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15 July 2021
Sisseton Man Sentenced for Abusive Sexual Contact of a ChildRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Sisseton, South Dakota, man convicted of Abusive Sexual Contact of a Child was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
Okokipe Jones, age 47, was sentenced to 200 months in federal prison, 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Jones was indicted by a federal grand jury on September 1, 2020. He pled guilty on April 20, 2021.
The conviction stemmed from incidents on or about July 1, 2010, and continuing through on or about July 31, 2010, when Jones knowingly engaged in, and attempted to engage in, sexual contacts with a young female victim. Jones, by using force, intentionally touched, either directly or through the clothing, the victim’s genitalia, anus, groin, breast, inner thigh, and buttocks.
At the time of the sexual contact, Jones was approximately 36 years old and the victim was under 12 years of age.
Jones is an enrolled member of the Sisseton-Wahpeton Oyate Sioux Tribe. The sexual assault occurred in Roberts County, State and District of South Dakota, within the exterior boundaries of the Lake Traverse Reservation. Jones and the victim resided together in the same household at the time.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Jones was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Charged with Production of Child PornographyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Production of Child Pornography.
Robert Eugene Stefani, age 45, was indicted on July 7, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on July 12, 2021 and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about June 22, 2019, Stefani, knowingly employed, used, persuaded, induced, enticed, and coerced a juvenile female to engage in sexually explicit conduct for the purpose of producing visual depictions of such conduct, knowing and having reason to know that such visual depiction would be transported in interstate or foreign commerce or mailed, and such visual depiction would be produced using materials that had been mailed, shipped, and transported in interstate and foreign commerce, including by computer.
The charge is merely an accusation and Stefani is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Stefani were released on bond pending trial. A trial date has not been set.
Sinaloa, Mexico, man sentenced to 17 years in prison for meth trafficking in Butte areaRead the Press Release
MISSOULA – A Sinaloa, Mexico, man, who admitted methamphetamine trafficking and money laundering activities in the Butte area, was sentenced today to 17 years in prison to be followed by five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Humberto Horiol Medina Villarreal, 34, pleaded guilty on March 25 to possession with intent to distribute meth and to conspiracy to commit money laundering.
U.S. District Judge Dana L. Christensen presided.
The government alleged in court documents that from about July 2017 until August 2020 in Butte, Villarreal and others were involved in drug trafficking. An undercover law enforcement agent ordered a pound of meth directly from Villarreal. When negotiating the price per pound of meth, Villarreal stated, “There’s people I give 5 packs, 10 packs, 20 packs, for four grand, and they get rid of that stuff in a week.” Law enforcement knew that Villarreal meant 5-pound, 10-pound and 20-pound shipments of meth. One pound of meth is the equivalent of 3,624 doses. Villarreal told the undercover agent to wire the money to “Ricardo Ramos Medina, Baja California North.” Ricardo Ramos Medina, of Sinaloa, Mexico, was convicted of meth trafficking in a related indictment and sentenced to eight years in prison.
The government also alleged that Villarreal conspired to launder money and directed others to wire money from Montana to California, and elsewhere, to pay for and fund the purchase of additional meth and other drugs.
Villarreal’s two co-defendants have been convicted of drug trafficking crimes and sentenced. Charles Joshua Petty, of Butte, was sentenced to 10 years in prison, while Shawn James Miller, of Deer Lodge, was sentenced to five years in prison.
Assistant U.S. Attorney Ryan G. Weldon prosecuted the case, which was investigated by the Drug Enforcement Administration, Homeland Security Investigations, Bureau of Alcohol, Tobacco, Firearms and Explosives, Montana Division of Criminal Investigation and the Butte Police Department.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Senior NASA Employee Sentenced for COVID-19 Related Loan FraudRead the Press Release
ALEXANDRIA, Va. – A Senior Executive Service (SES) employee of the National Aeronautics and Space Administration (NASA) was sentenced today to 18 months in prison for submitting fraudulent applications for over $350,000 in COVID-19 economic relief loans and benefits.
“While serving in a high-ranking position at NASA, this defendant used the identities of others to carry out a brazen scheme in which he exploited taxpayer-funded programs during the global pandemic for his own personal benefit,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “This case serves as another example of EDVA’s commitment to pursuing justice against those who attempt to take advantage of essential programs that are intended for deserving community members.”
According to court documents, Andrew Tezna, 36, of Leesburg, fraudulently submitted three loan applications to two financial institutions totaling $272,284, under the Paycheck Protection Program (PPP), a federal initiative designed to help businesses pay their employees and meet their basic expenses during the COVID-19 pandemic. Tezna also submitted two Economic Injury Disaster Loan Program applications to the Small Business Administration totaling $69,500, and he applied for COVID-related unemployment benefits, totaling $15,950, from Virginia, ostensibly for his mother-in-law, who was retired and did not qualify for the benefits. In support of the fraudulent PPP loan applications, Tezna submitted fabricated IRS tax returns and fraudulently claimed payroll expenses that did not exist.
Tezna successfully obtained over $285,000 from the PPP loans and unemployment benefits. The bulk of the money came from PPP loans applied for in his and his mother-in-law’s names for businesses that did not exist. He then spent the funds, among other things, to pay off a personal loan for a residential pool, a personal loan for a minivan, personally incurred credit card debt, a down payment on a new car, and a dog-breeder. In addition, Tezna also admitted to filing a false Financial Disclosure Report with NASA.
“Tezna made fraudulent representations to obtain funds from COVID-19 relief programs designed to aid businesses and individuals that were struggling as a result of the pandemic. In doing so, he stole funds from American taxpayers that he ultimately used to pay down personal debt and purchase luxury items,” said Special Agent in Charge Mark J. Zielinski, NASA Office of Inspector General, Eastern Field Office. “Today’s sentencing should serve as a deterrent to all those trying to game the system for personal gratification.”
“COVID-19 relief programs are not meant to be used for paying off personal indulgences. Tezna, despite having an executive position, stole funds from the government meant to aid struggling businesses during the pandemic. Today, the penalties of his actions were realized,” said Darrell J. Waldon, Acting Special Agent in Charge of the Internal Revenue Service-Criminal Investigation (IRS-CI) Washington D.C. Field Office.
In addition to the 18 months of imprisonment, Tezna was sentenced to 3 years of supervised release and $285,449.11 of restitution and forfeiture.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-CI; and Mark J. Zielinski, Special Agent in Charge, NASA Office of Inspector General, Eastern Field Office, made the announcement after sentencing by Senior U.S. District Judge Claude M. Hilton.
Assistant U.S. Attorneys Kimberly M. Shartar and Jamar K. Walker prosecuted the case.
On May 17, 2021, Attorney General Merrick Garland established the COVID-19 Fraud Enforcement Task Force, led by the Deputy Attorney General, to bring together the full resources of the federal government to bolster fraud enforcement efforts. If you think you are a victim of a scam or attempted fraud involving COVID-19, contact the National Center for Disaster Fraud Hotline at 866-720-5721 or via email at [email protected]. Members of the public in the Eastern District of Virginia are encouraged to call 804-819-5416, or email [email protected] to reach their local Coronavirus Fraud Coordinator.
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. 1:21-cr-77.
Self-Described Member of “Boogaloo Bois” Pleads Guilty to Illegally Possessing a Machine GunRead the Press Release
MINNEAPOLIS – A St. Cloud man, and self-described member of the Boogaloo Bois, pleaded guilty yesterday to possessing two drop-in auto sears, a device that converts a semi-automatic firearm into an unlawful fully automatic firearm, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, in November 2020, the FBI initiated an investigation into Michael Paul Dahlager, 27, a self-proclaimed member of the “Boogaloo Bois,” a loosely connected group of individuals who espouse violent anti-government sentiments. The term “Boogaloo” itself references an impending second civil war in the United States and is associated with violent uprisings against the government. In November 2020, the FBI learned through a confidential human source (“CHS”) that Dahlager was in possession of a 3D-printed “drop in auto sear” and a homemade firearm suppressor. An “auto sear” is a part designed and intended for use in converting a semi-automatic weapon to shoot automatically by a single pull of the trigger and is a machine gun under federal law.
According to court documents, on February 3, 2021, Dahlager delivered two auto sears to the CHS and he demonstrated how the devices should be inserted into a firearm. At the time of his arrest in April 2021, law enforcement recovered six additional auto sears and a silencer from Dahlager’s vehicle and home.
This case is the result of an investigation conducted by the FBI’s Joint Terrorism Task Force, with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
This case is being prosecuted by Assistant U.S. Attorney Andrew R. Winter, and Trial Attorneys George Kraehe and Phil Viti of the National Security Division's Counterterrorism Section.
Sapulpa Man Sentenced after Child Pornography ConvictionsRead the Press Release
Aaron James Seney, 33, of Sapulpa, was sentenced today to 78 months in federal prison after pleading guilty to distribution and receipt of child pornography and to possession of child pornography, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Gregory K. Frizzell further ordered Seney to serve 10 years on supervised release following his prison sentence. The defendant will also forfeit property used to commit his crimes: an Iphone, USB Drive, a Samsung smartphone, a digital camera, and a desktop computer.
During his April plea hearing, Seney admitted that between March 24, 2020, and September 2, 2020, he distributed and received child pornography via the internet using file sharing programs. He further admitted that he knowingly possessed and accessed the child sexual abuse material. In total, investigators discovered 193 images and 33 videos depicting the abuse and rape of children as young as infants.
Judge Frizzell remanded Seney into the custody of the U.S. Marshals Service until transfer to a U.S. Bureau of Prisons facility.
U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Tulsa Police Department, Sand Springs Police Department and Oklahoma State Bureau of Investigation conducted the investigation. Assistant U.S. Attorney Christopher J. Nassar prosecuted the case.
San Francisco Resident Convicted of Robbery Affecting Interstate Commerce in Scheme to Steal Merchandise While Threatening to Spread Covid-19Read the Press Release
SAN FRANCISCO – A federal jury convicted Carmelita Barela today of committing robbery affecting interstate commerce in connection with a scheme to steal merchandise from a Walgreens while claiming to have COVID-19, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The conviction follows a 2-day trial before the Honorable Charles R. Breyer, United States District Judge.
“The spread of COVID-19 has forced almost all of us to make sacrifices and to rely on each other to maintain our safety and good health,” said Acting U.S. Attorney Hinds. “Unfortunately, some people have tried to use the crisis to intimidate essential workers and to commit crimes. This conviction demonstrates that those who seek to exploit the pandemic and commit crimes for their own personal gain will be held accountable.”
"The FBI did not stand by while criminals were using the COVID-19 pandemic to threaten and intimidate frontline workers," said Special Agent in Charge Craig Fair. "People working in grocery stores and convenience stores were risking going to work so the rest of us could get the food and medicine we needed. The FBI has remained committed to this case to protect the essential workers in our community."
At trial, the government submitted evidence that on April 6, 2020, Barela, 36, of San Francisco, and another woman entered a Walgreens near San Francisco’s Civic Center with empty bags and without wearing masks. After the store manager offered assistance, the other woman began to cough without covering her mouth. The store manager asked the other woman to leave the store if she was sick. Instead, the woman walked over to Barela and both defendants began to cough audibly while taking merchandise off the shelves and placing it into their bags. The manager told the defendants to leave the store, to which they responded by saying, “We have COVID.” Barela continued to cough audibly and eventually left the store without paying for the merchandise the defendants placed into their bags.
A grand jury indicted Barela on June 22, 2020, charging her with robbery affecting interstate commerce (Hobbs Act Robbery), in violation of 18 U.S.C. § 1951. The jury convicted Barela of the charge.
Barela faces a maximum sentence of 20 years of prison and a $250,000 fine. In addition, the court may order restitution and an additional term of supervised release. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Judge Breyer ordered the Barela detained pending sentencing and scheduled a sentencing hearing for August 4, 2021.
Assistant United States Attorneys Abraham Fine and Leif Dautch are prosecuting the case with assistance from Soana Katoa and Margoth Turcios. The prosecution is a result of an investigation by the FBI.
Riverside County Man Who Attempted to Enter Federal Facility in Downtown L.A. with Several Firearms Named in Criminal ComplaintRead the Press Release
LOS ANGELES – A Riverside County man who drove to a federal facility in downtown Los Angeles and attempted to enter with three firearms was charged late this afternoon with a federal firearms offense.
A federal criminal complaint filed this afternoon charges Erik Christopher Younggren, 34, of Cherry Valley, with attempted possession of firearms and dangerous weapons in a federal facility, a misdemeanor offense that carries a sentence of up to one year in federal prison.
Younggren, who currently is being held in federal custody, is expected to make his initial court appearance Friday afternoon in United States District Court.
The complaint alleges that Younggren attempted to enter the employee parking lot under the Edward R. Roybal Federal Building and United States Courthouse Wednesday morning at approximately 9:30 a.m. When stopped by security at the entrance to the parking facility, Younggren initially stated that he was “a witness” who needed to enter the facility. When the security officer asked if he was armed, Younggren admitted to being in possession of a handgun and two rifles, according to the complaint.
A subsequent search of his vehicle led to the discovery of two rifles, a .45-caliber semi-automatic firearm and approximately 565 rounds of ammunition. When he was detained by authorities, Younggren was wearing body armor with loaded magazines and knives attached, the complaint alleges.
During an interview with Federal Protective Service, the FBI and Homeland Security Investigations, Younggren said he went to the Roybal building because he needed “protection…[and he] explained that he was purportedly a confidential informant assigned to a confidential federal task force,” according to the complaint.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This matter is being investigated by Federal Protective Service. The Los Angeles Police Department; the FBI; Homeland Security Investigations; and the Bureau of Alcohol, Tobacco, Firearms and Explosives provided substantial assistance.
Assistant United States Attorney Maria Elena Stiteler of the General Crimes Section is prosecuting this case.
Raleigh Man Convicted of Possessing a Firearm as a Convicted FelonRead the Press Release
RALEIGH, N.C. – A federal jury convicted a Raleigh man yesterday on charges of Possession of a Firearm by a Convicted Felon.
According to court records and evidence presented at trial, Romar Leshawn Bartee, Jr., 25, Raleigh Police Department (RPD) Officers stopped at the Sheetz gas station located at 5200 New Bern Ave., on April 15, 2020, and while there, officers noticed a black Dodge Charger with heavily tinted windows cut across multiple lanes of traffic and enter into the Sheetz gas station. The vehicle's front windshield was heavily tinted to the point officers could not see inside the vehicle. At that point, officers initiated a traffic stop on the Charger for a window tint violation.
The Charger parked at a gas pump and as soon as the Charger parked, an Officer noticed that the front passenger exited the vehicle and quickly walk away. The Officer noticed that this individual was carrying a red bag and wearing a green sweatshirt. He watched this individual walk around the left side of the Sheetz building. The Officer then notified check in units of the passenger's description and direction of travel.
Additional responding officers located the passenger, identified as Romar Bartee, Jr., close by at 1030 Rogers Lane. When located, Bartee had taken off the sweatshirt the Officer had seen him wearing when he exited the Charger. Bartee was no longer carrying the red bag that he fled Sheetz with. Officers combed the areas and quickly located the red bag inside of a trash can on the left side of the Sheetz Gas Station building. Inside Bartee’s red bag was 153 pills with Xanax stamped on each one, miscellaneous clothing, and a loaded Glock Model 17, 9mm pistol with 17-9mm rounds of ammunition
Video surveillance footage from the Sheetz was obtained by officers on scene that showed Bartee exiting the Dodge Charger carrying the red bag.
Bartee faces 120 months in prison when sentenced in October 2021.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after U.S. District Judge James C. Dever III accepted the verdict. The Raleigh Police Department and the Bureau of Alcohol, Tobacco, Firearms, & 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-00495-D.
President and Employee of Ft. Lauderdale Business Indicted for Procuring Fraudulent Nursing Diplomas and CertificatesRead the Press Release
Miami, Florida – Today, a Miami federal grand jury returned an indictment charging two Lauderhill residents for their roles in a fraud conspiracy that sold fake nursing degrees to people who had not completed the required nursing coursework or clinicals.
According to the indictment and a previously filed criminal complaint affidavit, Geralda Adrien, 51, and Woosvelt Predestin, 35, worked for PowerfulU Health Care Services LLC. Adrien was Powerful U’s President and Predestin was an employee. PowerfulU advertises itself on social media as a group of nurses and doctors who want to empower men and women by helping them to become health care providers. It is alleged that Adrien and Predestin assisted various individuals in procuring fraudulent nursing diplomas and transcripts from two nursing schools in Florida by falsely documenting that the individuals had completed the necessary courses and/or clinicals to obtain nursing degrees.
On March 18, 2021, for example, Adrien and Predestin met with an individual at the PowerfulU office and offered to sell the person a false degree, according to the criminal complaint affidavit. It is alleged that during the meeting, Adrien explained that for $16,000, Adrien would process the applicant through a Florida nursing school that was either on probation or closed, making it appear as if the applicant had in fact attended the school. Adrien also offered to help the individual pass the nursing board certification exam, and recommended that they take the exam in New York, as that state allows for unlimited attempts to pass. Adrien offered to fill out the application for the individual and offered to complete two continuing education unit classes which were required to apply for admission to the New York nursing board, according to the affidavit.
After the individual paid for the false nursing degree, it is alleged that Adrien provided a backdated diploma indicating completion of an Associate Degree in Science of Nursing and a fraudulent transcript that falsely reflected that the individual had completed approximately 72 credit hours and achieved a grade point average of 3.4. The individual’s application for licensure, which Predestin helped complete, was later forwarded to the New York State Education Department, according to the affidavit. It included a certification of completion two continuing educations courses-Child Abuse: New York Mandated Reporter Training and Infection Control and Barrier Precautions-that the individual had never taken.
The indictment charges Adrien and Predestin each with one count of conspiring to commit wire fraud and mail fraud. They face up to 20 years in federal prison on each count.
Juan Antonio Gonzalez, Acting United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, FBI Miami, and Omar Perez Aybar, Special Agent in Charge, U.S. Department of Health and Human Services-Office of Inspector General, announced the charges.
FBI Miami and HHS-OIG investigated the case, with assistance from United States Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Christopher J. Clark. Assistant U.S. Attorney Nicole Grosnoff is handling the asset forfeiture component of the case.
This case is being prosecuted in conjunction with a related criminal investigation being conducted in the District of Maryland.
An indictment is merely a charging document and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
If you have information to report regarding this case or any other case involving falsified medical degrees, please call the FBI hotline: (410) 277-6999.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
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Peever Man Sentenced for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Peever, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 12, 2021, by U.S. District Judge Charles B. Kornmann.
David George Derby, age 24, was sentenced to 36 months in federal prison, 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Derby was indicted by a federal grand jury on August 17, 2020. He pled guilty on April 12, 2021.
The conviction stemmed from an incident on or about April 11, 2020, when Derby knowingly engaged in, and attempted to engage in, a sexual contact with his 17-year old female cousin. The victim was incapable of appraising the nature of the conduct and was physically incapable of declining participation in and communicating her unwillingness to engage in the sexual contact, and Derby was aware of the victim’s incapacity. Derby also knew the victim was his cousin.
Derby and the victim consumed alcoholic beverages, and the victim became intoxicated. Derby perpetrated the sexual contact knowing the victim was vulnerable and unable to give her consent to the sexual contact.
Derby was approximately 23 years old at the time of the offense. He is an enrolled member of the Sisseton-Wahpeton Oyate Sioux Tribe. The sexual contact occurred within the exterior boundaries of the Lake Traverse Reservation.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy R. Jehangiri prosecuted the case.
Derby was immediately turned over to the custody of the U.S. Marshals Service.
Passaic County Man Sentenced to 45 Months in Prison for Distributing FentanylRead the Press Release
NEWARK, N.J. – A Passaic County, New Jersey, man was sentenced today to 45 months in prison for distributing fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Tawan Grier, a/k/a “TJ,” 22, of Paterson, New Jersey, previously pleaded guilty by videoconference before U.S. District Judge Brian R. Martinotti to an information charging him with knowingly and intentionally distributing fentanyl. Judge Martinotti imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Grier is an associate of the 230 Boys street gang, which operates primarily around Rosa Parks Boulevard and Godwin Avenue in Paterson. Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement officers determined that from September 2018 through Oct. 1, 2019, Grier and other members and associates of the 230 Boys distributed narcotics, including heroin, fentanyl, and cocaine base.
In addition to the prison term, Judge Martinotti sentenced Grier to three years of supervised release.
This case is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Acting U.S. Attorney Honig credited special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms and Explosives, Newark Division, under the direction of Acting Special Agent in Charge Toby C. Taylor; special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark; officers of the N.J. State Police, under the direction of Col. Patrick J. Callahan; officers of the Paterson Police Department, under the direction of Director Jerry Speziale and Police Chief Ibrahim Baycora; detectives of the Passaic County Prosecutor’s Office, under the direction of Prosecutor Camelia Valdes; and the Passaic County Sheriff's Office, under the direction of Sheriff Richard H. Berdnik, with the investigation leading to the charges. She also thanked the U.S. Marshals Service, the Bergen County Sheriff's Office and the Belleville and Livingston police departments for their assistance with the case.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Parmelee Man Indicted for Assaulting a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Odell Good Shield, age 33, was indicted on May 11, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 17, 2021, in Todd County, South Dakota, Good Shield did assault, oppose, impede, intimidate, and interfere with a law enforcement officer who was employed by the Rosebud Sioux Tribe Law Enforcement Services, and that such conduct involved physical contact.
The charge is merely an accusation and Good Shield is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Good Shield was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for August 31, 2021.
Owner of Sacramento Area Home Health Care and Hospice Agencies Pleads Guilty to Medicare FraudRead the Press Release
SACRAMENTO, Calif. — Akop Atoyan, 48, of Glendale, pleaded guilty today to one count of conspiracy to commit health care fraud and one count of conspiracy to pay and receive health care kickbacks, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Atoyan and his wife, Liana Karapetyan, owned and controlled home health care and hospice agencies in the greater Sacramento area: ANG Health Care Inc., Excel Home Healthcare Inc., and Excel Hospice Inc. On behalf of the agencies, Atoyan and Karapetyan certified to Medicare that they would not pay kickbacks in exchange for Medicare beneficiary referrals to the agencies.
Despite their certifications, from at least July 2015 through April 2019, Atoyan and Karapetyan paid and directed others to pay kickbacks to multiple individuals for beneficiary referrals, including employees of health care facilities, as well as employees’ spouses. The kickback recipients included John Eby, a registered nurse who worked for a hospital in Sacramento; Anita Vijay, the director of social services at a skilled nursing and assisted living facility in Sacramento; Jai Vijay, Anita Vijay’s husband; and Mariela Panganiban, the director of social services at a skilled nursing facility in Roseville.
In total, Atoyan, Karapetyan, and others caused the agencies to submit over 8,000 claims to Medicare for the cost of home health care and hospice services. Based on those claims, Medicare paid the agencies approximately $31 million. Of that amount, Medicare paid the agencies over $2 million for services purportedly provided to beneficiaries, but these beneficiaries were referred in exchange for kickbacks paid to, among others, Eby, Anita Vijay, Jai Vijay, and Panganiban. Because the agencies obtained the beneficiary referrals by paying kickbacks, the agencies should not have received any Medicare reimbursement.
This case is a product of an investigation by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services’ Office of Inspector General. Assistant U.S. Attorney Matthew Thuesen is prosecuting the case.
As part of his guilty plea, Atoyan agreed to pay $2,525,363 in restitution to the U.S. Department of Health and Human Services. He also agreed to forfeit that same amount to the United States.
U.S. District Judge Morrison C. England Jr. is scheduled to sentence Atoyan on Oct. 7, 2021. Atoyan faces maximum statutory penalties of 10 years in prison for the health care fraud conspiracy charge and five years in prison for the kickback conspiracy charge. He also faces a maximum fine of $250,000 or twice the gross gain or loss for each charge. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
In separate cases, Karapetyan, Eby, Jai Vijay, Anita Vijay, and Panganiban pleaded guilty for their roles in the kickback scheme. They await sentencing.
Organized Drug Trafficking Operation Taken DownRead the Press Release
INDIANAPOLIS – Nineteen individuals have been indicted in relation to a federal methamphetamine and fentanyl trafficking operation in Indianapolis. Seventeen of these individuals are charged with conspiracy to distribute methamphetamine and fentanyl.
During the morning of July 14, 2021, federal agents and officers from various law enforcement agencies executed arrest and search warrants in numerous locations centralized to the Indianapolis area. This operation led to the arrest of 17 individuals, with 2 individuals being fugitives. During the investigation, approximately 35 firearms, $70,000 in currency, 1.75 kilograms of fentanyl, 14 pounds of methamphetamine, 6 ounces of cocaine, and 30 pounds of marijuana were seized.
According to the indictment, Jason Betts directed the activities of a methamphetamine and fentanyl trafficking organization in Indianapolis. Montez Wells and Richard Wells also distributed significant quantities of fentanyl and methamphetamine as part of this organization. Betts, Montez Wells and Richard Wells coordinated their activities by receiving methamphetamine and fentanyl from their sources, sharing controlled substances with each other, and distributing the controlled substances to other dealers. Individuals in the conspiracy distributed and or assisted in the distribution of methamphetamine and fentanyl in the Indianapolis area as well as other locations in Indiana. The investigation revealed that Betts often received 100-pound shipments of methamphetamine from his source.
“I believe the safety and quality of life of citizens living in Indianapolis neighborhoods improves when law enforcement works collaboratively,” said Acting U.S. Attorney John E. Childress. “This happens by pooling resources to target, investigate and prosecute organizations engaged in drug trafficking in our community. That is precisely what occurred in this case.”
“This was a win for law enforcement and more importantly, for the community. We were able to effectively shut down a criminal organization responsible for a lot of the violence around our city,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “This investigation and subsequent arrests would not have been possible without our federal, state and local partners.”
Those charged include:
Jason Betts, 26, Indianapolis
Jennifer Black, 39, Indianapolis
Montez Wells, 30, Indianapolis
Richard Wells, 28, Indianapolis
Aleshalia Boss, 40, Indianapolis
Carl Wilson, 34, Indianapolis
Donta Hampton, 34, Indianapolis
Rick Coley, 34, Indianapolis
Colin Johnson, 30, Indianapolis
David Duggar, 38, Greenwood
Brian McGee, 42, Indianapolis
Justin Helms, 41, Spencer
William Mosier, 41, Indianapolis
Christina Pennington, 26, Indianapolis*
Mar-Kel Sampson, 29, Indianapolis
Asa Vetters, 30, Indianapolis
Brittany Cocco, 31, Indianapolis
Marco Uribe, 41, Indianapolis
Kenneth K. Fielder, 26, Bloomfield*
*Remains a fugitive
If convicted, the defendants charged with conspiracy face 10 years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Federal Bureau of Investigation, Indianapolis Metropolitan Police Department, Drug Enforcement Administration, U.S. Postal Inspection Service, Indiana State Police, and the Marion County Sheriff’s Office.
Assistant United States Attorneys Bradley A. Blackington is prosecuting this case for the government.
This prosecution is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
New York man sentenced for drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Levon Williams, of Mount Vernon, New York, was sentenced today to 36 months of incarceration for his involvement in a drug distribution operation, Acting U.S. Attorney Randolph J. Bernard announced.
Williams, also known as “Slim,” 39, pleaded guilty in August 2019 to one count of “Distribution of Cocaine Base Within 1,000 Feet of a Protected Location.” Williams admitted to selling cocaine near Mascoli Park in Monongalia County in July 2018.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
New Orleans Man Charged with Aiding in Filing False TaxesRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that LEROI G. JACKSON, age 49, of New Orleans, was charged today by a bill of information with one count of aiding and assisting in the filing of false tax returns, a violation of Title 26, United States Code, Section 7206(2).
The bill of information alleges that in February 2016, Jackson assisted in preparing a false tax return for a taxpayer in which JACKSON included false business losses, false charitable deductions, and false unreimbursed employee expenses. The resulting refund was over $16,000.00 in excess of what the taxpayer should have received.
If convicted, JACKSON faces a maximum sentence of three years of imprisonment, a fine of up to $100,000.00 fine, up to one year of supervised release, and a $100 mandatory special assessment.
U.S. Attorney Evans reiterated that a bill of information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The investigation is being handled by the Internal Revenue Service-Criminal Investigations. Assistant United States Attorney Matthew R. Payne is in charge of the prosecution.
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Murder victim’s ex-wife sentenced to 35 years in prison for interstate stalking resulting in deathRead the Press Release
DAYTON – A 37-year-old Centerville woman was sentenced in federal court today to 420 months in prison for interstate stalking that resulted in her ex-husband’s death.
Tawnney Caldwell accepted responsibility for her role in the August 2017 murder of Robert Caldwell. She pleaded guilty in federal court in October 2020.
According to court documents, around 6pm on August 15, 2017, Robert Caldwell and his three minor children left a counseling appointment in Riverside, Ohio. While crossing the parking lot, Robert Caldwell was shot multiple times by an assailant in front of his children and died at the scene. The assailant is alleged to be co-defendant Sterling Roberts.
Tawnney Caldwell is the ex-wife of the murder victim and was the girlfriend of Sterling Roberts at the time of the incident.
She and the murder victim had an ongoing dispute regarding the custody of their children and Tawnney Caldwell had talked to Sterling Roberts on at least two occasions (while Roberts was incarcerated in Montgomery County) about killing Robert Caldwell.
Tawnney Caldwell collaborated with others, including Sterling Roberts; his brothers, Chance Deakin and Christopher Roberts; Chandra Harmon (Tawnney’s mother); and James Harmon (Tawnney’s step-father), to plan, execute and cover-up the violent crime resulting in the death of Robert Caldwell.
Sterling Roberts is scheduled for jury trial in U.S. District Court on March 7, 2022. Each of the other defendants has pleaded guilty in this case.
Vipal J. Patel, United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Riverside Police Chief Frank Robinson and Sugarcreek Township Police Chief Michael Brown announced the sentence imposed today by Senior U.S. District Judge Thomas M. Rose. Assistant United States Attorneys Amy M. Smith, Sheila G. Lafferty and Kevin Koller are representing the United States in this case.
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Multi-State, Multi-Agency Investigation Results in Four Federally Charged in Child Sex Trafficking and Child Exploitation CaseRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that four individuals have been charged by a federal grand jury in a 13-count indictment for their respective roles in alleged child sex trafficking, production of child pornography, and coercion and enticement of a minor. The case involves activity spanning from Arizona to South Carolina, and victims from the Pee Dee and Midlands regions of South Carolina.
Specifically, Hart William Grow, 25, of Surprise, Arizona, has been charged with conspiracy to sexually traffic a minor, sexual trafficking of minor, conspiracy to produce child pornography and to coerce and entice a minor, four counts of production of child pornography involving two victims, four counts of coercion and enticement of a minor involving two victims, and possession of child pornography.
Theodore Woolings Bye, III, 36, of Myrtle Beach, has been charged with conspiracy to sexually traffic a minor, sexual trafficking of minor, conspiracy to produce child pornography and to coerce and entice a minor, two counts of production of child pornography, two counts of coercion and enticement of a minor, and possession of child pornography.
Sanadin Mohamed Elrayes, 28, of Surfside Beach, and Charles Joseph Spillane, 44, of Myrtle Beach, have both been charged with conspiracy to produce child pornography and to coerce and entice a minor.
The indictment alleges that, since at least April 2020, Grow and Bye conspired to recruit, entice, harbor, transport, provide, obtain, maintain, patronize, and solicit a minor victim in South Carolina to engage in a commercial sex act.
The record in the case alleges that Grow, from his home in Arizona and through the internet, misrepresented to various minors across the country that he was also a minor and was interested in a relationship. In this case, Grow allegedly claimed to a minor victim that he was a 17-year-old female named “Hannah” living in Columbia, South Carolina.
Using this false persona and promising love and affection, Grow groomed the minor victim to fall in love with “Hannah.” It was then, the indictment alleges, that Grow abused his position of trust with the minor victim to enter into a sexual dominant/submissive relationship, to hold absolute power and control over the victim, and to employ bondage/discipline, domination/submission, and sadism/masochism (“BDSM”) techniques. Threatening the minor victim if the victim did not obey his BDSM rules, Grow required the victim to engage in often-violent sexual acts with adult men that the victim did not otherwise wish to engage with.
According to Court records, Grow used message boards and social media to make his minor victim available to adult males for sexual encounters in exchange for the men sending visual depictions of the sexual encounters to him. Specifically, Grow required the adult males to produce, or assist in the production of, a visual depiction of the often-violent sexual acts. One such male, according to the indictment, was Bye.
The indictment alleges that Bye, with the direction and logistical assistance of Grow, not only participated in the sexual acts with the victim but also made the victim available for sex on numerous occasions to other men. According to the indictment, Bye would transport the victim to various locations in and around Myrtle Beach for commercial sex acts and would use internet message boards, social media, and text messages to make the victim available to other adult males for sexual encounters. The minor victim’s availability for the sexual encounters was predicated on the agreement with the adult males to produce and send visual depictions of the acts to Grow.
The indictment further alleges that Elrayes and Spillane responded to Bye’s internet postings and, after communicating with Bye via social media and text messages, engaged in sexually explicit conduct with the minor for the purpose of producing a visual depiction of the acts. According to the indictment, the visual depictions with Elrayes were created at a hotel in Surfside Beach, and the visual depictions with Spillane were created at his Myrtle Beach home.
The indictment also alleges that in early 2021, after Grow had trafficked the first minor victim, he began communicating with a second minor victim in South Carolina. According to Court records, Grow coerced the second minor into producing visual depictions of sexually explicit conduct until shortly before his arrest in Arizona.
According to Court records, the defendants used social media applications, including Snapchat, Wattpad, and Kik to communicate with the victims and with each other. Grow used screen names, including “hgliese” and “hanners,” and aliases, including “Terry” and “Hannah,” when allegedly communicating with his victims.
Grow and Bye face a maximum penalty of life, and Elrayes and Spillane face a maximum penalty of five years. All defendants are currently detained.
“While this indictment speaks for itself, human trafficking and child exploitation are vile crimes, and this office will swiftly and aggressively prosecute those who prey upon minors,” said Acting U.S. Attorney DeHart. “Our ability to address these cases hinges on the great work of our federal, state, and local partners. We also ask parents to be vigilant and to pay attention to your children’s online and social media activity. No demographic is immune from this type of crime, and no family with a computer or a phone is out of reach from these types of predators.”
“The victimization and exploitation of children is a major threat to our community and something we must all work to eradicate,” said Special Agent in Charge Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina and South Carolina. “HSI is committed to identifying and safeguarding victims of human trafficking and child exploitation and will aggressively pursue offenders and ensure justice is served.”
“Human trafficking and child exploitation is real, and it is happening in South Carolina,” said South Carolina State Law Enforcement Division (SLED) Chief Mark Keel. “We have and will continue to work in collaboration with our local and federal partners to rescue those being victimized and bring justice to those who profit from the misery of others.”
The case is being investigated by Homeland Security Investigations (HSI), the South Carolina Law Enforcement Division (SLED), the Horry County Sheriff’s Office, and the Myrtle Beach Police Department. Assistant United States Attorneys Derek A. Shoemake and Amy Bower are prosecuting the case.
The case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information, please visit www.projectsafechildhood.gov.
Acting United States Attorney DeHart stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
If you or someone you know may have information relevant to this investigation, please call the HSI Tipline at 1-866-347-3423.
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Movie Producer Indicted for Operating A Prostitution Business and Money Laundering SchemeRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and George M. Crouch Jr., Special Agent-in-Charge of the Newark Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment charging DILLON JORDAN, a/k/a “Daniel Jordan,” a/k/a “Daniel Maurice Hatton, a/k/a “Daniel Bohler, with conspiracy to violate the Mann Act, substantive Mann Act and Travel Act violations, and money laundering in connection with operating a prostitution business and laundering the proceeds of that prostitution business through two front companies – a purported party and event planning company and an actual movie production company. JORDAN was arrested today in San Bernardino County, California, and will be presented today in the Central District of California.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, for years, Dillon Jordan operated an extensive and far-reaching prostitution business, using a purported event planning company and a movie production company to conceal the proceeds he made from exploiting women. Now the party is over and the film is a wrap.”
FBI Special Agent-in-Charge George M. Crouch Jr. said: “This defendant apparently thought he could hide his alleged criminal dealings behind a supposedly legitimate business. But the FBI, in its mission to protect our citizens, uses every tool at its disposal to unmask those who violate federal law and assist the impacted victims. We encourage anyone who was victimized by this defendant, and anyone with additional information, to contact our Newark field office.”
As alleged in the Indictment unsealed today in Manhattan federal court:[1]
From in or about 2010 through at least in or about May 2017, JORDAN operated a prostitution business throughout the United States and abroad. JORDAN maintained a roster of women who resided around the United States and who, in exchange for payment, performed sexual acts for JORDAN’s clients at locations throughout the United States, including the Southern District of New York, and abroad. JORDAN communicated with the clients of his prostitution business by email to coordinate the prostitution services, which included sending to clients photos of women who were available for hire for prostitution services, discussing the price of prostitution services, and overseeing travel logistics for women to travel to engage in prostitution. At times, JORDAN himself arranged the interstate travel from the women to engage in prostitution, and at other times, clients, at JORDAN’s direction, arranged the interstate travel for the women whom JORDAN directed to those clients. To facilitate his prostitution business, JORDAN also coordinated with a United Kingdom-based madam by sharing and referring customers and prostitutes.
JORDAN primarily managed the finances of the prostitution business through two front companies – a purported party and event planning company and a movie production company – incorporated in California. JORDAN opened multiple bank accounts for these companies, which he used to accept cash, wire, and check payments for prostitution services from clients and to pay for the expenses of the prostitution business, including paying the women for their prostitution services by cash and check. By using the two front companies to receive deposits from the prostitution business, JORDAN ensured that transactions involving those proceeds from the prostitution business would disguise the nature, source, and origin of those proceeds.
* * *
JORDAN, 49, of Lake Arrowhead, California, is charged with: one count of conspiracy to violate the Mann Act, which carries a maximum sentence of five years in prison; one count of enticement, which carries a maximum sentence of 20 years in prison; one count of use of interstate commerce to promote unlawful activity, which carries a maximum sentence of five years in prison; and one count of money laundering, which carries a maximum sentence of 20 years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by a judge.
We urge anyone who feels she may be a victim of, or have information related to, the conduct in this case to please contact the FBI at [email protected] or (973) 792-3000.
Ms. Strauss praised the investigative work of the FBI. This case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorney Cecilia E. Vogel is in charge of the prosecution.
The allegations in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment, and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Mission Woman Indicted for Methamphetamine TraffickingRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Possession with Intent to Distribute a Controlled Substance.
Mareca Rodriquez, age 29, was indicted on April 13, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 13, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on March 3, 2021, in Mission, South Dakota, Rodriquez knowingly possessed approximately 329 grams of methamphetamine with intent to distribute it.
The charge is merely an accusation and Rodriquez is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Rodriquez was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Woman Indicted for Failure to AppearRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, woman has been indicted by a federal grand jury for Failure to Appear.
Tera Jo Larvie, age 28, was indicted on June 8, 2021. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 18, 2021, Larvie failed to appear for her jury trial for Second Degree Burglary and Larceny.
The charge is merely an accusation and Larvie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Larvie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mission Man Indicted for Threatening a Federal OfficerRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Influencing a Federal Officer by Threat.
Donovan Jace Oakie, age 33, was indicted on July 13, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 14, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on June 30, 2021, in Todd County, South Dakota, Oakie threatened to assault and murder a law enforcement officer who was employed by the United States Marshals Service.
The charge is merely an accusation and Oakie is presumed innocent until and unless proven guilty.
The investigation is being conducted by the United States Marshals Service, the Federal Bureau of Investigation and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Oakie was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Minden, Louisiana Woman Pleads Guilty to Theft of Government FundsRead the Press Release
Jackson, MS – Teressia Garner, 60, of Minden, Louisiana, pleaded guilty on July 9, 2021, to embezzling, and converting government funds to her own use, announced Acting U.S. Attorney Darren J. LaMarca; Douglas Williams, FBI Special Agent in Charge, New Orleans Field Division; Dax Robertson, USDA OIG Special Agent in Charge in New Orleans; and Stephen Street, Louisiana Inspector General
According to court documents, Teressia Garner was the director and registered agent of Safe Haven Development, Inc., a non-profit corporation. Safe Haven entered into an agreement with the Louisiana Department of Education’s Division of Nutrition Support to participate in several Child Nutrition Programs, including the Child and Adult Care Food Program and the Summer Food Nutrition Program. Funding for these programs is federal government money administered by the Food and Nutrition Service, an agency of the United States Department of Agriculture. Safe Haven received federal funding and participated in these programs from 2011 through 2015 by providing meals to those children and adults that are enrolled in participating child- care centers, adult day care centers, and day care homes.
On December 15, 2015, Teressia Garner planned a Christmas party for the employees of Safe Haven at the Wyndham Garden Shreveport. The defendant paid for the party, totaling $9,578.48 with program funds that had been deposited into the Safe Haven business account. The party included the expense of renting a large ballroom, catered food, and an open bar serving alcohol. The program funds used for the party were intended to be used for the Child Nutrition Programs and not for entertainment purposes.
"Ms. Garner’s greed was evident, stealing money designated for the USDA Summer Food Service and Child and Adult Care Food Programs, which provide nutritional meals for children and adults in low-income families, to pay her own personal expenses. Ms. Garner’s guilty plea sends a clear message and will be a deterrent to others who would attempt to defraud American taxpayers”, said Douglas Williams, FBI New Orleans Special Agent in Charge. “I would like to thank the efforts put forth by our partners at the United States Attorney’s Office, Southern District of Mississippi, Office of State Inspector General, State of Louisiana, and the Office of Inspector General, United States Department of Agriculture.”
USDA OIG Special Agent in Charge Dax Roberson stated: “I want to thank the US Attorney’s office, OIG special agents, and our investigative partners for their hard work on this investigation. When the integrity of nutrition programs for needy children is violated by criminal conduct, the Office of Inspector General will pursue justice to the fullest extent of the law.”
Louisiana Inspector General Stephen Street commented: “This is just the latest in a series of successful criminal cases where summer nutrition funds were stolen without a shred of regard for the children the funds were supposed to benefit. It is criminal behavior based in pure greed, and we have zero tolerance for it. The Louisiana OIG will continue to work with our law enforcement partners to aggressively pursue criminal consequences for anyone who steals from the public.” Street added, “I want to thank Assistant United States Attorneys Erin Chalk and Meghan McCalla for their outstanding work, as well as our partners at the FBI and USDA OIG.”
Garner pleaded guilty to Theft of Government Funds in the United States District Court for the Western District of Louisiana, Shreveport Division. She is scheduled to be sentenced by United States District Judge Donald E. Walter on October 13, 2021 at 10:00 a.m. in Shreveport. She faces a maximum penalty of 10 years in prison. The District Judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case is being prosecuted by Southern District of Mississippi Assistant United States Attorneys Erin Chalk and Meghan McCalla, Acting Under the Authority Conferred by 28 U.S.C. §515, to appear in the Western District of Louisiana.
Mexican National Admits Possession with Intent to Distribute MethamphetamineRead the Press Release
NEWARK, N.J. – A Mexican National today admitted possessing with intent to distribute methamphetamine, Acting U.S. Attorney Rachael A. Honig announced.
Mayolo Castro Santamaria, 39, pleaded guilty by videoconference before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of possessing with intent to distribute 50 grams or more of methamphetamine.
According to documents filed in this case and statements made in court:
On June 26, 2020, Santamaria possessed 64.76 grams of methamphetamine in his vehicle.
The possession with intent to distribute charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine. Sentencing is scheduled for Nov. 15, 2021.
Acting U.S. Attorney Honig credited special agents of the U.S. Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and the Cedar Grove Police Department with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Alexandra Tsakopoulos Saker of the OCDETF/Narcotics Unit in Newark.
Manchester Man Sentenced to 63 Months for Fentanyl TraffickingRead the Press Release
CONCORD - Darius Augusto Guzman Ruiz, 30, of Manchester, was sentenced to 63 months in federal prison for participating in a fentanyl trafficking conspiracy, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in the fall of 2019, Manchester police officers learned from a cooperating individual that Guzman Ruiz was selling between 100 and 300 grams of fentanyl at a time to other distributors in Manchester. Between October 10, 2019 and November 1, 2019, working with law enforcement officers, the cooperator conducted four controlled purchases of fentanyl from Guzman Ruiz. Each transaction involved approximately 180 grams of fentanyl.
On November 25, 2019, the Manchester Police Department executed search warrants at various residences associated with Guzman Ruiz. Officers seized over $100,000 in cash, over 400 grams of fentanyl, and drug packaging and pressing equipment.
Guzman Ruiz previously pleaded guilty on March 3, 2021. He also forfeited $112,330 and a 2015 Honda CR-V LX which were seized at the time of his arrest.
Guzman Ruiz faces likely deportation to Dominican Republic after serving his prison sentence.
“Fentanyl traffickers have caused tremendous harm by selling a lethal product that has harmed countless residents of the Granite State,” said Acting U.S. Attorney Farley. “We continue to work closely with all of our law enforcement partners to identify and prosecute the drug dealers who are selling fentanyl and other deadly opioids. As this sentence demonstrates, fentanyl traffickers in New Hampshire will serve lengthy prison sentences for their unlawful and dangerous conduct.”
“Today’s sentence not only holds Mr. Guzman Ruiz accountable for his crimes but serves as a warning to those traffickers who are contributing to the drug crisis,” said DEA Special Agent in Charge Brian D. Boyle. “This investigation demonstrates the strength of collaborative law enforcement efforts in New Hampshire and our strong partnership with the U.S. Attorney’s Office.”
“Darius Augusto Guzman Ruiz and his fellow distributors steadily poisoned the parts of Manchester they controlled by dealing deadly drugs,” said Joseph R. Bonavolonta, Special Agent in Charge of the FBI Boston Division. “Today’s sentence is indicative of the success that can be attained when agencies combine resources to put drug traffickers out of business and behind bars, as we work together to make our communities safer.”
This matter was investigated by the Drug Enforcement Administration, the Federal Bureau of Investigation, and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Georgiana MacDonald. Assistant U.S. Attorney Robert Rabuck assisted with forfeiture aspects of this case.
This investigation is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
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Man Who Was Released from Prison Due to Pandemic Sent Back to Prison for Violating Supervised ReleaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ANTHONY WHITLEY, 38, of New London, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 18 months of imprisonment for violating the conditions of his federal supervised release.
According to court documents and statements made in court, on March 3, 2017, a court-authorized search of a New London apartment connected to Whitley revealed approximately 14 grams of heroin, approximately 27 grams of cocaine, approximately 150 grams of crack cocaine, items used to process and package narcotics for street sale, a .380 caliber semiautomatic handgun, ammunition and $9,180 in cash. Whitley pleaded guilty and, on October 23, 2018, was sentenced to 60 months of imprisonment and four years of supervised release.
Whitley, who had been detained since March 3, 2017, was released from prison on September 24, 2020, after Judge Meyer granted Whitley’s motion for compassionate release due to factors related to the COVID-19 pandemic, and modified Whitley’s sentence to time served and four years of supervised release.
On March 15, 2021, New London Police arrested Whitley and charged him with interfering with officers/resisting arrest. The charge followed Whitley’s flight from police after an alleged controlled purchase of narcotics from him.
Whitley has been detained since May 5, 2021, when his supervised release was revoked.
In addition to his prior federal conviction, Whitley has eight prior state convictions, including felony convictions for drug and firearm offenses.
This case was prosecuted by Assistant U.S. Attorney Natasha M. Freismuth.
Long Island MS-13 Gang Member Sentenced to 25 Years’ Imprisonment for Murder in BrentwoodRead the Press Release
Earlier today, in federal court in Central Islip, Jerlin Villalta, a member of the Freeport Locos Salvatruchas (FLS) clique of La Mara Salvatrucha, also known as the MS-13, a transnational criminal organization, was sentenced by United States Circuit Judge Joseph F. Bianco to 25 years’ imprisonment for racketeering, including predicate acts relating to his participation in the June 3, 2016 murder of Jose Pena and a conspiracy to distribute marijuana. Villalta pleaded guilty to the charges in October 2018.
Jacquelyn M. Kasulis, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Stuart Cameron, Acting Commissioner, Suffolk County Police Department (SCPD), announced the sentence.
“Today’s sentence holds the defendant to account for his vicious stabbing of the victim who was killed for violating the depraved rules of the MS-13. It is fitting that the defendant spend decades behind bars for his participation in this cruel and intentional taking of a human life,” stated Acting U.S. Attorney Kasulis. “This Office, in partnership with the Long Island Gang Task Force, will not rest until the MS -13 gang and its violence is eliminated from our communities.”
“This sentencing will ensure that another member of MS-13, who took part in a violent, senseless murder, will be imprisoned for his actions,” stated SCPD Acting Commissioner Cameron. “The department’s incredible partnership with the FBI’s Long Island Gang Task Force and Eastern District of New York allows gang members, like Villalta, to be held accountable –while sending a message to gang leadership that we will not waver until gang violence is eradicated. I commend all the law enforcement officers, whose countless hours and dedication ensured a successful conclusion on this case.”
In 2016, Villalta and several co-conspirators, including Carlos Argueta and Elmer Alexander Lopez, decided to kill Pena, a member of the MS-13, because he was suspected of violating gang rules. Prior to the murder, Villalta, Argueta, Lopez and other MS-13 members held meetings to discuss killing Pena because they suspected that Pena had cooperated with law enforcement following his arrest in connection with his participation in the attempted murder of suspected rival gang members outside a public library in Brentwood on or about January 15, 2016, and also that Pena might be homosexual. After consulting with MS-13 leadership in El Salvador, Villalta, Argueta, Lopez and the other MS-13 members agreed to murder Pena and tasks were assigned to each of the co-conspirators to carry out the plan, including obtaining weapons and a vehicle to be used in the murder. On June 3, 2016, Villalta, Argueta, Lopez and the other MS-13 members lured Pena into a car and drove to a secluded wooded area in Brentwood on the grounds of an abandoned psychiatric hospital, where they attacked Pena, stabbing and slashing him with knives until he was dead. Pena’s body was discovered four months after his murder. Argueta and Lopez previously pled guilty to racketeering charges in connection with the Pena murder. In December 2018, Lopez was sentenced to 300 months’ imprisonment. Argueta is awaiting sentencing.
Villalta also pleaded guilty to participating in a drug conspiracy, admitting that between January 2016 and December 2016, he and other members of the FLS conspired to distribute marijuana to raise money for the MS-13.
Today’s sentencing is the latest in a series of federal prosecutions by the United States Attorney’s Office for the Eastern District of New York targeting members of the MS-13, a violent, transnational criminal organization. The MS-13’s leadership is based in El Salvador, Honduras, Guatemala and Mexico, but the gang has thousands of members across the United States, comprised primarily of immigrants from Central America. With numerous branches, or “cliques,” the MS-13 is the most violent criminal organization on Long Island. Since 2003, hundreds of MS-13 members, including dozens of clique leaders, have been convicted on federal felony charges in the Eastern District of New York. A majority of those MS-13 members have been convicted on federal racketeering charges for participating in murders, attempted murders and assaults. Since 2010, this Office has obtained indictments charging MS-13 members with carrying out more than 60 murders in the Eastern District of New York and has convicted dozens of MS-13 leaders and members in connection with those murders. These prosecutions are the product of investigations led by the FBI’s Long Island Gang Task Force, which is comprised of agents and officers of the FBI, SCPD, Nassau County Police Department, Nassau County Sheriff’s Department, Suffolk County Probation Office, Suffolk County Sheriff’s Office, the New York State Police, the Hempstead Police Department, the Rockville Centre Police Department and the New York State Department of Corrections and Community Supervision.
The government’s case is being handled by the Office’s Long Island Criminal Division. Assistant United States Attorneys John J. Durham, Paul G. Scotti, Justina L. Geraci and Megan E. Farrell are in charge of the prosecution.
The Defendant:
JERLIN VILLALTA (also known as “Sonic”)
Age: 24
Brentwood, New YorkE.D.N.Y. Docket No. 16-CR-403 (S-6)(JFB)
Lawrence Woman Pleads Guilty to Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – A Lawrence woman pleaded guilty today in connection with her involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Raquel Pena, 40, pleaded guilty to wire fraud, conspiracy to commit wire fraud and aggravated identity theft. U.S. District Court Judge William G. Young scheduled sentencing for Nov. 4, 2021. Pena was charged by criminal complaint on April 1, 2021.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors or gig economy workers). Pena and others conspired to file fraudulent claims for PUA using others’ personally identifiable information. Pena recruited acquaintances to receive the proceeds of the fraudulent claims into their bank accounts, withdraw all or a portion of those funds and give the cash to Pena. The investigation connected Pena and her co-conspirators to more than $360,000 in unemployment claims between May 2020 and March 2021.
The charges of conspiracy to commit wire fraud and wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Michael Mikulka, Special Agent in Charge of Department of Labor, Office of Inspector General, Office of Investigations made the announcement today. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
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.
Kirtland Couple Sentenced to 18 Months for Bribing Former City of Cleveland Official and Tax FraudRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a Kirtland couple was sentenced by U.S. Judge Christopher A. Boyko to 18 months imprisonment after both pleaded guilty to bribery of a former city of Cleveland demolition official.
Joseph Tucceri, III, 75, and Gwen Tucceri, 61, were both sentenced to 18 months imprisonment, two years of supervised release and ordered to pay restitution in the amount of $114,422 to the IRS.
According to court records, the Tucceris owned and operated “R Demolition,” a business that provided demolition and construction services in the Cleveland area. From December of 2016 through May of 218, the Tucceris provided things of value, including more than $1,600 in cash payments, to Rufus Taylor, the former Chief of the Demolition Bureau for the city of Cleveland, in return for expedited service and favorable treatment regarding work performed by R Demolition on contracts within the city of Cleveland.
Additionally, Joseph and Gwen Tucceri submitted false income tax returns that underreported their income for the years 2015, 2016, and 2017. As a result, the returns understated the full amount of taxes owed.
Rufus Taylor was sentenced in June of 2021 to 21 months imprisonment for his role in the scheme.
This case was investigated by the Cleveland Division of the FBI, Department of Housing and Urban Development Office of Inspector General and IRS-Criminal Investigation. This case is being prosecuted by Assistant United States Attorneys Chelsea S. Rice and Elliot D. Morrison.
Kingsport Veterinarian Agrees to Pay $70,000 in Civil Penalties to Settle Alleged Violations of the Controlled Substance ActRead the Press Release
KNOXVILLE, Tenn. – On July 15, 2021, The Andes-Straley Veterinary Hospital in Kingsport, Tennessee, and its owner, Gary C. Andes, D.V.M., agreed to pay the United States $70,000 in civil penalties to resolve allegations that Dr. Andes and the hospital violated the Controlled Substances Act (“CSA”). The CSA was enacted to prevent the diversion or misuse of controlled substances by requiring persons and companies involved in the chain of distribution to maintain complete and accurate records relating to the controlled substances they receive, administer, and dispense.
According to the contentions of the United States contained in the settlement agreement, beginning in January 2019 investigators from the U.S. Drug Enforcement Administration (DEA), along with the Tennessee Bureau of Investigation (TBI) and Tennessee Department of Health (TNDOH), conducted an investigation into allegations that Dr. Andes and the hospital manager were failing to maintain effective controls and procedures to guard against diversion of controlled substances as required by law. The investigation included on-site inspections of records, and an accountability audit of controlled substance inventories and record-keeping processes at the hospital. Based on the findings of the investigation, the United States alleged that the hospital failed to maintain complete and accurate records of the controlled substances it received, failed to conduct proper inventories of controlled substances on hand, and failed to report to the DEA known thefts of controlled substances. The investigation also revealed significant shortages of various controlled substances received by the hospital. Today’s settlement resolves allegations that Dr. Andes and the hospital violated several provisions of the CSA from at least March 2017 through December 2018.
As part of the settlement, Dr. Andes and the hospital also entered into a Memorandum of Agreement with the DEA requiring that they take additional and ongoing measures to comply with the CSA, including implementing stringent inventory and record-keeping requirements, agreeing not to maintain supplies of certain controlled substances at the hospital, and agreeing to cooperate with future audits by the DEA to verify their compliance with the CSA.
This settlement resulted from a coordinated effort between the U.S. Attorney’s Office for the Eastern District of Tennessee, the DEA, the TBI, and the TNDOH.
Assistant United States Attorney Joseph C. Rodriguez represented the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
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Justice Department Settles with Delivery Services Company to Resolve Retaliation ClaimRead the Press Release
The Department of Justice today announced that it has reached a settlement agreement with Around the Clock Dispatch Inc., a freight and delivery services company in Queens Village, New York.
The settlement resolves the department’s claim that Around the Clock violated the anti-discrimination provision of the Immigration and Nationality Act (INA) by retaliating against a worker because he asked for the department’s help in addressing his concerns about an immigration-related employment practice.
The department initiated its investigation after the worker filed a charge, and determined that Around the Clock suspended the worker for three days without pay because he called the Civil Rights Division’s Immigrant and Employee Rights Section (IER) to ask for help addressing a concern about the company’s process for verifying his work authorization. IER’s hotline program offers information and assistance to workers and employers to prevent discrimination and to resolve potential immigration-related employment disputes informally, when workers request such intervention. The INA prohibits retaliation and intimidation against individuals who oppose what they reasonably believe are violations of the law that IER enforces, including by calling IER’s hotline. Individuals who file a charge with IER, cooperate with an IER investigation, or otherwise assert their own or others’ rights are also protected under this law.
“Workers should not face negative consequences for raising concerns about actions that may violate the Immigration and Nationality Act’s anti-discrimination provision,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “We encourage workers and employers to contact the Immigrant and Employee Rights Section’s hotline for information on their rights and responsibilities, to help resolve disputes at the earliest opportunity possible. Protecting those who contact the hotline from retaliation is critical to ensuring its success.”
Under the settlement, Around the Clock will pay $3,600 in civil penalties to the United States and nearly $900 in back pay to the affected individual. The settlement also requires Around the Clock to train employees on the requirements of the INA’s anti-discrimination provision and be subject to departmental monitoring and reporting requirements.
IER, a section of the Civil Rights Division, is responsible for enforcing the anti-discrimination provision of the INA. The statute prohibits discrimination based on citizenship or immigration status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; and retaliation and intimidation.
Learn more about IER’s work and how to get assistance through this brief video. Applicants or employees who believe they were discriminated against based on their citizenship, immigration status, or national origin in hiring, firing, recruitment or during the employment eligibility verification process (Form I-9 and E-Verify); or subjected to retaliation, may file a charge. The public can also call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); email [email protected]; sign up for a free webinar; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Jury Convicts Pittsfield Man of Drug and Firearm OffensesRead the Press Release
BOSTON – A Pittsfield man was found guilty by a federal jury in Springfield yesterday in connection with firearm and drug trafficking offenses.
Elvins Sylvestre, 43, was convicted following a three-day trial of possession with intent to distribute heroin, possession of cocaine, being a felon in possession of a firearm and possessing a firearm in furtherance of a drug trafficking felony. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 19, 2021.
Evidence at trial established that in November 2019, Sylvestre was found in possession of heroin and cocaine along with a handgun and over 40 rounds of ammunition. Federal law prohibits Sylvestre from possessing a firearm or ammunition due to a prior felony conviction.
The charges provide for a sentence of up to life in prison, at least three years of supervised release and a fine of up to $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Pittsfield Police Chief Michael Wynn made the announcement. Assistant U.S. Attorney Todd E. Newhouse of Mendell’s Springfield Branch Office prosecuted the case.
Judges sentences former SLMPD Officer for perjury regarding undercover officer’s assaultRead the Press Release
ST. LOUIS – United States District Court Judge E. Richard Webber sentenced Bailey Colletta to three years of probation and two consecutive weekends of imprisonment on today’s date. The 28-year-old St. Louis, Missouri resident pleaded guilty in September 2019 to making false statements to a federal grand jury about her knowledge of the arrest and assault of a fellow St. Louis Metropolitan Police Department officer who was working undercover and whom police mistakenly believed was a protestor.
As a result of the 2017 acquittal of a former police officer on a state murder charge, protests were taking place in downtown St. Louis. In an effort by the St. Louis Metropolitan Police Department to keep peace and order, the victim undercover officer was assigned to the protest detail. Colletta was also assigned to the protest detail in her capacity as a police officer. Colletta witnessed the assault of the victim officer by other officers. As part of the investigation into this assault, Colletta was called before the federal grand jury. Colletta provided false and misleading statements to the grand jury regarding her knowledge of the assault.
Colletta’s co-defendant, Randy Hays, who had earlier pleaded guilty to his role in the matter, was sentenced to a 52-month term of imprisonment on Tuesday. Co-defendant Dustin Boone was found guilty in June of aiding and abetting the deprivation of the victim officer’s civil rights under the color of law. His sentencing hearing is scheduled for September 15, 2021.
Co-defendant Christopher Myers faces a charge of destruction of evidence related to the arrest and assault of the victim police officer. Christopher Myers is presumed innocent and the charge that he presently faces is merely an accusation and does not constitute proof of guilt.
The case is being investigated by the Federal Bureau of Investigation. First Assistant United States Attorney Carrie Costantin and Assistant United States Attorney Rob Livergood are handling the matter.
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Jefferson County Felon Sentenced for Federal Firearms ViolationsRead the Press Release
BEAUMONT, Texas – A Port Arthur convicted felon has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Lorenzo Antonio Salinas, 33, pleaded guilty on April 6, 2021, to being a prohibited person in possession of a firearm and was sentenced to 27 months in federal prison today by U.S. District Judge Thad Heartfield.
“Violent criminals like Lorenzo Salinas cannot be allowed to possess firearms,” said Acting U.S. Attorney Nicholas J. Ganjei. “My office will never stop focusing our efforts on keeping Southeast Texas safe by aggressively prosecuting violations of federal firearms laws.”
According to information presented in court, on March 6, 2020, Salinas was the passenger of a vehicle that was stopped for a traffic violation. The driver gave consent to search the vehicle during which time law enforcement officers discovered a pistol under the passenger seat. Salinas admitted the pistol was his and that he was a convicted felon. Further investigation revealed Salinas had been previously convicted of aggravated robbery in Jefferson County in 2007. As such, he is prohibited from owning or possessing firearms or ammunition. Salinas was indicted by a federal grand jury on Feb. 22, 2021.
This case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case was investigated by the Port Arthur Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives and prosecuted by Assistant U.S. Attorney Matt Quinn.
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Jamestown Man Going to Prison for 30 Years for Producing and Possessing Child PornographyRead 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 James A. Chapman a/k/a Fatz Guy a/k/a Perverted Doe, 40, of Jamestown, NY, who was convicted of production and possession of child pornography, was sentenced to serve 30 years in prison and life supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Aaron J. Mango, who handled the case, stated that on November 24, 2014, Chapman and Victim 1 communicated via Facebook Messenger about engaging in sexual activity. During the communications, the defendant offered to pay Victim 1 and one of her friends $60 each to have sex with him. Victim 1 stated that she was 16-years-old and that her friend was the same age. Later that evening, Victim 1 and Victim 2 went to Chapman’s residence in Jamestown, and the defendant engaged in sexual intercourse with them, after which Chapman paid each victim $60.
Following the sexual activity, the defendant used his cellular telephone to take a picture of Victim 1 and Victim 2 completely nude sitting on his bed. A review of Chapman’s Facebook accounts revealed that he then distributed the photograph, which constitutes child pornography, to four other individuals.
Subsequently, on April 7, 2017, the defendant began communicating with Victim 3, who was 17-years-old, through Facebook. During their communications, Chapman requested and received a sexually explicit image of Victim 3. The defendant then sent the image, which constitutes child pornography, to another individual. In addition, Chapman sent Victim 3 the sexually explicit image he took of Victim 1 and Victim 2.
“Thanks to this sentence, the defendant will not be able to victimize or sexually exploit minors for the next three decades,” noted U.S. Attorney Kennedy. “Working with our partners at every level of law enforcement, my Office will continue do all that we can to ensure that the most vulnerable members of our community are protected from those who seek to do them harm.”
The sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Jamestown Police Department, under the direction of Chief Timothy Jackson.
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Jamaican Nationals Plead Guilty to Defrauding U.S. Citizens via Lottery ScamsRead the Press Release
PROVIDENCE, R.I. – Two Jamaican nationals admitted to a federal court judge in Providence that they participated in lottery scams that defrauded U.S citizens in several states, including Rhode Island and Massachusetts, of hundreds of thousands of dollars. Unsuspecting victims were contacted by scammers, told they had won large sums of money in a lottery, but were required to pay “fees” to collect their winnings.
According to court documents, beginning in at least May 2018, Jason Wedderburn 42, and Kayan Kitson, 38, participated in a conspiracy in which conspirators made unsolicited contact with people in several states, often times senior citizens, informing them that they had won hundreds of thousands of dollars, and in some instances over a million dollars, in a lottery. For them to collect their winnings, victims were told they first would have to pay “up-front fees” such as taxes or processing costs. The victims were instructed to either mail to Wedderburn, Kitson, or others, checks or money orders made out to the defendants to cover the cost of the fees, or were provided instructions for depositing the funds into bank accounts controlled by the defendants and others. Payments ranged from thousands to hundreds of thousands of dollars. Some victims were contacted multiple times and told they needed to make additional payments. Once deposited, the funds were either quickly withdrawn, transferred to other bank accounts, or withdrawn from ATMs in Jamaica.
No lottery winnings were ever paid to any of the individuals contacted by the scammers. According to court documents, one Massachusetts victim was defrauded of more than $325,000. In total, over $600,000 was stolen primarily from elderly victims as part of the scam.
Appearing before U.S District Court Judge Mary S. McElroy, Jason Wedderburn and Kayan Kitson, detained since their arrest in Florida in August 2020, pleaded guilty to conspiracy to commit mail and wire fraud, announced Acting United States Attorney Richard B. Myrus.
Wedderburn, who pled guilty on Tuesday, and Kitson who pled guilty today are scheduled to be sentenced on October 6, 2021.
The cases are being prosecuted by Assistant United States Attorney Sandra R. Hebert, with the assistance of Assistant U.S. Attorney Christine D. Lowell.
The matter was investigated by the U.S. Postal Inspection Service. Acting United States Attorney Myrus thanks the FBI for its assistance.
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Jackson County Man Pleads Guilty to Being a Felon in Possession of a FirearmRead the Press Release
Gulfport, Miss. - A Jackson County man pleaded guilty to being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Darren J. LaMarca and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives.
According to court documents, Ledarrius Jamontaie Forrest, 30, of Moss Point, was arrested on August 21, 2020, after a state search warrant was served at a Moss Point residence where Forrest was the sole occupant. During the search, a rifle, ammunition, and narcotics were found. The firearm, a Norinco, Model MAK90 Sporter, 7.62 rifle, was reported stolen.
Forrest was confirmed to have two state felony convictions from the Circuit Court of Jackson County. He had been convicted of possession of controlled substance, for which he ultimately was sentenced to serve a term of 3 years in the custody of the Mississippi Department of Corrections.
Forrest is scheduled to be sentenced on Tuesday, October 5, 2021, and faces a maximum penalty of 10 years in prison and a $250,000 fine. A higher maximum penalty of 15 years to life can apply if a defendant is determined to be an Armed Career Criminal. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives, the Jackson County Metro Enforcement Task Force, and the Jackson County Sheriff’s Department.
The case is being prosecuted by Assistant U.S. Attorney Stan Harris.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Iowa City Man Charged with Firearms OffensesRead the Press Release
Joshua Brown, age 49, of Iowa City, Iowa, has been charged with possession of a firearm by a felon, possession of a stolen firearm, and possession of a firearm with an obliterated serial number. The charges are contained in an Indictment unsealed on July 9, 2021, in United States District Court in Cedar Rapids.
The Indictment alleges that, in July 2020, Brown possessed a pistol after having been convicted of unauthorized possession of an offensive weapon in Johnson County in 1995 and possession of a firearm by a felon in Cedar County in 1996. The Indictment also alleges that the pistol was stolen and had an obliterated serial number.
If convicted, Brown faces a possible maximum sentence of 25 years’ imprisonment, a $750,000 fine, and three years on supervised release following any imprisonment.
Brown appeared for a detention hearing on July 14, 2021, in federal court in Cedar Rapids and was released on bond. Brown’s next appearance for trial is set for September 7, 2021.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
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 is being investigated by the Cedar Rapids Police Department, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Linn County Sheriff’s Office.
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl. The case file number is CR 21-14.
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Honduran Woman Pleads Guilty to Conspiracy to Entice Individuals to Travel in Interstate Commerce to Engage in ProstitutionRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced that BIANCA ZELAYA-MERTENS, a/k/a Maritza a/k/a Jossi, 28, of Honduras, pleaded guilty on July 14, 2021 to conspiring to entice individuals to travel in interstate commerce to engage in prostitution.
According to court documents filed in this case, in February 2020, while conducting an undercover operation with the intent of positively identifying the victims of human trafficking, Homeland Security Investigations (“HSI”) learned that BIANCA ZELAYA-MERTENS (“ZELAYA-MERTENS”) was engaged in sex trafficking. A confidential informant contacted ZELAYA-MERTENS on the telephone and arranged a meeting for a commercial sex act. ZELAYA-MERTENS arrived at the designated location accompanied by a sex worker and a commercial sex act was negotiated with the confidential informant. After the sex act was negotiated and the informant paid the negotiated price, but before the act occurred, an NOPD detective and HSI agents opened the door to the adjoining room and clearly announced “police.” During a subsequent interview by agents, the sex worker stated that ZELAYA-MERTENS told her that she could make money doing prostitution. Thereafter, on Tuesday, February 11, 2020, the sex worker travelled from Houston, Texas to New Orleans and ZELAYA-MERTENS told her she would be working by giving clients sensual massages which included having sex. She stated that she charged fifty dollars for each client but had to give ZELAYA-MERTENS twenty-five dollars.
After being advised of her Miranda rights, ZELAYA-MERTENS stated to HSI agents that she had been introduced to this line of work by co-defendant Waleska Miroslava Cabus-Alvarado, who arranged for women to come to Louisiana each week for prostitution. They both used the same recruiter to locate sex workers.
ZELAYA-MERTENS faces a maximum penalty of five (5) years incarceration, a $250,000 fine, up to a three (3) year term of supervised release, and a mandatory special assessment of $100.00. ZELAYA-MERTENS’S sentencing is scheduled on October 13, 2021.
U.S. Attorney Evans praised the work of Homeland Security Investigations in investigating this matter. Assistant United States Attorney Tracey Knight is in charge of the prosecution.
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Hampshire County man admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joshua Michael Bourne, of Shanks, West Virginia, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Bourne, age 36, pleaded guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin. Fentanyl, and Cocaine Base.” Bourne admitted to working with another individual to distribute the controlled substances from January 2020 through October 2020.
Bourne faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara K. Omps-Botteicher is prosecuting the case on behalf of the government. The U.S. Attorney’s Office worked closely with the Hampshire County Prosecutor’s Office to bring this case forward. In addition, the Potomac Highlands Drug & Violent Crime task Force, a HIDTA funded initiative, investigated. The task force is comprised of the Drug Enforcement Administration, the FBI, the West Virginia State Police, the Mineral County Sheriff's Office, the Hampshire County Sheriff's Office, the Hardy County Sheriff's Office, the Keyser Police Department, and the Grant County Sheriff's Office
U.S. Magistrate Judge Robert W. Trumble presided.
Fresno Man with Four Prior Convictions for Unlawfully Possessing Firearms and Ammunition Faces Federal ChargesRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment today against Earnest Donte Ruff, 23, of Fresno, charging him with possessing ammunition after being convicted of a felony offense, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on April 21, 2021, Ruff was arrested and found to be in possession of a loaded .40‑caliber gun with no serial number. Ruff has four convictions for illegally possessing firearms or ammunition.
This case is the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department Multi-Agency Gang Enforcement Consortium. Assistant U.S. Attorney Justin J. Gilio is prosecuting the case.
If convicted, Ruff faces a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Fort Wayne Man Sentenced to over 24 Years in PrisonRead the Press Release
FORT WAYNE – Larry Lamb, 40, of Fort Wayne, Indiana was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm, distributing 50 grams or more of methamphetamine and possessing a firearm in furtherance of a drug trafficking crime, announced Acting United States Attorney Tina L. Nommay.
Lamb was sentenced to 295 months in prison followed by 5 years of supervised release.
According to documents in this case, between May 6, 2019, and August 26, 2020, Lamb and other individuals were involved in a conspiracy to distribute significant amounts of controlled substances. Throughout the conspiracy, Lamb delivered in excess of 118 grams methamphetamine to another person. On two occasions, he sold a firearm to a person he knew to be prohibited due to a previous felony conviction. During the execution of a search warrant in December of 2019, police found 10 firearms, drugs (including methamphetamine, heroin and fentanyl) and other evidence of drug distribution. During a traffic stop in April 2020, Lamb was found to have possessed 5 firearms, high capacity magazines, ammunition, and drugs. Lamb has multiple felony convictions.
This case is a result of a joint investigation conducted by Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, with the assistance of the US Marshals Service and multiple local law enforcement agencies, including the Indiana State Police, Allen County Sheriff’s Department, Allen County Drug Task Force, Adams County Sheriff’s Office, Huntington Police Department, Auburn Police Department, and the Fort Wayne Police Department. This case was prosecuted by Assistant United States Attorneys Stacey R. Speith and Brent A. Ecenbarger.
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Fort Wayne Man Sentenced to 108 Months in PrisonRead the Press Release
FORT WAYNE- Luis Rodriguez-Solorio, 24, of Fort Wayne, Indiana, was sentenced before United States District Court Judge Holly A. Brady following his plea of guilty to being a felon in possession of a firearm and reentry of deported alien, announced Acting United States Attorney Tina L. Nommay.
Rodriguez-Solorio was sentenced to 9 years in prison followed by 2 years of supervised release. It is anticipated that Rodriguez-Solorio will be deported upon his release from incarceration.
According to documents in this case, on May 28, 2020 police viewed a social media post on an account belonging to Luis Rodriguez-Solorio. The social media post contained a video showing a man firing a fully automatic pistol which qualifies as a machine gun under federal law. The caption on the video offered the fully automatic pistol for sale. On that evening, officers with the Fort Wayne Police Department attempted a traffic stop on a vehicle driven by Rodriguez-Solorio. Rodriguez-Solorio led police on a high-speed pursuit before eventually crashing and being apprehended. He later admitted to police that he possessed the fully automatic Glock pistol with multiple extended magazines. Police recovered the machine gun, magazines and a small amount of marijuana from a home in Fort Wayne. Rodriguez-Solorio is not a citizen of the United States and had previously been deported to Mexico after he was convicted of felony burglary of a dwelling in 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Fort Wayne Police Department with assistance from the Indiana State Police and the Auburn Police Department. This case was prosecuted by Assistant United States Attorney Sarah E. Nokes.
Former Unlicensed Investment Adviser Behind Ponzi Scheme Sentenced to Nine Years for Defrauding Clients out of More than $2 MillionRead the Press Release
PHILADELPHIA – – Acting United States Attorney Jennifer Arbittier Williams announced that Alexander S. Rowland, 30, formerly of Penns Grove, NJ, was sentenced to nine years in prison, three years of supervised release, and was ordered to pay more than $2.1 million restitution to his victims by United States District Court Judge Karen Spencer Marston, for defrauding more than 120 clients who thought they were investing money with Rowland’s company, Roaring Investments, Inc., when in reality, Rowland was operating a Ponzi scheme and spent more than $1 million of their money on himself. The defendant was also ordered to forfeit more than $1.4 million in criminal proceeds that he earned, as well as nine firearms that he purchased with fraud proceeds.
Rowland pleaded guilty in April 2021 to four counts of mail fraud, 16 counts of wire fraud, one count of bank fraud, one count of securities fraud, and one count of investment adviser fraud. As part of his guilty plea, the defendant admitted that he started Roaring Investments in July 2016 and falsely held himself out to potential investors as a licensed investment adviser who would invest their money in stocks and cryptocurrency, and he promised his clients a minimum return of 25% with potential returns of 50% or higher. None of these statements were true. Through these and other misrepresentations, Rowland was able to convince investors to invest almost $3 million in Roaring Investments. Rowland admitted that he actually only invested a little over $500,000 of the funds he obtained from his clients, and that his investments were a flop, losing more than $100,000. Rowland admitted that he spent more than $1 million of his client’s funds on himself, including payments for vacations and luxury vehicles, jewelry, and more than $47,000 worth of firearms. The defendant further admitted that he used some of the other client funds to pay his office rent, his employee salaries, and to make payments to his earlier clients – in effect, operating a Ponzi scheme.
Rowland also admitted that he lied to his clients by providing them with false account balances that led them to believe that their investments were highly profitable. In fact, Rowland led his clients to believe that the roughly $3 million they had collectively invested had grown to more than $9 million. When the scheme collapsed, Rowland’s clients learned that they had actually collectively lost more than $2 million due to Rowland’s fraud. The defendant further admitted that, after the scheme collapsed, he continued to lie to some of his victims by saying he could not repay them because the FBI was preventing him from accessing his accounts.
“Rowland talked a big game about the returns his company could produce through investments in stock and cryptocurrency, but it was all a lie. Instead, he funded his own lavish lifestyle in a manner no better than a common thief,” said Acting U.S. Attorney Williams. “And when he was caught, he continued to lie. The defendant is clearly a determined fraudster who needed to be taken off the street.”
“Alexander Rowland lured investors in by promising astronomical returns on their money,” said Michael J. Driscoll, Special Agent in Charge of the FBI's Philadelphia Division. “Instead, he took full advantage of their trust and lived high on the hog at their expense. Ponzi schemes can be simply devastating for their victims. That's why the FBI and our law enforcement partners are so determined to bring this kind of financial fraud to light, and perpetrators like Rowland to justice.”
“Anytime a taxpayer is encouraged to invest in a product that seems too good to be true, they should be wary,” said Joleen D. Simpson, Acting Special Agent in Charge of the Philadelphia Field Office. “IRS Criminal investigators will continue to use their financial skills to assist their law enforcement partners in stopping harmful investor fraud schemes.”
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division, and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
Former New Port Richey Resident Sentenced to More Than Five Years in Connection with Consumer Fraud SchemesRead the Press Release
Tampa, Florida – U.S. District Judge Virginia Hernandez Covington has sentenced Lori Owen, a/k/a Lori Corrigan (50, Holiday), to five years and three months in federal prison for conspiracy to commit bank, wire, and mail fraud. As part of her sentence, the Court also ordered restitution to the identified victims in the amount of $620,103, and entered a money judgment of $265,964, representing the proceeds of the fraud.
Owen had pleaded guilty on April 19, 2021.
According to court documents, Owen was charged in December 2019 for her involvement in a telemarketing scam—primarily tax impersonation fraud—that operated from approximately December 2014 through the end of 2016, and which defrauded more than $1.38 million from victims around the United States. The conspirators, some of whom were located overseas, extorted money from victims by falsely representing to the victims that they had financial obligations to the Internal Revenue Service, Canadian tax authorities, or other entities. The conspirators then threatened the victims with arrest, prosecution, or other legal consequences for their purported debts and demanded that they pay the conspirators the “owed” money.
Owen worked with others—including her ex-husband, David Owen, and her son, Andrew Corrigan—to collect the fraud proceeds on behalf of the overseas call centers. They collected the proceeds in a variety of ways, including: opening bank accounts into which victims made cash deposits; receiving wire transfers directly from the conspirators; processing prepaid debit cards that the victims purchased through merchant accounts that Lori Owen opened and controlled; and receiving cashier’s checks purchased by the victims. The conspirators monitored the victims’ payments to ensure that the payments were recovered quickly, before any victim or law enforcement officer could become aware of the fraud and attempt to stop the transaction.
David Owen and Andrew Corrigan were previously charged and convicted of similar offenses for their roles in this scheme. Owen was sentenced to 10 years and 10 months in federal prison and Corrigan was sentenced to 10 years in federal prison.
“Impersonating the IRS, the Canadian Revenue Agency, or any other financial institutions to attempt to fraudulently collect a debt is deplorable because it shakes the confidence taxpayers have in these institutions,” said Brian Payne, IRS-CI Special Agent in Charge. “The lengthy sentencings of all the defendants in this investigation reflect the seriousness of the charges and should stand as a clear warning of the consequences that await those engaged in these scams.”
The cases were investigated by the Internal Revenue Service – Criminal Investigation, the Treasury Inspector General for Tax Administration (TIGTA), the FBI, the U.S. Postal Inspection Service, the Pinellas County Sheriff’s Office, the Pasco Sheriff’s Office, the Largo Police Department, the Gulfport Police Department, the Toronto Police Service, and the Royal Canadian Mounted Police, as part of the Middle District of Florida’s Transnational Elder Fraud Strike Force. The cases were prosecuted by Assistant United States Attorneys Rachel Jones, Kelley Howard-Allen, Frank Murray, and David Chee.
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Together with our federal, state, local and tribal partners, the Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enforcement actions, training and resources, research, victim services, and public awareness.
Former Erie Man Gets 23 Years in Prison for Producing Sexually Exploitive Videos and Photos of ChildrenRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 23 years in jail and 15 years supervised release on his conviction of violating federal laws relating to the sexual exploitation of children, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge David S. Cercone imposed the sentence on Joshua Davis Loucks, 37.
According to information presented to the court, Loucks took sexually explicit photos and produced videos of a minor victim who was ten years of age. He also received computer images depicting minors engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), 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.
Prior to imposing sentence, Judge Cercone noted the extreme depravity of Loucks’ conduct along with Loucks’ lengthy and serious criminal history.
Assistant United States Attorney Christian A. Trabold prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Federal Bureau of Investigation, the Pennsylvania State Police and the Erie Police Department for the investigation leading to the successful prosecution of Loucks.
Former Corrections Officer Pleads Guilty for Role in Bribery Conspiracy Involving Contraband Cellphones Smuggled into the Indiana County JailRead the Press Release
PITTSBURGH, PA - A former resident of Home, Pennsylvania, pleaded guilty to conspiracy and bribery of a public official, Acting United States Attorney Stephen R. Kaufman announced today.
Alex Lewis, 26, entered guilty pleas today before United States District Judge Cathy Bissoon.
On November 13, 2020, a federal grand jury returned a five-count Indictment against Lewis, a former corrections officer at the Indiana County Jail (ICJ), and Rashon Richardson, a federal detainee housed at ICJ pursuant to a contract with the United States Marshals Service. During his plea hearing today, Lewis admitted that between June and August 2019, he accepted multiple bribes from Richardson. As part of the conspiracy, Lewis admitted that Richardson used an intermediary outside ICJ to meet with him and pay bribes in the form of cash and, on one occasion, via a $400 payment to Lewis’s Cash App account. In return for the bribe payments, Lewis admitted smuggling multiple contraband cellphones into ICJ for use by Richardson and other federal detainees housed at the facility.
“As a corrections officer, Mr. Lewis accepted bribes to facilitate the smuggling of cell phones into the Indiana County Jail,” said Acting U.S. Attorney Kaufman. “His corrupt actions demonstrated his complete lack of integrity and compromised the security of the facility where he worked. This office will continue to investigate and prosecute public officials who pursue self-enrichment at the expense of their solemn duty to protect the community.”
“Mr. Lewis abused his position as a corrections officer to line his own pocket,” said FBI Pittsburgh Special Agent in Charge Mike Nordwall. “By his actions today, he admits to failing to act with integrity. The FBI is committed to making sure those who violate the public’s trust are held accountable.”
The law provides for a maximum sentence of not more than five (5) years in prison for the conspiracy charge, fifteen (15) years for the bribery charge, and a fine of not more than $250,000 per count. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Richardson has pleaded not guilty, and his case remains pending before Judge Bissoon. A defendant is presumed innocent unless and until proven guilty.
Assistant United States Attorney Eric G. Olshan is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation conducted the investigation leading to the Indictment in this case. The Pennsylvania State Police and Indiana County Jail also provided assistance during the course of the investigation.
Former CEO and CFO of Public Telecommunications Company Charged in Manhattan Federal Court with Scheme to Defraud InvestorsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging MICHAEL PALLESCHI, the former Chief Executive Officer of FTE Networks, Inc. (“FTE”), and DAVID LETHEM, the former Chief Financial Officer of FTE, with conspiracy, securities fraud, and wire fraud, improperly influencing the conduct of an audit and aggravated identity theft. These charges stem from the defendants’ years-long scheme to inflate FTE’s revenue, to conceal liabilities and expenses, and to embezzle company funds. PALLESCHI was arrested this morning in the Northern District of New York and will be presented today in that district. LETHEM was arrested this morning in the Middle District of Florida and will be presented today in that district.
U.S. Attorney Audrey Strauss said: “When corporate executives sell their company’s stock to the public, they assume the responsibility under federal law of making full and accurate disclosures about their company’s financial condition to investors. Palleschi and Lethem instead chose to lie about FTE’s finances to make the company appear more financially healthy than it was, thus defrauding FTE’s stockholders and lenders. Instead of forthrightness with their investors, Palleschi and Lethem chose the easy way to cash in by obfuscating FTE’s true financial health through fake documents and forged signatures. This Office is committed to ensuring the integrity of our capital markets through vigorous enforcement of federal securities laws.”
FBI Assistant Director William F. Sweeney Jr. said: “Concealing a company’s true financials from investors is not only an unscrupulous business practice, but in the case of Palleschi and Lethem, as we allege today, it amounted to a federal crime. Financial fraud schemes are all too common, and in order to maintain investor confidence, we need to hold accountable those who perpetrate them.”
According to the Indictment unsealed today in Manhattan federal court:[1]
FTE was a telecommunications company based in Naples, Florida and Manhattan. As of December 2017, its stock traded on the NYSE American market. From 2014 to 2019, PALLESCHI was the chairman of FTE’s Board of Directors and its Chief Executive Officer. LETHEM served as FTE’s Chief Financial Officer from 2014 through 2019.
Fraud with Respect to Convertible Notes
From 2016 to early 2019, PALLESCHI and LETHEM caused FTE to issue approximately 70 notes with a total principal balance of more than $22 million to private lenders that the lenders could convert to FTE’s common stock, either upon demand or upon default. Issuers of such convertible notes must recognize on their financial statements liabilities and expenses that arise from the notes’ conversion features. PALLESCHI and LETHEM caused FTE to recognize only the principal amounts and resulting interest expense on the company’s books but not the substantial liabilities and expenses arising from the notes’ conversion features.
In furtherance of the scheme, PALLESCHI and LETHEM took several steps to conceal the notes’ conversion features:
Rather than provide FTE’s accountants and auditors with copies of the actual convertible notes, the defendants created fake notes with the same lenders, principal amounts and other terms as the convertible notes and gave the fake notes to the auditors and accountants. PALLESCHI and LETHEM created more than 35 such fake notes with a total principal balance of more than $14 million.
PALLESCHI and LETHEM also created fake resolutions of FTE’s Board of Directors that purportedly authorized the company to issue the convertible notes on which they forged the Directors’ signatures. The defendants then provided these forged Board resolutions to FTE’s lenders.
On four occasions in June 2017, LETHEM forged the signature of a representative of FTE’s transfer agent on letters that he provided to lenders. The transfer agent kept records of who owned FTE’s stock and held stock shares that the company had not yet issued. The forged letters purported to confirm that the transfer agent would hold a sufficient number of shares of FTE’s stock in reserve to pay a convertible lender in case the lender decided to convert a convertible note into FTE stock. These letters protected convertible lenders by ensuring that enough shares of FTE’s stock would be available to pay off the convertible notes. Convertible lenders generally required their borrowers to provide them with such letters before funding a convertible note.
PALLESCHI and LETHEM lied repeatedly to FTE’s auditors by falsely denying that the company had issued convertible debt. In April 2018, LETHEM falsely denied to the auditors that FTE had issued two specific convertible notes. Three days later, both PALLESCHI and LETHEM repeated this false denial to the auditors in a management representation letter related to the audit of FTE’s 2017 year end financial statements. PALLESCHI and LETHEM also falsely denied to the auditors in April 2018 and again in November 2018 that a $1.4 million note FTE had entered into in April 2018 was convertible. When the auditors asked to see a copy of the $1.4 million note, LETHEM falsely claimed that his sole electronic copy of the note was lost because the electronic file had become corrupted. When the auditors continued to ask for the note, LETHEM concealed that he had the note all along by sending the note to a company attorney and arranged for the attorney to send it back to him. LETHEM then forwarded the attorney’s email to a company Director, who forwarded it to the auditors with the notation that “[the attorney] found the note!” When the auditors then asked that the attorney review her files for other notes, LETHEM and the attorney falsely responded that the attorney did not know of, or possess, additional convertible notes.
As a result of this fraud with respect to convertible notes, the defendants caused FTE to understate its debt derivative liabilities and warrant derivative liabilities and to fail to recognize losses on conversion derivative liabilities and losses on issuance of notes in 2017 and 2018. For example, FTE’s year end 2017 financial statements understated FTE’s debt derivative liabilities by $48 million and warrant derivative liabilities by $16 million. FTE also failed to recognize a $35 million loss on conversion derivative liabilities and a $42 million loss on issuance of notes for the year ending 2017.
Fraudulent Revenue Recognition
PALLESCHI and LETHEM also caused FTE to recognize more than $13 million in fraudulent revenue:
This fraudulent revenue included more than $10 million in “unbilled” revenue that the defendants represented FTE had earned from services it had supposedly provided to a large customer that would not yet accept bills for those services. FTE never provided any such services.
In addition, the defendants caused FTE to recognize approximately $2.6 million as an account receivable for which there was no support. When FTE’s auditors said that the account receivable should be written off, PALLESCHI and LETHEM created a fake email from a representative of the customer saying that the customer would “expedite payments” for more than $1.5 million for projects completed by FTE in 2016 and 2017. The defendants caused this fake email to be sent to FTE’s auditors so that FTE could continue to recognize the receivable.
PALLESCHI and LETHEM caused FTE to recognize another $600,000 in accounts receivable for work the defendants falsely claimed FTE performed. When FTE’s auditor sought confirmation of this account receivable from the customer, LETHEM gave the auditor the name and email address of an FTE director who also was an employee of the customer. PALLESCHI and LETHEM then attempted to persuade the FTE director to sign the confirmation but the director refused to do so. LETHEM then emailed PALLESCHI in part “should I just send plan b?” Later that day, LETHEM emailed PALLESCHI an audit confirmation containing the director’s forged signature. A few days later, LETHEM emailed the auditor a confirmation containing the director’s forged signature.
As a result of the defendants’ fraudulent recognition of revenue, FTE’s financial statements overstated the company’s accounts receivable by between 18% and 120% for each of the quarters in 2017 and 2018 and by approximately 477% for 2016.
Embezzlement of Corporate Funds
PALLESCHI and LETHEM also embezzled corporate funds. This embezzlement included payments for private jet use, luxury automobiles, personal credit cards, unauthorized wire transfers and stock issuances. PALLESCHI and LETHEM used a bank account in the name of another entity to hide their diversion of corporate funds.
PALLESCHI, 46, of Naples, Florida; and LETHEM, 62, of Ft. Myers, Florida, are charged with 1) conspiring to commit securities fraud, wire fraud, making false statements in SEC filings and improperly influencing the conduct of audits, which carries a maximum sentence of 5 years in prison; 2) securities fraud, which carries a maximum sentence of 20 years in prison; 3) wire fraud, which carries a maximum sentence of 20 years in prison; 4) improperly influencing the conduct of audits, which carries a maximum sentence of 20 years in prison; and 5) aggravated identity theft, which carries a mandatory minimum term of 2 years in prison. The maximum potential sentences in this case are prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
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Ms. Strauss praised the investigative work of the FBI. Ms. Strauss further thanked the U.S. Securities and Exchange Commission, which today filed a parallel civil action.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Elisha Kobre, James McMahon and Negar Tekeei are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Banker Sentenced to Prison for Role in Movie Financing Fraud Scheme, Falsely Applying for COVID-19 LoansRead the Press Release
Miami, Florida – A former South Florida banker was sentenced this week to 42 months’ imprisonment for participating in two frauds: the first, a scheme to steal over $60 million from investors and producers seeking financing for movies and Broadway shows; the second, concealing his criminal history on applications for COVID-19 relief loans.
Benjamin Rafael, 31, of South Florida, previously admitted his role in legitimizing a sophisticated movie financing fraud scheme. Rafael pled guilty to one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349 (Case No. 19-CR-20447).
According to court records, Rafael’s co-defendants, Benjamin McConley and Jason Van Eman, held themselves out as film producers and financiers. In those roles, McConley and Van Eman allegedly offered to provide financing to investors and producers seeking funds to produce motion pictures, theater performances, and for other projects. The indictment charges that McConley and Van Eman promised the victims that, in exchange for the victims’ cash contributions, McConley would “match” the contributions and use the combined funds to secure financing from financial institutions in South Florida and elsewhere.
In furtherance of the scheme, McConley and Van Eman recruited Rafael, a then bank employee, to deceive victims about the security of their funds, it is alleged. During the course of the scheme, McConley and Van Eman repeatedly directed Rafael to falsely assure victims that their contributions or loans had been “matched” as promised in the funding agreements, say the court documents.
According to the indictment, victims sent tens of millions of dollars to accounts controlled by the defendants based on these false representations and promises. In truth, the schemers never “matched” the victims’ contributions as promised in the funding agreements. Instead, they stole the victims’ money by transferring the funds to their personal and corporate bank accounts, often within days of the victims’ contributions or loans, according to the court documents.
Following his indictment and guilty plea in Case No. 19-CR-20447, Rafael submitted several applications to various banks for Paycheck Protection Program (PPP) and Economic Injury Disaster Loans (EIDL). In those applications, he concealed the fact that he had previously pled guilty in Case No. 19-CR-20447.
As a result of these fraudulent PPP and EIDL applications, Rafael was charged with making false statements to a financial institution, in violation of Title 18, United States Code, Section 1014 (Case No. 21-CR-20161). Rafael pled guilty to the PPP fraud earlier this week. At the same court appearance, Rafael was sentenced for his conduct in both cases during a consolidated sentencing proceeding.
In addition to the combined sentence of 42 months’ imprisonment, Rafael was ordered to pay restitution to the victims, forfeit money and real estate traceable to the fraud schemes, and serve a term of supervised release of five years.
Co-defendant Benjamin McConley previously pled guilty in Case No. 19-CR-20447 to one count of conspiracy to commit wire fraud and is scheduled to be sentenced on September 14, 2021, at 9:00 a.m. by District Judge Raag Singhal. Co-defendant Jason Van Eman is scheduled for trial on August 30, 2021.
Juan Antonio Gonzalez, Acting U.S. Attorney for the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, and Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration, Office of Inspector General (SBA-OIG), Investigations Division, Eastern Regional Office, made the announcement.
FBI Miami and SBA-OIG investigated the matters. The 2019 case is being prosecuted by Assistant U.S. Attorneys Christopher Browne and Elizabeth Young. The 2021 case was prosecuted by Assistant U.S. Attorney Lacee Monk. Assistant U.S. Attorney Marx Calderon is responsible for the asset forfeiture component of both cases.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of hundreds of billions of dollars in forgivable loans to small businesses for job retention and certain other expenses, through the PPP.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The EIDL program is designed to provide economic relief to small businesses that are currently experiencing a temporary loss of revenue. EIDL proceeds can be used to cover a wide array of working capital and normal operating expenses, such as continuation of health care benefits, rent, utilities and fixed debt payments. If an applicant also obtains a loan under the PPP, the EIDL funds cannot be used as the same purpose as the PPP funds.
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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
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