the U.S. Attorney’s Office for the District of Montana on July 14, 2021. The terms of the settlement require Arguelles and AOC to pay a settlement amount of $1,268,646 and to relinquish any claim to $802,018 in Medicare payment suspensions that have been held in escrow for AOC since Oct. 11, 2017 by the Centers for Medicare and Medicaid.
“This civil settlement resolves claims of improper medical treatments and false billing to a federal program. Over billed and unnecessary claims, like the ones at issue in this case, drive up the costs for providing care to the people who really need it. Medical providers who attempt to enrich themselves by submitting false and exaggerated claims to federal health benefit programs, like Medicare, will be investigated and held responsible. I want to thank our office’s team of health care fraud investigators, the Department of Health and Human Services Office of Inspector General and the FBI for their work on this case,” said Acting U.S. Attorney Johnson.
“Patients and taxpayers expect physicians to make decisions based on medical necessity, not on boosting the physician’s profits, as alleged in this case,” said Special Agent in Charge Curt L. Muller of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, we will hold accountable individuals who provide medically unnecessary treatments and pass along the cost to taxpayers.”
The United States contended that it had certain claims against Arguelles and AOC arising from the diagnosis and treatment of rheumatoid arthritis, including the improper billing for MRI scans, improper billing for patient visits, and the use of biologic infusions such as Remicade for certain patients who did not have seronegative rheumatoid arthritis, from Jan. 1, 2015 through AOC’s closure in September 2018.
The Settlement Agreement is neither an admission of liability by Arguelles or AOC, nor a concession by the United States that its claims are not well founded.
Assistant U.S. Attorney Michael A. Kakuk represented the United States in this matter, which was investigated by the U.S. Attorney’s Office’s Health Care Fraud Investigative Team, the Department of Health and Human Services Office of Inspector General and the FBI.
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Former Beardstown Man Sentenced to 33 Months in Prison for Defrauding School DistrictsRead the Press Release
URBANA, Ill. –Daniel Brue, 48, formerly of Beardstown, Illinois, was sentenced on July 19, 2021, to 2 years and 9 months in federal prison, to be followed by 3 years of supervised release, following his conviction on four counts of wire fraud related to his theft from two area school districts. Brue also was ordered to pay $343,009.52 in restitution.
Brue, who pleaded guilty to the charges, admitted that he abused his position of trust while working as the superintendent for the Bement Community Unit School District #5, and, later, the Meridian Community Unit School District #15. Brue embezzled money from both school districts by creating and registering a fake company and then fraudulently invoicing the school districts for work never performed. Brue stole money from the districts between 2011 and 2019.
At the sentencing hearing, U.S. District Court Judge Colin S. Bruce noted that Brue’s scheme was not “simple” and that Brue took efforts to conceal his theft. Recognizing that the money could have been used to help children, the judge observed that Brue’s crimes would have a long-term, detrimental impact on school districts that were already struggling. Bruce permitted Brue, who presently resides in Virginia, Illinois, to remain on bond prior to reporting to the Bureau of Prisons to serve his sentence.
“School superintendents and other public servants serve as leaders and role models to students and the community at large,” said Acting U.S. Attorney Douglas J. Quivey. “When they abuse the public trust, prosecution serves to restore the trust and reminds us all that public misconduct will not be tolerated.”
“School districts, especially those in our rural areas, count on every penny to provide a quality education for their students,” said Sean M. Cox, Federal Bureau of Investigation Special Agent in Charge, Springfield Division. “Over the span of 8 years, Daniel Brue embezzled school funds, funds which could have been put toward valuable supplies for the students and staff. Mr. Brue deprived students, and the educators teaching them, from having all available resources to provide the best educational experience, and that can never be replaced. This sentence sends a clear message that the FBI will continue to dedicate our investigative resources to stop anyone who engages in fraudulent activity to deprive others.”
Agents from the Federal Bureau of Investigation, Springfield Field Office, investigated the case. Assistant United States Attorneys Rachel Ritzer and Melissa Moody represented the government in the prosecution.
Former Advisor to Presidential Candidate Among Three Defendants Charged with Acting as Agents of a Foreign GovernmentRead the Press Release
BROOKLYN, NY – A seven-count indictment was unsealed today in federal court in Brooklyn charging Thomas Joseph Barrack, Matthew Grimes, and Rashid Sultan Rashid Al Malik Alshahhi, also known as “Rashid Al Malik” and “Rashid Al‑Malik,” a citizen of the United Arab Emirates (UAE), with acting and conspiring to act as agents of the UAE between April 2016 and April 2018. The indictment charges conduct relating to the defendants’ unlawful efforts to advance the interests of the UAE in the United States at the direction of senior UAE officials by influencing the foreign policy positions of the campaign of a candidate (the “Candidate”) in the 2016 United States Presidential Election (the “Campaign”) and, subsequently, the foreign policy positions of the United States government in the incoming administration, as well as seeking to influence public opinion in favor of UAE interests. The indictment also charges Barrack with obstruction of justice and making multiple false statements during a June 20, 2019 interview with federal law enforcement agents.
Barrack and Grimes were arrested this morning in California and are scheduled to make their initial appearances this afternoon before United States Magistrate Judge Patricia Donahue at the federal courthouse in Los Angeles. Alshahhi remains at large.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, Mark J. Lesko, Acting Assistant Attorney General of the Justice Department’s National Security Division, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the arrests and indictment.
“As alleged, the defendants, using their positions of power and influence in a presidential election year, engaged in a conspiracy to illegally advance and promote the interests of the United Arab Emirates in this country, in flagrant violation of their obligation to notify the Attorney General of their activities and in derogation of the American people’s right to know when a foreign government seeks to influence the policies of our government and our public opinion,” stated Acting United States Attorney Kasulis. “These arrests serve as a warning to those who act at the direction of foreign governments without disclosing their actions, as well as those who seek to mislead investigators about their actions, that they will be brought to justice and face the consequences.”
Ms. Kasulis expressed her appreciation to the United States Attorney’s Office for the Central District of California, the United States Attorney’s Office for the District of Colorado and the FBI’s Los Angeles and Denver Field Offices for their assistance.
“The defendants repeatedly capitalized on Barrack’s friendships and access to a candidate who was eventually elected President, high-ranking campaign and government officials, and the American media to advance the policy goals of a foreign government without disclosing their true allegiances,” stated Acting Assistant Attorney General Lesko. “The conduct alleged in the indictment is nothing short of a betrayal of those officials in the United States, including the former President. Through this indictment, we are putting everyone—regardless of their wealth or perceived political power—on notice that the Department of Justice will enforce the prohibition of this sort of undisclosed foreign influence.”
“American citizens have a right to know when foreign governments, or their agents, are attempting to exert influence on our government. This is especially important to Americans during a Presidential election year, and the laws on the books were created to protect our nation from such untoward influence. This case is about secret attempts to influence our highest officials, and when that corrupt behavior was discovered, we allege Mr. Barrack went even further, obstructing and lying to FBI special agents. In case it needs repeating, each of those bad choices is a federal felony, and each now comes with significant consequences - the first being today's indictment,” stated FBI Assistant Director-in-Charge Sweeney.
Between April 2016 and November 2016, Barrack served as an informal advisor to the Campaign of the Candidate in the 2016 United States Presidential Election. Between November 2016 and January 2017, Barrack served as Chairman of the Presidential Inaugural Committee. Beginning in January 2017, Barrack informally advised senior United States government officials on issues related to United States foreign policy in the Middle East. Barrack also sought appointment to a senior role in the United States government, including the role of Special Envoy to the Middle East. Barrack served as the Executive Chairman of a global investment management firm headquartered in Los Angeles, and Grimes was employed at the firm and reported directly to Barrack. During the relevant time period, Alshahhi worked as an agent of the UAE and was in frequent contact with Barrack and Grimes, including numerous in-person meetings in the United States and the UAE.
As alleged in the indictment, the defendants used Barrack’s status as a senior outside advisor to the Campaign and, subsequently, to senior United States government officials, to advance the interests of and provide intelligence to the UAE while simultaneously failing to notify the Attorney General that their actions were taken at the direction of senior UAE officials. Barrack – directly and through Alshahhi and Grimes – was regularly and repeatedly in contact with the senior leadership of the UAE government. On multiple occasions, Barrack referred to Alshahhi as the UAE’s “secret weapon” to advance its foreign policy agenda in the United States.
Barrack, Alshahhi and Grimes allegedly took numerous steps in the United States to advance the interests of the UAE. For example, in May 2016, Barrack inserted language praising the UAE into a Campaign speech to be delivered by the Candidate about United States energy policy in May 2016 and emailed an advance draft of the speech to Alshahhi for delivery to senior UAE officials. Similarly, throughout 2016 and 2017, the defendants sought and received direction and feedback, including talking points, from senior UAE officials in connection with national press appearances Barrack used to promote the interests of the UAE. After one appearance in which Barrack repeatedly praised the United Arab Emirates, Barrack emailed Alshahhi, “I nailed it. . . for the home team,” referring to the UAE. Barrack and Grimes also solicited direction from senior UAE officials in advance of the publication of an Op-Ed authored by Barrack and published in a national magazine in October 2016 and removed certain language at the direction of senior UAE officials, as relayed by Alshahhi.
Following the 2016 United States Presidential Election, the defendants repeatedly acted at the direction of UAE officials to influence the foreign policy positions of the incoming administration in favor of UAE interests. For example, in December 2016, Barrack met with Grimes, Alshahhi and senior UAE government officials, during which he advised them to create a “wish list” of U.S. foreign policy items that the UAE wanted accomplished in the first 100 days, six months, year and four years of the incoming administration of the United States President-Elect.
In March 2017, Barrack and his co-defendants agreed to promote the candidacy of an individual favored by senior UAE officials for the position of United States Ambassador to the UAE. In May 2017, Barrack agreed to provide Alshahhi with non-public information about the views and reactions of senior United States government officials following a White House meeting between senior United States officials and senior UAE officials.
In September 2017, Alshahhi communicated with Barrack about the opposition of the UAE to a proposed summit at Camp David to address an ongoing dispute between the State of Qatar, the UAE and other Middle Eastern governments, after which Barrack sought to advise the President of the United States against holding the Camp David summit. The summit never happened.
In furtherance of the alleged criminal conspiracy and conduct, Barrack and Grimes, with the assistance of Alshahhi, acquired a dedicated cellular telephone and installed a secure messaging application to facilitate Barrack’s communications with senior UAE officials.
Neither Alshahhi, nor Barrack nor Grimes provided the required notification to the United States Attorney General that they were acting in the United States as agents of a foreign government.
On June 20, 2019, Barrack voluntarily met with FBI special agents. During the interview, Barrack allegedly made numerous false statements, including falsely denying that Alshahhi had ever requested that he take any actions on behalf of the UAE.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Nathan Reilly, Ryan Harris, Samuel Nitze and Hiral Mehta of the Eastern District of New York and Trial Attorney Matthew McKenzie from the Justice Department’s Counterintelligence and Export Control Section are in charge of the prosecution.
The Defendants:
RASHID SULTAN RASHID AL MALIK ALSHAHHI (also known as “Rashid Al Malik” and “Rashid Al‑Malik”)
Age: 43
United Arab EmiratesTHOMAS JOSEPH BARRACK
Age: 74
Santa Monica, CaliforniaMATTHEW GRIMES
Age: 27
Aspen, ColoradoE.D.N.Y. Docket No. 21-CR-371 (BMC)
Former Advisor to Presidential Candidate Among Three Defendants Charged with Acting as Agents of a Foreign GovernmentRead the Press Release
A seven-count indictment was unsealed today in a New York federal court relating to the defendants’ unlawful efforts to advance the interests of the United Arab Emirates (UAE) in the United States at the direction of senior UAE officials by influencing the foreign policy positions of the campaign of a candidate in the 2016 U.S. presidential election and, subsequently, the foreign policy positions of the U.S. government in the incoming administration, as well as seeking to influence public opinion in favor of UAE interests.
Thomas Joseph Barrack, 74, of Santa Monica, California; Matthew Grimes, 27, of Aspen, Colorado; and Rashid Sultan Rashid Al Malik Alshahhi, aka Rashid Al Malik and Rashid Al‑Malik, 43, a UAE national, are accused of acting and conspiring to act as agents of the UAE between April 2016 and April 2018. The indictment also charges Barrack with obstruction of justice and making multiple false statements during a June 20, 2019, interview with federal law enforcement agents.
“The defendants repeatedly capitalized on Barrack’s friendships and access to a candidate who was eventually elected President, high-ranking campaign and government officials, and the American media to advance the policy goals of a foreign government without disclosing their true allegiances,” said Acting Assistant Attorney General Mark Lesko of the Justice Department’s National Security Division. “The conduct alleged in the indictment is nothing short of a betrayal of those officials in the United States, including the former President. Through this indictment, we are putting everyone — regardless of their wealth or perceived political power — on notice that the Department of Justice will enforce the prohibition of this sort of undisclosed foreign influence.”
“As alleged, the defendants, using their positions of power and influence in a presidential election year, engaged in a conspiracy to illegally advance and promote the interests of the United Arab Emirates in this country, in flagrant violation of their obligation to notify the Attorney General of their activities and in derogation of the American people’s right to know when a foreign government seeks to influence the policies of our government and our public opinion,” said Acting U.S. Attorney Jacquelin M. Kasulis for the Eastern District of New York. “These arrests serve as a warning to those who act at the direction of foreign governments without disclosing their actions, as well as those who seek to mislead investigators about their actions, that they will be brought to justice and face the consequences.”
“Today’s indictment confirms the FBI’s unwavering commitment to rooting out those individuals who think they can manipulate the system to the detriment of the United States and the American people,” said Assistant Director Calvin Shivers of the FBI's Criminal Investigative Division. "Barrack is alleged to have abused his access to government officials to illegally advance the interests of foreign governments. The FBI stands in concert with our external partners to ensure all who seek to wield illegal influence are charged for their crimes.”
“American citizens have a right to know when foreign governments, or their agents, are attempting to exert influence on our government,” said Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office. “This is especially important to Americans during a presidential election year, and the laws on the books were created to protect our nation from such untoward influence. This case is about secret attempts to influence our highest officials, and when that corrupt behavior was discovered, we allege Mr. Barrack went even further, obstructing and lying to FBI special agents. In case it needs repeating, each of those bad choices is a federal felony, and each now comes with significant consequences – the first being today’s indictment.”
According to court documents, between April and November 2016, Barrack served as an informal advisor to the campaign of the candidate in the 2016 U.S. presidential election. Between November 2016 and January 2017, Barrack served as Chairman of the Presidential Inaugural Committee. Beginning in January 2017, Barrack informally advised senior U.S. government officials on issues related to U.S. foreign policy in the Middle East. Barrack also sought appointment to a senior role in the U.S. government, including the role of Special Envoy to the Middle East. Barrack served as the Executive Chairman of a global investment management firm headquartered in Los Angeles, and Grimes was employed at the firm and reported directly to Barrack. During the relevant time period, Alshahhi worked as an agent of the UAE and was in frequent contact with Barrack and Grimes, including numerous in-person meetings in the United States and the UAE.
As alleged in the indictment, the defendants used Barrack’s status as a senior outside advisor to the campaign and, subsequently, to senior U.S. government officials, to advance the interests of and provide intelligence to the UAE while simultaneously failing to notify the Attorney General that their actions were taken at the direction of senior UAE officials. Barrack – directly and through Alshahhi and Grimes – was regularly and repeatedly in contact with the senior leadership of the UAE government. On multiple occasions, Barrack referred to Alshahhi as the UAE’s “secret weapon” to advance its foreign policy agenda in the United States.
Barrack, Alshahhi and Grimes allegedly took numerous steps in the United States to advance the interests of the UAE. For example, in May 2016, Barrack inserted language praising the UAE into a campaign speech to be delivered by the candidate about U.S. energy policy in May 2016 and emailed an advance draft of the speech to Alshahhi for delivery to senior UAE officials. Similarly, throughout 2016 and 2017, the defendants sought and received direction and feedback, including talking points, from senior UAE officials in connection with national press appearances Barrack used to promote the interests of the UAE. After one appearance in which Barrack repeatedly praised the UAE, Barrack emailed Alshahhi, “I nailed it. . . for the home team,” referring to the UAE. Barrack and Grimes also solicited direction from senior UAE officials in advance of the publication of an op-ed authored by Barrack and published in a national magazine in October 2016 and removed certain language at the direction of senior UAE officials, as relayed by Alshahhi.
Following the 2016 U.S. presidential election, the defendants repeatedly acted at the direction of UAE officials to influence the foreign policy positions of the incoming administration in favor of UAE interests. For example, in December 2016, Barrack attended a meeting with Grimes, Alshahhi and senior UAE government officials, during which he advised them to create a “wish list” of U.S. foreign policy items that the UAE wanted accomplished in the first 100 days, six months, year and four years of the incoming administration of the U.S. President-elect.
In March 2017, Barrack and his co-defendants agreed to promote the candidacy of an individual favored by senior UAE officials for the position of U.S. Ambassador to the UAE. In May 2017, Barrack agreed to provide Alshahhi with non-public information about the views and reactions of senior U.S. government officials following a White House meeting between senior U.S. officials and senior UAE officials.
In September 2017, Alshahhi communicated with Barrack about the opposition of the UAE to a proposed summit at Camp David to address an ongoing dispute between the State of Qatar, the UAE and other Middle Eastern governments, after which Barrack sought to advise the President of the United States against holding the Camp David summit. The summit never happened.
In furtherance of the alleged criminal conspiracy and conduct, Barrack and Grimes, with the assistance of Alshahhi, acquired a dedicated cellular telephone and installed a secure messaging application to facilitate Barrack’s communications with senior UAE officials.
Neither Alshahhi nor Barrack nor Grimes provided the required notification to the U.S. Attorney General that they were acting in the United States as agents of a foreign government.
On June 20, 2019, Barrack voluntarily met with FBI special agents. During the interview, Barrack allegedly made numerous false statements, including falsely denying that Alshahhi had ever requested that he take any actions on behalf of the UAE.
Barrack and Grimes were arrested this morning and are scheduled to be arraigned this afternoon in the Central District of California. Alshahhi remains at large.
Assistant U.S. Attorneys Nathan Reilly, Ryan Harris, Samuel Nitze and Hiral Mehta of the Eastern District of New York and Trial Attorney Matthew McKenzie of the National Security Division’s Counterintelligence and Export Control are prosecuting the case.
The charges in the indictment are allegations, and the defendants are presumed innocent unless and until proven guilty.
Final defendant pleads guilty in meth conspiracy punishable by 10 years up to life in prisonRead the Press Release
COLUMBUS, Ohio – The final of six defendants in a Columbus-to-West Virginia methamphetamine ring pleaded guilty in U.S. District Court today to a drug conspiracy crime punishable by 10 years up to life in prison.
Marvin C. Bozeman, II, 31, of Las Vegas, served as the group’s methamphetamine supplier.
According to court documents, in spring 2019, Columbus Division of Police officers received information from law enforcement in West Virginia that large amounts of methamphetamine were being transported from Columbus to be distributed in West Virginia.
Further investigation revealed the defendants were distributing large quantities of the drug and using various residences in Central Ohio to store and distribute the methamphetamine. Drug premises included residences on Rumsey Road, Lock Avenue and Esther Drive, among others.
Co-conspirators charged in this case include: Joseph Brian Howard, Timothy D. Copley, Samantha Howard, Darin T. Copeland and Charlee Ann Blankenship. They have each pleaded guilty and await sentencing.
Bozeman admitted to supplying Howard with packages containing pounds of methamphetamine from Las Vegas. Portions of the drugs were then redistributed amongst co-conspirators and throughout the region. Bozeman used the United States Postal Service to send nine-to-10-pound packages of methamphetamine in the mail. The local drug traffickers paid him approximately $1,000 per pound.
The narcotics conspiracy as charged in this case is punishable by at least 10 years and up to life in prison. Congress sets the minimum and maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; and Columbus Police Chief Elaine Bryant announced the plea entered into today before U.S. District Judge Edmund A. Sargus, Jr. Assistant United States Attorneys Kevin W. Kelley and Elizabeth Geraghty are representing the United States in this case.
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Fifth defendant related to gun store burglary admits possessing stolen firearmRead the Press Release
SAVANNAH, GA: All defendants linked to a 2020 Bryan County gun store burglary have now admitted to related charges with the guilty plea of a Pembroke, Ga., felon.
Adam Webster, 38, of Pembroke, Ga., pled guilty in U.S. District Court to Possession of a Stolen Firearm, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. The plea subjects Webster to a statutory penalty of up to 10 years in prison, along with substantial fines and three years of supervised release following completion of any prison term. There is no parole in the federal system.
“The investigation of the April 2020 burglary of Cleve’s Gun Shop demonstrates how quickly illegal firearms can spread once introduced into the community,” said Acting U.S. Attorney Estes. “Our law enforcement partners made exemplary progress in tracking down those responsible for this burglary and recovering these stolen weapons before they could be used in further crimes.”
The investigation began when Cleve’s Gun Shop in Ellabell, Ga., was burglarized in the early morning hours of April 22, 2020. Approximately 18 firearms, a .50 caliber muzzleloader, and various rounds of ammunition were stolen during the burglary. Agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Georgia Bureau of Investigation (GBI), and the Georgia Department of Community Supervision (DCS), along with the Bryan County Sheriff’s Office, worked to recover four of the guns during the investigation. On June 18, 2020, law enforcement conducted a search of Webster’s residence and found a revolver stolen during the burglary. Webster at the time was on parole after conviction on a state felony charge.
Other defendants who have pled guilty to their role in the burglary or possessing firearms related to those stolen during the burglary are:
- Johnny Cason, 40, of Ellabell, Ga., awaits sentencing after pleading guilty to an Information charging him with Conspiracy for helping to plan and provide materials used in the burglary. He faces a statutory penalty of up to five years in prison.
- Michael Ernest Warnell, 39, of Ellabell, Ga., faces a statutory penalty of up to 10 years in prison after pleading guilty to Possession of a Firearm by a Convicted Felon.
- Colby Ray Southerland, 24, of Ellabell, Ga., faces a statutory penalty of up to 10 years in prison after pleading guilty to Possession of a Firearm by an Unlawful User of Controlled Substances.
- Brandon Beasley, 23, of Ellabell, Ga., faces a statutory penalty of up to five years in prison after pleading guilty to Possession of a Firearm with an Altered and Obliterated Serial Number.
“Among ATF’s top priorities is ensuring that those who are responsible for committing gun store burglaries are aggressively investigated and swiftly brought to justice,” said Beau Kolodka, Assistant Special Agent in Charge of the Atlanta Field Division of the ATF. “This is an excellent example of such an investigation that was worked cooperatively by multiple partner agencies with outstanding results.”
The case was investigated by the ATF; GBI; DCS; and the Bryan County Sheriff’s Office; with assistance from the U.S. Marshals Service, and prosecuted for the United States by the U.S. Attorney’s Office for the Southern District of Georgia.
Those with information concerning the whereabouts of firearms stolen in the burglary should contact the ATF at (912) 650-6550.
Eastern Panhandle man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Ronald Louis Browning, of Kearneysville, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Browning, 33, pleaded guilty to one count of “False Statement During Purchase of Firearm.” Browning admitted to making a false statement to purchase a 9mm pistol in December 2020 in Berkeley County.
Browning faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Dubuque Methamphetamine Dealer Sentenced to Federal PrisonRead the Press Release
A man who distributed methamphetamine in the Dubuque, Iowa, area was sentenced on July 14, 2021, to more than 15 years in federal prison.
Larry Osa Scott, age 44, from Dubuque, Iowa, received the prison term after a January 6, 2021 guilty plea to two counts of distribution of a controlled substance near a protected location and two counts of possession with intent to distribute a controlled substance.
Evidence at sentencing showed that Scott began selling methamphetamine in June 2015. Between June 2015 and January 2016, Scott obtained over 1,000 grams of methamphetamine. On January 6, 2016, and October 25, 2019, Scott sold methamphetamine to another person within 1,000 feet of a park in Dubuque. On October 29, November 4, and November 21, 2019, Scott sold methamphetamine to an undercover officer. On November 30, 2019, law enforcement was watching Scott’s home because Scott had a warrant for his arrest. After officers saw Scott arrived home, they approached Scott, who slammed the driver’s door of his truck shut and appeared as if he was going to flee. Officers eventually took Scott into custody and recovered $740 in cash from his person and close to 14 grams of methamphetamine from his truck.
Scott was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Scott was sentenced to 188 months’ imprisonment. He must also serve a 6-year term of supervised release after the prison term. There is no parole in the federal system.
Scott is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Dillan Edwards and investigated by the Dubuque Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-01007.
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Convicted Sex Offender Sentenced to 20 Years in Federal Prison for Distributing Child Sexual Abuse VideoRead the Press Release
Orlando, FL – U.S. District Judge Carlos E. Mendoza has sentenced Jeffery Stephen Heck, Jr. (28, Titusville) to 20 years in federal prison for distributing child sexual abuse material. Heck was also ordered to serve a 10-year term of supervised release, register as a sex offender, and forfeit his smartphone.
Heck had pleaded guilty on April 21, 2021.
According to court documents, a law enforcement officer acting in an undercover capacity on a popular social media application (app) identified Heck as a member of a group on this app, which group is dedicated to the sharing of child sexual abuse material. On January 22, 2020, Heck distributed and posted a video depicting the sexual abuse of a child to that same group on the app.
On July 13, 2020, law enforcement executed a search warrant at Heck’s residence in South Carolina, where he had since relocated. Law enforcement seized his cellphone which contained approximately 116 images and one video depicting children being sexually abused. Additionally, law enforcement discovered a text message thread on his phone in which Heck had solicited nude photos from, and sent a nude photo to, an individual that Heck believed to be 15 years old.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Jennifer M. Harrington.
This is another case 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.
Columbus County Man Receives 5 Years for Gun OffenseRead the Press Release
WILMINGTON, N.C. – A Chadbourn man was sentenced today to 60 months in prison and 3 years of supervised release for possessing a firearm in furtherance of a drug trafficking offense. On April 22, 2021, Paul Freeman pled guilty to the charge.
According to court documents and other information presented in court, Freeman, 39, possessed a 9mm handgun in connection with his sale of crack and cocaine. In the Spring of 2020, law enforcement received complaints that Freeman was selling drugs from his residence in Chadbourn. Freeman was previously convicted of multiple drug offenses and also had pending state charges related to drug trafficking offenses from 2017 and 2018. In March 2020, law enforcement conducted a controlled purchase from Freeman at his residence and obtained a search warrant which was executed on March 11, 2020. The search recovered paraphernalia, digital scales, quantities of crack and cocaine, as well as a 9mm handgun together in a closet of Freeman’s residence.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbus County Sheriff’s Office investigated the case and Assistant U.S. Attorney Bryan Stephany prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The United States Attorney’s Office for the Eastern District of North Carolina implements the PSN Program through its Take Back North Carolina Initiative. This initiative emphasizes the regional assignment of federal prosecutors to work with law enforcement and District Attorney’s Offices on a sustained basis in those communities to reduce the violent crime rate, drug trafficking, and crimes against law enforcement.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-00097-M.
Colorado CEO and Fund Manager Arrested for $10 Million Securities Fraud SchemeRead the Press Release
NEWARK, N.J. – A Denver, Colorado, CEO was arrested today in connection with a scheme to fraudulently obtain approximately $10 million from investors through various misrepresentations about fund operations and his background and contribution to the fund, Acting U.S. Attorney Rachael A. Honig announced.
Samuel J. Mancini, 55, is charged by complaint with securities fraud, wire fraud, and money laundering. He appeared this afternoon before U.S. Magistrate Judge Kristin L. Mix in Denver federal court, and was released on $100,000 unsecured bond pending his initial appearance in the District of New Jersey.
According to documents filed in this case and statements made in court:
From at least February 2020 through July 2021, Mancini orchestrated an investment fraud scheme and fraudulently obtained more than approximately $10 million from victims. Mancini managed and controlled Outdoor Capital Partners LLC (OCP), which he purported to be a venture capital and private equity firm. OCP served as the managing director of OCP Italia Fund LLC (OCP Italia), a private investment fund.
Mancini promised investors that he was raising $20 million, including $5 million of his own money, for OCP Italia to invest solely in acquiring controlling interests in three Italian cycling companies. Mancini represented to investors that the acquisitions would take place soon after the fund closed and promised investors approximately 70 percent of OCP Italia’s operating profits.
Mancini repeatedly misrepresented his finances and his contribution to OCP Italia. Mancini also misrepresented OCP Italia’s ability to close on the acquisitions. To date, OCP Italia has not acquired any of the Italian cycling companies. Instead, Mancini defaulted on contracts, diverted investor funds out of OCP Italia, and, in certain instances, paid investor funds to other investors seeking redemption.
Mancini also misled investors about his educational background by representing himself as a graduate of a prestigious military academy when, in fact, Mancini had failed to graduate from the academy due to an ethical violation, a fact he failed to disclose to investors.
When confronted with requests for transparency and redemptions by certain investors in OCP Italia, Mancini failed to honor the redemption requests, made misrepresentations about his inability to honor the redemption requests, misstated and omitted material facts, and provided certain investors with forged, modified, or otherwise fraudulent documentation.
The securities fraud count carries a maximum penalty of 20 years in prison and a $5 million fine. The count of wire fraud is punishable by a maximum penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The count of money laundering is punishable by a maximum penalty of 10 years imprisonment and $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
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. She also thanked the FBI Denver Field Office, under the direction of Special Agent in Charge Michael H. Schneider, for its assistance.
Additional victims of Mancini’s conduct may reach out to the FBI at 1-800-CALL-FBI (225-5324) or visit www.fbi.gov.
The government is represented by Assistant U.S. Attorney Lauren E. Repole of the Economic Crimes Unit in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Cedar Rapids Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
A felon who possessed a firearm pled guilty on July 19, 2021, in federal court in Cedar Rapids.
Leon Sheley, age 23, from Cedar Rapids, Iowa, was convicted of one count of being a felon in possession of a firearm. At the plea hearing, Sheley admitted that, on May 20, 2020, he knowingly possessed a pistol after having been convicted of three crimes punishable by more than one year of imprisonment. Sheley admitted he had prior convictions for theft in the second degree in 2016, theft in the first degree in 2016, and escape from custody in 2017.
Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. Sheley remains in custody of the United States Marshal pending sentencing. Sheley faces a possible maximum sentence of ten years’ imprisonment, a $250,000 fine, and three years of supervised release following any imprisonment.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Cedar Rapids Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-17.
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Canadian Man Pleads Guilty for His Role in International Marijuana ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ranjodh Singh, 22, of Canada, pleaded guilty before Senior U.S. District Judge William M. Skretny to conspiring to possess with intent to distribute, and distributing, 100 kilograms or more of marijuana. The charge carries a mandatory minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Misha A. Coulson, who is handling the case, stated that the defendant conspired with others, with others, including Amanpreet Gill, to distribute marijuana. In December 2020, Singh’s co-conspirators purchased and arranged for a shipment of marijuana from Canada to be delivered to Smartway Associates in Somerset, NJ. Unbeknownst to the defendant and his co-conspirators, on December 1, 2020, the shipment was intercepted by Customs and Border Protection (CBP) at the Peace Bridge Cargo Facility and was searched. Contained within the shipment was a large quantity of marijuana packaged in vacuum sealed bags.
Subsequently, investigators conducted a controlled delivery operation. A silver vehicle, driven by Singh, was observed following the shipment of marijuana and was observed at the two warehouses where the shipment was temporarily stored. After the shipment of marijuana reached its final destination and law enforcement secured the warehouse, the defendant arrived at the warehouse. Investigators seized a cell phone from the defendant which contained videos showing him identifying law enforcement personnel while he was driving around the warehouses.
Charges remain pending against defendant Gill. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by Homeland Security investigations, under the direction of Special Agent-in-Charge Kevin Kelly; Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy; the Erie County Sheriff’s Office, under the direction of Sheriff Timothy Howard; the Niagara County Sheriff’s Office, under the direction of Sheriff Michael J. Filicetti; and the North Tonawanda Police Department, under the direction of Chief Thomas E. Krantz.
Sentencing will be scheduled at a later date.
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Butte man admits armed robberies of three businessesRead the Press Release
MISSOULA – A Butte man accused of robbing three business at gun point in three different Montana cities in February admitted charges today, Acting U.S. Attorney Leif M. Johnson said.
Thomas Scott Cockrill, 49, pleaded guilty to three counts of robbery affecting commerce and to brandishing a firearm in furtherance of a crime of violence. Cockrill faces a maximum 20 years in prison, a $250,000 fine and three years of supervised release on the robbery crime and a mandatory minimum seven years to life in prison, consecutive to any other sentence, a $250,000 fine and five years of supervised release on the firearm crime.
U.S. Magistrate Judge Kathleen L. DeSoto presided. Sentencing was set for Nov. 10 before U.S. District Judge Dana L. Christensen. Cockrill was detained pending further proceedings.
The government alleged in court documents that on Feb. 9, Cockrill robbed Blackjack Pizza in Missoula and brandished a handgun at an employee. Later that same evening, Cockrill held up at gun point an employee of the La Quinta Inn in Helena. Four days later, on Feb. 13, Cockrill robbed the Elevated Dispensary in Butte and brandished a handgun at an employee. Each business lost several hundred dollars in the robberies. When interviewed by law enforcement, Cockrill admitted he owned three firearms and that he robbed the three businesses.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Helena Police Department, Missoula Police Department, Butte Silverbow Law Enforcement and Montana Probation and Parole.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Buncombe Co. Man Pleads Guilty to Receiving Nearly $1 Million in Veteran Benefits Based on Fraudulent Service-Connected DisabilitiesRead the Press Release
ASHEVILLE, N.C. – Acting U.S. Attorney William T. Stetzer announced that John Paul Cook, 57, of Alexander, N.C. appeared before U.S. Magistrate Judge W. Carleton Metcalf on Monday, July 19, 2021, and pleaded guilty to defrauding the U.S. Department of Veterans Affairs (the VA) by receiving nearly $1 million in veteran benefits based on fraudulent claims of service-connected disabilities.
Kim Lampkins, Special Agent in Charge of the Mid-Atlantic Field Office, Washington, D.C., of the U.S. Department of Veterans Affairs, Office of Inspector General (VA-OIG), joins Acting U.S. Attorney Stetzer in making today’s announcement.
According to the criminal indictment, filed plea documents and admissions made in court, Cook enlisted in the United States Army (the Army) in November 1985. Court documents show that six months later Cook sustained an accidental injury while on duty. Following the incident, Cook complained that as a result of the accident and injuries he sustained, a preexisting eye condition had worsened. In 1987, following a medical evaluation, Cook was discharged, placed on the retired list, and began receiving VA disability-based compensation at a rate of 60%. Over the next 30 years, Cook’s disability-based compensation increased, following Cook’s repeated false claims of increased visual impairment and unemployability due to “severe visual deficit.” As Cook admitted in court, in 2005, based on his claims of severe visual impairment, the VA declared Cook legally blind and he began receiving disability-based compensation at the maximum rate. Cook also began to receive additional benefits, including Special Monthly Compensation (an extra monetary allowance paid to a qualifying veteran due to the severity of his disability), Specially Adapted Housing (a grant that goes toward paying for adaptations in a new home), and Special Housing Adaptation (a grant that goes toward remodeling an existing home).
According to court records, Cook’s monthly VA disability payments in 1987 were $1,411 per month. With the incremental increases in his disability rating, as well as cost-of-living adjustments and his Special Monthly Compensation, these payments steadily increased over the years. By 2016, the monthly payment had risen to $3,990. In total, from 1987 through 2017, Cook received approximately $978,138 in VA disability payments due to his claimed blindness, to which he was not lawfully entitled.
According to admissions reflected in plea documents, contrary to Cook’s filed claims with the VA for additional disability claims and his complaints of increased visual impairment, Cook repeatedly passed vision screening tests to renew or obtain a driver’s license in North and South Carolina. Furthermore, during the relevant time period, court documents show that Cook purchased and registered over 30 different motor vehicles which Cook routinely drove, including on long-distance trips and to perform errands. Court records further show that, from 2010 to 2016, during a time period that Cook was receiving maximum VA disability benefits for his visual impairment, Cook was actively involved with the Boy Scouts of America (BSA), including serving as a Den Leader and a Cubmaster. Among the courses the defendant completed with the BSA were courses qualifying him to be a range officer for BB guns and for archery. He was also certified for land navigation, which involves reading maps and using a compass.
The charge of stealing from the VA carries a maximum penalty of 10 years in prison and a $250,000 fine. A sentencing date for Cook has not been set.
In making today’s announcement Acting U.S. Attorney Stetzer thanked the VA-OIG for their investigation of the case.
Assistant U.S. Attorney Richard Edwards of the U.S. Attorney’s Office in Asheville is in charge of the prosecution.
Brooklyn Park Man Pleads Guilty to Conspiracy to Commit Arson in St. Paul’s Midway AreaRead the Press Release
ST. PAUL, Minn. – A Brooklyn Park man pleaded guilty today to conspiracy to commit arson of the Great Health and Nutrition store in St. Paul, announced Acting United States Attorney W. Anders Folk.
According to court documents, on May 28, 2020, Samuel Elliot Frey, 20, and his co-conspirators, including co-defendant McKenzy Ann DeGidio Dunn, 20, and Conspirator 1 (who was 17 years old at the time of the arson), joined other individuals who had gathered near the Great Health and Nutrition store located at 1360 University Avenue West, in St. Paul. Frey and his co-conspirators arrived together to the Midway area near University Avenue and walked through multiple businesses before they arrived inside the Great Health and Nutrition retail store. While inside the store, Frey took a bottle of hand sanitizer and poured the contents onto a downed shelving unit located on the floor. Frey then lit paper on fire and placed the flaming paper where he had poured the contents of a hand sanitizer bottle. Frey applied additional hand sanitizer in an attempt to accelerate the fire. The Great Health and Nutrition store sustained fire damage as a result of Frey’s conduct.
According to court documents, after May 28, 2020, Frey spoke with co-defendant Dunn and with Conspirator 1 each on at least one occasion. In Frey’s respective discussions with his co-conspirators, Frey instructed them to be untruthful to law enforcement by falsely reporting that another person had supposedly started the fire at the Great Health and Nutrition store. At the time of Frey’s instructions to his co-conspirators, Frey knew this was a lie.
On October 26, 2020, co-conspirator Dunn pleaded guilty to one count of conspiracy to commit arson. On May 10, 2021, United States District Judge Nancy E. Brasel sentenced Dunn to three years of probation and $31,578 in restitution. Frey’s sentencing hearing will be scheduled for a later date.
This case is the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the St. Paul Police Department, the St. Paul Fire Department, Brooklyn Park Police Department, the Minnesota State Fire Marshal Division, and the FBI.
This case is being prosecuted by Assistant U.S. Attorneys Matthew S. Ebert and Joseph S. Teirab.
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Birmingham Man Pleads Guilty to CarjackingRead the Press Release
BIRMINGHAM, Ala. – A Birmingham man pleaded guilty today to an armed carjacking, announced U.S. Attorney Prim F. Escalona and Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Mickey French.
Tadarrius Lawaun Smith, 23, pleaded guilty to carjacking and carrying and brandishing a firearm during and in relation to a violent crime. He entered his plea pursuant to a binding Plea Agreement with the government, in which the parties jointly recommended a sentence to include 189 months in prison. Sentencing is scheduled for-October 26, 2021, before U.S. District Judge Annemarie Carney Axon.
According to the plea agreement, on December 4, 2019, Smith carjacked the victim as she was exiting her car in the parking lot of an apartment complex in the Southside area of Birmingham. Smith put a pistol with an extended magazine to her head and made her get back in the car. Smith drove the car to an unknown location and held a pistol to her head and told her that he was going to kill her, he then assaulted her and demanded money. Smith drove her to three different ATMs withdrawing $860 and took her Mastercard because it had a high credit limit. Smith then drove to the 900 block of 1st Avenue South and got out of the car and walked away. The victim drove several blocks down the street, parked, and called her daughter, who called police. Birmingham PD investigators pulled video from the bank and gas station where Smith stopped during the incident. Birmingham Police officers arrested Smith when he arrived at the Jefferson County Courthouse for a probation hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case, along with the Birmingham Police Department. Assistant U.S. Attorneys Alan Baty and Darius Greene are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
19 July 2021
Wyoming County Man Pleads Guilty to Attempting to Have Sex with an 11-Year-Old GirlRead 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 Daniel Hays, 42, of Bliss, NY, pleaded guilty before U.S. District Judge Frank P. Geraci, Jr. to attempted receipt of child pornography. The charge carries a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle Rossi, who is handling the case, stated that during April and May of 2021, the defendant engaged in sexually explicit online and text communications with an individual who he believed to be an 11-year-old girl. In reality, the child was an undercover New York State Police Investigator working with the Department of Homeland Security. During the conversations, Hays discussed having sex with the child, and asked the child to produce and send to him naked photographs. On May 11, 2021, the defendant traveled approximately two hours from Bliss to the child’s home in the Western District of New York, in order to have sex with the child. Hays was arrested upon his arrival at the meeting place, at which point he was found to be in possession of candy that he purchased as a gift for the child.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 19, 2021, before Judge Geraci.
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Woman Involved in Northwest Iowa Meth Conspiracy to Federal PrisonRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced July 15, 2021, to more than 5 years in federal prison.
Ruby Blankenship, 45, from Brandon, South Dakota, received the prison term after a November 3, 2020, guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing hearings showed that from about November 2019 through March 2020, Blankenship and others conspired to distribute more than 22 pounds of methamphetamine. Blankenship allowed others to store methamphetamine at her residence in the Iowa Lakes area. Co-conspirators traveled to California, obtained 20 pounds of methamphetamine, which was brought back to Iowa, hidden in the gas tank of the vehicle for later distribution. The meth was ultimately unloaded by co-conspirators in a detached building/garage at Blankenship’s residence. In March 2020, law enforcement executed a search warrant at Blankenship’s residence, including a detached building/garage, and seized a total of 20 pounds of methamphetamine from the property and vehicles leaving the property.
Blankenship was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Blankenship was sentenced to 63 months’ imprisonment. She must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Blankenship is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4051.
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Webster County Man to Federal Prison for Meth ConspiracyRead the Press Release
A man who conspired to distribute methamphetamine was sentenced July 14, 2021, to more than 17 years in federal prison.
Russell Gentry, 32, from Fort Dodge, Iowa, received the prison term after a January 7, 2021, guilty plea to conspiracy to distribute methamphetamine. On January 8, 2018, Gentry was convicted in the Iowa District Court for Marshall County, of Possession of a Controlled Substance (cocaine) with Intent to Deliver.
Evidence at the hearings showed that between January 2020 and continuing to on or about July 27, 2020, Gentry and others distributed more than 25 kilograms of methamphetamine in the Webster County, Iowa area. In July 2020, law enforcement executed a search warrant at Gentry’s residence. During the search, officers seized 15 pounds of methamphetamine, $3,700 cash and two ounces of marijuana. Each pound of methamphetamine was individually wrapped. Officers also seized drug trafficking paraphernalia including, packaging material, a digital scale and numerous cell phones. Gentry admitted he intended to distribute some or all of the methamphetamine seized by law enforcement.
Gentry was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Gentry was sentenced to 210 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Gentry is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by Iowa Division of Narcotics Enforcement, Webster County Sheriff’s Office, Fort Dodge Police Department, and Iowa DCI Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3025.
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Waterloo Man Sentenced to over 28 Years in Prison for His Role in Importing Methamphetamine from Mexico to IowaRead the Press Release
A Waterloo man, who was involved in the importation and distribution of thousands of kilograms of methamphetamine was sentenced today, July 19, 2021, to nearly 29 years in federal prison.
Travis Charles Werkmeister, age 34, from Waterloo, Iowa, received the prison sentence after a February 8, 2021, guilty plea to conspiracy to distribute methamphetamine.
Evidence at the plea and sentencing showed that in 2018, investigators conducted controlled buys of ounce-quantities of methamphetamine from Werkmeister. The transactions took place at Werkmeister’s Waterloo residence. In 2019, investigators conducted a wiretap investigation wherein they intercepted thousands of calls and messages between Werkmeister and other members of the drug-distribution organization. Werkmeister was intercepted discussing methamphetamine shipments with co-conspirators, including the head out of the organization, who was based out of Mexico. Werkmeister would receive pound to kilogram quantities of methamphetamine at a time and would redistribute to multiple people in the Waterloo, Iowa, area, who would in turn sell to others. Werkmeister has a lengthy criminal history, dating back to 2005. He has at least three felony convictions and three convictions wherein he assaulted one other person.
Werkmeister was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Werkmeister was sentenced to 346 months’ imprisonment. He must also serve a 5-year term of supervised release after the prison term and pay a $100 special assessment fee. There is no parole in the federal system.
The case was prosecuted by Assistant United States Attorney Ashley Corkery. This case was investigated as part of the Organized Crime Drug Enforcement Task Force (OCDETF) program of the United States Department of Justice through a cooperative effort of the Mid-Iowa Task Force (Marshall County Sheriff’s Office, Tama County Sheriff’s Office, Marshalltown Police Department), Iowa National Guard and Counter Drug Program, Tri-County Task Force (Cedar Falls Police Department, Waterloo Police Department, Black Hawk County Sheriff’s Office), the Federal Bureau of Investigation, the FBI Safe Streets Task Force, the Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2034.
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Vacaville Man Sentenced to 6 Months in prison for Again Violating a Former Employer’s DataRead the Press Release
SACRAMENTO, Calif. — Matthew Keys, 34, of Vacaville, was sentenced today for violating the terms of his supervised release, Acting U.S. Attorney Phillip A. Talbert announced.
U.S. District Judge Kimberly J. Mueller ordered Keys to serve an additional six months in prison to be followed by 18 months of supervision with specific computer monitoring conditions.
Keys was originally indicted in 2013 on charges related to a scheme that resulted in unauthorized changes to an article on the Los Angeles Times website. The government also suspected Keys had sent threatening emails to employees at KTXL FOX40 where he used to work. Keys later confessed to sending the emails and to his role in changing the Los Angeles Times article. After a jury trial to resolve other disputes, such as the amount of the losses the Los Angeles Times suffered, Keys was convicted on all three counts of the superseding indictment. He was sentenced to two years in prison and two years of supervised release.
After Keys completed his prison sentence, he began working as the digital editor at Comstock’s Magazine in Sacramento. Keys wrote stories for Comstock’s and managed its website and social media accounts, including a YouTube channel. The magazine published videos on YouTube, and it used embedded links to YouTube videos in stories published on its own website. Keys resigned abruptly in late January 2020, a little less than a year after he started and about three months before his term of supervised release was set to expire.
In February 2020, an employee at Comstock’s Magazine discovered that a password to the Google account associated with the magazine’s YouTube account no longer functioned. Shortly thereafter, the employee found that links associated with videos on the YouTube account were broken. Comstock’s employees found that the videos had been deleted from the YouTube channel, along with nearly 700 subscriptions to the channel. The magazine then contacted federal prosecutors and the FBI with its suspicions that Keys was responsible.
The U.S. Probation Office, who was supervising Keys, investigated the deletion of the videos with the assistance of the FBI. Among other evidence, the investigation showed that Keys searched Google for the term “how to delete youtube channel” and then executed a command to delete the Comstock’s YouTube channel on Feb. 10, 2020.
On April 20, 2021, after an evidentiary hearing, Judge Mueller found that Keys violated his term of supervised release by committing new crimes: knowingly causing the transmission of command causing damage to a protected computer, and unauthorized destruction of data.
“Businesses and individuals are already struggling against threats to the integrity of their data from hackers and data thieves,” Acting U.S. Attorney Talbert said. “They should not also have to worry about data destruction from former employees seeking retribution. Federal law enforcement will vigorously investigate malicious data-deletion with all available tools.”
Assistant U.S. Attorneys Paul Hemesath and Matthew D. Segal prosecuted the case.
Upstate Man Sentenced to More Than 22 Years in Federal Prison for Gun and Drug Charges after Plotting to Kill a Cooperating WitnessRead the Press Release
Greenville, South Carolina---- Acting United States Attorney M. Rhett DeHart stated today that Lazarus Floyd, 44, of Taylors, has been sentenced to more than 22 years in federal prison, after pleading guilty to multiple drug trafficking and firearm-related offenses.
Evidence presented in court showed that, on January 29, 2019, while executing a search warrant at Floyd’s residence in Woodruff, law enforcement officers found 2,579 grams of methamphetamine, 1,197 grams of heroin, 1,600 grams of marijuana, and $15,255 in cash. Additionally, officers discovered numerous items of drug trafficking paraphernalia including a pill press, digital scales, cutting agents, and packaging material, as well as 12 pistols, seven rifles, and two shotguns.
Evidence presented in court also showed that Floyd attempted to hire a hitman to kill a witness and that witness’s attorney because the witness was thought to be cooperating with law enforcement. That plot was uncovered; and, through the quick action of the FBI, DEA, United States Marshals Service, and their local law enforcement partners, no one was harmed.
“More often than not, drug trafficking, guns and violence are intertwined,” said Acting U.S. Attorney DeHart. “This sentence highlights our office’s commitment to ensuring our community is protected from violent criminals and the powerful work of our local, state, and federal law enforcement agencies that not only thwarted a murder plot but also helped to ensure justice was served.”
"Today's sentence is a major step in making South Carolina safe," said FBI Special Agent in Charge Susan Ferensic. "A major drug trafficker, who possessed a large number of firearms to support his enterprise, also threatened our criminal justice system itself by plotting to kill a witness and legal counsel. To keep our communities safe, witnesses need to know they can report critical information to law enforcement and they will be protected. This investigation and sentence demonstrates the FBI's commitment to that principle."
United States District Judge Timothy M. Cain sentenced Floyd to 270 months imprisonment to be followed by 120 months of supervised release. There is no parole in the federal system.
The case was investigated by the Federal Bureau of Investigations, the Drug Enforcement Administration, the South Carolina Law Enforcement Division and the Spartanburg County Sheriff’s Office.
Assistant United States Attorneys Sloan P. Ellis and Brandi B. Hinton prosecuted the case.
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Unauthorized Yellowstone Park Guide Sentenced for Illegal ActivitiesRead the Press Release
Acting United States Attorney Bob Murray announced today that THEODORE EUGENE GARLAND, age 60 of Edmond, Oklahoma was sentenced on seven counts of illegal activities and violations in Yellowstone National Park (YNP). Garland appeared in front of Magistrate Judge Mark L. Carman in Mammoth Hot Springs, Yellowstone National Park, Wyoming on July 2, 2021, for the sentencing.
Theodore Garland has a social-media page, a podcast, and a guidebook. All three have overlapping pictures and posts about his guided tours in YNP, which violated closures and other park regulations and encouraged visitors to do the same. Some of the examples included providing unauthorized guided tours; trespassing on thermal grounds; violating swimming closures and cliff jumping; creating “hot pots in rivers;” and disturbing wildlife.
Garland was charged with 15 counts of illegal activities and violating national park regulations. After hearing the evidence at a bench trial held on April 7 and 8, 2021, Judge Carman found Garland guilty on seven counts.
At sentencing, the government requested that Garland be imprisoned for 30 days, served concurrently, on all counts; pay a fine of $750 for each count; make a Community Service Payment of $750 for each count; five years of unsupervised probation; and that he receive a ban from Yellowstone National Park for five years.
Judge Mark Carmen sentenced Garland on the seven counts, resulting in a seven day jail sentence; a total of $600 in fines and fees; a one-time payment of $500 to Yellowstone Forever Geological Resource Fund; and a ban from Yellowstone National Park until December 31, 2021. He was also ordered to write an introduction/forward to his guidebook communicating respect for the park and removing references of illegal activity by July 16, 2021. Garland will serve five years of unsupervised probation and shall “not promote violations of laws in the national parks in any way.”
“Enforcing federal criminal laws for the protection of our national parks’ resources will always remain a priority of the United States Attorney’s office in Wyoming,” said Acting United States Attorney, Bob Murray. “That is especially true when a criminal motivated by greed, like Mr. Garland, encourages others to commit more crimes and cause more damage to the treasures of America’s first national park.”
This case was handled by the National Park Service and prosecuted by Assistant United States Attorney Stephanie Hambrick.
For questions relating to Yellowstone National Park, please contact the Public Affairs Office at 307-344-2015 or [email protected].
Sioux City Man Pleads Guilty to Meth and Firearm ConvictionsRead the Press Release
A man that conspired to distribute methamphetamine and illegally possessed firearms pled guilty July 15, 2021, in federal court in Sioux City.
Diego Ayala, 31, from Sioux City, Iowa, was convicted of one count of conspiracy to distribute methamphetamine, one count of distribution of methamphetamine, and one count of prohibited person in possession of firearms.
At the plea hearing, Ayala admitted that between September 2020 and continuing to on or about January 7, 2021, he and others conspired to distribute at least 1500 grams of methamphetamine. Over the course of several weeks, in four separate transactions, Ayala received 10-12 pounds of meth for further distribution in the Sioux City area. On January 7, 2021, law enforcement conducted a controlled purchase of one pound of methamphetamine from Ayala. Subsequently, law enforcement executed a search warrant at Ayala’s residence and seized about four more pounds of methamphetamine, an unloaded 9mm handgun and a loaded AR-15 rifle. Law enforcement also seized 68 rounds of .380 caliber ammunition, 84 rounds of 9mm caliber ammunition, and 120 rounds of 5.56 ammunition from several different locations in Ayala’s residence. Ayala admitted he planned on distributing the methamphetamine to other persons. Ayala also admitted to being an unlawful user of methamphetamine while in possession of firearms.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Ayala remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Ayala faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least five years of supervised release following any imprisonment. On the distribution conviction, Ayala faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $5,000,000 fine, and a term of supervised release of at least four years. On the firearm conviction, Ayala faces maximum penalties of not more than 10 years’ imprisonment, a $250,000 fine, and a term of supervised release of not more than three years.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-4002.
Follow us on Twitter @USAO_NDIA.
Sioux City Couple to Federal Prison for Meth ConspiracyRead the Press Release
A Sioux City couple who conspired to distribute methamphetamine were sentenced July 13, and 14, 2021, to federal prison.
Desiree Fredrickson, 36, and Shawn Hofer, 41, from Sioux City, Iowa, received the prison terms after pleading guilty to conspiracy to distribute methamphetamine.
Evidence at the combined plea and sentencing hearings showed that Fredrickson and Hofer were involved in a conspiracy that distributed more than 6.5 kilograms of methamphetamine from June 2017 through August 2018. The couple received pounds of meth via the mail from a local meth dealer. Later they were receivers/distributors of several 5 pound packages of methamphetamine, plus some cocaine and marijuana in a drugs by mail scheme led locally with California source of supply.
Fredrickson and Hofer were sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Fredrickson was sentenced to 28 months’ imprisonment. Hofer was sentenced to 35 months’ imprisonment. Each must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Each are being held in the United States Marshal’s custody until they can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Postal Service, and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4065.
Follow us on Twitter @USAO_NDIA.
Sex Offender Indicted for Failing to Update Registration after Moving to VermontRead the Press Release
The Acting United States Attorney for the District of Vermont Jonathan Ophardt announced that Curtis Johnston, 38, pleaded not guilty today to a charge alleging that Johnston traveled in interstate commerce without updating his registration under the Sex Offender Registration and Notification Act (“SORNA”). U.S. Magistrate Judge Kevin J. Doyle ordered Johnston detained pending further proceedings.
A federal grand jury in Burlington returned an indictment charging Johnston with violating SORNA. According to the indictment and court records, Johnston was convicted in Tennessee of aggravated statutory rape in 2012. Johnston was accordingly required to register as a sex offender with officials of any state where he resided or to which he relocated. Under federal law, when a sex offender moves from one state to another, he has three days to update his registration. Johnston allegedly relocated to Vermont in or about October 2020, but had not updated his registration to reflect his new residence as of July 2021.
Acting United States Attorney Ophardt emphasizes that the charge against Johnston is merely an accusation, and that Johnston is presumed innocent unless and until he is proven guilty.
Johnston faces up to ten years in prison and a $250,000 fine if convicted. His actual sentence, however, would be determined with reference to federal sentencing guidelines.
The U.S. Marshals Service investigated this case.
Assistant U.S. Attorney Spencer Willig represents the United States. The defendant is represented by John-Claude Charbonneau.
Rochester Man Pleads Guilty to Selling FentanylRead 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 Derek Torres a/k/a Bebe, 22, of Rochester, NY, pleaded guilty before U.S. District Judge David G. Larimer to conspiring to possess with intent to distribute 40 grams or more of fentanyl. The charge carries a minimum penalty of five years in prison, a maximum of 40 years, and a $5,000,000 fine.
Assistant U.S. Attorney Cassie Kocher, who is handling the case, stated that between July and November 28, 2018, the defendant conspired with others to distribute cocaine, heroin, and fentanyl in the area of Wilkins Street in Rochester. On July 18, 2021, Torres sold 10 wax envelopes containing heroin and fentanyl and 10 zip-loc baggies containing cocaine, to an undercover law enforcement officer in exchange for $200 in cash.
The plea is the result of an investigation by the New York State Police, under the direction of Major Barry Chase; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley.
Sentencing is scheduled for September 27, 2021, at 3:00 p.m. before Judge Larimer.
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Riot Arsonist Sentenced for Attempting to Set Fire to Raleigh Police Department VehicleRead the Press Release
RALEIGH, N.C. – A Raleigh man was sentenced to 30 months’ imprisonment today for attempting to set fire to a marked police vehicle in Raleigh after a demonstration over the death of George Floyd in Minneapolis, Minnesota.
Mikwan Domell Garfield of Raleigh, was arrested by special agents of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF) on October 22, 2020 and was charged with one count of attempting to damage or destroy by fire a vehicle owned or possessed by an institution receiving federal financial assistance. Garfield pled guilty to one count of conspiracy to commit an offense against the United States.
According to court documents, on May 31, 2020, at approximately 12:31 a.m. a fire was discovered coming from the fuel filler area of a police vehicle owned by the Raleigh Police Department (RPD), that was parked at the Raleigh Police Southeast District Station (RPSDS) in Raleigh. The fire was discovered and extinguished by an RPD Captain who was driving through the parking lot prior to the fire departments arrival. The fire caused approximately $5,000 in damage to the police vehicle. Investigators seized a charred sock located within the fuel filler of the damaged vehicle, a bottle with the odor of gasoline was located on the sidewalk, behind the damaged vehicle, and another charred sock located between the vehicle and the sidewalk.
On June 2, 2020, investigators were notified that a fingerprint was lifted from the seized bottle recovered at the scene and determined the fingerprint belonged to Garfield’s co-defendant, Jabari Davis, who was sentenced to 30 months’ imprisonment on March 15, 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case and Assistant U.S. Attorney Daniel W. Smith prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:20-CR-00433-D.
Registered Sex Offender Indicted on Attempted Enticement, Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – A 31-year-old North Smithfield registered sex offender who allegedly posed as a 17-year-old during explicit Instagram communications with two young teenage boys living in Florida has been indicted by a federal grand jury in Providence on charges that he allegedly attempted to induce the boys to engage in illicit sexual activity and that he attempted to send the boys obscene materials.
The grand jury returned a six-count indictment on Friday charging Nicholas Sannicandro with two counts of attempted inducement of a minor to engage in illicit sexual activity, two counts of attempted transfer of obscene material to a minor, one count of possession and access with intent to view child pornography, and offenses by a registered sex offender.
According to court records, Nicholas Sannicandro was convicted in 2011 in Massachusetts for possession of child pornography and was required to register as a sex offender. Subsequently, he was convicted twice in 2018 in Massachusetts for disseminating matter harmful to a minor.
According to court documents and information presented to court, in May, a woman reported to the North Port, FL, Police Department that an unidentified person had sent inappropriate sexual communications to her 13-year-old son via an Instagram account with the name “Jackasslures”, a fishing-related online site. The woman also reported that her son had received a package containing a fishing lure sent by a person associated with Instagram account. North Port Police determined that the account belonged to Sannicandro, and that the 13-year-old learned of the online site from a 14-year-old middle-school classmate. The 14-year-old allegedly had been communicating with “Jackasslures” since late January 2021.
According to court documents, a North Port law enforcement officer assumed the online identity of the 14-year-old and began communicating with “Jackasslures” in an undercover capacity. The officer stated to “Jackasslures” that he had just turned fourteen and that he would be travelling to Warwick in June. “Jackasslures” allegedly sent the undercover officer images of himself, of the inside of his boat, and of himself wrapped in a blanket on the boat with the caption of “I’M COZY IN MY BED ON. MY BOAT[.]” He also sent an invitation to go out on the boat to go night-fishing. During further online communications, Sannicandro allegedly sent a sexually explicit image to the undercover officer and a live video while performing a sex act on himself.
Sannicandro was arrested at a Warwick marina on June 22, where he was allegedly expecting to meet with the 14-year-old. The meeting had been arranged by the North Port, FL, undercover officer posing online as the boy.
The indictment of Nicholas Sannicandro is announced by Acting United States Attorney Richard B. Myrus. A federal indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
If convicted as charged in the indictment, Sannicandro faces statutory penalties that include a minimum of 10 years - up to life in federal prison.
The case is being prosecuted by Assistant United States Attorney John P. McAdams.
The matter was investigated by the FBI and North Port, FL, Police Department, who, along with the Rhode Island State Police, members of the Rhode Island State Police Internet Crimes Against Children Task Force, and Warwick Police arrested Sannicandro in Warwick on June 22.
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Randolph County man admits to drug chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Derek Raines, of Elkins, West Virginia, has admitted to a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Raines, 37, pleaded guilty to one count of “Possession of a Firearm in Furtherance of a Drug Crime.” Raines admitted to having a .40 caliber pistol during a drug trafficking crime in August 2019.
Raines faces at least five years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner is prosecuting the case on behalf of the government. The Mountain Region Drug & Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Prolific Tax Cheat Pleads Guilty in Federal CourtRead the Press Release
PORTLAND, Ore.—An Oregon man pleaded guilty today to six felony charges after failing to pay more than $1.7 million in personal income taxes in a complex tax evasion scheme dating back to 2001.
Robert Andrew Lund, of Lebanon, Oregon, pleaded guilty to tax evasion, failure to file personal income tax returns, and stealing food stamp and Medicaid benefits.
According to court documents, in the mid 1980s, after working for several years as a computer engineer and programmer for the Hewlett Packard company, Lund moved to Oregon and started a private computer consulting company called Lund Performance Solutions (LPS). LPS’s clients included large businesses, school districts, and health care companies located throughout the U.S. In 1993, Lund paid $30,000 to an offshore trust promoter to establish layers of trusts to hide his LPS profits from the IRS. From 1994 to 1996, despite LPS being highly profitable, Lund reported almost no income on his personal income tax returns. Soon after, the IRS audited Lund and determined he owed more than $2.7 million in taxes plus penalties.
Lund used his untaxed profits to buy 90 acres of land outside Eugene, Oregon on which he built a 7,000 square foot house that was later appraised at $950,000. Lund, a small aircraft pilot, also built a private landing strip on the property. Lund also purchased the former city hall and post office building in Albany, Oregon, a trailer park with multiple rental units, and two rental houses. Lund ran LPS and several smaller businesses, including a health food store, a bookstore, and a scuba diving equipment and lessons company, from the building in Albany.
Lund challenged his tax assessments in U.S. Tax Court and the Ninth Circuit Court of Appeals. Both affirmed he owed the IRS unpaid taxes. In response, Lund stopped filing tax returns altogether and began creating many limited liability companies (LLC) and trusts to conceal his income and assets. During this time, Lund sought the assistance of a known tax protestor attorney from Georgia named Kyle Weeks. Weeks later surrendered his law license and was convicted for filing false tax returns.
Over the next decade, the IRS sent Lund dozens of letters, bills, and summonses for financial records. Lund replied with his own letters claiming he was not a U.S. citizen and therefore not subject to taxation or the IRS’s authority. During this same time, Lund continued to go to extraordinary lengths to hide his assets and income from the IRS while also stealing from government assistance programs and taking advantage of personal contacts. He repeatedly transferred title to his properties to various straw entities and people; hid rental income by signing leases with the names of at least 16 different LLCs, partnerships, and trusts; applied for and received food stamps and Medicaid benefits; and convinced an employee to open a bank account on behalf of one of Lund’s trusts. On his food stamp and Medicaid applications, Lund boldly claimed to be a part-time handyman earning just $810 a month. In total, Lund stole approximately $70,000 in public benefits, most of which were paid by the federal government.
On June 12, 2019, a grand jury returned an indictment charging Lund with tax evasion, failure to file personal income tax returns, obstructing or impeding the IRS, and theft of government funds. Lund is also charged in a separate federal case with making a false statement in connection with a personal bankruptcy case. All of Lund’s remaining charges will be dismissed as part of his plea agreement.
Lund faces a maximum sentence of 27 years in prison, $950,000 in fines, and three years’ supervised release. He will be sentenced on October 14, 2021 before U.S. District Court Judge Michael H. Simon.
As part of his plea agreement, Lund will pay more than $1.7 million in restitution to the IRS and $70,000 to the Oregon Health Authority.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation and prosecuted by Seth D. Uram and Meredith D.M. Bateman, Assistant U.S. Attorneys for the District of Oregon.
Prime Healthcare Services and Two Doctors Agree to Pay $37.5 Million to Settle Allegations of Kickbacks, Billing for a Suspended Doctor, and False Claims for Implantable Medical HardwareRead the Press Release
LOS ANGELES – One of the largest hospital systems in the nation and two of its doctors will pay $37.5 million to resolve violations of the False Claims Act and the California False Claims Act. The settlement – which resolved two cases, one of which the government today learned was unsealed – is a joint resolution with the U.S. Department of Justice and the California Department of Justice.
The United States and California entered into a settlement agreement with the Prime Healthcare Services system; Prime’s founder and Chief Executive Officer, Dr. Prem Reddy; and interventional cardiologist Dr. Siva Arunasalam to resolve alleged violations of the False Claims Act and the California False Claims Act based on kickbacks paid by Prime to Arunasalam for patient referrals. Prime includes the Ontario-based Prime Healthcare Services Inc., Prime Healthcare Foundation Inc., Prime Healthcare Management Inc., High Desert Heart Vascular Institute (HDHVI), and Desert Valley Hospital Inc.
Under the settlement agreement, Arunasalam will pay $2 million. Reddy has already paid $1,775,000, and Prime has paid $33,725,000. The United States will receive $35,463,057 of the settlement proceeds, and California will receive $2,036,943.
In 2018, Prime and Reddy paid $65 million to settle unrelated allegations of false claims and overbilling.
“Doctors have a sworn duty to do no harm and to put their patients’ interests first,” said Acting United States Attorney Tracy L. Wilkison. “Kickbacks designed to increase the number of patient referrals corrupt the doctor-patient relationship and needlessly waste this nation’s health care resources.”
“Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system by denying patients the independent and objective judgment of their health care professionals,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s commitment to protect federal health care programs against such violations, as well as other efforts to defraud these important programs.”
“In our cities and neighborhoods, hospitals are where we go for healing and care, which means they have to be a place that the people they serve can trust,” said California Attorney General Rob Bonta. “Today’s settlement should send a message that schemes like those alleged here, that put profits before people and seek to defraud our Medi-Cal program, will not be taken lightly.”
The settlement resolves allegations that:
• Prime paid kickbacks when it overpaid to purchase Arunasalam’s physician practice and surgery center because the company wanted Arunasalam to refer patients to its Desert Valley Hospital in Victorville. The purchase price, which was substantially negotiated by Reddy, exceeded fair market value and was not commercially reasonable. Prime also knowingly overcompensated the doctor when HDHVI entered into an employment agreement with him that was based on the volume and value of his patient referrals to Desert Valley Hospital;
• For approximately two years between 2015 and 2017, HDHVI and Arunasalam used Arunasalam’s billing number to bill Medicare and Medi-Cal for services that were provided by Dr. George Ponce, even though they knew Ponce’s Medicare and Medi-Cal billing privileges had been revoked, and that billing Ponce’s services under Arunasalam’s billing number was improper; and
• Certain Prime hospitals billed Medi-Cal, the Federal Employees Health Benefits Program, and the U.S. Department of Labor’s Office of Workers’ Compensation Programs for false claims based on inflated invoices for implantable medical hardware. Arunasalam was not implicated in this conduct.
The Anti-Kickback Statute prohibits offering, paying, soliciting, or receiving remuneration to induce referrals of items or services covered by a federal healthcare program, such as Medicare, Medicaid or TRICARE. Claims submitted in violation of the Anti-Kickback Statute may give rise to liability under the False Claims Act.
In connection with the settlement, Prime and Reddy entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Prime maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of its subsidiaries and affiliates.
“Federal healthcare funds are integral to the provision of necessary medical services to beneficiaries across the country,” said Special Agent in Charge Timothy B. DeFrancesca of the Office of Inspector General for the U.S. Department of Health and Human Services. “Therefore, we will address any actions, including those alleged in this case, that could compromise the system on which many patients rely. We will continue working with federal and state prosecutors to guard taxpayer funds that support these vital programs.”
The civil settlement includes the resolution of claims brought under the qui tam, or whistleblower, provisions of the False Claims Act in two lawsuits filed in federal court in Los Angeles. One suit was filed by Martin Mansukhani, a former Prime executive. The second suit was filed by Marsha Arnold and Joseph Hill, who were formerly employed in the billing office at Shasta Regional Medical Center, a Prime hospital in Redding, California.
Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Although the United States did not intervene in these cases, it continued to investigate the whistleblowers’ allegations and helped to negotiate the settlement announced today. Mr. Mansukhani will receive $9,929,656 as his share of the federal government’s recovery.
The cases are United States and the State of California ex rel. Martin Mansukhani v. Prime Healthcare Services, Inc., et al., CV18-371-RGK (C.D. Cal.); and United States and the State of California ex rel. Marsha Arnold and Joseph Hill v. Prime Healthcare Services, Inc., et al., CV18-2124-FLA (C.D. Cal.).
The resolutions obtained in these matters were the result of a coordinated effort among the U.S. Attorney’s Office for the Central District of California; the Civil Division’s Commercial Litigation Branch, Fraud Section; the California Attorney General’s Office’s Division of Medi-Cal Fraud and Elder Abuse; and HHS-OIG.
The investigation and resolution of this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The cases were handled by Assistant U.S. Attorneys Jack D. Ross and Abraham C. Meltzer, and Senior Trial Counsel Marie V. Bonkowski of the Justice Department’s Civil Division.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
Prime Healthcare Services and Two Doctors Agree to Pay $37.5 Million to Settle Allegations of Kickbacks, Billing for a Suspended Doctor, and False Claims for Implantable Medical HardwareRead the Press Release
One of the largest hospital systems in the nation and two of its doctors will pay $37.5 million to resolve violations of the False Claims Act and the California False Claims Act. The settlement is a joint resolution with the U.S. Department of Justice and the California Department of Justice.
The United States and California entered into a settlement agreement with the Prime Healthcare Services system (Prime), Prime’s Founder and Chief Executive Officer Dr. Prem Reddy, and California interventional cardiologist Dr. Siva Arunasalam to resolve alleged violations of the False Claims Act and the California False Claims Act based on kickbacks paid by Prime to Dr. Arunasalam for patient referrals. Prime includes Prime Healthcare Services Inc., based in Ontario, California; Prime Healthcare Foundation Inc.; Prime Healthcare Management Inc.; High Desert Heart Vascular Institute (HDHVI); and Desert Valley Hospital Inc. Under the settlement agreement, Dr. Arunasalam will pay $2,000,000; Dr. Reddy paid $1,775,000; and Prime paid $33,725,000. The United States will receive $35,463,057 of the settlement proceeds, and California will receive $2,036,943. Prime and Dr. Reddy paid $65 million to settle previous unrelated allegations of false claims and overbilling in 2018.
“Offering illegal financial incentives to physicians in return for patient referrals undermines the integrity of our health care system by denying patients the independent and objective judgment of their health care professionals,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “Today’s settlement demonstrates the department’s commitment to protect federal health care programs against such violations, as well as other efforts to defraud these important programs.”
“Doctors have a sworn duty to do no harm and to put their patients’ interests first,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “Kickbacks designed to increase the number of patient referrals corrupt the doctor-patient relationship and needlessly waste this nation’s health care resources.”
“In our cities and neighborhoods, hospitals are where we go for healing and care, which means they have to be a place that the people they serve can trust,” said California Attorney General Rob Bonta. “Today’s settlement should send a message that schemes like those alleged here, that put profits before people and seek to defraud our Medi-Cal program, will not be taken lightly.”
The settlement resolves allegations that:
- Prime paid kickbacks when it overpaid to purchase Dr. Arunasalam’s physician practice and surgery center because the company wanted Dr. Arunasalam to refer patients to its Desert Valley Hospital in Victorville, California. The purchase price, which was substantially negotiated by Dr. Reddy, exceeded fair market value and was not commercially reasonable. Prime also knowingly overcompensated the doctor when HDHVI entered into an employment agreement with him that was based on the volume and value of his patient referrals to Desert Valley Hospital;
- For approximately two years between 2015 and 2017, HDHVI and Dr. Arunasalam used Dr. Arunasalam’s billing number to bill Medicare and Medi-Cal for services that were provided by Dr. George Ponce, even though they knew Dr. Ponce’s Medicare and Medi-Cal billing privileges had been revoked, and that billing Dr. Ponce’s services under Dr. Arunasalam’s billing number was improper; and
- Certain Prime hospitals billed Medi-Cal, the Federal Employees Health Benefits Program and the U.S. Department of Labor’s Office of Workers’ Compensation Programs for false claims based on inflated invoices for implantable medical hardware. Dr. Arunasalam was not implicated in this conduct.
The Anti-Kickback Statute prohibits offering, paying, soliciting or receiving remuneration to induce referrals of items or services covered by a federal health care program, such as Medicare, Medicaid or TRICARE. Claims submitted in violation of the Anti-Kickback Statute may give rise to liability under the False Claims Act.
In connection with the settlement, Prime and Dr. Reddy entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). The CIA requires, among other things, that Prime maintain a compliance program and hire an Independent Review Organization to review arrangements entered into by or on behalf of its subsidiaries and affiliates.
“Federal healthcare funds are integral to the provision of necessary medical services to beneficiaries across the country,” said Special Agent in Charge Timothy B. DeFrancesca of the Office of Inspector General for the U.S. Department of Health and Human Services. “Therefore, we will address any actions, including those alleged in this case, that could compromise the system on which many patients rely. We will continue working with federal and state prosecutors to guard taxpayer funds that support these vital programs.”
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act in two lawsuits filed in federal court in Los Angeles. One suit was filed by Martin Mansukhani, a former Prime executive. The second suit was filed by Marsha Arnold and Joseph Hill, who were formerly employed in the billing office at Shasta Regional Medical Center, a Prime hospital in Redding, California. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any recovery. Although the United States did not intervene in these cases, it continued to investigate the whistleblowers’ allegations and helped to negotiate the settlement announced today. Mr. Mansukhani will receive $9,929,656 as his share of the federal government’s recovery. The cases are United States and the State of California ex rel. Martin Mansukhani v. Prime Healthcare Services, Inc., et al., 5:18-cv-00371-RGK (C.D. Cal.); and United States and the State of California ex rel. Marsha Arnold and Joseph Hill v. Prime Healthcare Services, Inc., et al., 5:18-cv-02124-FLA (C.D. Cal.).
The resolutions obtained in these matters were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section; the U.S. Attorney’s Office for the Central District of California; the California Attorney General’s Office’s Division of Medi-Cal Fraud and Elder Abuse; and HHS-OIG.
The investigation and resolution of this matter illustrate the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
The cases were handled for the United States by Senior Trial Counsel Marie V. Bonkowski of the Civil Division and Assistant U.S. Attorneys Jack D. Ross and Abraham C. Meltzer of the Central District of California.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Previously Convicted Sex Offender Pleads Guilty to Possession of Child PornographyRead the Press Release
Baltimore, Maryland – Tyler Curtis, age 24, of Hampstead, Maryland, pleaded guilty today to the possession of more than 300 illegal images and videos of child pornography on his cell phone. Curtis was previously convicted of the promotion and distribution of child pornography in 2017 within the Circuit Court of Carroll County, Maryland and was subsequently required to register as a sex offender.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Carroll County Sheriff James DeWees; and Frederick County Sheriff Charles A. “Chuck” Jenkins.
According to his guilty plea, from February 2019 to May 2020, Curtis downloaded images and videos of child pornography on a cloud-based file storage and hosting service. On March 5, 2020, the cloud-based service submitted a CyberTip to the National Center for Missing and Exploited Children. Specifically, the service reported that a user account had uploaded 22 files of suspected child pornography. Images included the sexual abuse of prepubescent children.
As stated in the plea agreement, law enforcement executed a search warrant at Curtis’s residence on May 28, 2020. During an interview with law enforcement, Curtis falsely informed investigators that he had not viewed child pornography since his 2017 conviction for child pornography-related offenses. He also falsely stated that he did not have a cell phone in his possession. As a result of the search warrant, law enforcement seized a hidden cell phone that was hidden in the bottom of Curtis’s bedroom dresser.
A forensic review of Curtis’s hidden cell phone revealed artifacts associated with at least 13 different email addresses. Investigators also discovered 115 images and 137 videos of child pornography on Curtis’s cell phone. The sexually abusive material contained sado-masochistic content as well as images of prepubescent females engaged in sexual acts with adult men, including at least two videos that depicted the sexual abuse of an infant or toddler. A forensic review of Curtis’s file storage and hosting service account revealed that Curtis uploaded 185 images and 10 videos of child pornography to the service.
Curtis and the government have agreed that, if the Court accepts the plea agreement, Curtis will be sentenced to 10 years in federal prison. U.S. District Judge Ellen L. Hollander has scheduled sentencing for September 30, 2021 at 2 p.m.
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 Attorney’s 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, Maryland State Police, the Carroll County Sheriff’s Office and the Frederick County Sheriff’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Paul A. Riley who is prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao-md/project-safe-childhood and https://www.justice.gov/usao-md/community-outreach.
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Owner of Virginia Company Sentenced for $2.8 Million Medicaid FraudRead the Press Release
RICHMOND, Va. – A Texas woman was sentenced today to 50 months in prison for defrauding the Virginia Medicaid program out of nearly $3 million.
“For over six years, the defendant stole over $2.8 million from the Virginia Medicaid program, using those funds to go on a spending spree at casinos, luxury retail stores, and foreign travel destinations,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This prosecution underscores our steadfast commitment to protecting essential government resources that are intended to help those in need of this critical assistance throughout our communities.”
According to court documents, Katrina Lynch, 39, of Cypress, Texas, owned and operated A Tender Heart, LLC, a company based in Midlothian. A Tender Heart was enrolled with the Virginia Medicaid Program as a Service Facilitator, a Medicaid provider that ensures Medicaid recipients receive needed and required services.
“We must hold fraudulent healthcare providers accountable, not only because they are stealing from our healthcare system but they are also stealing from Virginia taxpayers in the process,” said Mark R. Herring, Attorney General of Virginia. “I want to thank my hardworking Medicaid Fraud Control Unit for their work on this case, as well as our state and federal partners for their collaboration.”
Between 2011 and 2018, Lynch routinely submitted bills to Medicaid for services that her company never provided. For example, Lynch submitted bills to Medicaid for services supposedly provided to Medicaid recipients that had died, recipients that were hospitalized, recipients that transferred to other service facilitators, and recipients that had not been visited by any company employees for months. Due to these fraudulent submissions, Medicaid paid Lynch at least $2,816,633 to which she was not entitled.
“The Medicaid system is a lifeline for so many who depend on those funds to receive the necessary medical care they would otherwise not be able to afford. The FBI will not take an idle approach to the abuse of government programs,” said Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office. “We will work with our investigative partners to hold criminals accountable; and demonstrate to the American people we are committed to upholding the law and seeking justice for those who need it. If you have information to share about potential Medicaid fraud, please contact the FBI at tips.fbi.gov or by calling our local field office (804-261-1044).”
Lynch received warnings about her billing practices during two audits performed at the direction of the Virginia Department of Medical Assistant Services (DMAS). As a result of these audits, A Tender Heart was required to repay over $335,000 to Virginia Medicaid. Lynch, however, continued her fraudulent scheme after these audits.
Lynch used the fraudulently obtained Medicaid funds to engage in extensive personal expenditures, including overseas travel, restaurants, gambling, cosmetic surgery, jewelry, and vehicles. For example, Lynch spent over $47,000 of Medicaid funds at casinos, including the Bellagio in Las Vegas, Nevada, and Harrah’s in New Orleans, Louisiana. In addition, she spent over $100,000 on clothing and jewelry at luxury stores such as Neiman Marcus, Saks Fifth Avenue, Tiffany & Co., and Louis Vuitton. Lynch further spent over $250,000 on travel expenses, including a trip to London in 2018, a trip to Atlantis Paradise in the Bahamas in 2017, a Royal Caribbean Cruise also in 2017, as well as trips to Hollywood, California, and Miami, Florida. Finally, she spent more than $25,000 on beauty services such as nail and hair salons, and she spent approximately $29,000 on entertainment expenses, including concert tickets, movie theaters, and golf.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorney Katherine Lee Martin prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 3:19-cr-174.
Owner of Mental Health Services Agency Sentenced to 2 Years in Federal Prison for Health Care FraudRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that WALI MUHAMMAD, 46, of Branford, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 24 months of imprisonment, followed by three years of supervised release, for defrauding Connecticut’s Medicaid Program.
According to court documents and statements made in court, from 2010 to 2019 Muhammad owned and operated Happy Family Clinical Services LLC (“Happy Family”), a mental health and social services agency. At various times, Happy Family’s office was located in East Haven and Branford, before moving to New Haven in 2014.
From 2013 through 2019, Muhammad engaged in a scheme to defraud the Connecticut Medicaid Program by submitting fraudulent claims for psychotherapy services that were purportedly provided to Medicaid clients. The claims were for occasions and dates of service when no psychotherapy services of any kind had been provided to the Medicaid clients identified in the claims. The claims also were submitted using the names and identities of licensed clinical social workers and other licensed health care providers who purportedly worked for Happy Family, and represented that the psychotherapy services were personally rendered by the licensed providers, when, in fact, the licensed providers had not personally rendered the services, had not supervised the services that were billed, and were unaware that Muhammad was billing or causing the services to be billed as if the providers had personally rendered the services. When services were provided, they were usually rendered by unlicensed individuals and billed as licensed psychotherapy.
Judge Bryant ordered Muhammad to pay $527,034 in restitution to Medicaid.
On March 11, 2021, Muhammad pleaded guilty today to one count of health care fraud.
Muhammad, who is released on bond, is required to report to prison on September 27, 2021.
This case was investigated by U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), and the Medicaid Fraud Control Unit (MFCU) of the Connecticut Chief State’s Attorney’s Office. Acting U.S. Attorney Boyle also thanked the Connecticut Attorney General’s Office, the Connecticut Department of Social Services, and the Connecticut Department of Mental Health and Addiction Services for their assistance in the investigation.
The matter was prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office, and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the Federal Bureau of Investigation. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
North Dakota Man Who Traveled to Connecticut for Sex with Minor Pleads GuiltyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Matthew B. Millhollin, Special Agent in Charge, Homeland Security Investigations, Boston, announced that CHRISTOHER J. BRERETON, 34, of Fargo, North Dakota, waived his right to be indicted and pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to traveling interstate with the intent to engage in illicit sexual conduct.
According to court documents and statements made in court, in January 2020, Brereton began chatting online with a minor female who had an online profile stating she was 18 years old. In February 2020, a law enforcement officer received permission to take over the minor’s account and, in an undercover capacity, the officer informed Brereton of the female’s true age of 15 years old. Brereton continued to chat with the “girl,” discussed engaging in sexual activity with her and made plans to drive to Connecticut meet her for sex.
On March 12, 2020, Brereton began driving from North Dakota and he arrived at a hotel in Meriden the next day. At the hotel, Brereton unpacked lingerie and sexual paraphernalia he had purchased for the planned sexual encounter. He was arrested later that day by New Haven Police on state charges after he drove to a location where he had arranged to meet the “girl.”
Bererton has been detained since his arrest.
Judge Thompson scheduled sentencing for October 8, 2021, at which time Brereton faces a maximum term of imprisonment of 30 years.
This matter is being investigated by Homeland Security Investigations (HSI) and the New Haven Police Department. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
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.
New York Man Sentenced to Nearly 4 Years in Prison for Helping to Receive and Launder Ill-Gotten Proceeds of BEC ScamsRead the Press Release
LOS ANGELES – A New York man was sentenced today to 46 months in federal prison for participating in business email compromise (BEC) scams, including one in which $420,000 was stolen from a victim’s life insurance account, then deposited and laundered in various bank accounts set up in the names of other people.
Sunday Anyika, 56, of Brooklyn, New York, was sentenced by United States District Judge John F. Walter, who also ordered him to pay $1,129,515 in restitution. Anyika pleaded guilty on January 26 to one count of conspiracy to commit mail fraud. At today’s hearing, Judge Walter called the BEC scheme “malicious and extensive” and stated it caused “huge losses to unsuspecting victims.”
In January 2018, Anyika’s co-conspirators, using the victim’s life insurance policy number, Social Security number, and date of birth to verify the account, called a business – identified in court documents as “Company A” – to obtain details on a life insurance policy under a victim’s name. Later that month, Anyika, using a fake Liberian passport sent by his co-conspirators that bore his photograph, opened and maintained sole control over a TD Bank account that used the victim’s name.
In February 2018, one of Anyika’s co-conspirators fraudulently and without authorization caused Company A to wire $420,000 from the victim’s life insurance policy account to the same TD Bank account under Anyika’s control. Within weeks, Anyika transferred the ill-gotten funds traceable to the victim’s life insurance account to other bank accounts that he controlled – including one in Hong Kong – that were opened using the names of other people.
One of Anyika’s co-conspirators, in March 2018, fraudulently and without authorization, requested cancellation of the victim’s life insurance policy with Company A and directed that the remaining funds in the account be wired to the TD Bank account that Anyika had opened two months earlier, but mistakenly ordered the check to be sent to the victim. As a result of the co-conspirator’s fraudulent cancellation request, Company A cancelled the victim’s life insurance policy and mailed the victim a check for approximately $761,355 in an envelope addressed to the victim’s office in Bell.
Anyika admitted in his plea agreement that his co-conspirators committed other BEC scams, including deceiving a law firm into wiring approximately $400,802 in client settlement money to a bank account under Anyika’s control. The wire was unable to be recalled and the law firm ended up losing the settlement money.
Anyika further admitted to participating in other such scams, including bilking a toy company out of $135,125 when one of his co-conspirators sent the company a series of emails with specific instructions that tricked it into wiring invoice payments to a bank account Anyika controlled. The account had been opened by Anyika using the same fake Liberian passport he used previously.
The co-conspirators further defrauded a construction company and a chemical distributor via fake emails masquerading as a subcontractor and supplier, respectively, that requested payments, according to court documents. The construction company was tricked into wiring approximately $158,113, and the chemical distributor was deceived into sending two payments totaling approximately $117,608 to bank accounts opened and controlled by Anyika.
Anyika admitted to knowing that the funds deposited by his co-conspirators into accounts he controlled were obtained and sent to him as part of the fraudulent conspiracy. As his share of the proceeds of the conspiracy, Anyika personally retained at least approximately $150,000. The co-conspirators remain at large.
The FBI investigated this matter.
Assistant United States Attorney Scott Paetty of the Major Frauds Section prosecuted this case.
New York Man Sentenced to More Than 10 Years in Federal Prison for Conspiring and Attempting to Engage in Sex Trafficking of A MinorRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Edwards Honeywell has sentenced Michael Davis (37, Jamaica, NY) to 10 years and 10 months in federal prison for conspiring and attempting to engage in the sex trafficking of a minor. Davis was also ordered to serve a 10-year term of supervised release and to register as a sex offender.
A jury had found Davis guilty on April 9, 2021.
According to evidence presented at trial, in August 2017, Davis began using a social networking website to recruit young women to engage in commercial sex. In December 2017, Davis and a co-conspirator, Samantha Broadhead, used the website to send a message to an individual whom he believed was a 17-year-old girl living in Denver, Colorado. Unbeknownst to Davis, he was communicating online and by telephone with an undercover agent who was investigating individuals who engage in child sex trafficking.
Over the course of several weeks, Davis conspired with Broadhead to attempt to recruit, entice, transport, and obtain the purported 17-year-old girl to travel to the Tampa Bay area so that he could cause the “child” to engage in commercial sex. In an effort to persuade the “child,” Davis discussed the lavish lifestyle that the “child” could have and sent photos depicting large amounts of cash and marijuana. Davis orchestrated the purchase of a one-way bus ticket for the notional “child” and promised to pick her up from the bus station. The day before the “child” was expected to arrive in Tampa, federal agents coordinated with local law enforcement officers to detain Davis. Davis admitted, among other things, that he had been communicating with the “child” and that he had also purchased a bus ticket for the “child.”
During the course of the investigation, Davis made threats to Broadhead in an effort to coerce her to retract her own statements to law enforcement and report that she was the main person, not Davis, who had been communicating with the undercover agent.
Broadhead previously pleaded guilty to conspiracy to engage in the sex trafficking of a minor. Her sentencing hearing is scheduled for September 2, 2021.
Special Agent in Charge, Michael F. McPherson stated, “Individuals attempting to engage in the sex trafficking of minors represent an abhorrent threat to our children. The FBI and its law enforcement partners collaborate each day to identify, investigate, and stop those conducting this heinous crime.”
This case was investigated by Federal Bureau Investigation, with assistance from the Largo Police Department and the Tampa Police Department. It is being prosecuted by Assistant United States Attorney Lisa M. Thelwell.
This case resulted from the U.S. Attorney’s Office’s efforts to collaborate with local, state, and federal law enforcement agencies to detect, investigate, and prosecute coercive human trafficking in the Tampa area. This includes the trafficking of minors, forced labor, transnational sex trafficking, and sex trafficking of adults by force, fraud, or coercion. Information on the Department of Justice’s efforts to combat human trafficking can be found at www.justice.gov/humantrafficking.
Ms-13 Gang Leader Pleads Guilty to a Racketeering Conspiracy for Gang Activities Including Murders, Attempted Murders, and ExtortionRead the Press Release
Baltimore, Maryland – Jorge Guerra-Castillo, a/k/a “Pelon”, age 40, of Silver Spring, Maryland, an MS-13 leader, pleaded guilty today to conspiracy to participate in racketeering activities, including two murders and two attempted murders.
Anyone with information about MS-13 is encouraged to call the FBI’s nationwide tipline, 1-866-STP-MS13 (1-866-787-6713). The FBI tipline allows individuals to provide information about MS-13’s criminal activities to a central location and the FBI will then disseminate the information to the appropriate law enforcement authorities for investigation. Your identity will be protected.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Thomas J. Sobocinski of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Acting Frederick Police Department Chief Dwight Sommers; Chief Marcus Jones of the Montgomery County Police Department and Anne Arundel County Police Chief Amal Awad.
“The reign of terror, acts of violence, and horrific murders that Guerra-Castillo and his fellow MS-13 members have committed will be prosecuted to the fullest extent of the law” said Acting U.S. Attorney Jonathan F. Lenzner. “The United States Attorney’s Office for the District of Maryland and our partners are committed to breaking the strong hold of violent gangs like MS-13 with swift and stringent prosecution. We will utilize every legal resource to ensure that citizens can live peacefully and fearlessly within their own communities.”
MS-13 is a national and international gang composed primarily of immigrants or descendants from El Salvador and other central American countries. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Frederick County, Anne Arundel County, Prince George’s County, and Montgomery County, Maryland.
At all times of this conspiracy, members of MS-13 were expected to protect the name, reputation, and status of the gang from rival gang members and other persons. To protect the gang and to enhance its reputation, MS-13 members were expected to use any means necessary to force respect from those who showed disrespect, including acts of intimidation and violence. MS-13 had mottos consistent with its rules, beliefs, expectations and reputation including “mata, viola, controla,” which translates as, “kill, rape, control,” and “ver, oir y callar,” which means, “see nothing, hear nothing and say nothing.”
MS-13 members are required to commit acts of violence both to maintain membership and discipline within the gang, as well as against rival gang members. Participation in criminal activity by a member, particularly in violent acts directed at rival gangs or as directed by gang leadership, increase the respect accorded to that member, resulting in that member maintaining or increasing his position in the gang, and opens the door to a promotion to a leadership position. One of the principal rules of MS-13 is that its members must attack and kill rivals, often referred to as “chavalas,” whenever possible.
According to his guilty plea, beginning some time before January 2015, Guerra-Castillo was a member of the Fulton Locos Salvatruchas (“FLS”) clique of MS-13 and agreed with other MS-13 members to conduct and participate in gang activities through a pattern of racketeering activity that included conspiracy to commit murder, extortion, and drug distribution.
Specifically, on April 7, 2015, MS-13 members murdered Victim 1, a suspected rival gang member, for the purpose of maintaining and increasing rank in MS-13. Gang leadership in Maryland sought and received approval from Guerra-Castillo to kill Victim 1. Guerra-Castillo also arranged for another gang member to participate in the murder of Victim 1. As part of the scheme to murder Victim 1, MS-13 members lured Victim 1 to a wooded area in Frederick, Maryland where members repeatedly struck Victim 1 with a machete and a knife until he was dead. The day after the murder, MS-13 members buried Victim 1 in a wooded area where Victim 1’s body was ultimately recovered.
Prior to May 10, 2015, at the direction of Guerra- Castillo, MS-13 gang members forced Victim 2 to make regular extortion payments to the gang. On May 10, 2015, Guerra-Castillo directed other MS-13 members and associates to kidnap and kill Victim 2, who had stopped making the extortion payments to the gang. Gang members held Victim 2 at gunpoint while Victim 2 was forced into a vehicle and taken to a wooded area. Once Victim 2 agreed to pay the gang, Guerra-Castillo and other leadership approved the release of Victim 2, despite their original order directing MS-13 members to murder Victim 2 for lack of payment.
As stated in his plea agreement, on August 2015, MS-13 members and associates, planned and conspired to murder Victim 3, whom they believed to be a rival gang member. After identifying Victim 3, gang members sought and received approval from Guerra-Castillo to commit the murder. Several days prior to August 28, 2015, MS-13 gang members surveilled Victim 3 and his girlfriend, Victim 4 to determine when Victim 3 would be home. On the morning of August 28, 2015, gang members went to the apartment and waited inside for Victim 3 and Victim 4 to return. When they arrived, three gang members attacked Victim 3 and Victim 4 with a machete and knives. Although both survived, the attack on Victim 3 left the victim with severe wounds to the face and both hands nearly severed. As a result of the attack, Victim 3 has lost all function of one hand and still has only limited use of the other.
Guerra-Castillo also admitted that he approved and assisted in the planning of the murder of a suspected associate of a rival gang, identified as Victim 18. On June 24, 2017, Guerra-Castillo’s girlfriend lured Victim 18 to a location so MS-13 members could kidnap and kill the victim. Once the victim was in the car, MS-13 members transported the victim to a secluded area in Crownsville, Maryland, where other MS-13 members had dug a grave and gathered weapons. When the victim arrived, MS-13 gang members attacked Victim 18 with a machete and knives, until the victim was dead. Victim 18’s body was then dismembered and buried in the grave. The murder of Victim 18 was intended to maintain and increase the status of MS-13 and allow members to maintain or increase their status within the gang.
Guerra-Castillo and the government have agreed that, if the Court accepts the plea agreement, Guerra-Castillo will be sentenced to between 390 and 540 months in federal prison. Chief U.S. District Judge James K. Bredar has scheduled sentencing for October 15, 2021 at 2 p.m.
Acting United States Attorney Jonathan F. Lenzner commended the FBI; HSI; the Frederick Police Department; the Anne Arundel, Montgomery, and Prince George’s County Police Departments; and the Anne Arundel, Frederick, Montgomery, and Prince George’s County State’s Attorneys for their work in the investigation, and the Baltimore County Police Department for its assistance. Mr. Lenzner thanked Assistant U.S. Attorneys Kenneth S. Clark, Catherine K. Dick, Zachary Stendig, and Anatoly Smolkin, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
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Minneapolis Man Pleads Guilty to Possession of a Stolen FirearmRead the Press Release
ST. PAUL, Minn. – A Minneapolis man pleaded guilty today to possession of a stolen firearm, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on August 20, 2020, officers with the Minneapolis Police Department responded to shots fired at a Taco Bell on Broadway Avenue in Minneapolis. Upon arrival, officers observed several individuals and vehicles fleeing the scene. Officers observed one of the vehicles, a white Chevy Impala driven by Wesley Rayvon Johnson, 29, speed through residential streets before entering the eastbound lanes of I-94, traveling westbound. Johnson exited onto Highway 252, again traveling in the wrong direction, before crashing into another vehicle. Johnson exited the Chevy Impala and threw a firearm into a storm drain. Officers were able to remove the grate from the storm drain and recover a Glock 23 Gen. 4, .40 caliber semi-automatic pistol, which had previously been reported stolen. Johnson admitted that he knew the firearm was likely stolen because he bought it on the street without filling out any paperwork. Johnson is also a convicted felon and is therefore prohibited from possessing firearms.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Minneapolis Police Department and Metro Transit.
This case is being prosecuted by Assistant U.S. Attorney Amber M. Brennan.
Maryland U.S. Attorney’s Office Seizes Two Domains Attempting to Mimic Walmart Website and Purporting to Sell Drug for the Experimental and Unapproved Treatment or Prevention of Covid-19Read the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “http://pharmacywalmart.com” and “https://stromectol-ivermectin.com” which on June 16, 2021 resolved to “https://en.pharmacywalmart.com/buy-stromectol-usa.html.” The websites contained numerous uses of the legitimate Walmart trademarked logo and appears to attempt to mimic a legitimate Walmart website. The fraudulent websites allegedly offers for sale a number of drugs for the experimental and unapproved treatment or prevention of COVID-19. Instead, the domains were allegedly used to collect the personal information of individuals visiting the sites in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting the sites will now see a message that the site has been seized by the federal government and be redirected to another site for additional information. These are the 12th and 13th COVID fraud related domain name seized by the Maryland U.S. Attorney’s Office and HSI.
The seizure of the domains name was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations - Baltimore.
According to the affidavit filed in support of the seizure, the HSI Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”) discovered an apparent fraudulent website, named “https://stromectol-ivermectin.com” which resolved to an internal webpage of “pharmacywalmart.com.” A domain analysis conducted by HSI indicated that pharmacywalmart.com was created on November 4, 2019, from a registrant located in Russia.
The HSI Cyber Operations Officer (COO) noted the phone number “+1-718-475-90-88” on the pharmacywalmart.com website. While the location for the area code for this number is New York City, the format provided does not match that of a typical United States based phone number. Pharmacywalmart.com purports to offer for sale a number of drugs, including Stromectol (Ivermectin), Aralen (Chloroquine) and Kaletra (Lopinavir and Ritonavir), for the experimental and unapproved treatment or prevention of COVID-19.
As detailed in the affidavit filed in support of the seizure, Stromectol is the brand name of Ivermectin which is a prescription medication used to treat certain parasitic infections; Aralen is a brand name for chloroquine, most commonly used for the treatment and prevention of malaria; and Kaletra is the brand name of a combination of Lopinavir and Ritonavir which are prescription medications that are approved to treat human immunodeficiency virus 1 (HIV-1). None of those drugs are an approved preventative or treatment for COVID-19. On the page offering Kaletra for sale, the subject domain name contained the following: “In 2020, after laboratory researches, it was found out that Kaletra shows positive results in a blockage of a COVID-19 viral replication.” The affidavit alleges that this statement is not supported by trials or the FDA.
Neither domain name is authorized by Walmart to use their intellectual property or offer their products for sale. By seizing the sites, the government has prevented third parties from acquiring the names and using it to commit additional crimes, as well as prevented third parties from continuing to access the sites in their present form.
On May 17, 2021, the Attorney General established the COVID-19 Fraud Enforcement Task Force to marshal the resources of the Department of Justice in partnership with agencies across government to enhance efforts to combat and prevent pandemic-related fraud. The Task Force bolsters efforts to investigate and prosecute the most culpable domestic and international criminal actors and assists agencies tasked with administering relief programs to prevent fraud by, among other methods, augmenting and incorporating existing coordination mechanisms, identifying resources and techniques to uncover fraudulent actors and their schemes, and sharing and harnessing information and insights gained from prior enforcement efforts. For more information on the Department’s response to the pandemic, please visit https://www.justice.gov/coronavirus.
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 (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in this investigation. Mr. Lenzner recognized the U.S. Food and Drug Administration’s Office of Criminal Investigations, the U.S. Postal Inspection Service and the Baltimore County Police Department for their assistance and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are handling the case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit www.justice.gov/usao/md.
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Man Who Lured Women from Canada with False Promises of Helping Their Modeling Careers Pleads Guilty to Sex Trafficking OffenseRead the Press Release
LOS ANGELES – An Illinois man pleaded guilty today to a federal sex trafficking charge, admitting that he lured two victims – both of whom were 19 at the time – from Canada with promises of promoting their modeling careers, but instead used force, fraud and/or coercion to cause the victims engage in commercial sex acts.
Jerome Terry Jr., 45, of Chicago, pleaded guilty before United States District Judge Otis D. Wright II to one count of conspiracy to engage in sex trafficking.
In a plea agreement, Terry and federal prosecutors have agreed to a prison sentence of between seven and 15 years in federal prison.
Terry admitted in court today that he and two co-conspirators set up a purported modeling management company called CanadianGirlzRock, Inc. to lure aspiring models to Los Angeles and other locations with the promise of modeling careers. In fact, Terry “intended and planned to recruit, entice, and transport the women to Los Angeles, or other locations, and to harbor, provide, obtain, and maintain the women to engage in commercial sex acts,” according to the plea agreement.
After seeing photos of the first victim on social media, Terry contacted the woman, telling her she could come to Los Angeles to work as a model and event host. After the woman arrived in late April 2014, Terry used force, threats of force, fraud, and/or coercion to cause the victim to engage in commercial sex acts with four clients over approximately four days until Los Angeles Police officers rescued her.
Terry contacted the second woman in late 2014 after seeing photos of her online and told her he would help with her modeling career. Terry told the victim she would need to perform acts of prostitution to make money to support her modeling career, but that the proceeds would be put toward her modeling or given to her to send to her family. After the woman traveled to Los Angeles in early 2015, Terry used means of fraud – including the false and deceptive promises that he would put money from B.E.’s prostitution toward her modeling career or make the money available for her to send to her family – to cause the victim to engage in commercial sex acts with numerous clients over approximately 10 days. When the victim asked Terry about the money, Terry became angry and broke her phone, according to the plea agreement.
Terry has been in federal custody since his extradition from Canada in 2019.
Judge Wright has scheduled a sentencing hearing for October 25.
Two co-conspirators originally charged with Terry in this case have entered into diversion agreements.
This matter was investigated by Homeland Security Investigations, with substantial assistance provided by the Los Angeles Police Department and the Royal Canadian Mounted Police.
Assistant United States Attorneys Wilson Park of the Terrorism and Export Crimes Section, Devon Myers of the Cyber and Intellectual Property Crimes Section, and Maria Jhai of the General Crimes Section are prosecuting this case.
Man Sentenced for Traveling from Massachusetts to New York to Have Sex with a ChildRead the Press Release
ALBANY, NEW YORK – Anthony Beckwith, age 36, of Sheffield, Massachusetts, was sentenced today to 41 months in prison for traveling in interstate commerce to have sex with someone whom he believed to be a 12- or 14-year-old girl.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Jodi Cohen; Acting Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI); and New York State Police Superintendent Kevin P. Bruen.
In pleading guilty, Beckwith admitted to communicating with a man he believed to be offering his 12- or 14-year-old stepdaughter for sex. As arranged with the man, Beckwith drove from Sheffield to Albany to have sex with the child on February 1, 2019, but drove off after observing what he believed to be law enforcement. He was later arrested and ultimately admitted to traveling to Albany with the intent to have sex with the child.
United States District Judge Mae A. D’Agostino also sentenced Beckwith to a 10-year term of supervised release, to begin following his term of imprisonment, and ordered him to pay $5,100 in assessments. Beckwith will also be required to register as a sex offender upon his release from prison.
This case was investigated by the FBI and New York State Police, and prosecuted by Assistant U.S. Attorney Cyrus P.W. Rieck.
Karon Foster Pleads Guilty to Participating in a Violent Racketeering Conspiracy That Killed Three Victims in Carjacking and Armed Robbery Spree in BaltimoreRead the Press Release
Baltimore, Maryland – Karon Foster, age 27, of Baltimore, Maryland, pleaded guilty today to conspiracy to participate in racketeering activity, a carjacking conspiracy, and aiding and abetting a carjacking resulting in death.
The guilty plea 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; Commissioner Michael Harrison of the Baltimore Police Department; and Baltimore City State’s Attorney Marilyn J. Mosby.
According to his guilty plea, beginning in April 2019, Foster was part of an enterprise that engaged in a pattern of deadly racketeering activity, including a series of armed carjackings, armed robberies, attempted armed robberies, and the pawning of stolen goods. Specifically, between April 19, 2019 and August 8, 2019, Foster and his crew committed 13 specific violent crimes in Baltimore, including: eight armed carjackings (including the June 12, 2019 murder of Taven Lowther); and five armed robberies and attempted robberies, including two in which victims were murdered. Three victims were murdered by Foster’s crew during the time of the conspiracy, and a fourth victim was paralyzed as a result of an armed robbery.
“Over just four months in 2019, Karon Foster and his crew were responsible for a violent spree of 13 armed carjackings and robberies throughout Baltimore, including three that killed innocent victims and another that left a victim paralyzed,” said Acting U.S. Attorney Jonathan F. Lenzner. “Foster and his co-conspirators used firearms and fear to steal cars, property and most tragically the lives of other human beings. This case reflects the collaboration and commitment of federal, state, and local law enforcement to hold accountable violent offenders like Foster and his co-conspirators. Four months of violence will result in at least three decades in federal prison for Karon Foster; hopefully others like him will take notice and choose to put down the guns and take a different path.”
The plea agreement details a series of violent crimes committed by Foster and his co-conspirators, including one on June 12, 2019, when Victim 1 visited Taven Lowther’s Baltimore apartment. As Victim 1 conversed with Lowther, Foster and other members of the enterprise approached Lowther and Victim 1 in a stolen vehicle and parked directly across from them. Four men exited the vehicle, two of whom possessed firearms. Members of the enterprise approached Victim 1 and announced a robbery. Victim 1 fled the scene on foot while Lowther resisted the robbers’ commands. Lowther was shot several times and subsequently died from his injuries. Victim 1 later returned to the scene and discovered that Victim 1’s car and Lowther’s body were both gone, and only Lowther’s shoes remained at the scene. Foster aided and abetted the enterprise by driving the stolen vehicle to and from the scene of the attempted robbery and Lowther’s murder.
Members of the conspiracy not only promoted their activities on social media, but they also shared proceeds of their exploits. As part of the enterprise, Foster pawned items stolen from victims. Members also concealed enterprise activities by hiding, destroying, or disposing of evidence.
Foster and the government have agreed that, if the Court accepts the plea agreement, Foster will be sentenced to between 30 years and 40 years in federal prison. U.S. District Judge Stephanie A. Gallagher has not scheduled the sentencing hearing at this time.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the Baltimore Police Department, and the Baltimore City State’s Attorney’s Office for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Patricia C. McLane and Brandon Moore who are prosecuting the case.
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Kanawha County Man Sentenced to 10 Years in Federal Prison for Gun CrimesRead the Press Release
CHARLESTON, W.Va. – A Kanawha County man was sentenced to 10 years in federal prison today for federal gun crimes. Tevin Williams, 27, of Charleston, pled guilty to being a felon in possession of a firearm and possession of a firearm in furtherance of a drug trafficking crime.
According to court documents and statements made in court, Williams was driving on Rt. 60 in Belle on June 5, 2019 when he was pulled over and removed from the car by law enforcement officers. A K-9 unit alerted to the presence of drugs in the car. During a search of his car, officers located a Ruger 9mm pistol, ammunition, a small black safe, $2,293 in U.S. currency, over 100 empty plastic baggies and approximately 93 grams of methamphetamine. Williams admitted he was carrying the firearm to protect his drugs and cash.
On November 6, 2019, Williams traveled to a home in Putnam County and knocked on the door. After being turned away at the door, Williams turned around and fired three to four shots at the residence and then drove away. Nine days later on November 15, 2019, Williams was driving in South Charleston when he was pulled over and removed from the car by law enforcement officers. At that time, he was wearing two shoulder holsters. Officers located two firearms under the front seat of the car, both of which were Hi Point 9mm pistols. Williams is prohibited from possessing firearms as a result of his 2013 first degree robbery conviction in Kanawha County Circuit Court. The pistols seized from Williams on November 15 were examined at the West Virginia State Police Laboratory and one of those pistols was identified as matching one of the shell casings recovered by law enforcement from the Putnam County residence on November 6, 2019.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the South Charleston Police Department, the Putnam County Sheriff’s Department, the Kanawha County Sheriff’s Department, the Belle Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Senior United States District Judge John T. Copenhaver, Jr. imposed the sentence. Assistant United States Attorney L. Alexander Hamner handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:21-cr-00038 and 2:20-cr-00048.
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Jury Finds Sioux City Man Guilty of Meth ConspiracyRead the Press Release
A Sioux City man who conspired to distribute methamphetamine was found guilty by a jury on July 9, 2021, after a four-day jury trial in federal court in Sioux City, Iowa.
Melroy Johnson, Sr., 66, from Sioux City, Iowa, was convicted of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine. The verdict was returned last Friday morning following about 2 ½ hours of jury deliberations.
Evidence at the trial showed, that over the course of months in 2017-2018, Johnson, Sr. had two co-conspirators travel to California to obtain pounds of methamphetamine from a source and return with it to Sioux City, Iowa for further distribution. Evidence at trial also showed that Johnson, Sr., over the course of about one year, from 2017 through 2018 had multiple pounds of meth repeatedly mailed from a source of supply in California to co-conspirators in Sioux City for further distribution. The packages contained from 2-5 pounds of methamphetamine as well as cocaine and marijuana.
Sentencing before United States Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Johnson, Sr. was taken into custody by the United States Marshal after the verdict was returned and will remain in custody pending sentencing. Johnson, Sr. faces a sentencing enhancement based on his prior federal felony drug trafficking conviction in 2002. On his conspiracy conviction, Johnson, Sr. faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment. On the possession conviction, Johnson, Sr. faces a mandatory minimum sentence of 5 years’ imprisonment and a possible maximum sentence of 40 years’ imprisonment, a $8,000,000 fine, and at least 8 years of supervised release.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the United States Postal Service, and the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 19-4065.
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Jury Convicts Member of International Drug Trafficking ConspiracyRead the Press Release
NORFOLK, Va. – On Friday, a federal jury convicted a Kennewick, Washington man on charges of conspiracy to distribute and possession with intent to distribute cocaine, and distribution of cocaine.
According to court records and evidence presented at trial, Juan Gabriel Rodriguez-Preciado, 43, facilitated the trafficking of kilogram quantities of cocaine between a Mexican cartel and a regional drug trafficking organization (DTO) run by Adian Barth, 35, of Chesterfield. During July and August 2019, Rodriguez-Preciado stayed at a Richmond residence owned by Barth to assist him in a cocaine drug trafficking conspiracy. From that residence, Rodriguez-Preciado distributed approximately 10 kilograms of cocaine every other week to members of Barth’s DTO over a two-month period. In return, Rodriguez-Preciado collected approximately $30,000 per kilogram, which he funneled back to Mexico.
“The jury’s verdict holds the defendant accountable for dangerously facilitating the distribution of significant quantities of cocaine between an international drug cartel and a regional drug trafficking organization,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “EDVA is grateful to everyone who worked tirelessly on this case to protect the public and pursue justice against those who placed profits over the well-being of our communities.”
“I’m really proud that my team was able to help shutdown this significant, international drug trafficking operation that threatened the health and safety of Virginians,” said Mark R. Herring, Attorney General of Virginia. “We appreciate our continuing, productive partnership with the U.S. Attorney’s Office and all the partner agencies who work each and every day to keep Virginians safe.”
Rodriguez-Preciado faces a mandatory minimum sentence of five years and a maximum of 60 years in prison when sentenced on November 29. 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.
On May 11, Barth was sentenced to 225 months in prison for charges of conspiracy to distribute, possession with intent to distribute, and distribution of cocaine.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Jarod Forget, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Division; Charlie J. Patterson, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; and Col. K.L. Wright, Chief of Chesapeake Police, made the announcement after Senior U.S. District Judge Robert G. Doumar accepted the verdict.
Assistant U.S. Attorney Megan Montoya and Special Assistant U.S. Attorney Kristin Bird are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:19-cr-164.