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Wednesday 19 May 2021
Two North Bay Brothers Plead Guilty to Separate but Similar Pandemic Relief Fraud Schemes Netting over $2 MillionRead the Press Release
SAN FRANCISCO – Caesar Oskan, also known as Sezer Ozkan, and his brother Ester Ozkar, also known as Eser Ozkay, pleaded guilty today in federal court to making false statements to a financial institution in separate schemes to defraud the federal government of pandemic relief funds, announced Acting United States Attorney Stephanie M. Hinds; Internal Revenue Service Criminal Investigation Acting Special Agent in Charge Michael Daniels; United States Secret Service Special Agent in Charge of San Francisco Field Office James Anderson; Federal Bureau of Investigation Special Agent in Charge Craig D. Fair; Treasury Inspector General for Tax Administration J. Russell George; Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King; and Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection, Western Region Special Agent in Charge Scott Redington.
Both Caesar Oskan, 66, of San Rafael, and Ester Ozkar, 66, of Novato, admitted as part of their guilty pleas that between March 2020 and June 2020 they each submitted multiple separate fraudulent applications for Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans in a scheme to defraud the Small Business Administration and the banks handling the PPP loans. EIDL and PPP are loan programs designed to help businesses survive during the Covid-19 pandemic.
In his written plea agreement, Caesar Oskan admitted that he obtained $1,006,004 in fraudulent PPP loans and $713,500 in fraudulent EIDL loans and advances. In Ester Ozkar’s plea agreement, he admitted that he obtained $474,132 in fraudulent PPP loans and $9,000 in EIDL advances.
“Pandemic relief funds are limited and intended to save legitimate struggling businesses from failing,” said Acting United States Attorney Stephanie M. Hinds. “Individuals, like these two brothers, who treat these pools of relief funds as their personal bank accounts deserve to be vigorously prosecuted.”
“Honest and law abiding citizens are fed up with the likes of those who use deceit and fraud to line their pockets with money intended to help businesses affected by the pandemic,” said Michael Daniels, Acting Special Agent in Charge IRS Criminal Investigation. “Those individuals who engage in this type of financial fraud should know they will not go undetected and will be held accountable.”
“The U.S. Secret Service is dedicated to investigating those who prey on businesses by taking advantage of pandemic relief funds,” said United States Secret Service Special Agent in Charge of the San Francisco Field Office James Anderson. “This investigation exemplifies the success we can achieve when the Secret Service and our law enforcement partners work together to protect America’s financial infrastructure.”
“The FBI and our partners are actively working to identify individuals, like the Oskan brothers, who are taking advantage of COVID relief programs intended to support hardworking Americans and small businesses struggling with financial challenges due to the pandemic,” said FBI Special Agent in Charge Craig D. Fair. “We will continue to collaborate across agency lines to combat this type of fraud and ensure these crucial funds are used as intended – not to enrich those who exploit the system for their own greed.”
“The Treasury Inspector General for Tax Administration will aggressively pursue those who endeavor to defraud taxpayer-funded Coronavirus Aid, Relief, and Economic Security Act programs, which were established to provide assistance to American business owners during these unprecedented times,” said J. Russell George, Treasury Inspector General for Tax Administration. “We appreciate the efforts of the U.S. Department Justice and our law enforcement partners in this effort.”
“Lying to gain access to economic stimulus funds will be met with justice,” said Small Business Administration Office of Inspector General, Western Region Special Agent in Charge Weston King. “SBA OIG will relentlessly pursue evidence of fraud against SBA’s programs aimed at assisting the nation’s small businesses struggling with pandemic challenges. I want to thank the U.S. Attorney’s Office for its leadership and dedication to pursuing justice.”
“The defendants admitted to defrauding the federal government of pandemic relief funds and are now convicted felons,” said Scott Redington, Special Agent in Charge, Western Region, Office of Inspector General for the Board of Governors of the Federal Reserve System and Bureau of Consumer Financial Protection. “We are fully committed to bringing to justice wrongdoers who exploit and defraud financial institutions and the government’s response to the COVID-19 pandemic.”
The admissions of the two defendants in their respective written plea agreements describe the breadth of their criminal schemes. In Caesar Oskan’s plea agreement, he admitted that he submitted 27 fraudulent applications for PPP and EIDL loans. The applications were submitted on behalf of several entities with names such as “Bake and Wrap LLC”, “Comfort Plus Transportation LLC”, “Fast Food Plus LLC”, “Healthy Comfort Food”, and “CTC Trade LLC”. Oskan admitted that for many of his applications he registered the fictitious entities with the California Secretary of State, then backdated the Secretary of State documents to reflect earlier creation dates for the entities so that the entity could qualify for a pandemic relief loan. For each of his 27 applications, Oskan created fake IRS tax documents that contained false statements about the number of employees, false payroll costs, and false wage amounts paid.
In an example from his plea agreement, Oskan admitted applying on June 1, 2020, in the name of “CTC Trade LLC” to a bank for a PPP loan in the amount of $268,719. He had registered CTC Trade LLC as a business with the California Secretary of State less than a month before, on May 6, 2020. However, in his application Oskan represented that CTC Trade LLC was created prior to February 15, 2020 (the creation cutoff date for PPP and EIDL loan qualification), employed 17 employees, and had an average monthly payroll of $107,468. Oskan admitted in his plea agreement that each of these representations was false. He further admitted submitting fraudulent Articles of Incorporation and a fraudulent IRS form with the application. The application succeeded, and the bank disbursed $268,719 to him.
Separately, Ester Ozkar admitted in his plea agreement that he submitted eight fraudulent applications for PPP and EIDL loans on behalf of six entities with names such as “7Transportations”, “Alya LLC”, “Century Transportations Inc”, and “Last Mile Shuttle”. Ozkar admitted that Alya LLC was a fictitious entity that he registered with the California Secretary of State and then modified the Secretary of State documents to reflect a creation date earlier than February 15, 2020, so that the entity would qualify for PPP and EIDL loans. He further admitted that for every application, he created and submitted fake IRS tax documents containing false statements about the entity’s number of employees, payroll costs, and wages paid to fictitious employees.
In an example from his plea agreement, Ozkar states that he applied on or about April 7, 2020, on behalf of “Blockchain Tech, LLC” to a bank for a PPP loan in the amount of $46,250. He admitted he represented in the application that Blockchain Tech, LLC was in operation prior to February 15, 2020, employed four employees, and averaged a monthly payroll of $18,500. Ozkar further admitted that each of these representations was false. He also admitted that he submitted multiple fraudulent IRS forms in the application. The application succeeded, and the bank disbursed $46,250 to him.
Caesar Oskan and Ester Ozkar each pleaded guilty to one count of making a false statement to a financial institution, in violation of 18 U.S.C. § 1014. Each defendant faces a maximum penalty of 30 years in prison and a one million dollar fine. However, any sentence imposed by the court will follow only after the court’s consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
United States District Judge Charles R. Breyer set a sentencing hearing for each defendant on December 15, 2021, at 10 a.m. The defendants remain out of custody on bond.
For background information, the PPP is administered by the U.S. Small Business Administration (SBA) as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act is a federal law enacted in March 2020 to provide emergency financial assistance to the millions of Americans suffering from the economic effects caused by the COVID-19 pandemic. PPP loan proceeds must be used by the business on certain permissible business expenses, including payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on a PPP loan to be entirely forgiven if the business spends the loan proceeds on these business expense items within a designated period of time and uses at least 60% of the PPP loan proceeds on payroll expenses. Loans made through the PPP are 100% guaranteed by the SBA.
Similarly, the EIDL Program provides low-interest non-forgivable loans and fully forgivable advances to small businesses, among others, in regions affected by disasters. In March 2020 EIDL funds were made available to all states and territories due to the magnitude and severity of the COVID-19 pandemic.
Maya Karwande is the Assistant U.S. Attorney who, along with Assistant U.S. Attorney Chris Kaltsas, is prosecuting the case with the assistance of Ralph Banchstubbs. The prosecution is the result of an investigation by the Internal Revenue Service Criminal Investigation; the United States Secret Service; the Federal Bureau of Investigation; the U.S. Department of the Treasury Inspector General for Tax Administration; the Office of Inspector General for the Small Business Administration; and the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Bureau of Consumer Financial Protection.
Two New Jersey Men Sentenced for Roles in Trafficking Heroin and Cocaine in BayshoreRead the Press Release
TRENTON, N.J. – Two New Jersey men were sentenced today for their roles in a conspiracy to distribute heroin and cocaine in the Bayshore area of Monmouth and Middlesex counties, Acting U.S. Attorney Rachael A. Honig announced today.
Daniel McHugh, 51, of Sayreville, New Jersey, was sentenced to 90 months in prison. McHugh previously pleaded guilty before U.S. District Judge Brian R. Martinotti via videoconference to an information charging him with one count of conspiracy to distribute and possess with intent to distribute 100 grams or more of heroin. McHugh also admitted conspiring to distribute and possess with intent to distribute a quantity of cocaine and possessing with intent to distribute a quantity of crack cocaine.
Brian Hall, 49, of Freehold, New Jersey, was sentenced today to eight months of home confinement and three years of probation. He previously pleaded guilty before Judge Martinotti to an information charging him with one count of conspiring to distribute and possess with intent to distribute heroin. Judge Martinotti imposed both sentences today in Trenton federal court.
According to documents filed in this case and statements made in court:
From May 2017 to November 2018, McHugh, Hall, and others engaged in a narcotics conspiracy that operated in the Raritan Bayshore region of Middlesex and northern Monmouth counties.
Through the interception of telephone calls and text messages pursuant to court-authorized wiretap orders, controlled purchases of heroin and cocaine, the use of confidential sources of information, and other investigative techniques, law enforcement learned that McHugh regularly obtained heroin and cocaine for further distribution from co-defendant Guy Jackson. Some of the heroin distributed by the conspiracy contained fentanyl, a dangerous synthetic opioid. When McHugh was arrested, law enforcement officers recovered quantities of heroin, cocaine, and crack cocaine intended for further distribution, as well as $3,800 in cash that McHugh agreed to forfeit.
In addition to the prison terms, Judge Martinotti sentenced McHugh to four years of supervised release and ordered forfeiture of $3,800.
Today’s sentencings are part of a coordinated takedown in November 2018 of 15 defendants charged in a federal criminal complaint with conspiracy to distribute heroin and cocaine. Thirteen defendants have pleaded guilty. Supplier Gregory Gillens was sentenced on Sept. 8, 2020, to 10 years in prison for his role in the conspiracy. Lead defendant Guy Jackson is scheduled to be sentenced on June 22, 2021. Defendant Deberal Rogers has been indicted; the charges and allegations contained in the indictment against her are merely accusations, and she is presumed innocent unless and until proven guilty. The charges against one defendant have been dismissed.
Acting U.S. Attorney Honig credited special agents of the FBI, Newark Division, Red Bank Resident Agency, Jersey Shore Gang and Criminal Organization Task Force (including representatives from the Bradley Beach Police Department, Brick Police Department, Howell Police Department, Marlboro Police Department, Monmouth County Sheriff’s Office, Toms River Police Department, and Union Beach Police Department) under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the FBI, Philadelphia Division, Scranton Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; the New Jersey State Police, under the direction of Col. Patrick J. Callahan; the Matawan Police Department, under the direction of Chief Thomas J. Falco Jr.; the Holmdel Police Department, under the direction of Chief John Mioduszewski; the Highlands Police Department, under the direction of Chief Robert Burton; the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni; the Old Bridge Police Department, under the direction of Chief William A. Volkert; the Keansburg Police Department, under the direction of Chief Robert B. Sheehan; the Hazlet Police Department, under the direction of Chief Ted A. Wittke; and the Aberdeen Police Department, under the direction of Chief Alan Geyer, with the investigation leading to today’s sentencings.
The government is represented by Assistant U.S. Attorney Elisa T. Wiygul of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Two Facing Federal Gun and Drug Charges following Investigation by ATF and Monroeville PoliceRead the Press Release
PITTSBURGH, PA - A resident of Swissvale, Pennsylvania, and a resident of Clinton, Pennsylvania, have been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Khalil Brooks, age 23, of Pittsburgh, PA 15218 and Tyriese Green-Saunders, age 21, of Clinton, PA 15026, as the defendants.
According to the Indictment, on or about April 20, 2021, Brooks, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm. Also on or about April 20, 2021, Green-Saunders possessed with intent to distribute a quantity of crack cocaine and a firearm in furtherance of this drug trafficking crime.
For Green-Saunders, the law provides for a maximum total sentence of not less than 5 years to a maximum of life in prison, a fine not to exceed $250,000 or both. For Brooks, the law provides for a maximum total sentence of not more than ten years, a fine of not more than $250,000 or both. 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.
Assistant United States Attorney Christopher M. Cook is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Monroeville Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Tractor-trailer trafficker sentenced for smuggling over 100 kilograms of cocaineRead the Press Release
CORPUS CHRISTI, Texas – A 36-year-old Edinburg man has been ordered to federal prison after admitting to his role in a large cocaine trafficking conspiracy, announced Acting U.S. Attorney Jennifer B. Lowery.
Ray Anthony Almaroad pleaded guilty Jan. 26.
Today, U.S. District Judge David S. Morales ordered him to serve an 87-month sentence to be immediately followed by four years of supervised release. At the hearing, the court heard additional statements noting Almaroad’s use of a tractor-trailer hauling a legitimate truckload of limes. He used it as a decoy for the concealed compartment containing over 100 cocaine bundles.
On Nov. 27, 2020, at nearly midnight, Luis Elfego Ramirez drove a tractor-trailer to the Border Patrol checkpoint located near Sarita. Almaroad was the passenger and registered owner of the vehicle. Authorities noted weld marks on the diesel tank where and discovered a custom-made concealed compartment within the fuel tank. Authorities then found and seized 110 bundles of cocaine, with a total net weight of 109 kilograms.
The drugs have an approximate street value of over $3.2 million.
Previously released on bond, Almaroad was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
Ramirez, 49, Edinburg, had also pleaded guilty and previously received 120 months imprisonment.
The Drug Enforcement Administration conducted the investigation with assistance of Customs and Border Protection. Assistant U.S. Attorney (AUSA) Reid Manning and former AUSA David Paxton prosecuted the case.
Three People Charged in Interstate Gun Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A New Jersey man and two men from South Carolina have been charged with conspiring to illegally sell firearms, including five pistols and one rifle, in and around Essex County, New Jersey, Acting U.S. Attorney Rachael A. Honig announced today.
Torell Brown, 45, of Orangeburg, South Carolina, Carter Wilkerson, 21, of Orangeburg, South Carolina, and Mark Washington, 57, of Irvington, New Jersey, are each charged by criminal complaint with one count of conspiracy to engage in the business of unlicensed firearms dealing. Brown and Washington are each additionally charged with one count of possession of firearms and ammunition by a convicted felon.
Brown, Wilkerson, and Washington were arrested May 18, 2021, and appeared by videoconference today before U.S. Magistrate Judge Michael A. Hammer. Brown and Washington were detained; Wilkerson was released on $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
From April 2021 through May 18, 2021, Brown, Wilkerson, and Washington were members of a drug trafficking conspiracy. In furtherance of the conspiracy, Brown and Wilkerson trafficked six firearms and a large quantity of ammunition, with the intent to sell these weapons to at least one New Jersey resident. On May 18, 2021, Washington attempted to thwart law enforcement from recovering certain of these firearms.
The count of conspiracy to engage in the business of unlicensed firearms dealing carries a maximum potential penalty of five years in prison and a $250,000 fine. The counts of possession of a firearm and ammunition by a convicted felon carry a maximum penalty of 10 years in prison and a $250,000 fine.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
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 Craig B. Kailimai, and special agents and task force officers of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local and tribal authorities in investigating and prosecuting gun crimes; improves information sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensured that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian .
The government is represented by Special Assistant U.S. Attorney Stacey E. Zyriek Enriquez, of the Violent Crimes Unit and Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
The charges and allegations contained in the complaints are merely accusations and the defendants are presumed innocent unless and until proven guilty.
Three Missoula area residents admit methamphetamine trafficking crimeRead the Press Release
MISSOULA – Three Missoula area residents accused in a large methamphetamine trafficking ring pleaded guilty on Tuesday, Acting U.S. Attorney Leif M. Johnson said today.
Laura Jeanne Haacke, 46, of Missoula, Jennifer Renee Hawkes, 39, of Missoula, and Jason Dean Hager, 55, of Lolo, each pleaded guilty to possession with intent to distribute meth. Haacke and Hawkes face a mandatory minimum 10 years to life in prison, a $10 million fine and at least five years of supervised release. Hager faces a mandatory minimum five years to 40 years in prison, a $5 million fine and four years of supervised release.
U.S. District Judge Donald W. Molloy presided. Sentencing was set for Dec. 16 for all defendants. Hager and Hawkes were detained, while Haacke was released pending further proceedings.
According to court documents, the government alleged that Haacke, Hawkes, Hager, and a fourth co-defendant, Terry David Starrett, conspired to distribute meth in Missoula from January 2018 through January 2021. Starrett pleaded guilty on May 11 to possession with intent to distribute meth. The government alleged that officers learned through confidential informants that Haacke stored meth for a drug distributor and at one point had 40 pounds of meth in a trap floor at her residence. When interviewed by law enforcement, Haacke admitted that she used meth and that in February 2019, she had about 80 pounds of meth stored in her residence. Eighty pounds of meth is the equivalent of about 289,920 doses.
The government further alleged that in July 2019, Hawkes supplied a person with about two ounces of meth. After the transaction, law enforcement executed a search warrant at Hawkes’ residence and recovered an additional three pounds of meth.
The government also alleged that in December 2019, Hager sold meth to an undercover informant three times in monitored transactions. Agents further learned that a confidential informant saw Hager with one and one-half pounds of meth and that he helped a co-defendant move numerous pounds of meth and kept some to use as his own supply.
Assistant U.S. Attorney Tara J. Elliott is prosecuting the case, which was investigated by the FBI’s Montana Regional Violent Crime Task Force, Missoula Police Department and Missoula County Sheriff’s Office.
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Texas Man Sentenced in Methamphetamine ConspiracyRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that David Kenneth Martin, 37, of Midland, Texas, has been sentenced for his participation in a methamphetamine trafficking conspiracy which occurred in Baldwin County during 2016 through 2018. In May of 2020, Martin pled guilty to the conspiracy charge.
United States District Court Judge Terry F. Moorer imposed a 96-month sentence in Martin’s case and ordered that Martin serve a five-year term of supervised release when he is released from custody. Martin was also ordered to pay a mandatory special assessment of $100. No fine was imposed.The case was investigated by the Baldwin County Sheriff’s Office and the Baldwin County Drug Task Force. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Tennessee Couple Indicted for Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
A federal grand jury recently returned an eight-count indictment charging Haskell Knight, a/k/a “Trey Knight,” age 56, and Emily Knight, a/k/a “Emily Ricciardelli,” a/k/a “Emily Fryer,” age 37, both of Franklin, Tennessee, with conspiracy to commit wire fraud and wire fraud. Each appeared for their arraignments and pled not guilty to the pending charges.
According to the indictment, beginning in March 2016, Haskell Knight and Emily Knight, a husband and wife who at the time lived in Texas and Florida, purported to start a new business. Haskell Knight raised investment funds while Emily Knight handled the bank account. The business was called Udoxa, which allegedly was to market nutritional supplements. The Knights raised $200,000 from four investors who contributed $50,000 each. However, while Udoxa was formed on paper, it never conducted actual sales. Haskell Knight solicited investments under false pretenses and then did little to follow through with starting the business. Knight misrepresented the existence of a rich investor, available formation capital, and the strength of the startup, all to obtain funding, and then failed to use the funds in the agreed-upon manner. Emily Knight accepted a total of $100,000 in wire transfers from two investors, one of whom lived in Baton Rouge. Those funds went in part to pay old business debts and personal expenses. $100,000 from the other two investors was not deposited into the Udoxa account and disappeared.
This matter is being investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Brian K. Frazier, who also serves as Chief of the Criminal Division.
NOTE: An indictment is an accusation by a grand jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Supplement Retailers Plead Guilty in Cases Involving Distribution of Designer Steroids as Dietary SupplementsRead the Press Release
Two men and a California business each pleaded guilty this week to conspiring to distribute consumer products that contained designer anabolic steroids.
Justin Smith, 35, of Batesville, Arkansas, pleaded guilty on May 18, 2021, to one count of conspiring to sell controlled substances. According to court documents, Smith admitted that he sold designer steroids that he marketed as “dietary supplements.” Smith further admitted knowing that the unlawful distribution of designer steroids was subject to criminal penalties under the Designer Anabolic Steroid Control Act of 2014 (DASCA), which amended the Controlled Substances Act to include designer steroids. Smith owned Legendary Supplements, an online store whose most profitable products contained anabolic steroids. Smith admitted to distributing more than 60,000 capsules of illegal steroids to consumers in 2015 and 2016.
In a separate but related case, Leonard Shemtob, 39, of Los Angeles, California, pleaded guilty on May 19, 2021, to one count of conspiring to sell controlled substances. According to court documents, Shemtob owned and controlled Strong Supplements LLC, an online company that sold bodybuilding supplements containing designer steroids. Shemtob admitted that he also knew that the distribution of such products was illegal under the Controlled Substances Act and DASCA. Shemtob’s company, Strong Supplements LLC, also pleaded guilty to one count of conspiring to sell controlled substances.
“Dietary supplement products that contain steroids are illegal controlled substances,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Department of Justice will prosecute individuals and companies who ignore the law and put consumers at risk.”
“This week’s actions represent our continued commitment to pursuing and bringing to justice those who mislead the public and attempt to subvert the regulatory functions of the FDA,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the FDA Office of Criminal Investigations.
Both defendants pleaded guilty in Ft. Lauderdale before U.S. District Judge William P. Dimitrouleas of the Southern District of Florida. Smith is scheduled to be sentenced on Nov. 12, and faces a maximum penalty of 10 years in prison. Shemtob and Strong Supplements LLC are scheduled to be sentenced on Dec. 6. Shemtob faces a maximum penalty of 10 years in prison. Strong Supplements LLC faces a maximum penalty of five years of probation and a $2,500,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
According to court documents, Smith and Shemtob both stated that they purchased the designer steroids they sold from Blackstone Labs LLC, a corporation based in Boca Raton, Florida. Blackstone Labs and seven other defendants were previously charged by indictment in connection with a conspiracy to distribute controlled substances. One defendant in that case pleaded guilty in 2019, and the remaining defendants are set for trial on Oct. 12, 2021.
The FDA’s Office of Criminal Investigation investigated the cases.
Trial Attorneys Alistair Reader and Steven Gripkey, Senior Litigation Counsel David Frank, and Assistant Director John W. Burke of the Justice Department’s Consumer Protection Branch are prosecuting the cases with assistance from the U.S. Attorney’s Office for the Southern District of Florida.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Starkville Physician Sentenced for Receipt and Distribution of Misbranded DrugsRead the Press Release
Oxford, Miss. – A Starkville physician was sentenced today to three years of probation for receiving misbranded drugs in interstate commerce and distributing them with the intent to defraud his patients. In addition to the term of probation, the defendant was ordered to forfeit $105,322.53, to pay a fine of $95,000 and to pay restitution in the amount of $377,545.20.
According to court documents, Benjamin Franklin Sanford, Jr., 69, of Starkville, Mississippi, is a physician who operated Starkville Internal Medicine. From April 2013 to June 2018, foreign versions of prescription drugs, including versions of Prolia, Boniva, and Aclasta, which had not been approved by the FDA, were shipped from overseas to Dr. Sanford’s clinic in Starkville. These drugs were administered to patients of Starkville Internal Medicine without their knowledge that the drugs were foreign versions of the subject drugs which were not FDA approved.
“U.S. consumers rely on FDA oversight to ensure that the drugs they receive are safe and effective. Health care providers who obtain foreign unapproved medicines and then dispense and administer those drugs to their patients put the health of those patients at significant risk,” said Special Agent in Charge Justin C. Fielder, FDA Office of Criminal Investigations Miami Field Office. “We will continue to pursue and bring to justice those who choose to put the public’s health at such risk.”
“For medical care, patients rely on safe and approved drugs from their doctors”, said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. “This sentence and financial penalties will deter other medical providers from seeking non-FDA approved imported medications”.
The FDA Office of Criminal Investigations and the U.S. Department of Health and Human Services, Office of the Inspector General investigated the case. The case was prosecuted by AUSA Robert Mims.
St. Louis County teenager pleads guilty to carjacking resulting in 61-year-old nurse’s deathRead the Press Release
ST. LOUIS – Lashawn T. Clayburn, 19, of Pine Lawn, Missouri, pleaded guilty to one count of carjacking resulting in death and one count of discharge of a firearm in furtherance of a carjacking resulting in death. Clayburn appeared, today, before United States District Court Henry E. Autrey.
On the evening of January 5, 2019, Naomi Miller left her home in the 2500 block of Arden to get into her vehicle to go to her job, where she worked as a healthcare nurse. Clayburn approached Miller, shot her and stole her vehicle from the driveway of her Pine Lawn home. Police were not called until approximately an hour later. When they arrived at Miller’s home, she had died from the gunshot wound.
Clayburn spent the next several hours driving around in Miller’s vehicle and picking up friends of his for the purpose of going “Joyriding." About an hour and a half after the homicide, Clayburn pulled up to a Steak N' Shake off of Jennings Station Road with two friends and was captured on surveillance video. Clayburn was also captured on surveillance at a Taco Bell location where he met with two relatives to discuss disposing of the vehicle.
The following day, Clayburn met with a group of his friends at a residence in the 8800 block of Alva to trade Miller’s vehicle for another stolen vehicle, since the vehicle Clayburn was driving was associated with Miller’s homicide. Clayburn and his friends, claiming to be part of a gang calling themselves "Murdaa Gang," took the license plate off of Miller’s vehicle and disposed of it in a neighboring back yard before replacing it with a license plate from another stolen vehicle.
On March 13, 2019, after being interviewed by federal agents relative to the carjacking and Miller’s murder, Clayburn placed a recorded jail call to his cousin in an attempt to secure a false alibi for the night of January 5, 2019. Clayburn used another inmate's PIN number and told his cousin to "delete the call" in an effort to destroy evidence of the conversation.
“Naomi Miller was a phenomenal woman. She was kind, humble and generous. She valued family and friends and never met a stranger. My aunt was the type of person that would have given you the last dollar in her pocket. What happened to her was not fair, but I believe my aunt would forgive the people that did this to her,” said Shanna Wakefield, Miller’s niece. ”My family is so thankful for all of the hard work that law enforcement put into this investigation, and the work of the US Attorney’s Office in getting the case prosecuted. While my family knows that nothing can bring our wonderful aunt back, we find comfort knowing that the guilty individuals will be held responsible for their actions, and hope this will make others think twice before taking another innocent life.”
“Ms. Miller’s death was a senseless tragedy, and this case highlights our office’s commitment to inter-agency cooperation to achieve some measure of justice on behalf of victims’ families,” said U.S. Attorney Sayler A. Fleming. “The agencies involved in this investigation showed tireless dedication in exhausting every lead until they found the perpetrator.”
Judge Autrey has set sentencing for August 19, 2021.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, St. Louis Metropolitan Police Department, North County Police Cooperative and Major Case Squad investigated the case. Assistant United States Attorney Angie Danis is handling the case.
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St. Croix Man Who Possessed Firearm During A Drug Trafficking Offense Sentenced to 6 Years in Federal PrisonRead the Press Release
ST. CROIX, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ladislau Concepcion, Jr., age 47, was sentenced in federal court on May 18, 2021 after pleading guilty to carrying a firearm during a drug trafficking offense.
District Court Chief Judge Wilma A. Lewis sentenced Concepcion to 72 months of Federal incarceration, with credit for time served, followed by 5 years of supervised release and ordered Concepcion to pay a special assessment of $100. The firearm, which Concepcion did not have a license to possess, was ordered forfeited.
According to court documents, on March 7, 2017, Concepcion was the subject of a law enforcement-initiated traffic stop near the Golden Rock McDonald’s on St. Croix. He failed to produce a valid driver’s license, insurance, or registration for the vehicle he was operating. Subsequently, a K-9 drug detection dog alerted for the presence of narcotics in the rear of the vehicle, and a search of the vehicle resulted in the seizure of 172 grams of marijuana, 11 grams of crack cocaine, 10 grams of cocaine, empty vials, plastic baggies, a digital scale, scissors, and three cellular phones. Officers found a loaded Taurus .38 caliber handgun in the vehicle’s glove box. Concepcion, a convicted felon, did not have a license to possess the firearm, and was not permitted to possess it according to law.
The case was investigated by the U.S. Virgin Islands Police Department and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
Southwest Honkys Gang Member Sentenced to 25 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – A Fair Grove, Missouri, man who is a member of the Southwest Honkys violent prison gang was sentenced in federal court today for his role in a drug-trafficking conspiracy in which investigators intercepted a shipment of nearly 9.5 kilograms of methamphetamine.
William F. Jones, 45, was sentenced by U.S. District Judge M. Douglas Harpool to 25 years in federal prison without parole.
On May 21, 2020, Jones pleaded guilty to participating in a conspiracy to distribute methamphetamine in Christian County, Greene County, and Polk County, Missouri, from Dec. 21, 2016, to Oct. 15, 2017.
Jones was identified as a high-level member of the Southwest Honkys prison gang who had declined a top leadership role.
Jones, under the surveillance of law enforcement, drove to the Kansas City, Missouri area on Oct. 11, 2017, and checked into an Independence, Mo., hotel. A few days later, co-defendant Justin L. Rhoads, 33, of Lebanon, Mo., met Jones in the hotel’s parking lot. They put a large duffel bag in the cab of Rhoads’s pickup truck, and he left the parking lot. Rhoads was later stopped by a Missouri State Highway Patrol trooper on Missouri Highway 13, just south of Humansville, Mo. The trooper searched Rhoads’s vehicle and found 10 Ziploc-style plastic bags inside the duffel bag that contained a total of approximately 9,439 grams of methamphetamine, which was determined to be at least 93 percent pure.
Rhoads pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on Jan. 21, 2021, to 12 years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Combined Ozarks Multi-Jurisdictional Enforcement Team, the Greene County, Missouri, Sheriff’s Office, and the Missouri State Highway Patrol,
Organized Crime and Drug Enforcement Task Force
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Smithfield Sex Offender Indicted for Multiple Child Sexual Exploitation OffensesRead the Press Release
PROVIDENCE, R.I. – A registered sex offender living in Smithfield was ordered detained by a federal magistrate judge Tuesday after a federal grand jury returned an indictment charging him with multiple child sexual exploitation offenses. Mathew Hoard, 35, was charged in a five-count indictment with Attempted Enticement of A Minor to Engage in Criminal Sexual Activity; Attempted Transfer of Obscene Material to a Minor; Distribution and Possession of Child Pornography; and Committing Offenses While Required to Register as a Sex Offender.
According to court documents and information presented to the court, Hoard was convicted of possession of child pornography in Rhode Island Superior Court in 2010 and sentenced to five years of probation and required to register as a sex offender. According to information received by the National Center for Missing and Exploited Children, in February 2020 an individual uploaded child pornography to a social media application. Members of the Rhode Island State Police Internet Crimes Against Children Task Force (ICAC) traced the upload to Hoard.
Meanwhile, in a separate ICAC investigation, Hoard was allegedly communicating via a social media application with an individual he believed was a 14-year-old girl. Hoard allegedly sent obscene images to the 14-year-old; requested the 14-year-old send nude images of herself to him; said he wanted to marry her, and repeatedly asked the 14-year-old to meet for sex. Court-authorized searches discovered electronic media devices owned by Hoard that allegedly contained child pornography and other evidence related to the case.
Hoard was arrested on Tuesday by members of the ICAC and Homeland Security Investigations and was ordered detained by United States Magistrate Judge Lincoln D. Almond following an initial court appearance in U.S. District Court, announced Acting United States Attorney Richard B. Myrus.
If convicted as charged, Hoard faces a mandatory minimum sentence of at least 15 years in federal prison.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams. It was investigated by the Rhode Island Stated Police Internet Crimes Against Children Task Force with assistance from the Homeland Security Investigations.
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Six defendants charged with selling millions of dollars’ worth of psychedelic mushrooms onlineRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged six individuals with selling liquid psychedelic mushrooms online to customers all over the country, including at least one identified customer in Columbus, Ohio.
The six defendants were charged by criminal complaint in April with attempting and conspiring to manufacture, distribute and dispense controlled substances using cryptocurrencies via the dark web. The group was allegedly orchestrating millions of dollars of online drug sales.
In the indictment filed today, the defendants are charged with one count of conspiring to possess with intent to distribute a psychedelic mushroom analogue. Each of the defendants faces up to 20 years in prison.
According to court documents, between November 2013 and April 2021, co-conspirators sold liquid psychedelic mushrooms in nine milligram vials for approximately $20 each on the darknet through the moniker TRIPWITHSCIENCE.
In this case, the government seeks to forfeit the profits of the alleged drug scheme, as well as a 2016 Tesla Model-X Wagon and land in Brighton, Colorado valued at more than $1.5 million.
Those charged include:
Name
Age
Residence
James Verl Barlow
44
Las Vegas
Matthew Taylor Barlow
35
Murray, Utah
Ronald Royal Edward Brust
45
Las Vegas
Jennifer Helen Campbell
42
Murray, Utah
Monet L. Carriere
32
Las Vegas
Tony Du Phan
44
Memphis, Tenn.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Lisa B. Mendelsohn, Acting Assistant Special Agent in Charge, IRS Criminal Investigation; Keith Martin, Special Agent in Charge, DEA; Vance Callender, Special Agent in Charge, Homeland Security Investigations (HSI); Lesley C. Allison, Inspector in Charge, United States Postal Inspection Service (USPIS); and Franklin County Sheriff Dallas Baldwin announced the charges. The case was investigated by the South-Central Ohio High Intensity Drug Trafficking Area Cyber Task Force. Assistant United States Attorney Michael J. Hunter is representing the United States in this case.
An indictment is merely an allegation, and all defendants are presumed innocent unless proven guilty in a court of law.
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Sioux City Man Sentenced to Federal Prison for Repeated Unlawful Possession of FirearmsRead the Press Release
A man who illegally possessed a gun on two occasions was sentenced to seven years in federal prison.
Angelo Campbell, age 28, from Sioux City, Iowa, received the prison term after a December 16, 2020, guilty plea to two counts of possession of a firearm by an unlawful drug user and domestic abuse misdemeanant.
Evidence at Campbell’s detention, change of plea and sentencing hearings revealed he possessed two different guns on two separate occasions after having been convicted of Domestic Abuse Assault in 2014 and 2016, and while an unlawful user of methamphetamine and marijuana.
Campbell was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Campbell was sentenced to 84 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
Campbell is being held in the United States Marshal’s custody until he can be transported to a federal prison.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline
The case was investigated by the Sioux City, Iowa Police Department and the U.S. Department of Justice’s Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by Assistant United States Attorney.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-4058.
Follow us on Twitter @USAO_NDIA.
Shawnee Man Sentenced to Serve 78 Months in Federal Prison for Illegal Possession of Ammunition After Being Convicted of FeloniesRead the Press Release
OKLAHOMA CITY – Yesterday, TODD ANTHONY JOHNSON, 39, of Shawnee, was sentenced to serve 78 months in federal prison for possessing ammunition as a convicted felon, announced Acting U.S. Attorney Robert J. Troester.
On September 15, 2020, Johnson pleaded guilty to illegally possessing ammunition as a convicted felon. According to court documents, on April 23, 2019, Johnson illegally possessed 25 rounds of ammunition, three of which were found in a shotgun used to threaten his girlfriend during a domestic dispute. Prior to being found in possession of the ammunition, Johnson had been convicted of burglary in the first degree and knowingly concealing stolen property in Lincoln County. Federal law prohibits prior convicted felons from possessing firearms or ammunition.
Evidence at sentencing showed that Johnson had been subject to five protective orders. These protective orders were sought by separate women whom Johnson had threatened or abused.
Yesterday, U.S. District Judge Jodi W. Dishman sentenced Johnson to serve seventy-eight months in federal prison, followed by three years of supervised release. In imposing the sentence, Judge Dishman noted Johnson’s history of domestic violence and abuse of intimate partners. Johnson has been in custody since his arrest on the federal charges on February 20, 2020.
This sentence is the result of investigations by the United States Marshals Service, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Shawnee Police Department. Assistant U.S. Attorneys Mary E. Walters, Jason M. Harley, and Jacquelyn M. Hutzell prosecuted the case.
This case is part of "Operation 922," the Western District’s local implementation of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s initiatives to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
San Jose Man Sentenced to 20 Months for Computer Hack That Shut Down Opening Day Concession Sales at Earthquakes StadiumRead the Press Release
SAN JOSE – Salvatore A. La Rosa was sentenced today to 20 months in prison and ordered to pay $268,733 in restitution as well as a $5,000 fine for intentional damage to a protected computer, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation Special Agent in Charge Craig D. Fair. The sentence was handed down by United States District Judge Lucy H. Koh.
La Rosa, 41, of San Jose, pled guilty on February 17, 2021, to accessing without permission the Spectra Food Services and Hospitality’s (Spectra) on-line concessions management account for Earthquakes Stadium on February 29, 2020, the first home game of the San Jose Earthquakes 2020 MLS season. Spectra was the stadium’s concessions contractor, and its employees used Spectra’s mobile tablets as Point-of-Sale terminals to sell food and other items. The tablets displayed menus and payment selections from an online-based application developed for sports stadiums.
According to his plea agreement and a filing by the government for sentencing, La Rosa worked at the stadium from February 14, 2015, until Spectra terminated him from his job as Operations and Premium Services Manager on January 6, 2020. La Rosa admitted that he later logged into the administrative portal for the Earthquakes Stadium from his residence and used a password, without authority, to access Spectra’s concessions menu and payment selections. He then deleted them. The deletion caused the Point-of-Sale tablets used by Spectra’s staff to stop working during the February 29, 2020, opening day soccer match and disabled Spectra’s ability to accept credit cards. Spectra’s employees were forced to resort to handwriting orders and using calculators to complete cash transactions. The resulting delays led to lost sales from the inability to process orders and, according to the government’s filing, a devastating impact on staff due to verbal abuse from frustrated, angry customers. In some instances, Spectra had to provide free food and beverages to club members due to its inability to process credit card transactions.
On March 7, 2020, Spectra and the San Jose Earthquakes, in an attempt to regain the trust and business of customers, offered a fifty-percent discount on all concessions at that day’s game.
Spectra suffered a loss of $268,733 in damages, consisting of lost revenue, concession discounts offered at the March 7 game, employee time to repair the damage to the data, and labor costs.
On October 27, 2020, La Rosa was charged by Information with one count of Intentional Damage to a Protected Computer, in violation of 18 U.S.C. §§ 1030(a)(5)(A) and (c)(4)(B)(i), a charge to which he pleaded guilty on February 17, 2021.
United States District Judge Koh also sentenced the defendant to a three year period of supervised release. The defendant remains out of custody on bond and will begin serving the sentence on July 28, 2021.
Susan Knight is the Assistant U.S. Attorney who prosecuted the case with the assistance of legal tech Elise Etter and paralegal Rebecca Shelton. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
San Diego Man Pleads Guilty in Fentanyl Overdose DeathRead the Press Release
Assistant U. S. Attorneys Stephen H. Wong (619) 546-9464 and Mikaela L. Weber (619) 546-9734
NEWS RELEASE SUMMARY – May 19, 2021
SAN DIEGO – Tony Davis pleaded guilty in federal court today, admitting that he supplied fentanyl that led to the fatal overdose of Jacqueline Galvan, a 41-year-old San Diego woman, on October 24, 2018.
According to his plea agreement, Davis agreed to sell more than 100 grams of what he knew to be heroin in the fall of 2018, and that on October 24, 2018 he distributed heroin and fentanyl to another street-level drug dealer who in turn distributed the drugs that caused Galvan’s death.
Davis further acknowledged selling more than 100 grams of heroin to the drug dealer who was, in turn, distributing those drugs to others. Davis pleaded guilty before U.S. Magistrate Judge Linda Lopez to Distribution of Heroin and Fentanyl and Conspiracy to Distribute Heroin and is scheduled to be sentenced on August 6, 2021 by U.S. District Judge Cathy Ann Bencivengo.
DEA Narcotic Task Force Team 10 led the investigation in this case. Team 10 is a specialty unit, with investigators from HSI, FBI, San Diego Police Department, CA Department of Health Care Services and the San Diego District Attorney’s Office, that investigates overdose deaths in San Diego. Team 10 responds to the discovery of overdose victims and aggressively pursues criminal cases, up the distribution chain, against the dealers and their sources of supply.
“This case should put drug dealers and those who supply them on notice that every time we have an overdose death, law enforcement will come looking for you, because lives are at stake,” said Acting U.S. Attorney Randy Grossman. “We will not stop with the street-level dealers but will follow the supply chain as far up as necessary and will use every available criminal and civil tool to combat this deadly epidemic and stop these tragic losses.”
“This case is another example of how DEA and our law enforcement partners on Team 10 – the Overdose Response Team – are working together to put the people responsible for supplying deadly drugs in prison,” said DEA Special Agent in Charge John W. Callery. “DEA will continue to aggressively pursue both street-level dealers and their suppliers and bring justice to the families who lost a loved one to a drug overdose.”
The United States Attorney’s Office is working closely with the San Diego County District Attorney’s Office, the National City Police Department, the Drug Enforcement Administration and other federal, state and local law enforcement partners to investigate and prosecute cases targeting those who supply drugs in fatal overdose cases.
Acting U.S. Attorney Randy Grossman praised prosecutors Stephen H. Wong and Mikaela L. Weber as well as DEA Team 10 investigators for their hard work on the case.
For those who suffer from addiction, please know there is help. Call the Crisis line at 888-724-7240; it’s always open.
DEFENDANT Case Number 19-CR-0294-CAB
Tony Davis Age: 65
SUMMARY OF CHARGES
Distribution of Heroin and Fentanyl – Title 21, U.S.C., Section 841(a)(1)
Conspiracy to Distribute Heroin – Title 21, U.S.C., Section 841(a)(1) & 846
Penalties: Mandatory minimum five years in prison; maximum 40 years in prison
AGENCY
Drug Enforcement Administration
San Antonio Man Indicted for Distributing Fentanyl Resulting in DeathRead the Press Release
SAN ANTONIO – A San Antonio man stands charged with distributing a controlled substance containing fentanyl that resulted in a person’s overdose death in October of last year.
A four-count federal grand jury indictment returned this afternoon charges 27-year-old Patrick James Hall with one count of conspiracy to possess with intent to distribute fentanyl resulting in death; one count of possession with intent to distribute fentanyl resulting in death; and two counts of possession with intent to distribute fentanyl.
The indictment alleges that on October 28, 2020, the defendant possessed and sold fentanyl-laced pills to the victim who died after ingesting them. The indictment also alleges that the defendant possessed with intent to distribute fentanyl on October 26, 2020 and November 19, 2020.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Daniel C. Comeaux of the Drug Enforcement Administration’s (DEA) Houston Field Office made today’s announcement.
Upon conviction, Hall faces between 20 years and life in federal prison for the conspiracy and substantive charges alleging a result of death and up to 20 years in federal prison for each of the remaining two drug charges.
The DEA, with assistance from the San Antonio Police Department, investigated this case. Assistant U.S. Attorney Amy Marie Hail is prosecuting this case.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
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Russian Citizen Sentenced to 60 Months’ Imprisonment for Cyber Tax Fraud SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, Anton P. Bogdanov, a citizen of Russia, was sentenced by United States Chief District Judge Margo K. Brodie to 60 months’ imprisonment for wire fraud conspiracy and computer intrusions in connection with a scheme in which he and others hacked into private tax preparation firms, stole personal information, used that information to file federal tax returns and fraudulently attempted to obtain more than $1.5 million in tax refunds from the Department of the Treasury. The Court also ordered Bogdanov to pay $476,713 in forfeiture. Bogdanov was arrested in Bangkok, Thailand in November 2018, extradited to the United States in March 2019 and pleaded guilty in January 2020.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Jonathan D. Larsen, Acting Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS-CI), announced the sentence.
“Bogdanov hacked into tax preparation firms and used illegally obtained private information from innocent victims to try to steal their federal income tax refunds for his own use,” stated Acting United States Attorney Lesko. “Today’s sentence underscores the commitment of this Office to protecting the integrity of private tax return information and holding corrupt hackers like the defendant accountable for his crimes.”
“Victims in this investigation may have thought justice would be elusive when they learned Bogdanov and his cohorts were in Russia. Today's result should serve as a reminder that our reach is global, and we are laser-focused on stopping cyber criminals wherever they may try to hide,” stated FBI Assistant Director-in-Charge Sweeney.
“Bogdanov utilized sophisticated means to steal two valuable commodities, peoples personally identifiable information and funds belonging to the American Taxpayer, stated IRS-CI Special Agent-in-Charge Larsen. “IRS-Criminal Investigation will continue to work side-by-side with our law enforcement partners to identify and prosecute international cyber criminals who infiltrate our tax system for personal gain. Justice was served in today’s sentence and should serve as a warning that cyber-criminals cannot hide anonymously beyond our borders.”
Between June 2014 and November 2016, Bogdanov, who used the online moniker “Kusok,” and his co-conspirators misappropriated personally identifiable information (“PII”), such as Social Security numbers and the dates of birth of their victims, by gaining unauthorized access to the computer systems of private tax preparation firms in the United States. Bogdanov and his co-conspirators then changed the tax return information so that the refunds were paid to prepaid debit cards that they controlled. Bogdanov and his co-conspirators also used misappropriated PII to obtain prior tax filings of victims from the IRS Transcript System website, and filed new tax returns, purportedly on behalf of the victims, so that refunds were paid to prepaid debit cards under their control. The debit cards were cashed out in the United States, and a percentage of the proceeds was wired to Bogdanov in Russia.
The government’s case is being handled by the Office’s National Security and Cybercrime Section. Assistant United States Attorney Jonathan E. Algor is in charge of the prosecution.
The Justice Department’s Office of International Affairs, the FBI’s Legal Attaché abroad and foreign authorities provided critical assistance in this case. The Office extends its appreciation to the Royal Thai Police, particularly the Crime Suppression Division, and the FBI’s Legal Attaché Bangkok for their assistance in apprehending the defendant. The Office also extends its appreciation to the New York County District Attorney’s Office for their assistance in this case.
The Defendant:
ANTON P. BOGDANOV (also known as “Kusok”)
Age: 35
RussiaE.D.N.Y. Docket No. 19-CR-197 (MKB)
Readout of Attorney General Merrick B. Garland’s Call with Bill Blair, Minister of Public Safety and Emergency Preparedness of CanadaRead the Press Release
Attorney General Merrick B. Garland spoke yesterday with Bill Blair, the Minister of Public Safety and Emergency Preparedness of Canada. In their inaugural bilateral conversation, the leaders discussed their shared commitment to cooperating at the strategic level on a wide range of shared challenges and opportunities – from advancing policing and justice reform to countering the threats posed by domestic violent extremism. Attorney General Garland and Minister Blair also reaffirmed their commitment to reinvigorating the U.S./Canada Cross-Border Crime Forum as a mechanism for enhancing bilateral cooperation between the Justice Department and Public Safety Canada on common law enforcement objectives, including reducing gun violence and addressing shared narcotics threats from transnational criminal organizations.
Quapaw Man Convicted of Sexually Abusing a Native American Minor and Illegally Possessing Parts of Protected EaglesRead the Press Release
A man who portrayed himself as a Native American spiritual counselor was convicted Tuesday by a federal jury of sexually abusing a Native American minor and illegally possessing feathers, talons and heads from seven bald eagles and seven golden eagles, announced Acting U.S. Attorney Clint Johnson.
The jury found Carl Gene Ortner Jr., 57, of Quapaw, guilty of transportation with intent to engage in criminal sexual activity, sexual abuse of a child in Indian Country, abusive sexual contact in Indian Country, possession of parts of a bald eagle, and possession of parts of a golden eagle. U.S. District Judge John F. Heil III presided over the trial and set sentencing for Sept. 30, 2021.
“Carl Ortner is not a Native American spiritual counselor, as he led his community to believe. A jury this week saw Ortner for what he was – a predator who targeted a vulnerable young victim, using her Native American heritage and grief to sexually abuse her,” said Acting U.S. Attorney Clint Johnson. “During this trial, two other victims came forward and stated that Ortner also abused them. All three of these young women are to be commended for their bravery and for stopping this defendant from harming others.”
“No matter what type of crime wildlife is connected to, we will work tirelessly with our law enforcement partners for justice,” said Phillip Land, Special Agent in Charge of the Southwest Region for the U.S. Fish and Wildlife Service, Office of Law Enforcement. “These guilty verdicts send a strong message that these types of crime will not be tolerated, and we thank the U.S Attorney’s Office, the Federal Bureau of Investigation, Bureau of Indian Affairs, Oklahoma Department of Wildlife Conservation, and the Ottawa County Sheriff’s Office for their assistance with this case.”
Assistant U.S. Attorneys Shannon Cozzoni and Ryan Roberts argued that Ortner fraudulently claimed to be a Native American spiritual counselor. Assistant U.S. Attorney Cozzoni pointed out the defendant portrayed himself as an Indian, yet he had no tribal affiliation. He told several people he was a member of several Tribes, but no Tribe claimed him.
A special agent with the Fish and Wildlife Service testified that investigators discovered feathers and various parts of bald and golden eagles, including heads, talons, and entire wings, at Ortner’s residence. Native Americans consider eagles to be sacred and use the parts in cultural and religious practices. Ortner illegally possessed the feathers and parts.
Further evidence was presented showing that the defendant used his position of influence to groom the victim and force her into sexual relations with him, using her cultural beliefs and vulnerability against her. The victim also had been struggling with losing a loved one, and Ortner used the loss to further groom the victim.
In 2016, Ortner began sexually abusing the minor. While some of the abuse allegedly occurred within state jurisdiction, Ortner, who is not a tribal citizen, also abused the victim on Indian land, which falls within federal jurisdiction. Furthermore, Ortner at one point drove the victim to Joplin, Missouri, to engage in criminal sexual activity with the minor victim. Crossing state lines to engage in illegal activity falls within federal jurisdiction.
Witnesses testified that Ortner threatened to embarrass the victim and the tribe unless she said the sexual assault did not happen. Also testifying for the government were two other women who stated that Ortner also groomed them as minors and sexually abused them.
In the Government’s closing, Assistant U.S. Attorney Roberts reminded the jury that all three women, who did not know one another, had made similar statements in court. They were vulnerable minors when the sexual abuse occurred. Several had experienced recent deaths of loved ones, which Ortner exploited. Ortner would also buy them lingerie and use the same term to describe the undergarments. Roberts called Ortner a wolf in sheep’s clothing, stating that he disguised himself as a caring Native American elder to get close to the victims. Then when the time was right, Ortner attacked.
The jury took less than two hours to deliberate before coming back with guilty verdicts on all five counts.
The U.S. Fish & Wildlife Service Office of Law Enforcement, Oklahoma Department of Wildlife Conservation, Ottawa County Sheriff’s Department, FBI, and the Bureau of Indian Affairs conducted the investigation. Assistant U.S. Attorneys Ryan Roberts and Shannon Cozzoni prosecuted the case.
Pittsburgh Felon Indicted on Gun ChargeRead the Press Release
PITTSBURGH, PA. - One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Fred Marshall, 41, as the sole defendant.
According to the Indictment, on August 21, 2020, Marshall is alleged to have possessed a firearm and ammunition as a convicted felon.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Douglas C. Maloney is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, and Firearms, the Drug Enforcement Administration, and the Pittsburgh Bureau of Police conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Philadelphia Electrical Contractor Sentenced to Two Years on Charges of Tax Fraud and Theft of Employee BenefitsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Donald Dougherty, 55, of Philadelphia, PA, was sentenced to two years in prison, one year of supervised release, and was ordered to pay approximately $358,000 in restitution and a $125,000 fine by United States District Judge Michael M. Baylson for filing a false income tax return and theft from an employee benefit plan.
In January 2021, the defendant pleaded guilty to the charges, which arose from his ownership of Dougherty Electric Incorporated (DEI), an electrical contracting firm located in Philadelphia. The false income tax return charge related to Dougherty’s diversion of DEI resources for his personal benefit. In 2015, he used the resources of DEI to pay for $237,100 in personal expenditures, including a Dougherty family vacation at the Ritz Carlton Hotel in Miami; repairs to his home; condominium association fees for his wife’s New Jersey condominium; expenses for beer delivery; and $25,000 transferred from the DEI operating account and deposited into the defendant’s personal account. Dougherty failed to report the receipt of these benefits on his personal income tax return for 2015.
The charge of theft from an employee benefit plan resulted from Dougherty’s failure to pay benefits over to a labor benefit plan as required by a collective bargaining agreement between the national Electrical Contractors Associations and International Brotherhood of Electrical Workers (IBEW) Local 5 in Pittsburgh. The agreement required DEI to file payroll and remittance reports with Local 5 that identified DEI employees working in Pittsburgh, the hours worked, the wages they earned, and to then make corresponding contributions to the Local 5 benefit plans. Dougherty skirted around the agreement by using non-union labor to work on a contract project in Pittsburgh. He concealed his use of non-union labor by using his brother’s pass-through company to pay non-union electrical workers on DEI’s Pittsburgh projects. The deception enabled him to avoid making total contributions of $266,000 to Local 5’s benefit fund.
“Donald Dougherty’s schemes to enrich himself backfired, and now he has received a just punishment as the consequence of his actions,” said Acting U.S. Attorney Williams. “This is an important reminder for those who might consider filing false returns: the government is very good at detecting this type of fraud – and you will be found out and prosecuted.”
“Mr. Dougherty not only stole from the Government, he put his own interests ahead of honest and hard-working union members,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Such greed and corruption cannot go unchecked. The FBI is committed to working with our law enforcement partners to protect the Government’s resources and dedicated laborers everywhere.”
“Today’s sentence sends a clear message that the laws of the land apply to everyone,” said IRS Criminal Investigation Special Agent in Charge Thomas Fattorusso. “No matter who you are, it is unacceptable to purposely underreport your income. If you intentionally file fraudulent tax returns, your status will not protect you from federal prosecution.”
“The U.S. Department of Labor, Employee Benefits Security Administration, will pursue to the fullest extent of the law those who unlawfully profit by failing to make required contributions to employee benefit plans,” said Michael Schloss, Regional Director of EBSA’s Philadelphia Regional Office.
The case was investigated by the FBI, IRS Criminal Investigations Unit, and the Employee Benefits Security Administration of the U.S. Department of Labor, and is being prosecuted by Assistant United States Attorney Richard P. Barrett and Frank Costello.
Owner of Wedding Planning Company Pleads Guilty to COVID-19 Relief FraudRead the Press Release
PLANO, Texas – A Murphy, Texas, man, pleaded guilty today to filing fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Fahad Shah, 44, admitted that he sought over $3 million in PPP loans from two different SBA-approved lenders. In the first application submitted to one lender, Shah sought over $1.7 million in PPP loan proceeds by fraudulently claiming that his company, WBF Weddings by Farah Inc. (WBF), employed 126 individuals with an average monthly payroll of over $700,000. In the second application, Shah sought over $1.5 million in PPP loan proceeds by fraudulently claiming that WBF had 126 employees with an average monthly payroll of over $600,000. According to court documents, WBF had only two employees. In connection with both PPP loan applications, Shah submitted fraudulent Employer’s Quarterly Federal Tax Return (IRS Form 941) documents for 2019.
“PPP loans were intended to help businesses keep themselves and their employees afloat during the COVID-19 pandemic,” said Acting U.S. Attorney Nicholas J. Ganjei. “PPP loans were not, and never were, intended to serve as personal loans for personal use. By applying and qualifying for PPP funds on fraudulent grounds, Fahad Shah took advantage of the COVID-19 economic crisis to enrich himself and his family. By seeking a loan that he should not have received, Shah helped to deplete the amount of funds available to all potential legitimate borrowers who really needed financial support. This plea shows that the Eastern District of Texas is dedicated to pursuing fraudsters and ensuring they do not benefit from their crimes.”
Shah admitted that he obtained over $1.5 million in PPP loan proceeds. Within days of receiving the PPP funds, Shah used over $1 million in fraudulently obtained proceeds to pay off his home mortgage, purchase securities through his personal investment account, and buy two Teslas, two Freightliner trucks, and a Mercedes Benz van.
Shah was indicted by a federal grand jury on June 18, 2020, and pleaded guilty to wire fraud today. Under federal statutes, Shah faces up to 20 years in federal prison. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
Acting U.S. Attorney Nicholas Ganjei of the U.S. Attorney’s Office for the Eastern District of Texas; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge Amaleka McCall-Brathwaite of the U.S. Small Business Administration – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – Office of Inspector General (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – Office of Inspector General (FDIC-OIG); Acting Special Agent in Charge Mark Pearson of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA are investigating the case.
Assistant U.S. Attorneys Frank Coan and Robert Wells of the Eastern District of Texas and Trial Attorneys Della Sentilles and Louis Manzo of the Justice Department’s Fraud Section are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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Owner of Wedding Planning Company Pleads Guilty to COVID-19 Relief FraudRead the Press Release
A Texas man pleaded guilty today to filing fraudulent loan applications seeking more than $3 million in forgivable Paycheck Protection Program (PPP) loans guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
According to court documents, Fahad Shah, 44, of Murphy, admitted that he sought over $3 million in PPP loans from two different SBA-approved lenders. In the first application submitted to one lender, Shah sought over $1.7 million in PPP loan proceeds by fraudulently claiming that his company, WBF Weddings by Farah Inc. (WBF), employed 126 individuals with an average monthly payroll of over $700,000. In the second application, Shah sought over $1.5 million in PPP loan proceeds by fraudulently claiming that WBF had 126 employees with an average monthly payroll of over $600,000. According to court documents, WBF had only two employees. In connection with both PPP loan applications, Shah submitted fraudulent Employer’s Quarterly Federal Tax Return (IRS Form 941) documents for 2019.
Shah admitted that he obtained over $1.5 million in PPP loan proceeds. Within days of receiving the PPP funds, Shah used over $1 million in fraudulently obtained proceeds to pay off his home mortgage, purchase securities through his personal investment account, and buy two Teslas, two Freightliner trucks, and a Mercedes Benz van.
Shah pleaded guilty to one count of wire fraud. He is scheduled to be sentenced at a future date and faces a maximum sentence of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Nicholas Ganjei of the U.S. Attorney’s Office for the Eastern District of Texas; Special Agent in Charge Amaleka McCall-Brathwaite of the SBA – Office of Inspector General (SBA-OIG); Special Agent in Charge Catherine Huber of the Federal Housing Finance Agency – OIG (FHFA-OIG); Inspector General Jay N. Lerner of the Federal Deposit Insurance Corporation – OIG (FDIC-OIG); Acting Special Agent in Charge Mark Pearson of the IRS Criminal Investigation (IRS-CI) Dallas Field Office; and Inspector General J. Russell George of the Treasury Inspector General for Tax Administration (TIGTA) made the announcement.
The SBA-OIG, FHFA-OIG, FDIC-OIG, IRS-CI, and TIGTA are investigating the case.
Trial Attorneys Della Sentilles and Louis Manzo of the Justice Department’s Fraud Section and Assistant U.S. Attorneys Frank Coan and Robert Wells of the U.S. Attorney’s Office for the Eastern District of Texas are prosecuting the case.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal to be forgiven if businesses spend the proceeds on these expenses within a set time period and use at least a certain percentage of the loan towards payroll expenses.
The Fraud Section leads the department’s prosecution of fraud schemes that exploit the PPP. In the months since the CARES Act passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $60 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/ppp-fraud.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Omaha Felon Sentenced to 37 Months for Possessing a FirearmRead the Press Release
Acting United States Attorney Jan Sharp announced that Willie L. Hill, 47, of Omaha, Nebraska, was sentenced today in federal court in Omaha for being a felon in possession of a firearm. United States District Judge Brian C. Buescher sentenced Hill to a term of incarceration of 37 months. There is no parole in the federal system. After his release from prison, he will begin a 3-year term of supervised release.
On March 1, 2020, the Omaha Police Department (OPD) Gang Unit received information that Hill, a wanted fugitive, could be located at a motel on Dodge Street in Omaha. Police responded and observed several persons present, moving between two rooms. Officers had also received information that firearms and drugs were present. Officers converged to arrest Hill, who was among the people moving between rooms.
Hill was detained on an outside balcony and searched by an OPD Sergeant who recovered a .25 caliber Phoenix P51 handgun from Hill’s jacket pocket. Hill was arrested when a data check showed he had previously been convicted of several crimes in the District Court of Douglas County, Nebraska. Hill has been convicted of Tampering with a Juror, Witness, or Informant (2018), Burglary (2011), and Theft by Shoplifting (2013), all felonies which may result in imprisonment in excess of one year.
This case was part of Project Safe Neighborhood (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was primarily investigated by the Omaha Police Department Gang Unit.
Ohio man sentenced for role in drug trafficking operationRead the Press Release
WHEELING, WEST VIRGINIA – Larry Cuffman, of Martins Ferry, Ohio, was sentenced today to 10 months of incarceration for his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Cuffman, also known as “Pops,” age 60, pled guilty in March 2021 to one count of “Aiding and Abetting the Distribution of Cocaine Base.” Cuffman admitted to selling cocaine base, also known as “crack,” in June 2020 in Ohio County.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Original case indictment here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
Ohio Man Sentenced to More than Seven Years in Federal Prison for Wire FraudRead the Press Release
CHARLESTON, W.Va. – Ricky V. McLaughlin, 63, of Belpre, Ohio was sentenced to 87 months in prison for wire fraud. He was also ordered to pay over $700,000 in restitution.
According to court documents, McLaughlin operated the McLaughlin Motor Car Museum located in Parkersburg. For more than four years, McLaughlin stole money and defrauded 17 customers of more than $1 million through a wire fraud scheme. McLaughlin sold collector cars, including various Pontiac Trans Am classic cars to individuals. Also, some customers sold their collector cars to McLaughlin for restoration and other customers bought collector cars from McLaughlin and the Motor Car Museum and then ask him to resell these collector cars at a later date on consignment. During his fraud scheme, McLaughlin would sometimes sell individuals Pontiac Trans Am classic cars but refused to provide the customers with either the titles to the vehicles or the vehicles themselves. At times, McLaughlin would sell the same Pontiac Trans Am to multiple customers, while at other times, McLaughlin would sell the Pontiac Trans Am cars on consignment but refused to send the sale proceeds of the collector cars to the car owners.
Acting United States Lisa G. Johnston made the announcement and commended the investigative work of the Parkersburg Police Department. Assistant United States Attorney Kathleen Robeson is handling the prosecution.
United States District Court Judge Irene C. Berger imposed the sentence.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00182.
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North Fort Myers Man Sentenced to More Than 19 Years in Prison for Distribution of MethamphetamineRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Polster Chappell has sentenced Chester “Chet” Risco (36, North Fort Myers) to 19 years and 7 months in federal prison for distributing methamphetamine. Risco had pleaded guilty to four counts of distributing the drug on September 1, 2020.
According to court documents, the Lee County Sheriff’s Office and the FBI began investigating Risco after receiving a tip that he had been distributing large amounts of methamphetamine in and around North Fort Myers. During the summer of 2019, a confidential informant working at the direction of law enforcement purchased 100% pure methamphetamine from Risco on four occasions. Further investigation revealed the scope of Risco’s drug dealing activities, which involved selling multiple ounces of methamphetamine and fentanyl weekly in Lee County until his arrest in March 2020.
This case was investigated by the Federal Bureau of Investigation and the Lee County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Michael V. Leeman.
New York Men Charged with Mortgage Fraud Offenses Related to Loan for Hartford Apartment BuildingsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JACOB DEUTSCH, 56, of Brooklyn, New York, and ARON DEUTSCH, 60, of Monsey, New York, were arrested today on federal conspiracy, fraud and false statement offenses related to a mortgage fraud scheme involving a loan for two Hartford properties.
As alleged in court documents, Jacob and Aron Deutsch work at B H Property Management, LLC (“BHPM”), a property management company that manages several multifamily housing properties in Hartford. Jacob Deutsch has been responsible for the day-to-day operations of BHPM, and Aron Deutsch has coordinated maintenance and construction activities for the housing properties managed by BHPM. In April 2017, the Deutsches and others, through an entity known as 16 53 Evergreen Avenue LLC (“Evergreen LLC”), purchased two Hartford properties, 16 Evergreen Avenue, a 24-unit housing property, and 53 Evergreen Avenue, a 12-unit housing property, for a total of approximately $1.8 million.
It is alleged that the Deutsches defrauded CBRE Capital Markets, Inc. (“CBRE”), a mortgage origination and servicing company, and the Federal Home Loan Mortgage Corporation (“Freddie Mac”), when applying for, and ultimately acquiring, a mortgage loan for Evergreen LLC to refinance the purchase of the two Hartford properties. The loan application documents contained numerous misrepresentations about 16 Evergreen Avenue’s occupancy rate and net operating income. For instance, a rent roll and income and expense summary submitted by Jacob Deutsch in June 2018 falsely represented that 16 Evergreen Avenue was 100 percent occupied when, in fact, not a single tenant resided there at the time. Based on these misrepresentations, in August 2018, CBRE underwrote a Freddie Mac Small Balance Loan for $2,178,000 secured by 16 Evergreen Avenue and 53 Evergreen Avenue, and then immediately sold that loan to Freddie Mac at closing.
Jacob and Aron Deutsch are each charged by criminal complaint with conspiracy to commit mail and wire fraud, wire fraud, mail fraud, and making false statements. After they appeared today via videoconference before U.S. Magistrate Judge Thomas O. Farrish, Jacob Deutsch was released on a $50,000 bond and Aron Deutsch was released on a $100,000 bond.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the U.S. Postal Inspection Service and the Federal Housing Finance Agency’s Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorneys Heather Cherry and Sarah Gruber.
Monmouth County Man Admits Possessing with Intent to Distribute More Than 40 Grams of FentanylRead the Press Release
TRENTON, N.J. – A Monmouth County, New Jersey, man today admitted possessing with the intent to distribute more than 40 grams of fentanyl, Acting U.S. Attorney Rachael A. Honig announced.
Derrick Norwood, 58, of Neptune, New Jersey, pleaded guilty by videoconference before U.S. District Judge Anne E. Thompson to an information charging him with one count of possession with intent to distribute more than 40 grams of fentanyl.
According to documents filed in this case and statements made in court:
On July 18, 2019, Norwood knowingly possessed 39 bricks, or 1,982 individual glassine bags, of heroin mixed with fentanyl inside a safe in his residence in Neptune. Norwood admitted that he possessed the heroin-fentanyl mixture for the purpose of distributing it to others in and around Monmouth County.
The charge of possession with intent to distribute more than 40 grams of fentanyl carries a statutory mandatory minimum term of five years in prison, a maximum of 40 years in prison, and a fine up to $5 million. Sentencing is scheduled for Sept. 23, 2021.
Acting U.S. Attorney Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson, and detectives from the Monmouth County Prosecutor’s Office, under the direction of Prosecutor Christopher J. Gramiccioni, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Ian D. Brater of the Criminal Division in Trenton.
Missouri and Tennessee Residents Charged with Distribution of Child Pornography as Part of Operation Kick BoxerRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 18, 2021, a federal grand jury handed down an indictment alleging that Joshua A. Gama (age: 35) of Bridgeton, Missouri, distributed child pornography in violation of Title 18, United States Code, Section 2252A(a)(2)(A).
Later that morning, the same grand jury handed down a separate indictment alleging that David J. Dexter (age: 43) of Lebanon, Tennessee, also distributed child pornography in violation of federal law.
Gama is charged with two counts of distributing child pornography. Dexter is charged with a single count of distribution. Each count carries a mandatory minimum sentence of five years and up to 20 years of incarceration in federal prison upon conviction.
Each man’s indictment is a direct result of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office https://go.usa.gov/xHzJp.
Both Gama and Dexter utilized a popular internet messaging platform to access chat rooms in which they each are alleged to have distributed child pornography. Each man was investigated separately and there is no known connection between the two.
These cases were investigated by the Federal Bureau of Investigation’s Milwaukee, Green Bay, Memphis, Nashville, and St. Louis Offices, as well as the Winnebago County Sheriff’s Office. They will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. Each defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Mexican Man Sentenced to 180 Months for Methamphetamine ConspiracyRead the Press Release
Acting United States Attorney Jan Sharp announced that Luis Galvan-Borbolla, 37, of Mexico, was sentenced in federal court in Omaha, Nebraska, on May 17, 2021 by Senior United States District Judge Joseph F. Bataillon for distribution of 500 grams or more of methamphetamine. Galvan-Borbolla received a sentence of 180 months with a five-year term of supervised release to follow. There is no parole in the federal system.
On June 25, 2020, special agents with the Drug Enforcement Administration were monitoring Galvan-Borbolla and Ignacio Palma after receiving information that both were involved in the distribution of methamphetamine. Palma was followed from his residence to the Element Hotel. Palma was confronted by special agents at the Element Hotel and was in possession of 5 pounds of methamphetamine.
While special agents had Palma detained, Galvan-Borbolla arrived in the parking garage of the Element Hotel. When contact was made with Galvan-Borbolla, he admitted that he was supposed to meet Palma to receive the methamphetamine. Galvan-Borbolla was in possession of $10,733 and a 9mm rifle that was located in the vehicle in which he arrived.
Palma has plead guilty to the methamphetamine conspiracy with sentencing scheduled on June 14, 2021, in Omaha, Nebraska.
This case was investigated by the DEA, Omaha Police Department, and the Nebraska State Patrol.
Metropolitan Police Department Employee Sentenced for Accepting More than $40,000 in Cash Bribes in Exchange for Personal Identifying Information of Traffic Crash VictimsRead the Press Release
WASHINGTON – Aaron Willis, 38, of Maryland, was sentenced today to a term of 36 months’ probation, 6 months’ of intermittent incarceration and six months’ home confinement for accepting more than $40,000 in bribes in exchange for unlawfully providing information contained in non-public police paperwork identifying individuals involved in traffic accidents, announced Channing D. Phillips, Acting U.S. Attorney of the U.S. Attorney’s Office for the District of Columbia and James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division.
Willis pled guilty in October 2018, in U.S. District Court for the District of Columbia, to one count of bribery of a public official. He was sentenced by U.S. District Judge Emmet G. Sullivan.
According to the government’s evidence, dating back to at least 2015, Willis, a Customer Service Representative with Metropolitan Police Department (MPD), conspired with two independent “runners” who worked, in return for referral fees, to connect people in need of legal representation or medical services with providers of those services. Willis used his official position to obtain MPD Traffic Accident Reports, or “PD Form 10s,” which contained the names and contact information of individuals involved in traffic accidents. Beginning in 2015, however, MPD General Order 401.03 limited the distribution of these reports to individuals involved in traffic accidents and their representatives. Willis admitted that, beginning at that time and continuing into 2017, he accepted cash bribes in the amount of $80 per week from one “runner and $80 to $200 per week from another “runner” to violate the General Order and provide the confidential reports, which they used to contact and solicit potential clients. Between June and October 2017, alone, Willis accessed approximately traffic accident reports 28,252 times and exported these reports more than 12,206 times. Over the two years he engaged in the scheme, Willis received more than $40,000.
In announcing the sentence, Acting U.S. Attorney Channing D. Phillips commended the work of those who assisted the case from the FBI’s Washington Field Office and MPD’s Internal Affairs Division. He also acknowledged the work of those who handled the case at the U.S. Attorney’s Office, Public Corruption and Civil Rights Section, including Assistant U.S. Attorney Joshua S. Rothstein and Veronica Sanchez, who prosecuted the case.
Meth trafficker sentenced to 10 years in prisonRead the Press Release
MISSOULA – A Billings man who admitted selling methamphetamine in parking lot deals from his BMW or Range Rover was sentenced today to 10 years in prison and to five years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Todd William Weidler, 52, pleaded guilty on Jan. 5 to conspiracy to possess with intent to distribute meth.
U.S. District Judge Dana L. Christensen presided.
In court documents filed in the case, the government alleged that in July 2019, law enforcement learned that Crossroads Correction Center inmate, James McPhail, a co-defendant, was in contact with Weidler and another co-defendant, Angie Krogstad, to arrange for Krogstad to deliver meth to Weidler in Billings. Krogstad was picking up meth in California for delivery to Weidler. Investigators also learned that Weidler always had meth on hand, could usually sell ounces in a matter of minutes and conducted all of his business from his BMW or Range Rover in parking lots.
The government further alleged that in August 2019 outside of Three Forks, law enforcement intercepted Krogstad, who had about two pounds of meth she was bringing to Weidler. In September 2019, law enforcement conducted searches of Weidler’s residence, vehicles and storage units and recovered meth and approximately $11,900 in currency. Law enforcement estimated Weidler distributed at least 1,153.3 grams, or about 2.5 pounds, which is the equivalent of about 9,060 doses. Krogstad and McPhail have pleaded guilty and are awaiting sentencing.
Assistant U.S. Attorney Jennifer S. Clark prosecuted the case, which was investigated by the Montana Department of Corrections, Eastern Montana High Intensity Drug Trafficking Area Task Force and the Drug Enforcement Administration.
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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Mercer County Man Admits Interfering with Law Enforcement Officers During Civil DisorderRead the Press Release
TRENTON, N.J. – A Mercer County, New Jersey, man today admitted attempting to interfere with law enforcement officers during a civil disorder when he attempted to set fire to a police vehicle during a riot in the City of Trenton, Acting U.S. Attorney Rachael A. Honig announced.
Kadeem A. Dockery, 29, of Trenton, pleaded guilty before U.S. District Judge Brian R. Martinotti to an information charging him with one count of attempting to obstruct, impede, or interfere with law enforcement officers during a civil disorder affecting commerce.
According to documents filed in this case and statements made in court:
On May 31, 2020, large-scale protests were held throughout the United States, including in Trenton, in response to the death of George Floyd. Although the protest in Trenton was peaceful earlier in the day, violence erupted later. A group of individuals proceeded down East State Street in downtown Trenton and began to riot, smashing store fronts, looting stores, and attacking multiple marked Trenton Police Department vehicles parked on the 100 Block of East State Street.
A City of Trenton street camera and other video footage taken by an individual present on the street captured Dockery light an explosive device and throw it through the open front driver’s side window of a Trenton Police Department vehicle. Dockery then removed his shirt and handed it to Killian Melecio, who then attempted to stuff the shirt in the gas tank of the police vehicle and ignite it. Melecio was then assisted by Justin Spry in attempting to set fire to the police vehicle. Spry was arrested on scene, but Dockery and Melecio fled. Law enforcement later identified Dockery and Melecio through analysis of street camera and other video footage. They were arrested on Aug. 5, 2020.
The charge of attempting to interfere with law enforcement officers during a civil disorder – to which Dockery, Spry and Melecio have now pleaded guilty – carries a maximum penalty of five years in prison and a maximum fine of $250,000. Sentencing is scheduled for Sept. 21, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI and task force officers of the Joint Terrorism Task Force in Newark, under the direction of Special Agent in Charge George M. Crouch Jr., with the investigation leading to today’s guilty plea. She also thanked officers of the Trenton Police Department, under the direction of Police Director Sheilah Coley; troopers of the New Jersey State Police, under the direction of Col. Patrick J. Callahan; and officers of the New Jersey Department of Corrections, under the direction of Commissioner Marcus O. Hicks, for their assistance.
The government is represented by Assistant U.S. Attorneys Alexander E. Ramey and Michelle S. Gasparian of the U.S. Attorney’s Office’s Criminal Division in Trenton.
Manchester Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Francis Harrington, 38, of Manchester, pleaded guilty in federal court on Tuesday to possession of fentanyl with intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on August 22, 2019, a Manchester police officer responded to a report of two males “passed out” in a parked vehicle at a restaurant. Harrington was the passenger in the vehicle. After being engaged by medical personnel, the officer observed Harrington moving slowly and reaching around the console and floor area of the vehicle. Harrington was ordered out of the vehicle and to put his hands on his head. The officer performed a protective pat search and located a large bulge in the waistband of Harrington’s pants. When the officer asked Harrington about the object, Harrington replied “drugs.” The officer then removed the object, which was a bag containing 198 grams of fentanyl. He was arrested at the scene.
Harrington is scheduled to be sentenced on August 26, 2021.
“Fentanyl traffickers continue to pose a serious threat to public health and safety in New Hampshire,” said Acting U.S. Attorney Farley. “Through Operation SOS, we are targeting the drug dealers who are endangering the public by selling this very dangerous substance. I am grateful to the Manchester Police for preventing this significant amount of fentanyl from jeopardizing lives in the Queen City.”
This matter was investigated by the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Joachim H. Barth.
This case is part of Operation Synthetic Opioid Surge (S.O.S.). In July of 2018, Attorney General Jeff Sessions announced the creation of S.O.S., which is being implemented in the District of New Hampshire and nine other federal districts. The goal of S.O.S. is to combat the large number of overdoses and deaths associated with fentanyl and other synthetic opioids. In New Hampshire, the U.S. Attorney’s Office is focusing its efforts on prosecuting synthetic opioid trafficking cases arising in Hillsborough County, which includes Manchester and Nashua.
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Manager of Pain Clinic, Her Boyfriend, and Customers Facing Federal Charges for a Drug Distribution ConspiracyRead the Press Release
Baltimore, Maryland – A criminal complaint has been filed charging the manager of a pain clinic, her boyfriend, and several customers with conspiracy to distribute controlled substances, including oxycodone and oxymorphone. The defendants charged in the criminal complaint are:
Monica Raynette Clark age 31, of Waldorf, Maryland;
Michael Tyrone Scott III age 28, of Waldorf, Maryland;
Larry Nathaniel Waller age 48, of Williamson, West Virginia;
Mildred Taylor age 67, of Stephenson, West Virginia;
Jason James Johnson age 41, of Kermit, West Virginia; and
Lisa Ann Lewis age 41, of Smithsburg, Maryland.The complaint was filed on May 17, 2021 and unsealed today upon the arrest of five defendants. The sixth defendant, Larry Nathanial Waller, is in West Virginia state custody on pending charges.
The criminal complaint was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office Criminal Division; and Special Agent in Charge Maureen Dixon of the Department of Health and Human Services, Office of the Inspector General (HHS-OIG).
“State and federal authorities are working to shut down ‘pain clinics’ that are really just fronts for criminals who divert pharmaceutical drugs and hook a new generation of addicts” said Acting U.S. Attorney Jonathan F. Lenzner. “Those who irresponsibly write opioid prescriptions are acting like street-corner drug pushers. We are determined to reduce the number of opioid overdose deaths here in Maryland.”
“The operation of a drug trafficking network peddling prescription drugs for profit under the guise of a medical practice not only violates the law, it undermines the public confidence in the healthcare profession,” said James A. Dawson, Special Agent in Charge of the FBI's Washington Field Office Criminal Division. “The FBI and our partners will continue to combat the illegal distribution of opioids, at all levels, through our investigations of those who seek to profit from this activity.”
According to the affidavit filed in support of the criminal complaint, law enforcement obtained evidence that drug trafficking was occurring at two pain clinics—Memorial Care Center, located in Woodbridge, Virginia (“Memorial Care”) and Washington DC Spine Center (“WDC Spine”), which closed in August 2019. Clark was employed as the office manager of Memorial Care and was previously the office manager of WDC Spine. Clark was not a physician and did not have a Drug Enforcement Administration (“DEA”) registration number. The criminal complaint alleges that, since Clark was not authorized to prescribe controlled substances, she forged prescriptions for opioids using prescription pads from the clinics’ doctors, then illegally sold the forged opioid prescriptions to opioid users and diverters, including customers who live in Maryland, Virginia, and West Virginia, such as Waller, Taylor, Johnson, and Lewis. Clark is allegedly in a romantic relationship with Scott, who assists Clark in selling the forged prescriptions.
As detailed in the criminal complaint affidavit, investigation revealed that Waller, Johnson, Taylor, and Lewis are customers of Clark who purchase opioid prescriptions for themselves and for others. Law enforcement allegedly discovered text messages between Clark and Waller, Johnson, Taylor, and Lewis arranging for the purchase of forged opioid prescriptions. For example, the complaint alleges that from July 2019 to April 2021, more than 40 prescriptions were filled in Johnson’s name that were purportedly signed under the name of a Memorial Care and/or WDC Spine doctor.
The affidavit alleges that in an effort to evade scrutiny by law enforcement, Clark used several different phones to sell prescriptions and instructed customers to use specific pharmacies to fill prescriptions. For example, Clark allegedly advised Taylor to fill prescriptions at a pharmacy “in Woodbridge… as long as everybody has a West Virginia ID or Virginia ID” as Clark was purportedly aware that pharmacies had begun to refuse opioid prescriptions from Memorial Care. The criminal complaint further alleges this was in relation to an order of prescriptions for more than 20 individuals.
The criminal complaint further alleges that Clark instructed an undercover agent to claim a fictious work injury in order to receive a professional recommendation for opioid use. For example, Clark allegedly stated “When you get a free second, go to the emergency room. Tell them you had an accident at work… tell them you are having numbness and tingling in your leg and your foot. That warrants.” Further, the complaint alleges that Clark later arranged to sell forged prescriptions to the undercover agent. Clark and the undercover agent exchanged conversations in which Clark details meeting dates and times, the price for forged prescriptions, and a deviance in sales methodology as clients began to be compromised by police.
If convicted, the defendants face a maximum sentence of 20 years in federal prison for conspiracy to distribute controlled substances. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
The overdose crisis continues to devastate our states and local communities. If you believe you may need substance use disorder treatment or recovery services, please call 1800-662-HELP (4357). You may also visit the United States Attorney’s Office for the District of Maryland for further information and resources on opioid awareness at /media/1138691/dl?inline.
This case is also part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Acting United States Attorney Jonathan F. Lenzner commended the FBI and HHS-OIG for their work in the investigation and thanked Defense Criminal Investigative Service, the Drug Enforcement Administration, IRS Criminal Investigation, the Office of Personnel Management-Office of Inspector General, the Prince William County Police Department, the Fairfax County Police Department, the Virginia State Police, and the West Virginia State Police for their assistance. Mr. Lenzner thanked Assistant U.S. Attorney Jessica Collins who is prosecuting the case.
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Man Traveling from Georgia to St. Croix Arrested on Federal Charges for Marijuana in LuggageRead the Press Release
St. Croix, USVI – United States Attorney Gretchen C.F. Shappert announced today that Ra’Kheel Velasquez of Georgia was arrested May 14, 2021 on a warrant signed by District Court Magistrate Judge George W. Cannon, Jr. for the charges of Possession of a Controlled Substance With the Intent to Distribute and Possession of Marijuana with Intent to Distribute by Person on Board Aircraft.
According to court documents, Velasquez, age 23, is accused of traveling on March 10, 2021 to St. Croix, U.S. Virgin Islands from Georgia with approximately four pounds of marijuana in his luggage.
Per the affidavit in support of criminal complaint, Homeland Security Investigations Special Agents were contacted March 10, 2021 by Customs and Border Protection (CBP) officers regarding an in inbound airline passenger in possession of approximately four pounds of marijuana at the Henry E. Rohlsen Airport. CBP officers conducted a physical examination of a large red suitcase, later claimed by Velasquez, and discovered suspected marijuana which weighed approximately 1.76 kilograms. The suspected marijuana was field tested by CBP officers and yielded a positive result for marijuana.
Per the affidavit, Velasquez informed CBP that he had about four (4) pounds of marijuana in the bag, which he brought from Atlanta and planned to sell on St. Croix, since he heard that the marijuana prices were higher in the USVI. In addition, agents said Velasquez told them he traveled to St. Croix to attend a family member’s funeral.
An initial appearance and bond hearing occurred on Saturday, May 15, 2021 with a preliminary hearing to be scheduled by the court.
The case is being investigated by U.S. Customs and Border Protection and Homeland Security Investigations. It is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.
United States Attorney Gretchen C.F. Shappert reminds the public that a criminal complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Man Pleads Guilty to Attempted Robbery of ATMRead the Press Release
NEW ORLEANS, LOUISIANA – TYRIK SCOTT, age 20, a resident of Chalmette, pled guilty on May 18, 2021 to conspiracy to commit bank larceny, announced U.S. Attorney Duane A. Evans. SCOTT faces a maximum term of imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Sentencing is scheduled for September 8, 2021 before the Honorable Susie Morgan.
According to court records, on or about February 5, 2020, SCOTT and others attempted to break into an ATM located in the drive-through of a Capital One Bank using sledgehammers, crowbars, chains, and a truck. Just prior to this robbery attempt, SCOTT and others were observed in the same truck attempting to break into an ATM at Hancock Whitney Bank.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
Man Pleads Guilty to Attempted Robbery of ATMRead the Press Release
NEW ORLEANS, LOUISIANA – BRISHUN GARY, age 19, a resident of New Orleans, pled guilty on May 17, 2021 to conspiracy to commit bank larceny, announced U.S. Attorney Duane A. Evans. GARY faces a maximum term of imprisonment of 5 years, a $250,000 fine, 3 years of supervised release, and a $100 special assessment. Sentencing is scheduled for September 8, 2021 before the Honorable Susie Morgan.
According to court records, on or about February 5, 2020, GARY and others attempted to break into an ATM located in the drive-through of a Capital One Bank using sledgehammers, crowbars, chains, and a truck. Just prior to this robbery attempt, GARY and others were observed in the same truck attempting to break into an ATM at Hancock Whitney Bank.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation and the New Orleans Police Department in investigating this matter. The prosecution of this case is being handled by Assistant U. S. Attorney G. Dall Kammer, Chief of the General Crimes Unit.
Jury convicts Billings woman of illegal possession of firearmRead the Press Release
BILLINGS – A federal jury convicted a Billings woman on Tuesday for illegally possessing a firearm that was pawned in Billings, Acting U.S. Attorney Leif M. Johnson said today.
After a two-day trial that began on May 17, a jury found Kaycee Nicole Kolka, 26, guilty of being a prohibited person in possession of a firearm as charged in an indictment. Kolka faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Susan P. Watters presided. Judge Watters set sentencing for Sept. 22 and ordered Kolka detained pending further proceedings.
“Felons who possess firearms are a threat to community safety and will be held responsible. I want to thank Assistant U.S. Attorneys Julie R. Patten and Thomas K. Godfrey and the Bureau of Alcohol, Tobacco, Firearms and Explosives for investigating and prosecuting this case,” Acting U.S. Attorney Johnson said.
In court documents and at trial, the government presented evidence alleging that in November 2018, Kolka was sentenced for a felony in Powder River County and acknowledged she was prohibited from possessing firearms. The government alleged that on Jan. 19. 2020, Kolka pawned a 9 mm revolver, which had been reported stolen in November 2018, at a Billings pawn shop. The pawn shop provided a pawn slip signed by Kolka, who declared she owned the gun. The government further alleged that Kolka told an investigator that she handled the pawn because she was the firearm’s owner.
Assistant U.S. Attorneys Julie R. Patten and Thomas K. Godfrey prosecuted the case, which was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is part of Project Guardian, a Department of Justice initiative launched in the fall of 2019 to reduce gun violence and enforce federal firearms laws. Through Project Guardian, the U.S. Attorney’s Office in the District of Montana is working to enhance coordination of its federal, state, tribal and local law enforcement partners in investigating and prosecuting gun crimes. In addition, Project Guardian supports information sharing and taking action when individuals are denied a firearm purchase by the National Instant Criminal Background Check System for mental health reasons or because they are a prohibited person.
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Judges sentences St. Louis County man for sex traffickingRead the Press Release
ST. LOUIS – United States District Judge Henry E. Autrey sentenced Carron Primus to 38 months in prison today and ordered Primus to pay more than $87,000 in restitution. The 41-year-old Maryland Heights, Missouri resident pleaded guilty to one count of sex trafficking.
On November 25, 2018, Primus met his victim through an online application installed on his and her phones. At the time of meeting Primus, the victim was physically located at a Panera Bread Company restaurant in St. Louis County.
Primus planned, through communications on the app, to meet his victim at the Panera Bread and for her to travel with him to Farmington, Missouri where Primus had to complete a drug test for his federal Bureau of Prisons (BOP) supervision requirements. During the drive to Farmington, Missouri, Primus and his victim talked about the victim engaging in prostitution. Specifically, they discussed the victim would need a phone number, advertisements, and a location.
Upon return from Farmington, Missouri, Primus stopped at his mother’s house to get a cell phone. Primus then took his victim to a local AT&T store to activate the cell phone. Primus informed his victim the cell phone would be used to talk to her clients. An advertisement for sexual services to be performed, by the victim, was posted online. Primus learned his victim was currently on her menstrual cycle and discussed with his victim oral sex with clients. Primus then drove his victim to Walmart to purchase tampons.
After Walmart, Primus drove his victim to hotels around the Saint Louis Lambert International Airport to check nightly prices. Primus selected the St. Louis Airport Inn located in St. Louis County. Primus put the hotel room in his name, but informed his victim he had no intention of staying in the room because he was on federal BOP location monitoring.
Primus left his victim alone in the hotel room where she was going to provide sexual services to clients. In Primus’ absence, the victim ultimately left. The St. Louis County Human Trafficking Task Force was later alerted to this matter and responded.
The Federal Bureau of Investigation and St. Louis County Human Trafficking Task Force investigated this case. Assistant United States Attorney Dianna Collins is handling the case.
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Husband and Wife Are Indicted for Stealing $200,000 from A High School Booster ClubRead the Press Release
CHARLOTTE, N.C. – The president of a Charlotte high school Booster Club and his wife have been indicted on federal charges for stealing more than $200,000 from the organization. The husband is also charged with fraudulently obtaining over $236,000 in COVID-19 relief funds to cover up the theft, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Tommy D. Coke, Inspector in Charge of the Atlanta Division of the U.S. Postal Inspection Service (USPIS) which oversees Charlotte, and Mona Passmore, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI) join Acting U.S. Attorney Stetzer in making today’s announcement.
According to allegations contained in the eight-count indictment, between 2017 and June 2020, Anthony Sharper, 39, and Deana Sharper, 45, both of Charlotte, executed a scheme to defraud and embezzle at least $200,000 from a Charlotte-area high school Athletic Booster Club by writing checks to themselves for purported reimbursement, wiring funds directly to their personal bank account, and using the Booster Club’s debit cards and credit card to pay for personal expenditures. The indictment further alleges that, Anthony Sharper, who is a certified public accountant, also committed tax fraud by failing to to report any of the embezzled funds on the couple’s joint 2018 and 2019 tax returns filed with the IRS.
As alleged the indictment, to cover up the theft and to enrich himself, between March and May 2020, Anthony Sharper submitted three fraudulent applications for federal COVID-19 relief funds, including two fraudulent Paycheck Protection Program (PPP) loan applications, one in the name of the Booster Club and one in the name of his accounting firm, A. Sharper CPA, PLLC, and an Economic Injury Disaster Loan (EIDL) application to the Small Business Administration (SBA) on behalf of his CPA firm. All three applications contained false information, including fake revenues and fake payroll and employment data. As a result of the fraudulent applications, the indictment alleges that Anthony Sharper obtained more than $236,000 in COVID-19 relief funds intended for existing businesses harmed by the coronavirus pandemic. After receiving the loan proceeds, Anthony Sharper used the funds to pay for personal expenditures and to cover up the couple’s theft of the Booster Club’s funds.
Both Sharper and his wife are charged with wire fraud which carries a maximum penalty of 20 years in prison and a $250,000 fine. Anthony Sharper is also charged with two counts of making false statements to a financial institution, which carry a maximum prison term of 30 years and a $1 million fine per count; making a false statement to SBA, for which the maximum statutory penalty is 30 years in prison and a $1 million fine; two counts of engaging in monetary transactions in criminally derived property, which carry a maximum prison term of 10 years and a $500,000 fine per count; and two counts of filing a false tax return, which carry a maximum penalty of three years in prison and a $250,000 fine per count.
The criminal indictment also contains a notice of forfeiture, which gives notice that the defendants must forfeit to the United States all of the property, currency and monetary instruments involved in the offenses charged in the indictment. The government will pursue a forfeiture money judgment in the amount of at least $436,000, which the government contends constitutes the proceeds of the violations alleged in the charging document.
Anthony and Deana Sharper will be ordered by the U.S. District Court to appear on a summons for their initial appearance, which will be scheduled by the Court. The charges contained in the indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI, USPIS, and IRS-CI investigated the case. The prosecution is handled by Assistant United States Attorney Caryn Finley of the U.S. Attorney’s Office in Charlotte.
The Coronavirus Aid, Relief, and Economic Security (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. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form. Members of the public in the Western District of North Carolina are also encouraged to call 704-344-6222 to reach their local Coronavirus Fraud Coordinator.
Heroin Trafficker from Mexico Sentenced to 5 YearsRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that Uriel Frederico Romero-Rodriguez, of Mexico, was sentenced today in federal court for Conspiracy to Distribute Heroin.
Romero-Rodriguez pled guilty to the charge in January of 2021. On February 11, 2020, United States Customs and Border Protection intercepted a package originating from Arcelia, Guerrerro, Mexico. The package purported to be a wheel of cheese addressed to a residence in Foley, Alabama. However, officers discovered approximately 443 grams of heroin concealed inside the wheel of cheese. On February 13, 2020, the package was delivered to the address in Foley. Romero-Rodriguez arrived shortly thereafter to pick up the package. Officers immediately arrested Romero-Rodriguez when he picked up the package. As part of his plea agreement, Romero-Rodriguez admitted he and his co-defendant made an agreement to distribute the heroin.
United States District Court Judge Terry F. Moorer imposed a mandatory sentence of 60 months imprisonment. The judge also ordered Romero-Rodriguez to serve a four-year term of supervised release upon his discharge from prison. Judge Moorer ordered that Romero-Rodriguez pay $100 in special assessments.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, and Customs and Border Protection, and the Alabama Law Enforcement Agency. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Justin Kopf.
Hartshorne Resident Sentenced to Nine Months, $80,000 Restitution for Theft Concerning Programs Receiving Federal FundsRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Meredith Dawn Dunkin, age 47, of Hartshorne, Oklahoma was sentenced to 9 months’ imprisonment in the Federal Bureau of Prisons, 2 years of supervised release, and ordered to pay restitution in the amount of $80,083.35 for Theft Concerning Programs Receiving Federal Funds, in violation of Title 18, United States Code, Section 666(a)(1)(A). The charges arose from an investigation by the Federal Bureau of Investigation.
The Information alleged that from on or about May 23, 2013, and continuing through August 6, 2016, in the Eastern District of Oklahoma, the defendant, Meredith Dawn Dunkin, being an agent of the City of Hartshorne, Oklahoma, said organization received benefits in excess of $10,000 under a Federal Program involving a grant, contract, subsidy, loan, guarantee, insurance, or other form of Federal Assistance for the calendar years of 2013, 2014, 2015 and 2016, obtained by fraud, embezzlement, and otherwise without authority, property worth at least $5,000 owned by the City of Hartshorne.
The Honorable David Cleveland Joseph, U.S. District Judge out of the United States District Court for the Western District of Louisiana, temporarily assigned to the Eastern District of Oklahoma, presided over the sentencing hearing. Assistant United States Attorney Doug Horn represented the United States.
French Medical Device Manufacturer to Pay $2 Million to Resolve Alleged Kickbacks to Physicians and Related Medicare Open Payments Program ViolationsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced today that Medicrea International, a French medical device manufacturer, and its American affiliate Medicrea USA Inc., have agreed to pay:
- $1 Million to the United States and participating states to resolve civil whistleblower allegations that the companies, by entertaining U.S.-based physicians during a 2013 conference in France, violated the Anti-Kickback Statute and, through resulting claims to federal healthcare programs, the False Claims Act and similar state statutes; and
- an additional $1 Million to the United States to resolve related allegations that the companies violated the physician Open Payments Program (formerly known as the “Sunshine Act”) by failing to fully report those physician-entertainment expenses to the Centers for Medicare & Medicaid Services (CMS).
The Anti-Kickback Statute prohibits medical device manufacturers from directly or indirectly offering or paying anything of value to induce the referral of items or services, such as device orders or purchases, covered by Medicare, Medicaid, TRICARE, or other federal healthcare programs. The federal settlement resolves allegations that Medicrea (which Medtronic USA Inc., recently acquired) provided items of value in the form of meals, alcoholic beverages, entertainment, and travel expenses to U.S.-based physicians at events surrounding the Scoliosis Research Society’s September 2013 Congress in Lyon, France. The United States alleged that Medicrea provided the benefits to induce the physicians to purchase or order Medicrea’s spinal devices, and that this resulted in false payment claims to federal healthcare programs.
This settlement also resolves Medicrea’s liability under CMS’s Open Payments Program. As part of the Affordable Care Act, Congress created the Open Payments Program: (1) to provide greater transparency and protection to consumers, by requiring medical device manufacturers and others publicly to disclose certain payments and other transfers of value to physicians; and (2) with the goal of preventing, through such disclosures, payments and benefits from being used to induce physicians and hospitals to prescribe or buy products.
This is among the first settlements to resolve allegations under both the False Claims Act and the Open Payments Program. The settlement follows the Senate Finance Committee’s March 2019 request that HHS-OIG and CMS investigate Open Payments Program non-compliance and pursue enforcement. Manufacturers must ensure accurate and timely Open Payments Program reporting to CMS of all applicable payments or transfers of value, including indirect payments.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act statute. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The suit was filed in the Eastern District of Pennsylvania and is captioned United States of America, et al., ex rel. Dory Frain v. Medicrea USA Corporation, Civil Action No. 16-1986. The whistleblower’s Philadelphia-based attorneys are Michael A. Filoromo, III of Katz, Marshall & Banks, LLP, and Ryan Allen Hancock of Willig Williams & Davidson.
“Kickbacks undermine the integrity of federal healthcare programs and increase costs to taxpayers,” said Acting U.S. Attorney Williams. “This case demonstrates the Department of Justice’s commitment to ensuring that medical device manufacturers do not use improper relationships to influence physician decision-making and are transparent about the benefits that they provide to physicians.”
Williams added: “We thank the relator and relator’s counsel for their contributions. Without information from citizens like the relator, detecting fraud and conserving government program funds would be much more difficult.”
“Allegations of kickbacks are concerning as patients rely on their medical professionals to make health care decisions based on their individual medical needs,” said Maureen R. Dixon, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services (HHS-OIG). “We will continue working with the U.S. Attorney’s Office, CMS and our Medicaid Fraud Control Units to protect patients and taxpayers.”
The United States’ investigation and resolution of this matter illustrates its focus on combating healthcare fraud. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the U.S. Department of Health and Human Services, at 800‑HHS‑TIPS (800-447-8477).
The settled claims are allegations only; there has been no determination of liability.
This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General, the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Commercial Litigation Branch of the Justice Department’s Civil Division, as well as the National Association of Medicaid Fraud Control Units (NAMFCU). For the U.S. Attorney’s Office, the investigation and settlement were handled by Assistant United States Attorneys Landon Y. Jones III and Gerald B. Sullivan, and Auditor Dawn Wiggins.
- $1 Million to the United States and participating states to resolve civil whistleblower allegations that the companies, by entertaining U.S.-based physicians during a 2013 conference in France, violated the Anti-Kickback Statute and, through resulting claims to federal healthcare programs, the False Claims Act and similar state statutes; and
Four Ohio Individuals Charged with Gambling and Tax OffensesRead the Press Release
A federal grand jury in Cleveland, Ohio, returned a superseding indictment on May 13, 2021, that was unsealed yesterday, charging three Ohio men and one woman with conspiring to operate illegal gambling businesses and to defraud the IRS, among other criminal offenses.
According to the superseding indictment, from 2010 through 2018, Jason Kachner, his spouse Rebecca Kachner, and Ronald DiPietro conspired to operate Skilled Shamrock, an illegal gambling business in Canton, Ohio, and to defraud the IRS in connection with income generated by that business. From 2012 through 2017, patrons at Skilled Shamrock allegedly wagered more than $34 million, producing more than $4 million in net income.
The superseding indictment further charges that from 2013 through 2018, both of the Kachners and Thomas Helmick conspired to operate another Canton-based illegal gambling business, Redemption Skill Games 777 (Redemption). They allegedly conspired to defraud the IRS by filing false tax returns that concealed a substantial portion of Redemption’s gross receipts and concealed Redemption’s true ownership.
In addition to the conspiracy charges, DiPietro, a Certified Public Accountant, was charged with assisting in the preparation of false tax returns for the Kachners for the years 2013 through 2017. The returns allegedly did not report the Kachners’ true income from Skilled Shamrock. The Kachners were also charged with filing false individual tax returns for the same years, and Helmick was charged with filing his own false individual income tax returns for the years 2014 through 2016 that allegedly underreported Redemption’s gross receipts.
The defendants were arrested on Tuesday, May 18, and made their initial court appearance before U.S. Magistrate Judge Greenberg of the U.S. District Court for the Northern District of Ohio. If convicted, Jason and Rebecca Kachner, DiPietro, and Helmick each face a maximum penalty of five years in prison for each conspiracy count and five years in prison for each illegal gambling business count. The Kachners and Helmick also face three years in prison for each false tax return count, and DiPietro faces three years in prison for each count of aiding in the preparation of a false tax return. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Bridget M. Brennan for the Northern District of Ohio made the announcement.
IRS Criminal Investigation, the U.S. Department of Treasury Office of Inspector General, the Ohio Casino Control Commission, and Ohio Organized Crime Investigations Commission – Major Crimes Tax Force are investigating the case.
Trial Attorneys Richard Rolwing and Sam Bean of the Tax Division, along with Assistant U.S. Attorneys Robert Patton and David Toepfer for the Northern District of Ohio, are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.