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22 June 2021
Former Boston Police Officer Pleads Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer pleaded guilty today in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Joseph Nee, 48, of Randolph, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Patti B. Saris scheduled sentencing for Sept. 24, 2021. Nee was charged on June 4, 2021.
From at least January 2015 through August 2017, Nee submitted false and fraudulent overtime slips for overtime hours that he did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Nee claimed to have worked from 4 – 8 p.m., but he routinely left at 6 p.m., or earlier. For the “kiosk” shift, Nee submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact he and, allegedly, other members of the unit only worked three-to-four hours of those shifts. As a result, between January 2015 and August 2017, Nee personally collected approximately $12,636 for overtime hours he did not work.
In September 2020, nine Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, Nee and three additional officers have been charged: former Captain Richard Evans and former Sergeants George Finch and William Baxter. On April 8, 2021, Evans pleaded not guilty. Finch pleaded guilty on June 1, 2021 and Baxter is scheduled to plead guilty on June 25, 2021.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ex-White House Military Aide and Maryland Businessman Sentenced to over 8 Years in Prison for Operating Fraudulent Eb-5 Visa SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that businessman WILLIAM B. “BART” HUNGERFORD, JR., age 60, of Maryland, and ex-White House military aide and former U.S. Air Force colonel TIMOTHY O. MILBRATH, age 65, also of Maryland, were sentenced today for running a scheme to defraud investors during defendants’ operation of the New Orleans EB-5 Regional Center after Hurricane Katrina. U.S. District Judge Greg G. Guidry sentenced HUNGERFORD and MILBRATH each to 102 months in prison.
After a three-week trial before Judge Guidry that concluded in September 2019, a federal jury found HUNGERFORD and MILBRATH guilty on all counts of the superseding indictment. Although trial was completed in September 2019, an in-person sentencing could not be held due to the COVID-19 pandemic. The charges stemmed from the defendants’ exploitation of the U.S. Citizenship and Immigration Services’ (USCIS) EB-5 visa program. Congress created this program to bring investment into the United States and to create American jobs. The visa program permits immigrants to invest a minimum of $1,000,000.00 in a United States job-creating enterprise and obtain permanent residency if, after two years, that investment created or preserved ten American jobs. The minimum investment required was lowered to $500,000.00 if the investment was made in a targeted employment area (“TEA”), defined as an area with an unemployment rate of 150% of the national average.
The evidence at trial established that HUNGERFORD and MILBRATH formed NobleOutReach, LLC, to operate an EB-5 investment fund. The defendants then persuaded the City of New Orleans to allow their company to run the City’s EB-5 regional center. Because New Orleans was a designated TEA in the years after Hurricane Katrina, immigrant investors only had to invest $500,000.00 in order to qualify under the EB-5 visa program. HUNGERFORD and MILBRATH represented to investors that their $500,000.00 investment would be used to create jobs in New Orleans and contribute to the rebuilding of the City. A total of 31 immigrants invested a total of $15.5 million in the defendants’ investment fund. These immigrants also paid thousands of dollars in addition as “service fees” to the defendants. Along with another non-immigrant investor who also invested with the defendants, HUNGERFORD and MILBRATH obtained a total of $18,070,000.00 from investors.
However, instead of investing these funds into New Orleans-based job-creating enterprises, HUNGERFORD and MILBRATH fraudulently misappropriated investor funds for their own personal gain. HUNGERFORD and MILBRATH wrote themselves checks drawn from investor funds which they disguised as “loans” or “loan repayments.” The evidence showed that the defendants created multiple companies in order to conceal the path of investor funds and misappropriate them. The defendants also spent investor funds to purchase vacation and rental properties for their own benefit. During the perpetration of the fraud, the defendants made false representations to investors, USCIS, and the City of New Orleans.
Judge Guidry sentenced the defendants to 102 months as to each Count 1 (conspiracy to commit wire fraud), Count 3 (conspiracy to commit money laundering), and Counts 4 through 9 (wire fraud). As to Count 2, conspiracy to commit immigration fraud, Judge Guidry sentenced the defendants to the statutory maximum of 60 months in prison. He also sentenced HUNGERFORD and MILBRATH each to two years of supervised release. Judge Guidry agreed to take the Government’s motions for restitution and for a preliminary order of forfeiture under submission to be determined at a later date.
“USCIS places the highest priority on ensuring that every program we manage, including the EB-5 program, is administered with fairness and integrity,” said USCIS Acting Director Tracy Renaud. “We are grateful to our many law enforcement partners who helped to deliver justice in this case and uphold the integrity of the EB-5 program.”
“Today’s sentence sends a clear message to criminals who commit fraud against anyone, including aspiring U.S. citizens, that they will be held accountable. The economic crimes committed by Timothy Milbrath and William "Bart" Hungerford are most egregious and grossly impacted the New Orleans economy and investors hopeful of the American dream. The FBI is committed to rooting out and aggressively pursuing dishonest businesspeople like Hungerford and Milbrath,” said Special Agent in Charge Douglas Williams, Jr. "I would like to thank the U.S. Attorney’s Office, and US Citizenship and Immigration Service (USCIS) for the tremendous effort and work put forth in this investigation."
“This was a very detailed and complex case with many moving parts, but it in the end, it ultimately all comes down to greed. This elaborate scheme to defraud our community, taxpayers and those lawfully seeking permanent residency in the United States, occurred in the wake of one of the most tumultuous times in our city’s history, which makes this crime more egregious. Attempts by perpetrators to conduct fraudulent schemes will not be tolerated,” stated U.S. Attorney Duane A. Evans.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation’s New Orleans Field Office. U.S. Attorney Evans also thanked U.S. Citizenship and Immigration Services for their assistance in prosecuting this case. The case was prosecuted by Assistant U.S. Attorneys Matthew R. Payne, Shirin Hakimzadeh, Maria M. Carboni, and Andre J. Lagarde.
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Essex County Man Sentenced to Eight Years in Prison for Role in $23 Million Identity Fraud and Money Laundering SchemeRead the Press Release
NEWARK, N.J. – A Newark man was sentenced today to 96 months in prison for his role in a large international money laundering conspiracy and using a stolen identity in furtherance of the scheme, Acting U.S. Attorney Rachael A. Honig announced.
Edwin Deleon-Batista, 37, previously pleaded guilty by videoconference before U.S. District Judge Katharine S. Hayden to an information charging him with one count of conspiracy to commit money laundering and one count of identity fraud. Judge Hayden imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
From March 2018 through October 2019, Deleon-Batista laundered over $23 million in cash drug proceeds on behalf of a money laundering organization with close ties to drug trafficking organizations in the Dominican Republic and elsewhere. Deleon-Batista picked up large amounts of cash drug proceeds in New Jersey, New York, and Florida and laundered it by purchasing cashier’s checks at local bank branches. The checks were made payable to individuals and companies specified by the leaders of the money laundering organization. By converting the drug proceeds to cashier’s checks, Deleon-Batista tried to hide the source of the illegal cash and avoid scrutiny by law enforcement and banks.
Deleon-Batista was previously arrested on federal money laundering charges in New York in April 2019. Soon after his arrest, Deleon-Batista began using a stolen identity and obtained a fraudulent identification card issued by the State of Florida to continue the money laundering scheme. He used the fraudulent ID card to open several bank accounts, which he then used as a means to convert millions more in cash drug proceeds into cashier’s checks at bank branches in New Jersey, New York, and Florida over a five-month period.
In addition to the prison term, Judge Hayden sentenced Deleon-Batista to three years of supervised release.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Drug Enforcement Administration, New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson, and the New York Division, under the direction of Special Agent in Charge Raymond Donovan; special agents and task force officers of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; the Morristown, New Jersey, police department, under the direction of Acting Police Chief Darnell Richardson, and the Direccion Nacional de Control de Drogas (Dominican Republic National Drug Directorate) with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the Asset Forfeiture and Money Laundering Unit in Newark.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Essex County Man Charged with Illegally Possessing Two Handguns and DrugsRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man with a felony record made his initial court appearance today on charges of carrying two loaded handguns and a quantity of heroin and cocaine, U.S. Attorney Rachael A. Honig announced today.
Brandon Jacobs, 30, of Newark, is charged by complaint with one count of possessing as a convicted felon a 9mm Glock, with 17 rounds of ammunition, and a .44 caliber Smith & Wesson revolver with six rounds of ammunition, one count each of possession of crack cocaine with intent to distribute and possession of heroin with intent to distribute, and one count of possession of a firearm in furtherance of a drug crime. He appeared before U.S. Magistrate Judge Cathy L. Waldor and was detained.
According to documents filed in this case and statements made in court:
Jacobs, who was convicted of a felony in 2017, was arrested on Jan. 31, 2021, after police received a tip that he was responsible for a recent shooting and was driving a stolen vehicle in the vicinity of 6th Street in Newark. Police located the vehicle, with Jacobs in the driver’s seat and one passenger. Police found the loaded 9 mm semi-automatic handgun in his left coat pocket and the loaded revolver in his right coat pocket. Jacobs was also in possession of 35 glassine envelopes of heroin, 73 glass vials containing suspected crack cocaine and $688 in cash. Also, there was a loaded shotgun in the front seat area of the vehicle.
The count of possession of a firearm as a convicted felon carries a maximum penalty of 10 years in prison and a $250,000 fine. The drug possession counts each carry a maximum penalty of 20 years in prison and a $1 million fine. The count of possessing a weapon during the commission of a drug crime carries a mandatory minimum of five years in prison, a maximum of 15 years in prison and a $250,000 fine.
Acting U.S. Attorney Rachael A. Honig credited special agents of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent Thomas J. Mahoney, and officers with the Newark Police Department, under the direction of Public Safety Director Brian O’Hara, with the investigation leading to the arrest.
The government is represented by Senior Litigation Counsel V. Grady O’Malley Sr. of the U.S. Attorney’s Office’s Organized Crime/Gangs Unit.
Erie Convenience Store Owner Pleads Guilty to Food Stamp FraudRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to defraud the United States and food stamp fraud, Acting United States Attorney Stephen R. Kaufman announced today.
Abdul Alquraishi, 54, pleaded guilty to two counts before Chief United States District Judge David S. Cercone.
In connection with the guilty plea, the court was advised that Abdul Alquraishi and three co-defendants were engaged in exchanging food stamps for cash on a regular basis at The Lotto World, also known as Samir’s and Lotto World Convenience, a convenience store located at 832 State Street in Erie that Alquraishi owned and operated. Alquraishi and his three co-defendants also allowed customers to pay off store credit with food stamps. Alquraishi was also using customers’ food stamp cards to buy items at various stores in the area.
Judge Cercone scheduled sentencing for November 22, 2021 at 1:00 p.m. The law provides for a total sentence of 10 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court continued Alquraishi on bond.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Department of Agriculture, Office of Inspector General, and the Erie Police Department conducted the investigation that led to the prosecution of Alquraishi.
Eighty Charged Across Northern Iowa with Federal Gun Law ViolationsRead the Press Release
Law enforcement agencies across Iowa continue to make communities safer by vigorously investigating and prosecuting gun related crimes. This effort has resulted in charges and arrests in forty-eight federal cases between November 2020 and June 2021 in the eastern half of the state and thirty-two in the western half of the state.
“All too often, when individuals, including convicted felons, drug users, and those who have committed domestic violence, unlawfully possess guns, an act of gun violence occurs,” said Acting United States Attorney Sean R. Berry. “The charges in these cases demonstrate the remarkable work that local, state, and federal law enforcement agencies do to reduce violence and get the most dangerous criminals off the streets. As we head into the summer months, when gun violence historically rises, my office will continue to work with all our law enforcement partners to take unlawfully possessed guns, and those who possess them, off the street.”
In the past six months, the work of federal, state, and local law enforcement agencies has resulted in the following matters in federal court in Cedar Rapids:
Kierin Craig Johnson, Ricky Trevill Eatman, John Douglas Clark, Marshall Leon Mosby, Nicholas Cameron Anderson, Christopher Lee Cungtion, John Christopher Jacobson, Dmontrey Rayshaun Redmond, Jamie Marie Graham, Leon Sheley, Todd Fritz Groom, Anthony Hughes, Nicholas Robert Campbell-Scott, Chad Edward Lee, Adnan Alibegic, Ashley Nicole Lies, Raykwon Stevenson, Sylvester Cunningham, Wonyae Malik Black, Friday Deel Gardner, Jumonie Dontez Wilson, Eric James Lyle, Darren James Ackerman, Sir Frank Nelson, Dejswah Sibley, Shuntez Anthony Porter, Terrance Golden, Justin Carlson, Donte Kent, Christopher Evans, Trenton Sliekers, Charles Anthony Ware, Demitrius Cannon, DeVonte Wright, Chandrique Day, David Wright, Jr., Demond Rollins, Karon Bennett, Shawndell Phillip Smith, Christopher Daniel Taylor, Johnny Mack Hill, Jr., Dannish Dontreal Robertson, Jaryous Cooper, Richard Allen Roberts, Deanye Bowmen-Owens, Josh Adam Rode, Curtis James Johnson, Dai’Sean Battles, and Joshua Ray Hunley. Four additional people have been charged but their cases remain under seal. The charges are contained in complaints and indictments filed within the last six months in United States District Court in Cedar Rapids.
“The Cedar Rapids Police Department is fortunate to have a strong working relationship with federal partners that results in making our community safer by holding violent offenders accountable,” said Cedar Rapids Chief of Police Wayne Jerman. “With our participation in federal task forces and enforcement and prosecution of federal firearms laws, there has been a significant impact on gun violence. Those who illegally possess a firearm and choose to commit violence not only commit crimes, but they endanger lives, property and the community’s sense of peace and safety. We value the opportunity to work side by side with our federal law enforcement partners and prosecutors.”
Dr. Joel Fitzgerald, Waterloo Chief of Police, shared his thoughts on the collaboration, and stated, “Although there are many variables at play accounting for the increase in violent crime across our nation, it should comfort those in Waterloo and the region to know that a strengthened partnership among law enforcement entities stands ready to prevent, investigate, arrest, and prosecute firearm related crimes. The message for violent offenders in our city is crystal clear. We encourage you to exercise your ability to choose; you can engage in community problem solving, civilly work through ‘beefs,’ and surrender illegal weapons, or face the surety of an unrelenting, life-altering, and rehabilitative solution that we have waiting. Far too many innocent lives are being changed by those who do not stop and think, so choose wisely.”
“Like much of Iowa, the Midwest, and the country in general, we have seen an increase in gun violence over the past five to ten years. Locally we have had great success in identifying and prosecuting offenders,” said Dubuque Chief of Police Mark Dalsing. “Much thanks to our federal law enforcement partners who provide investigative resources, and we especially appreciate the U.S. Attorney’s Office and the Department of Justice in prosecuting gun crimes. Law enforcement is facing many challenges as we head into the traditionally busiest months of the year, but we are confident that with our federal partners, we will be able to prosecute violent criminals and hold them accountable for their actions.”
In the past six months, the work of federal, state, and local law enforcement agencies has resulted in the following matters in federal court in Sioux City:
Bendigo Augustino, Diego Ayala, Nhial Biliew, Tyne Castino, Brandon Christiansen, Melvin Cloud, Joshua Currier, Tavin Daudinot, Scott Demers, Rafael Gomez, Maleke Goodwin, Joseph Haack, Jamie Hansman, Dexter Howard, Alejandro LaPointe, Alexander Laurel-Olea, Esai Lopez, Lucas Lowman, Douglas Mackey, DJ McMillan, Sergio Mendez-Perez, Daniel Moss, Christopher O’Tool, Joel Perea-Duenas, Jerry Powell, Stephen Springer, Alvaro Vite, William Wayne Hageman, and Jeremy Walters, have all been charged with various violations of federal firearms laws. The charges are contained in indictments filed within the last six months in the United States District Court in Sioux City.
“I cannot overstate the value of our close partnership with the U.S. Attorney’s office,” said Sioux City Chief of Police Rex Mueller. “Our focused major offender approach allows the surgical removal of suspects who pose a significant danger to local residents. The many cases we have worked together have led to successful prosecutions and sentences that had a meaningful positive impact on community safety.”
All the charges against the defendants in both Cedar Rapids and Sioux City involve the unlawful possession or use of firearms, including being a prohibited person in possession of a firearm. The cases charged include the following:
- The indictment and criminal complaint against Christopher Daniel Taylor charges Taylor with carjacking, using and carrying a firearm during and in relation to a crime of violence, possession of a stolen firearm, and possession of a firearm by a prohibited person. The criminal complaint alleges that, on December 3, 2020, Taylor led state probation officers on a high-speed chase through the city of Cedar Rapids. The complaint alleges that at times, Taylor reached speeds nearing 100 miles per hour. According to the complaint, Taylor eventually ditched his car and stole another one, which contained a Taurus .44 caliber revolver. Taylor then led police on a chase utilizing that car. At one point, Taylor shot the gun out of the car. Taylor later tried to carjack the driver of another car, threatening to shoot that person if he didn’t give Taylor the car. Law enforcement later apprehended Taylor.
- The indictment and criminal complaint against Wonyae Black charges Black with being a felon in possession of a firearm. The criminal complaint alleges that Black led Waterloo police officers on a high-speed chase, which ended when Black crashed his car into another car and a tree. The complaint alleges that Black then attempted to run from police and tossed his backpack over a fence. Officers located the backpack, which contained a handgun with an extended magazine and marijuana.
- The indictment against Bendigo Augustino alleges that, in March 2021, in Storm Lake, Iowa, Augustino was in possession of three guns while knowing, as a convicted felon, he could not legally possess guns. The indictment also alleges that Augustino was in possession of a Glock 9mm handgun he knew or had reason to know was stolen. Finally, the indictment alleges Augustino, who was already under indictment for possession of a firearm by a convicted felon, willfully received two handguns.
- The indictment against Nhial Biliew alleges that, in June 2020, Biliew committed a robbery at the County Store in Denison, Iowa. The indictment further alleges that during the robbery, Biliew used or brandished a handgun. The indictment also alleges that in July 2020, Biliew possessed a Ruger .380 handgun with a removed, altered, or obliterated serial number.
If convicted on these charges, all defendants face at least a possible maximum sentence of 10 years’ imprisonment, a $250,000 fine, $100 in special assessments, and three years of supervised release following any imprisonment.
As with any criminal case, a charge is merely an accusation and each defendant is presumed innocent until and unless proven guilty.
The cases were brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The cases were investigated by numerous local, state, and federal law enforcement agencies, including the Bureau of Alcohol, Tobacco, and Firearms, the Federal Bureau of Investigation, the Division of Narcotics Enforcement, the Drug Enforcement Administration, the Cedar Rapids Safe Streets Task Force (composed of representatives from the Federal Bureau of Investigation, the United States Marshal Service, and the Cedar Rapids Police Department), the Waterloo Federal Task Force (composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, and Firearms assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department), the Dubuque Police Department, the Linn County Sheriff’s Office, the Iowa State Patrol, the Sioux City Police Department, the Storm Lake Police Department, the Denison Police Department, the Buena Vista County Sheriff’s Office, and the Crawford County Sheriff’s Office.
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East St. Louis Man Sentenced to 63 Months for Shooting Off Gun at Child's Birthday PartyRead the Press Release
EAST ST. LOUIS, Ill. – An East St. Louis man will spend 5 years in prison for shooting a gun into the air at a child’s birthday party. Marco B. Orr, 32, has been sentenced to 63 months in federal prison. Orr pled guilty in April to one count of unlawful firearm possession by a convicted felon.
According to court records and evidence presented at his sentencing hearing, the crime occurred on
May 2, 2020, when Orr was in possession of an AR-15 style rifle at a child’s birthday party in East
St. Louis. Orr was seen on surveillance camera discharging the rifle into the air numerous times.
East St. Louis police later recovered the rifle inside a vehicle. It was loaded with 17 rounds of ammunition in a high capacity magazine. Orr was prohibited from possessing a gun due to a prior felony conviction for aggravated battery involving the use of a firearm.As part of his sentence, Orr was also ordered to serve a 3-year term of supervised release.
The case was investigated by the East St. Louis Police Department and the United States Marshals
Service Great Lakes Regional Task Force, with support from ATF and the Illinois State Police.Assistant U.S. Attorney Alexandria Burns prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the
Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Dominican National Pleads Guilty to Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in connection with using the identity of a U.S. citizen at the Massachusetts Registry of Motor Vehicles.
Hector Antonio Cruz Ciprian, 33, a Dominican national previously residing in Lowell, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for Oct. 22, 2021. Cruz Ciprian was arrested in December 2019.
On June 14, 2016, Cruz Ciprian used the identification of a U.S. citizen to apply for an out-of-state driver’s license conversion at the Registry of Motor Vehicles in Haverhill. In the application, Cruz Ciprian provided, among other things, a Social Security card, birth certificate and utility bill in the victim’s name.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a two year sentence to be served consecutively to any other sentence imposed, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations made the announcement today. Valuable assistance was provided by the U.S. Department of Health & Human Services, Office of Inspector General; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn Police Department. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.
Dominican National Pleads Guilty to Identity Theft ChargesRead the Press Release
BOSTON – A Dominican national pleaded guilty yesterday in connection with using the identity of a U.S. citizen at the Massachusetts Registry of Motor Vehicles.
Hector Antonio Cruz Ciprian, 33, a Dominican national previously residing in Lowell, pleaded guilty to one count of false representation of a Social Security number and one count of aggravated identity theft. U.S. Chief District Court Judge F. Dennis Saylor IV scheduled sentencing for Oct. 22, 2021. Cruz Ciprian was arrested in December 2019.
On June 14, 2016, Cruz Ciprian used the identification of a U.S. citizen to apply for an out-of-state driver’s license conversion at the Registry of Motor Vehicles in Haverhill. In the application, Cruz Ciprian provided, among other things, a Social Security card, birth certificate and utility bill in the victim’s name.
The charge of false representation of a Social Security number provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a two year sentence to be served consecutively to any other sentence imposed, one year of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by Homeland Security’s Investigation’s Document and Benefit Fraud Task Force (DBFTF), a specialized field investigative group comprised of personnel from various local, state, and federal agencies with expertise in detecting, deterring, and disrupting organizations and individuals involved in various types of document, identity, and benefit fraud schemes.
Acting United States Attorney Nathaniel R. Mendell; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Tonya Perkins, Special Agent in Charge of the Social Security Administration, Office of Inspector General, Office of Investigations made the announcement today. Valuable assistance was provided by the U.S. Department of Health & Human Services, Office of Inspector General; U.S. Postal Inspection Service; U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations; U.S. Department of State, Diplomatic Security Service; U.S. Department of Housing and Urban Development, Office of Inspector General; U.S. Department of Labor, Office of Inspector General; and the Lynn Police Department. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.
Dishonorably discharged Navy sailor sentenced to 7+ years in prison for receipt of child pornographyRead the Press Release
Tacoma – A 37-year-old Tacoma man was sentenced today in U.S. District Court in Tacoma to 90 months in prison and 15 years of supervised release for receipt of child pornography, announced Acting U.S. Attorney Tessa M. Gorman. This is defendant Brandon Culp’s second conviction involving child exploitation in seven years. At the sentencing hearing, U.S. District Judge Benjamin H. Settle said, “You still are a danger to the public…. These victims, these young victims, will be experiencing a life sentence… many will carry scars and wounds and pain their whole life long.”
According to records filed in the case, Culp was living in Tacoma as a registered sex offender in 2019, when a social media company alerted the National Center for Missing and Exploited Children that an account associated with Culp had shared images of child sexual abuse. In January 2020, law enforcement executed a court-authorized search warrant at Culp’s home. Forensic examination of Culp’s electronic devices revealed more than 800 files depicting child sexual abuse, including images and videos of adults raping infants and toddlers.
While in the Navy, Culp was prosecuted in military court for using his work computer to access pornography and solicit prostitutes, and for attempted sex trafficking of a minor. In that case, Culp communicated with someone he believed was a child sex trafficker in Mexico about accessing a child to sexually assault. In fact, Culp’s contact was an undercover law enforcement officer. Culp served nearly 5 years in prison in that case. He was dishonorably discharged from the Navy, stripped of rank and benefits, and required to register as a sex offender.
In the current case, Culp admitted in his plea agreement that after his release from prison in the Navy case, he used digital devices and the Internet to receive, distribute, and possess child-pornography images and videos.
This case was investigated by the FBI and the Tacoma Police Department. The case was prosecuted by Assistant United States Attorney Jonas Lerman.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Department of Justice Announces Formation of Firearms Trafficking Strike Forces to Crack Down on Sources of Crime GunsRead the Press Release
Today, the Department of Justice announced it will launch five cross-jurisdictional firearms trafficking strike forces within the next 30 days to help reduce violent crime by addressing illegal gun trafficking in significant firearms trafficking corridors. Tomorrow, the Attorney General will discuss with the President, law enforcement officials, and local and community leaders, this initiative, which, along with other measures, the Department of Justice is undertaking as part of the administration-wide comprehensive strategy to combat the rise in violent crime.
Gun violence is a major driver in the increase in violent crime over the last 18 months, and today’s action is an important step in stemming the supply of illegally trafficked firearms which are used in deadly shootings and other violent crimes.
“Working with our local partners to tackle violent crime is one of the Justice Department’s most important responsibilities,” said Attorney General Merrick B. Garland. “Today, the department is taking another concrete step to address violent crime and illegal firearms trafficking. Our firearms trafficking strike forces will investigate and disrupt the networks that channel crime guns into our communities with tragic consequences. This effort reflects our shared commitment to keep communities safe.”
The five strike forces will focus on significant firearms trafficking corridors that channel guns into New York, Chicago, Los Angeles, the San Francisco Bay Area and Washington, D.C. They will be led by designated U.S. Attorneys who will coordinate with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and with state and local law enforcement partners in places where firearms originate and where they are used to commit crimes. The strike forces will share information and otherwise collaborate across districts where firearms trafficking schemes cross state or jurisdictional boundaries to focus enforcement against entire trafficking networks, from the places where guns are unlawfully obtained to the areas where they are used to commit violent crimes.
At an event today hosted by the Police Executive Research Forum, attended by hundreds of law enforcement professionals from around the country, the Deputy Attorney General spoke about the strike force launch, emphasizing the department’s commitment to working closely with state, local, tribal and territorial law enforcement partners as part of a comprehensive approach to reduce crime and make our communities safer.
Today’s announcement builds on the Justice Department’s broader Violent Crime Reduction Initiative, announced on May 26, 2021, that supports local communities in preventing, investigating and prosecuting gun violence and other violent crime. In guidance to federal agents and prosecutors as part of that comprehensive strategy, the Deputy Attorney General made clear that firearms traffickers that provide weapons to violent offenders are an enforcement priority across the country.
Convicted Gun Trafficker Pleads Guilty to Firearms ChargesRead the Press Release
ALBANY, NEW YORK – Jonathan M. Cuney, age 38, and a part-time resident of East Greenbush, New York, pled guilty today to unlawfully possessing firearms including “ghost guns,” and ammunition, and admitted to maintaining large collections of firearms and ammunition in East Greenbush and Humboldt County, California.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John B. DeVito, Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
Cuney pled guilty to unlawfully possessing, as a felon, a Springfield Armory rifle and an FMK Firearms Inc. AR-15-style rifle receiver/frame, and to possessing three unregistered silencers, between September 9, 2019 and November 14, 2019.
Cuney has a prior conviction for unlawful gun trafficking. In December 2015, he pled guilty, in the United States District Court for the Southern District of New York, to transporting and selling firearms with obliterated serial numbers while he was a licensed firearms dealer. He was sentenced to 37 months in prison, and returned to East Greenbush in April 2017 upon his release from prison.
Acting United States Attorney Antoinette T. Bacon stated: “Today’s guilty plea is the result of a cross-country investigation that took a dangerous person off the streets. Jonathan Cuney has a prior conviction for selling untraceable firearms. After his release from prison, he built ghost guns and acquired other firearms, and maintained large caches of firearms and ammunition in New York and California. I commend the ATF for investigating Cuney as he travelled across the United States, and for quickly arresting him and removing this threat to our communities.”
ATF Special Agent in Charge John B. DeVito stated: “Jonathan Cuney’s criminal record makes it abundantly clear that he is a danger to the community. This case is the product of a concerted, collaborative effort across multiple ATF jurisdictions to identify and stop the sale of illegal firearms. We will always be committed to removing armed criminals from our communities who threaten the safety of our citizens.”
In pleading guilty today, Cuney also admitted that from at least August 2018 until November 12, 2019, he purchased firearms parts from several dozen online retailers, and had these items shipped to East Greenbush; Willits, California (where he maintained a residence); and Providence, Rhode Island (where he formerly maintained a legitimate firearms business). Cuney then used these firearms parts to manufacture non-serialized handguns, rifles, and silencers. These firearms are often called “ghost guns” because they do not have serial numbers, making them more difficult for law enforcement to trace.
ATF searched Cuney’s East Greenbush storage unit on November 14, 2019, and found it to contain, among other items:
- Two (2) rifles,
- One (1) revolver,
- Four (4) serialized AR-15-style rifle receivers/frames,
- Two (2) completed “ghost guns,”
- Five (5) pistol parts kits,
- Two (2) completed silencers and enough parts to build more than ten (10) silencers,
- An assorted quantity of firearm parts and accessories, of which five (5) are classified as machineguns under federal law, and
- 3,250 rounds of assorted rifle and pistol ammunition.
Cuney also rented a storage unit in Redway, California. ATF searched this storage unit on November 20, 2019, and found it to contain, among other items:
- Two (2) Glock pistols,
- Seven (7) additional handguns,
- Three (3) rifles,
- One (1) shotgun,
- Five (5) machinegun conversion kits,
- More than ten (10) silencers, and
- More than 1,000 rounds of assorted rifle and handgun ammunition.
Today, Cuney also pled guilty to unlawfully possessing, on September 17, 2019, in Columbia, Missouri, several thousand rounds of ammunition that he purchased at a firearms store through a straw purchaser.
He also pled guilty to unlawfully possessing, on November 12, 2019, near Tucson, Arizona, a pistol and a rifle, which were discovered during a traffic stop of a vehicle that Cuney was driving.
Cuney pled guilty to these additional federal charges, in Albany federal court, with the consent of the Acting United States Attorneys for the District of Arizona and the Western District of Missouri, respectively.
Cuney has been in custody since November 12, 2019. He faces up to 10 years in prison, and up to 3 years of post-imprisonment supervised release, when Senior United States District Judge Frederick J. Scullin sentences him on October 19, 2021. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
As part of his plea agreement, Cuney also agreed to abandon a variety of firearms, silencers, ammunition, and firearm parts found in both East Greenbush and Redway, California, as well as the following items, all found in Redway: one pair of handcuffs with key; 56 Monadnock disposable single cuffs; and clothing items, patches and badges bearing law enforcement acronyms and insignia, including a Federal Bureau of Investigation (FBI) ball cap, FBI badges, FBI patches, Drug Enforcement Administration (DEA) patches, and DEA badges.
These cases were investigated by the ATF New York Field Division, with assistance from ATF Special Agents and Task Force Officers in Arizona, California, Missouri, Rhode Island, and Wyoming. The California Highway Patrol also assisted in the investigation.
The New York case was prosecuted by Assistant U.S. Attorney Michael Barnett.
The Arizona case was prosecuted by Assistant U.S. Attorney Serra M. Tsethlikai of the District of Arizona.
The Missouri case was prosecuted by Assistant U.S. Attorney Michael S. Oliver of the Western District of Missouri.
Clarksville Business Owner Indicted on Tax FraudRead the Press Release
NASHVILLE – A Clarksville, Tennessee, business owner was indicted yesterday by a federal grand jury on four counts of tax fraud, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
David Haley, 64, the owner and operator of Haley & Associates Mechanical Contractors, faces four counts of filing false tax returns for tax years 2014-2017. The indictment alleges that even though Haley’s business compensation was well in excess of $1 million for each of the tax years, he falsely reported that he received zero business income. The indictment also alleges that except for a small payment in 2012, neither Haley nor his business paid federal income taxes for 2008 through 2017.
If convicted, Haley faces up to three years in prison and up to a $250,000 fine on each count.
This case was investigated by the IRS-Criminal Investigation. Assistant U.S. Attorney Kathryn W. Booth is prosecuting the case.
An indictment is merely an accusation. The defendant is presumed innocent until proven guilty in a court of law.
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Barnstable Man Charged with Firearm TraffickingRead the Press Release
BOSTON – A Barnstable man was charged on Tuesday, June 15th in connection with selling three “ghost guns” to an undercover officer.
Jacob Linhares, 34, was charged by criminal complaint with one count of dealing firearms without a federal license. Linhares was detained following a detention hearing yesterday before U.S. District Court Chief Magistrate Judge M. Page Kelley.
According to the criminal complaint, between May 25 and June 10, 2020, Linhares, sold three Privately Made Firearms (PMF) that he had personally fabricated to an undercover officer. PMFs are firearms that are not made by firearm manufacturers; instead, firearm manufactures sell individual buyers firearm parts, and the buyer uses various firearm drilling tools to construct and assemble the parts into a functional firearm. PMFs are also known as “ghost guns” because they are not serialized, and are thus, untraceable.
The charge of dealing firearms without a license provides for a sentence of up to five years in prison, three years of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division; Barnstable County District Attorney Michael D. O’Keefe; Barnstable Police Chief Matthew Sonnabend; and Barnstable County Sheriff James M. Cummings made the announcement. Assistant U.S. Attorney Nicholas Soivilien of Mendell’s Organized Crime and Gang Unit is prosecuting the case.
This prosecution is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The 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 details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Ascension Parish Man Sentenced for Drug Trafficking OffensesRead the Press Release
NEW ORLEANS, LOUISIANA –U.S. Attorney Duane A. Evans announced that on June 15, 2021, PERCEL GOMEZ, age 39, from Ascension Parish, Louisiana, was sentenced to time served by United States District Judge Greg G. Guidry for drug trafficking offenses. GOMEZ was also sentenced to 3 years of supervised release and to pay a $100 special assessment fee.
According to court documents, GOMEZ conspired to distribute 100 grams or more of heroin between August 25, 2017 and January 25, 2018 in the Eastern District of Louisiana and elsewhere.
This prosecution is part of an extensive investigation by the Organized Crime Drug Enforcement Task Force (“OCDETF”). OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
U.S. Attorney Evans praised the work of the Drug Enforcement Administration. Assistant United States Attorneys Jonathan L. Shih and Nicholas D. Moses are in charge of the prosecution.
Armed Cocaine Trafficker Sentenced to More Than 12½ YearsRead the Press Release
RALEIGH, N.C. – A Shallotte man was sentenced today to 151 months in prison and three years of supervised release for trafficking cocaine and possessing a firearm after a felony conviction.
On March 1, 2021, Dev Vontrai Bland pleaded guilty to Distribution of a Quantity of Cocaine (Count One) and Possession of a Firearm by a Felon (Count Five).
According to court documents and other information presented in court, Bland, 29, sold cocaine to a confidential informant on several dates from August 1, 2019 to September 26, 2019.
Bland was arrested on November 14, 2019. Agents then executed a search warrant at Bland’s residence and seized cocaine base (crack); marijuana; methamphetamine; drug packaging materials; currency; and a loaded 9mm handgun.
Due to Bland’s criminal history, he was determined to be a Career Offender.
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.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge James C. Dever III. The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Brunswick County Sheriff’s Office investigated the case. Assistant U.S. Attorney Scott Lemmon prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:20-CR-82-D-1.
Alien Pleads Guilty to Attempting to Bribe a Federal OfficerRead the Press Release
Jackson, Miss. – An illegal alien from Mexico pled guilty today to attempting to bribe a federal officer, announced Acting U.S. Attorney Darren J. LaMarca and Jack P. Staton, Acting Special Agent in Charge of Homeland Security Investigations (HSI) in New Orleans.
According to court documents, Jesus Miranda-Alcantar, 34, was in the custody of Immigration and Customs Enforcement (ICE) because he is an alien illegally present in the United States. On September 17, 2020, an ICE deportation officer drove a van transporting Miranda-Alcantar from the HSI/ICE office in Pearl, Mississippi to the Madison County Detention Center. During the drive, Miranda-Alcantar repeatedly offered to pay the deportation officer thousands of dollars if he would stop the van and let Miranda-Alcantar out by the side of the road. The officer ignored or declined the offers and delivered Miranda-Alcantar to the Madison County jail. Soon thereafter, the officer reported the incident to his supervisor and executed a sworn affidavit recounting the details of the incident.
In a recorded interview on November 4, 2020, after advice of Miranda rights, Miranda-Alcantar confirmed the details and admitted to making the bribe offer. He added that his initial offer had been $5,000 but he then raised it to $8,000.
“Attempts to corrupt our law enforcement remain a major threat,” said Acting U.S. Attorney LaMarca. “These arrests affirm the Department of Justice’s commitment to prosecuting those who seek to corruptly influence and to exacerbate violations of our immigration laws.”
An indictment, returned by a federal grand jury on November 17, 2020, charged Jesus Christian Miranda-Alcantar with offering a bribe to a federal official. Miranda-Alcantar pled guilty today and is scheduled for sentencing on September 23, 2021 at 9:00 a.m. He faces a maximum penalty of 15 years in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Homeland Security Investigation’s (HSI) Office of Professional Responsibility investigated the case and the HSI Jackson Office assisted with the discovery and arrest of the defendant. The case is being prosecuted by Assistant United States Attorneys Theodore Cooperstein and Kevin Payne.
Acting U.S. Attorney Hairston and AG Stein Announce $330,000 Health Care Fraud Settlement with Triad DoctorRead the Press Release
GREENSBORO, N.C. – Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina, and North Carolina Attorney General Josh Stein today announced a $330,000 settlement to resolve allegations that Dr. George Osei-Bonsu, M.D., Palladium Primary Care, P.A., and Premiere Health Care Plus, P.A., of Greensboro and High Point, submitted false claims to Medicaid and Medicare.
“Medicare and Medicaid lay out specific coverage guidelines for diagnostic studies to ensure that taxpayer dollars are only spent on medically necessary exams,” said Acting U.S. Attorney Hairston. “The United States will not allow practitioners to run unnecessary exams at the expense of the American people.”
“Health care providers must be responsible stewards of taxpayer funds,” said Attorney General Josh Stein. “When they cheat the Medicaid program and waste resources, my office will hold them accountable. I’m grateful for Acting U.S. Attorney Hairston’s partnership in prosecuting health care fraud in North Carolina, and I’m pleased that we’ve won back more than $1 million for North Carolina taxpayers through Operation You’ve Got Nerve.”
Between January 2015 and May 2020, the defendants allegedly submitted false or fraudulent claims for nerve conduction studies and arterial studies that were not medically reasonable or necessary, not supported by clinical documentation within the patient records, and not covered by the Medicare and/or North Carolina Medicaid program. As a result, they were reimbursed for funds that they were not entitled to.
The federal and North Carolina False Claims Acts authorize the governments to recover triple the money falsely obtained, plus substantial civil penalties for each false claim submitted. It should be noted that the civil claims resolved by settlement here are allegations only, and that there has been no judicial determination or admission of liability. The investigation and prosecution of this case was the result of a coordinated effort by the United States Attorney’s Office for the Middle District of North Carolina and the Medicaid Investigations Division of the North Carolina Attorney General’s Office.
Today’s settlement is the fourth in Operation You’ve Got Nerve, an ongoing effort by the Attorney General’s Medicaid Investigations Division (MID) to identify and hold accountable providers billing Medicaid fraudulently for nervous system testing. Including today’s settlement, Operation You’ve Got Nerve has won back $1,190,000 for taxpayers.
About the Medicaid Investigations Division (MID)
The Attorney General’s MID investigates and prosecutes health care providers that defraud the Medicaid program, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patients’ private funds in nursing homes that receive Medicaid funding. To date, the MID has recovered more than $900 million in restitution and penalties for North Carolina. To report Medicaid fraud or patient abuse in North Carolina, call the MID at 919-881-2320.
The MID receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $6,160,252 for Federal fiscal year (FY) 2020. The remaining 25 percent, totaling $2,053,414 for FY 2020, is funded by the State of North Carolina. MID and United States Attorney’s Offices (USAO) frequently collaborate on investigations concerning Medicaid fraud such that MID attorneys are designated as Special Assistant United States Attorneys in the USAOs throughout North Carolina.
The resolutions obtained in this matter were the result of a coordinated effort between the U.S. Attorney’s Office for the Middle District of North Carolina, the U.S. Department of Health and Human Services, Office of Counsel to the Inspector General, and the North Carolina Department of Justice, Medicaid Investigations Division. Assistant U.S. Attorney Rebecca Mayer represented the United States.
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21 June 2021
Worcester Man Indicted for Using Stolen Identities to Open Bank Account and Attempting to Purchase $83,000 Sports CarRead the Press Release
BOSTON – A Worcester man was indicted on Thursday, June 17, 2021 for using two victims’ identities to open a bank account and attempting to purchase an $83,000 Chevrolet Camaro.
Brandon Brouillard, 27, was indicted on two counts of bank fraud and one count of aggravated identity theft. He is scheduled to be arraigned tomorrow by U.S. District Court Chief Magistrate Judge M. Page Kelley.
According to the charging documents, in February 2021, Brouillard used the identity of a New Hampshire resident to open a bank account at Avidia Bank. Brouillard allegedly wired $108,000 to the Avidia Bank account from another individual’s Bank of America account.
On April 17, 2021, Brouillard test drove a 2021 Chevrolet Camaro at a dealership in Norwood. After test-driving the Camaro, Brouillard allegedly agreed to purchase it for $83,000 and paid for the vehicle with a cashier’s check made out to the dealership. It is alleged that Brouillard provided his Massachusetts driver’s license, proof of insurance and signed a sales contract and Massachusetts application for registration and car title in connection with the purchase.
On April 19, 2021, Brouillard allegedly picked up the Camaro from the dealership. A few days later, the dealership learned that the account listed on the bank check provided by Brouillard was frozen. The dealership contacted Brouillard, who allegedly promised that he would wire $83,000 to pay for the car.
On April 26, 2021, an Arizona resident contacted local police and reported an attempted fraudulent wire transfer of $83,000 from the victim’s bank account. The victim reported that a fraudulent email purportedly from the victim was sent to the bank, requesting a wire transfer of $83,000 to pay for the victim’s “brother-in-law’s car.” The bank contacted the victim for verification, and the victim did not approve the transfer. It is alleged that starting in or about September 2020, the victim’s accounts were compromised, and large fraudulent purchases were made and shipped to Brouillard’s address. It is estimated that approximately $500,000 of the victim’s funds were stolen
The charge of bank fraud provides for a sentence of up to 30 years in prison, up to three years of supervised release and a fine of $1 million. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentence imposed, up to three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement. Valuable assistance was provided by the Boston, Braintree, Natick, Newton, Norwood, Worcester and Scottsdale (Ariz.) Police Departments. Assistant U.S. Attorney John T. Mulcahy of Mendell’s Worcester Branch Office is prosecuting the case.
The details contained in the charging documents are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Worcester Man Charged with Possessing Counterfeit Adderall Pills Containing MethamphetamineRead the Press Release
BOSTON – A Worcester man was arrested and charged today for possession with intent to distribute methamphetamine disguised as counterfeit Adderall pills.
Nestiano Kristo, 20, of Worcester, was charged by criminal complaint with possession with intent to distribute methamphetamine. Following an initial appearance this afternoon before U.S. District Court Chief Magistrate Judge M. Page Kelley, Kristo was detained pending a detention hearing scheduled for June 30, 2021.
According to the charging document, over the course of two months, Kristo allegedly sold significant quantities of counterfeit Adderall pills containing methamphetamine, cocaine and suspected fentanyl to an undercover law enforcement officer. Specifically, on May 10, 2021, Kristo allegedly sold approximately 1,000 counterfeit Adderall pills containing 355 grams of methamphetamine and cocaine to the undercover law enforcement officer. Today, agents recovered over 50,000 suspected counterfeit Adderall pills which are estimated to have a combined weight of over 17 kilograms, approximately one kilogram of suspected cocaine and three firearms, one of which was modified into a fully automatic weapon, from Kristo’s residence.
The charge of possession with intent to distribute methamphetamine provides for a sentence of up to 20 years in prison, a lifetime of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg Friedholm of Mendell’s Worcester Branch Unit is prosecuting the case.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Two Pulaski County Constables Convicted of Conspiring to Violate the Civil Rights of OthersRead the Press Release
LONDON, Ky. – Two Pulaski County Constables were convicted late Friday, by a federal jury sitting in London, of federal civil rights violations and possession with intent to distribute methamphetamine.
After approximately three and a half hours of deliberations, following a five-day trial, the jury convicted Michael Wallace, 47, of Bronston, Ky., and Gary Baldock, 56, of Somerset, Ky., of violating the civil rights of persons within Pulaski County, and of possession with intent to distribute methamphetamine.
According to the evidence at trial, Wallace and Baldock worked together to violate people’s civil rights by fabricating evidence, which was used as a basis to arrest, to search, and to seize the property of others. Both Wallace and Baldock were also found to have possessed methamphetamine, for the purpose of planting the drug on potential suspects.
“This case is a disgraceful example of a grave betrayal of trust, a profound violation of the rights of others, and a real danger to our community,” said Carlton S. Shier, IV, Acting United States Attorney for the Eastern District of Kentucky. “When those charged with enforcing the law and protecting the public turn instead to corruption, self-interest, and violating the rights of others, that does enduring damage to our communities. It also undermines the hard work and true dedication of so many. I want to thank the FBI and our trial team for the hard work and dedication that lead to these guilty verdicts.”
"As evidenced by the jury's guilty verdict, the actions of the two Pulaski County constables were not only harmful to the individuals they swore under oath to protect, but they also undermined public trust and confidence in law enforcement," said Special Agent in Charge Robert Brown of the FBI’s Louisville Field Office. "The FBI will not tolerate those who abuse their authority for their own personal gain and is committed to rooting out public corruption at all level."
Acting United States Attorney Shier and Special Agent in Charge Brown jointly announced the verdicts.
The investigation was conducted by the FBI. The United States was represented by Assistant U.S. Attorney Jason Parman.
Wallace and Baldock will appear for sentencing on October 18, 2021. They each face up to 10 years for the civil rights convictions; Baldock faces up to 20 years for the methamphetamine conviction; and Wallace faces a minimum of five years, up to 40 years, for the methamphetamine conviction. However, the Court must consider the U.S. Sentencing Guidelines and the applicable federal sentencing statutes before imposing a sentence.
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Two Architects of Fraudulent Scheme Sentenced for Processing over $150 Million Through U.S. Financial InstitutionsRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that HAMID AKHAVAN, aka “Ray Akhavan,” was sentenced on Friday to 30 months in prison, and codefendant RUBEN WEIGAND was sentenced to 15 months in prison, for participating in a scheme to deceive U.S. issuing banks and credit unions into effectuating more than $150 million of credit and debit card purchases of marijuana by disguising those transactions as purchases of other kinds of goods, such as face creams and dog products. AKHAVAN and WEIGAND were found guilty of bank fraud in March 2021, following a four-week jury trial before U.S. District Court Judge Jed. S. Rakoff, who imposed Friday’s sentence.
Manhattan U.S. Attorney Audrey Strauss said: “Ray Akhavan and Ruben Weigand orchestrated an elaborate web of lies to deceive U.S. banks and credit card companies into processing more than $150 million in marijuana transactions, in violation of those institutions’ strict policies against such payments. This massive fraud undermined the fundamental integrity of the U.S. financial system, which relies on banks’ ability to identify the nature of the transactions they process. Now Akhavan and Weigand have rightly been sentenced to prison for their crimes.”
According to the evidence presented at trial:
AKHAVAN and WEIGAND, working with others, including principals from one of the leading on-demand marijuana delivery companies in the United States (the “Company”), planned and executed a scheme to deceive United States banks and other financial institutions into processing over $150 million in credit and debit card payments for the purchase and delivery of marijuana products (the “Scheme”).
The Scheme involved the deception of virtually all of the participants in the payment processing network, including issuing banks in the United States (the “Issuing Banks”) and Visa and MasterCard. The primary method used by AKHAVAN, WEIGAND, and other co-conspirators to deceive the Issuing Banks involved the purchase and use of shell companies that were used to disguise the marijuana transactions through the use of phony merchants (the “Phony Merchants”). The shell companies were used to open offshore bank accounts with merchant acquiring banks and to initiate credit card charges for marijuana purchases made through the Company. AKHAVAN and WEIGAND worked with other co-conspirators to create these phony merchant accounts – including phony online merchants purportedly selling dog products, diving gear, carbonated drinks, green tea, and face creams – and established Visa and MasterCard merchant processing accounts with one or more offshore acquiring banks. They then arranged for more than a dozen Phony Merchants to be used by the Company to process debit and credit card purchases of marijuana products. Many of the Phony Merchants purported to be based in the United Kingdom, but, despite being based outside the United States, claimed to maintain U.S.-based customer service numbers.
To facilitate the Scheme, webpages were created and deployed to lend legitimacy to the Phony Merchants. The Phony Merchants typically had web pages suggesting that they were involved in selling legitimate goods, such as carbonated drinks, face cream, dog products, and diving gear. Yet these companies were actually being used to facilitate the approval and processing of marijuana transactions. The defendants’ scheme even involved fake visits to those websites to make it appear as though the websites had real customers and were operating legitimate online businesses.
The defendants’ scheme also involved the use of online tracking pixels. Because the descriptors listed on Company customers’ credit card statements often were the URLs for the Phony Merchant websites, Company customers were sometimes confused and did not recognize the transactions on their credit card statements. The defendants and their co-conspirators were concerned that confused customers would call their Issuing Banks and inadvertently reveal the Scheme by indicating that they had purchased marijuana products and/or that they had made a purchase through the Company. To lessen the risk that customers would be confused, the defendants used a number of techniques, including online tracking pixels to track which users had visited the Company’s website. If a Company customer had visited the Company’s website and went to the URL listed on the customer’s credit card statement, the customer would automatically be re-routed to a webpage connected to the Company so that the customer would understand what the real purchase had been for (i.e., from the Company). However, in order to hide the Scheme, the defendants ensured that if a third-party such as a bank or credit card company investigator visited a URL for a Phony Merchant, they would not be re-routed, and would therefore be unable to discern any connection between the Phony Merchant website and the Company and/or the sale of marijuana products.
Over $150 million in marijuana credit and debit card transactions were processed using the Phony Merchants. Some of the merchant websites listed for those transactions included: diverkingdom.com, desirescent.com, outdoormaxx.com, and happypuppybox.com. Moreover, none of the Phony Merchant website names listed for those transactions referred to the Company or to marijuana. AKHAVAN, WEIGAND, and others also worked with and directed others to apply incorrect merchant category codes (“MCCs”) to the marijuana transactions in order to disguise the nature of those transactions and create the false appearance that the transactions were completely unrelated to marijuana. Some of the MCCs/categories listed for the transactions included freight carrier, trucking; clock, jewelry, watch, and silverware; stenographic services; department stores; music stores/pianos; and cosmetic stores.
AKHAVAN was the leader of the transaction laundering scheme and WEIGAND was responsible for interfacing with the acquiring banks regarding the offshore bank accounts used by the Phony Merchants.
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In addition to the prison term, AKHAVAN, 43, of, California, was sentenced to three years of supervised release, and ordered to pay a fine of $100,000 and forfeiture in the amount of $17,183,114.57.
WEIGAND, 38, of Germany, was also sentenced to three years of supervised release, and ordered to pay a fine of $50,000 and forfeiture in the amount of $384,000.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit and the Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Nicholas Folly, Tara La Morte, and Emily Deininger are in charge of the prosecution.
Turkish Businessman Arrested in Austria on Charges that He Allegedly Laundered over $133 Million in Fraud ProceedsRead the Press Release
A Turkish businessman was arrested in Austria on June 19, at the request of the U.S. Department of Justice. This arrest followed a superseding indictment returned by a federal grand jury in Salt Lake City, Utah, on April 28, which was unsealed today. The superseding indictment charged Sezgin Baran Korkmaz with one count of conspiring to commit money laundering, 10 counts of wire fraud, and one count of obstruction of an official proceeding.
According to the superseding indictment, Korkmaz laundered over $133 million in fraud proceeds through bank accounts that he controlled in Turkey and Luxembourg. The proceeds allegedly related to a scheme by Jacob Kingston, Isaiah Kingston, and Levon Termendzhyan to defraud the U.S. Treasury by filing false claims for over $1 billion in refundable renewable fuel tax credits for the production and sale of biodiesel by their company, Washakie Renewable Energy LLC, in Plymouth, Utah.
Korkmaz and his co-conspirators allegedly used proceeds from the fraud to acquire the Turkish airline Borajet, hotels in Turkey and Switzerland, a yacht named the Queen Anne, and a villa and apartment on the Bosphorus strait in Istanbul.
The indictment further charges Korkmaz with 10 counts of wire fraud. As alleged, Korkmaz devised a scheme to defraud Jacob Kingston and Isaiah Kingston by falsely representing that he could provide them with protection, through unnamed government officials, from a federal grand jury investigation and civil lawsuits.
The United States will seek to extradite Korkmaz to the United States so that he can appear before U.S. District Judge Jill Parrish of the District of Utah to face these charges. If convicted, Korkmaz faces a maximum penalty of 20 years in prison for the money laundering conspiracy count, 20 years in prison for each of the wire fraud counts, and five years in prison for the obstruction count. Judge Parrish 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 Andrea T. Martinez for the District of Utah made the announcement.
IRS Criminal Investigation, the Environmental Protection Agency Criminal Investigation Division, and the Department of Defense DCIS are investigating the case. The Justice Department’s Office of International Affairs is providing significant assistance.
Trial Attorneys Richard Rolwing and Arthur Ewenczyk, and Senior Litigation Counsel John Sullivan of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Stock Promoters Charged in “Pump and Dump” Securities Fraud SchemeRead the Press Release
MINNEAPOLIS – A recently unsealed indictment charges three individuals with securities fraud for running an illegal pump-and-dump stock manipulation scheme by hijacking dormant public shell companies. The 15-count indictment charges all three defendants with conspiracy to commit securities fraud, securities fraud and wire fraud.
According to court documents, Mark Allen Miller, 43, of Breezy Point, Minnesota, Christopher James Rajkaran, 35, of Queens, New York, and Guyana, and Saeid Jaberian, 59, of Hopkins, Minnesota, devised and carried out a scheme to surreptitiously hijack and assume control over dormant public shell companies. The defendants used their control over the companies to fraudulently manipulate and pump up the price of the companies' stock so that they could profit from the sale of stock to unwitting investors.
According to court documents, the defendants acquired large amounts of stock in dormant public shell companies that traded over-the-counter at low prices, often less than $0.01 per share. The defendants then assumed control over the shell companies by creating fake and filing fake resignation letters and board resolutions purporting to announce the resignation of the existing management team and the appointment of one or more conspirators as new officers and directors of the companies. The conspirators used their control over the hijacked shell companies to issue fraudulent press releases and filings designed to fraudulently inflate and “pump up” the price of the hijacked companies’ stock. The defendants then sold or “dumped” their stock at the fraudulently inflated prices.
Rajkaran, who was arrested on June 18, 2021, in the Eastern District of New York, made his initial appearance U.S. District Court before Magistrate Judge John Cho. Miller and Jaberian will make their initial appearances in U.S. District Court before Magistrate Judge Hildy Bowbeer in St. Paul, Minnesota. Acting U.S. Attorney W. Anders Folk of the District of Minnesota made the announcement.
This case is the result of an investigation conducted by the U.S. Postal Inspection Service and the FBI. The U.S. Attorney’s Office would also like to thank the Securities and Exchange Commission for its assistance on this matter.
Assistant U.S. Attorneys Joseph H. Thompson and Miranda E. Dugi 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.
Stanly County Man Sentenced to Prison for Trafficking FentanylRead the Press Release
GREENSBORO, N.C. - Amaud Jaquane Allen, aka Bookie, of Albemarle, North Carolina, was sentenced today to 132 months in prison for distribution of fentanyl.
According to court documents, Homeland Security Investigations working with local law enforcement executed a controlled purchase of approximately two ounces of fentanyl and a .45 caliber handgun from Amaud Jaquane Allen in November 2019 in Albemarle, North Carolina. Law enforcement officers then conducted an additional buy-bust operation in December 2019 wherein Allen was found in possession of three bags containing approximately 24 grams of fentanyl.
Allen, age 29, was charged with one count of distribution of 40 grams or more of fentanyl, one count of possession with intent to distribute fentanyl, and one count of felon in possession of a firearm. On March 4, 2021, Allen pled guilty to one count of distribution of 40 grams or more of fentanyl. Allen was a convicted felon at the time of these offenses, having been convicted of common law robbery in 2010 and conspiracy to sell a Schedule I controlled substance and two counts of possession with intent to sell or deliver a Schedule I controlled substance in 2017 in the Superior Court of Stanly County. Accordingly, at sentencing, the Court determined that Allen was a Career Offender.
In addition to the term of imprisonment, United States District Judge Catherine C. Eagles ordered Allen to serve four years of supervised release and to pay a $100 special assessment to the United States.
Sandra J. Hairston, Acting United States Attorney for the Middle District of North Carolina, made the announcement. The case was investigated by Homeland Security Investigations along with the federal Bureau of Alcohol, Tobacco, Firearms and Explosives, the Albemarle Police Department, the North Carolina State Bureau of Investigation, and the Stanly County Sheriff’s Office. The case was prosecuted by Assistant U.S. Attorney Craig M. Principe.
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Springfield Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Springfield man pleaded guilty in federal court in Springfield today to child pornography offenses.
Ross Lopata, 33, pleaded guilty today to four counts of receipt of child pornography and one count of possession of child pornography. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 12, 2021. Lopata was indicted in June 2020 and has been in custody since his arrest on June 11, 2020.
Lopata received and possessed child pornography on various dates between Dec. 17, 2018 and June 11, 2020 by downloading image and video files from the internet that depicted prepubescent children engaged in sex acts.
Acting United States Attorney Nathaniel R. Mendell and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Southern California Man Faces Federal Charge for Stealing Endangered Ring-Tailed Lemur from San Francisco ZooRead the Press Release
SAN FRANCISCO - Cory John McGilloway appeared in federal court today and was arraigned on an information charging him with a violation of the Endangered Species Act, announced Acting United States Attorney Stephanie M. Hinds and Federal Bureau of Investigation, Special Agent in Charge Craig D. Fair.
According to the affidavit supporting the information’s warrant, McGilloway, 31 and residing in Los Angeles, is alleged to have entered the San Francisco Zoo on the night of October 13, 2020, and stolen one of the zoo’s four ring-tailed lemurs. The stolen lemur was named “Maki” and was 21 years old at the time.
The affidavit states that on October 15, two days after the theft, a woman reported to the San Francisco Police Department that she had video-recorded a man on Treasure Island the day before walking a lemur on a leash. The video captured images of the lemur and of the man, who had distinctive tattoos and is believed to be McGilloway. The man walked the lemur to a maroon car, according to the allegations, which was identified as a Saab.
Around 5 p.m. on October 15, the affidavit states, a 5-year-old boy spotted the unattended animal at a Daly City playground. Authorities were able to catch and return Maki to the zoo. Maki was hungry, dehydrated, and agitated, according to the affidavit.
McGilloway was arrested in San Rafael shortly before midnight on October 15, the affidavit describes, when police responded to a shoplifting report at the Smart & Final store and found McGilloway driving a stolen sanitary dump truck. The affidavit states that a maroon Saab was parked nearby.
Ring-tailed lemurs (Lemur catta) are native to Madagascar, are listed as an endangered species, and are deemed endangered “wherever found,” under federal regulation 50 C.F.R. § 17.11(h). The charging information contains the photograph of Maki above.
McGilloway is charged in the information with one count of violating the Endangered Species Act, 16 U.S.C. §§ 1538(a)(1)(B) and 1540(b)(1). If convicted, McGilloway faces a maximum sentence of one year in jail and a fine of up to $50,000. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
An information merely alleges that crimes have been committed, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
McGilloway appeared in federal court today before United States Magistrate Judge Jacqueline Scott Corley. McGilloway is currently in custody in Los Angeles, though he is released on bond in the present federal charge. McGilloway’s next scheduled appearance is at 11:00 a.m. on July 22, 2021, for status hearing before United States Magistrate Judge Jacqueline Scott Corley.
Joseph Tartakovsky is the Assistant U.S. Attorney who is prosecuting the case with the assistance of Rebecca Shelton. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the San Francisco Police Department.
Snellville man arrested for fraudulently obtaining U.S. citizenshipRead the Press Release
ATLANTA – Mezemr Abebe Belayneh has been arraigned on criminal charges related to his alleged lies to obtain U.S. citizenship. The defendant allegedly concealed his involvement in the late 1970s Red Terror period in Ethiopia, where he served as a civilian interrogator at a makeshift prison.
“The laws of the United States are designed to provide refuge for the victims of human rights violation and to exclude those who commit them,” said Acting U.S. Attorney Kurt R. Erskine. “The defendant’s alleged lies through his immigration and naturalization process subverted this system. We commend our law enforcement partners at the Department of Homeland Security and the dedicated team at the Department of Justice who work tirelessly to assure that individuals such as the defendant do not have a safe haven in our communities.”
“Human rights violators have no home in the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “No matter how much time has passed, the Department of Justice will find and prosecute individuals who committed atrocities in their home countries and covered them up to gain entry to the United States.”
“Abebe’s lies and horrible past deeds have thankfully come back to haunt him. Now he will be held accountable,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Thanks to some great work from the agents and officers involved in this case as well as our law enforcement partners, justice will be served.”
According to Acting U.S. Attorney Erskine, the indictment, and other information presented in court: Mezemr Abebe Belayneh served as a civilian interrogator at a makeshift prison in Dilla, Ethiopia, during a period in the late 1970s known as the Red Terror. At the prison, Abebe ordered and participated in the severe physical abuse and interrogation of prisoners held on the basis of their political beliefs.
The indictment alleges that Abebe unlawfully procured U.S. citizenship, to which he was not entitled, by concealing his involvement in the Red Terror when he falsely claimed that he had not persecuted anyone because of their political opinions and had never committed a crime for which he had not been arrested.
Mezemr Abebe Belayneh, 65, of Snellville, Georgia, was indicted by a federal grand jury on May 26, 2021 and is charged with two counts of unlawful procurement of naturalization. Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial. A conviction would also result in automatic revocation of Abebe’s U.S. citizenship.
This case is being investigated by the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, and coordination in the case was provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate, and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.
Assistant U.S. Attorney Jessica Morris of the Northern District of Georgia, and Trial Attorneys Jamie Perry and Patrick Jasperse of the Justice Department’s Human Rights and Special Prosecutions Section (HRSP) are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or its online tip form at www.ice.gov/tips.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Roxbury Man Sentenced for Being a Felon in Possession of a FirearmRead the Press Release
BOSTON – A Roxbury man, who was previously convicted of cocaine distribution, was sentenced today for illegal possession of a semiautomatic pistol and ammunition.
Daiquan Lucas, 28, was sentenced by U.S. Senior District Court Judge Douglas P. Woodlock to 18 months in prison and three years of supervised release. On Jan. 22, 2021, Lucas pleaded guilty to being a felon in possession of a firearm and ammunition.
On June 18, 2020, Lucas possessed a Bryco Arms model 38, .32 auto caliber semiautomatic pistol, loaded with four rounds of .32 caliber ammunition. Due to a 2017 conviction in federal court of distribution of cocaine base, Lucas is prohibited from possessing firearms and ammunition. Lucas was on federal supervised release at the time of this offense.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; and Boston Police Acting Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney John Dawley of Mendell’s Organized Crime and Gang Unit prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The 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.
Registered sex offender sentenced to 10 years in prison for possession of images of child rape and abuseRead the Press Release
Seattle – A registered sex offender, originally from Arkansas, was sentenced today in U.S. District Court in Seattle to 10 years in prison, announced Acting U.S. Attorney Tessa M. Gorman. Johnathon R. Umphlett, 31, of Arkansas, pleaded guilty in October 2020 to possession of child pornography. At today’s sentencing hearing U.S. District Judge John C. Coughenour imposed lifetime supervised release to follow prison, noting Umphlett’s history of molesting children.
According to records filed in the case, Umphlett was contacted by Seattle Police in June 2019, when a witness at a restaurant reported Umphlett was viewing what appeared to be child pornography on his smart phone. Umphlett provided his phone to the Seattle Police Detective for review, and the detective verified a number of images of children engaged in sexually explicit conduct. Forensic analysis of the phone revealed 68 files of images of child rape and abuse. Umphlett has a 2014 conviction in Arkansas for sexually assaulting a seven-year-old boy. He admits to a history of sexual abuse of children including molesting a 6-year-old child in a public restroom at a church.
In asking for the 10-year sentence prosecutors wrote to the court “Those who collect and share images and videos of children being raped and tortured further a market that thrives on the sexual abuse of children. The collection of this material drives demand for new material and normalize horrific acts of sexual exploitation. And it subjects victims of child abuse to perpetual re-victimization, knowing that the digital record of their worst moments forever travels the globe to satisfy the sexual appetite of child predators.”
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc
The Internet Crimes against Children Task Force led by the Seattle Police Department and Homeland Security Investigations investigated the case.
The case was prosecuted by Assistant United States Attorney Cecelia Gregson.
Postal Employee Charged with Stealing More Than $4,000 from MailRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that an indictment was unsealed today charging Sa’Shanna Estell, 26, of Cleveland, Ohio, with theft of mail by a postal employee.
According to the indictment, between July and September of 2020, the Defendant, a United States Postal Services mail processing associate, knowingly removed from and stole from the mail a $3,870 cashier’s check, eight gift cards totaling approximately $330, an Apple iPad, a smartwatch, a pair of Reebok shoes, other clothing, two packages of THC edibles and $76 in cash.
In total, Estell is estimated to have stolen $4,594.67.
If convicted, a defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal records, if any, the Defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
This investigation was conducted by the Cleveland Resident Office of the U.S. Postal Service Office of Inspector General. This case is being prosecuted by Assistant United States Attorney Andrea Isabella.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Pittsfield Man Sentenced for Marijuana and Tax OffensesRead the Press Release
BOSTON – A Pittsfield man was sentenced today in federal court in Springfield for marijuana and tax offenses.
Jacob Sweener, 31, was sentenced by U.S. District Court Judge Mark G. Mastroianni to three years of supervised release, with the first six months served in home confinement. Sweener was also ordered to pay a fine of $30,000 and restitution of $90,344. On March 19, 2021, Sweener pleaded guilty to one count of conspiracy to distribute marijuana, one count of possession with intent to distribute marijuana and two counts of filing a false tax return.
From 2013 to January 2017, Sweener conspired with others to distribute marijuana. A search of Sweener’s residence on Jan. 10, 2017, resulted in the seizure of 41 pounds of marijuana and over $69,000 in cash. Sweener also filed false income tax returns for tax years 2014 and 2015 by substantially underreporting his income by more than $300,000 and failing to pay more than $90,000 that he owed in federal income taxes.
Acting United States Attorney Nathaniel R. Mendell; Acting Assistant Attorney General David A. Hubbert of the Department of Justice’s Tax Division; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Division made the announcement today. Assistant U.S. Attorney Alex J. Grant of Mendell’s Springfield Branch Office and Trial Attorney Christopher O’Donnell of the Justice Department’s Tax Division prosecuted the case.
Pine Ridge Man Found Not Guilty of Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge man was acquitted of two counts of Sexual Abuse and two counts of Sexual Abuse of a Minor following a federal jury trial in Rapid City, South Dakota, on June 11, 2021.
Leon Janis, age 37, was indicted by a federal grand jury on May 21, 2019.
The investigation was conducted by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety.
Pendleton County mail carrier sentenced for attempted election fraudRead the Press Release
ELKINS, WEST VIRGINIA – Thomas Cooper, a mail carrier in Pendleton County, was sentenced today to five years of probation, with the first six months home confinement, for attempted election fraud, Acting U.S. Attorney Randolph J. Bernard announced.
Cooper, age 48, of Dry Fork, West Virginia, pled guilty in July 2020 to one count of “Attempt to Defraud the Residents of West Virginia of a Fair Election” and one count of “Injury to the Mail.” Cooper held a U.S. Postal Service contract to deliver mail in Pendleton County. In April 2020, the Clerk of Pendleton County received “2020 Primary Election COVID-19 Mail-In Absentee Request" forms from eight voters on which the voter's party-ballot request appeared to have been altered.
The clerk reported the finding to the West Virginia Secretary of State’s office, which began an investigation. The investigation found five ballot requests that had been altered from “Democrat” to “Republican.” On three other requests, the party wasn’t changed, but the request had been altered.
Cooper was responsible for the mail delivery of the three towns from which the tampered requests were mailed: Onego, Riverton, and Franklin, West Virginia. Cooper admitted today to altering some of the requests.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The West Virginia Secretary of State’s Office, the West Virginia Attorney General’s Office, and the U.S. Postal Service Office of Inspector General investigated.
U.S. District Judge Thomas S. Kleeh presided.
Pair Plead Guilty to Kickback SchemeRead the Press Release
ABINGDON, Va. – A Miami, Florida man pleaded guilty last week to conspiring with a Bristol, Tennessee man to pay and receive kickbacks.
According to court documents, Michael Olshavsky, 51, of Miami, Florida, and John Paul Linke, 57, of Bristol, Tenn., conspired to receive and pay kickbacks to encourage urine drug screen testing performed by a lab in Florida. Some of the testing referred to the lab was paid for by Medicare, Virginia Medicaid, and TennCare.
Between November 30, 2015, and May 30, 2016, Linke was employed at an office-based opioid treatment program that used medication-assisted treatment for patients suffering from substance use disorder. In exchange for being paid $5,000 per month, Linke arranged for the clinic to send urine drug screen samples to the laboratory in Florida where Olshavasky worked. These payments were disguised as commissions paid to Linke as an “independent sales representative” for Olshavsky’s company, Encore Holdings LLC. Olshavasky paid Linke at least $16,000 through Encore Holdings to direct WRC’s drug screening business to the Florida lab, although Linke was not actually an independent sales representative for Encore, and he did not act as such.
“This prosecution demonstrates our commitment to protect the integrity of the health care system and hold individuals accountable who seek to fraudulently obtain critical Medicare and Medicaid funds,” Acting U.S. Attorney Bubar stated. “We will continue to investigate and prosecute healthcare providers who attempt to divert these funds for their own use. I am grateful for the continued partnership of the Virginia Attorney General’s Office and our other federal and state partners, whose hard work brought these providers to justice.”
“Healthcare providers who act fraudulently are not only stealing from our healthcare system but they are also stealing from taxpayers and they must be held accountable,” said Attorney General Herring. “I want to thank our local, state, and federal partners who worked alongside my Medicaid Fraud Control Unit to bring this case to justice and I look forward to our continued partnership on other important cases.”
“Those who seek to profit off the opioid crisis through illegal schemes make the problem worse,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to investigate and bring to justice those who, through their dishonesty, jeopardize the public health.”
Olshavsky pleaded guilty last week to one count of conspiring to pay and receive kickbacks. He will be sentenced on September 17, 2021 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines. Linke pleaded guilty recently to one count of conspiring to pay and receive kickbacks. He will be sentenced on September 16, 2021 and faces a maximum penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines.
The Virginia Medicaid Fraud Control Unit, the Drug Enforcement Administration, the Food and Drug Administration, the Department of Health and Human Services—Office of Inspector General, the Tennessee Bureau of Investigation, and the Virginia State Police are investigating the case.
Special Assistant United States Attorney Janine M. Myatt and Assistant United States Attorneys Randy Ramseyer and Whit Pierce are prosecuting the case.
Oklahoma City Doctor Pays $325,000 to Settle Civil Penalty ClaimsRead the Press Release
OKLAHOMA CITY - Albert T. Nguyen, M.D., of Oklahoma City, paid $325,000 to settle civil penalty claims stemming from allegations that he violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations, announced Acting U.S. Attorney Robert J. Troester.
Dr. Nguyen is the owner and sole physician at the Budget Medical Clinic in Oklahoma City. The United States alleges that from approximately November 2016 to May 2017, Dr. Nguyen operated two clinic locations in Oklahoma City. When Dr. Nguyen was seeing patients at one location, he routinely left pre-signed, blank prescriptions at the other location, which non-physician practitioners used to issue prescriptions to patients for controlled substances that they did not have the authority to prescribe. The United States further alleges that the prescriptions were not issued in the usual course of professional practice. The United States alleged that Dr. Nguyen’s conduct violated the requirements contained in the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations.
To resolve these allegations, Dr. Nguyen agreed to pay $325,000 to the United States.
In reaching this settlement, Dr. Nguyen did not admit liability, and the government did not make any concessions about the legitimacy of the claims. The agreement allows the parties to avoid the delay, expense, inconvenience, and uncertainty involved in litigating the case.
This case was investigated by the Drug Enforcement Administration Office of Diversion Control, with assistance from the Department of Health and Human Services Office of Inspector General. Assistant U.S. Attorneys Amanda R. Johnson and Ronald R. Gallegos prosecuted the case.
Ohio Man Pleads Guilty to Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – An Ohio man pleaded guilty today to a federal drug crime.
According to court documents, on June 12, 2019, law enforcement officers executed search warrants at locations on 26th and 27th Streets in Huntington pursuant to a shooting investigation. Inside the 26th Street residence officers located Jacob Benjamin Loper, 20, a baggie of 7.9 grams of heroin as confirmed by the DEA Laboratory and digital scales. Loper admitted that his fingerprints would be on the baggie of heroin and that he had possessed it at the 27th Street residence.
Loper pleaded guilty to possession with intent to distribute heroin and he faces up to 20 years in prison when sentenced on September 20, 2021.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative efforts of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Huntington Police Department.
United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Ryan A. Keefe and Stephanie S. Taylor are handling the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:20-cr-00106.
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Newburyport Physician Agrees to Resolve Allegations of Illegal Prescribing of Opioid Controlled SubstancesRead the Press Release
BOSTON – A Newburyport physician has agreed to resolve allegations that he improperly prescribed opioid controlled substances outside the usual course of his professional practice.
Guido Navarra, M.D., an internist practicing in Newburyport, has agreed to pay $12,500 to resolve allegations that he violated the civil remedies provisions of the Controlled Substances Act.
“Preventing the illegal prescription of drugs is essential to patient safety, particularly during an opioid epidemic,” said Acting United States Attorney Nathaniel R. Mendell. “This settlement is an example of how our office and the DEA work to ensure that doctors prescribe dangerous medications only when legally authorized to do so. We appreciate Dr. Navarra’s cooperation in the government’s investigation and swift resolution of the claims against him.”
“The DEA is committed to ensuring that all registrants are in compliance with the required regulations, which are enforceable through the Controlled Substances Act,” said Special Agent in Charge Brian D. Boyle of the Drug Enforcement Administration, Boston Division. “Failure to do so increases the potential for diversion and jeopardizes public health and public safety. DEA pledges to work with our law enforcement and regulatory partners to ensure these rules and regulations are followed.”
According to the settlement agreement, on two occasions, Dr. Navarra prescribed opioid controlled substances to patients outside the course of his professional practice. In one instance, a urine drug screen had revealed that the patient was taking controlled substances that Dr. Navarra had not prescribed. Dr. Navarra continued to prescribe controlled substances to this patient despite the patient’s positive test result, a basis for discharge from his practice.
In another instance, a patient requested an early refill of a prescription for a controlled substance based on the patient’s assertion that police officers had seized the prescribed medication from her home. Dr. Navarra continued to prescribe controlled substances to this patient for several more months despite the patient’s inability to substantiate the assertion. A urine drug test ultimately revealed this patient’s use of illicit drugs. In both instances, Dr. Navarra prescribed opioid controlled substances outside the usual course of his professional practice.
Acting U.S. Attorney Mendell and DEA SAC Boyle made the announcement today. Assistant U.S. Attorney Evan Panich of Mendell’s Affirmative Civil Enforcement Unit handled the case.
New Orleans Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – JEFFERY HOLMES, age 45, of New Orleans, Louisiana, pleaded guilty on June 16, 2021 before the Honorable Sarah S. Vance to charges of violating the Federal Controlled Substances Act, announced U.S. Attorney Duane A. Evans.
According to the court records, HOLMES conspired to possess with the intent to distribute and to distribute a quantity of a mixture or substance containing a detectable amount of heroin. HOLMES admitted to being captured on recorded calls as part of a lengthy Title III wire intercept.
Sentencing is scheduled for October 27, 2021. HOLMES faces a penalty of up to 20 years in prison, a fine of up to $1,000,000, at least three years of supervised release following any term of imprisonment, and a $100 special assessment.
This case was investigated by Special Agents of the Federal Bureau of Investigation (FBI). The prosecution is being handled by Assistant United States Attorney David Haller.
Naturalized U.S. Citizen from Ethiopia Arrested on Charge of Fraudulently Obtaining CitizenshipRead the Press Release
A Georgia man has been arrested on criminal charges related to allegations that he lied to obtain U.S. citizenship.
According to the indictment, which was unsealed following the arrest, Mezemr Abebe Belayneh, 65, of Snellville, served as a civilian interrogator at a makeshift prison in Dilla, Ethiopia, during a period in the late 1970s known as the Red Terror. At the prison, Abebe ordered and participated in the severe physical abuse and interrogation of prisoners held on the basis of their political beliefs. The indictment alleges that Abebe unlawfully procured U.S. citizenship, to which he was not entitled, by concealing his involvement in the Red Terror when he falsely claimed that he had not persecuted anyone because of their political opinions and had never committed a crime for which he had not been arrested.
“Human rights violators have no home in the United States,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “No matter how much time has passed, the Department of Justice will find and prosecute individuals who committed atrocities in their home countries and covered them up to gain entry to the United States.”
“The laws of the United States are designed to provide refuge for the victims of human rights violation and to exclude those who commit them,” said Acting U.S. Attorney Kurt R. Erskine for the Northern District of Georgia. “The defendant’s alleged lies through his immigration and naturalization process subverted this system. We commend our law enforcement partners at the Department of Homeland Security and the dedicated team at the Department of Justice who work tirelessly to assure that individuals such as the defendant do not have a safe haven in our communities.”
“Abebe’s lies and horrible past deeds have thankfully come back to haunt him,” said Special Agent in Charge Katrina W. Berger, who oversees Homeland Security Investigations (HSI) operations in Georgia and Alabama. “Now he will be held accountable. Thanks to some great work from the agents and officers involved in this case as well as our law enforcement partners, justice will be served.”
Abebe is charged with two counts of unlawful procurement of naturalization. The maximum sentence for each count is 10 years in prison. If convicted, a federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. A conviction would also result in automatic revocation of Abebe’s U.S. citizenship.
Homeland Security Investigations’ Atlanta Field Office is investigating the case, and coordination was provided by the Human Rights Violators and War Crimes Center (HRVWCC). Established in 2009, the HRVWCC furthers the government’s efforts to identify, locate and prosecute human rights abusers in the United States, including those who are known or suspected to have participated in persecution, war crimes, genocide, torture, extrajudicial killings, female genital mutilation, and the use or recruitment of child soldiers.
Trial Attorneys Jamie Perry and Patrick Jasperse of the Criminal Division’s Human Rights and Special Prosecutions Section (HRSP) and Assistant U.S. Attorney Jessica Morris of the U.S. Attorney’s Office for the Northern District of Georgia are prosecuting the case, with assistance from HRSP Senior Historian Dr. Christopher Hayden.
Members of the public who have information about former human rights violators in the United States are urged to contact U.S. law enforcement through the HSI tip line at 1-866-DHS-2-ICE (1-866-347-2423) or its online tip form at www.ice.gov/tips.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monongalia County man sentenced for firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Joshua Lee Grapes, of Pursglove, West Virginia, was sentenced today to 25 months of incarceration for firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Grapes, 40, plead guilty in February 2021 to one count of “Unlawful Possession of a Firearm.” Grapes, who is prohibited from having a firearm because of prior convictions, admitted to having a .45 caliber pistol in July 2020 in Grant County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Grant County Sheriff’s Office investigated.
U.S. District Judge Thomas S. Kleeh presided.
Medical Clinic Operators, Doctor, and a Patient Recruiter Charged in a $6.6 Million Illegal Opioid Distribution ConspiracyRead the Press Release
DETROIT - An indictment was unsealed today charging the owner and operators of a medical clinic, a doctor, a patient recruiter, and two clinic employees with conspiracy to illegally distribute prescription drugs, and other opioid-related charges, Acting U.S. Attorney Saima Mohsin announced today.
Mohsin was joined in the announcement by Special Agent in Charge Timothy Waters, Federal Bureau of Investigation, Detroit Division, and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office.
Charged in the indictment are:
Janeice Minique Burrell, 36, of Macomb;
Angelo Martese Smith, 44, of Macomb;
Dr. Lawrence Mark Sherman, 72, of Shelby Township;
Peter Burrell, Jr., 52, of West Bloomfield;
Akeyla Bell, 38, of Saint Clair Shores; and
Carmen Gilbreth, 36, of Detroit.
The indictment alleges that from March 2020 through June 2021, the clinic owner, operator, and a doctor conspired with the other defendants to issue and dispense a large number of prescription opioids for supposed “patients” who did not have a legitimate medical need for the drugs. Janeice Minique Burrell owned Tranquility Wellness Center, Inc. (“TWC”), and she and Angelo Martese Smith operated TWC first in Dearborn and currently in Saint Clair Shores, Michigan.
Out of that clinic, Dr. Sherman primarily prescribed Oxycodone and Oxymorphone, two of the most addictive opioids that have high street value. Janeice Burrell and Smith accepted only cash at TWC, and charged patients not based on the service provided, but instead based on the quantity, type, and dosage of prescription opioids that the “patient” received. Janeice Burrell, Smith, and their employees Akeyla Bell and Carmen Gilbreth also charged cash for the creation of fraudulent medical records for the supposed “patients.” Janeice Burrell and Smith paid Dr. Sherman in cash or peer-to-peer money transfer application per controlled substance prescription he authorized.
Peter Burrell, Jr. was one of the patient recruiters/marketers who brought supposed “patients” to TWC to receive unlawful prescriptions from Dr. Sherman. Peter Burrell, Jr. would then fill the prescriptions and sell the prescriptions on the street at a significant profit.
Janeice Burrell, Smith, and Dr. Sherman also are charged with 14 counts of distributing Oxycodone and Oxymorphone pills.
According to the indictment, Dr. Sherman issued more than 441,000 dosage units of Schedule II opioid prescriptions during the course of the conspiracy. These controlled substances had a conservative street value in excess of $6.6 million.
While most of the unlawful controlled substance prescriptions were paid for in cash, both controlled and non-controlled “maintenance” medications were billed to health care benefit programs by pharmacies. Billings to the Medicare and Medicaid programs for medically unnecessary prescription drug medications and maintenance medications during this conspiracy exceeded $85,000
“This indictment shows our continued commitment to investigate and charge those who fuel the opioid crisis in this state,” said Acting US Attorney Mohsin. “This case is particularly troubling in that it involves greedy medical professionals who profited from prescribing and dispensing medically unnecessary drugs to individuals without regard to medical necessity.”
“The diversion of prescription pills into our communities perpetuates the current opioid crisis,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Division. “The FBI and its federal partners will continue to target doctors, pharmacists, and the networks that are fueling the epidemic by holding them accountable for their dangerous criminal behavior.”
“Dispensing prescription opioids to individuals who do not have a legitimate medical need is illegal and puts those individuals and others health and safety at risk,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “The OIG continues to work diligently with our law enforcement and prosecutorial partners to identify those who choose to violate the law and exacerbate the opioid epidemic.”
This case is being prosecuted by Assistant United States Attorneys Andrew J. Lievense and Alison Furtaw. The Eastern District of Michigan is one of the twelve districts included in the Opioid Fraud Abuse and Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that are contributing to the nation’s opioid crisis.
The case was investigated by special agents and task force officers of the Federal Bureau of Investigation and the Department of Health and Human Services-Office of the Inspector General.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Martin Woman Indicted for Meth Trafficking and Firearm OffenseRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Martin, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine and Possession of a Firearm by a Prohibited Person.
Carly Shott, age 23, was indicted on September 9, 2020. She appeared before U.S. Magistrate Judge Mark A. Moreno on June 17, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, a $100 special assessment to the Federal Crime Victims Fund, and forfeiture of a firearm. Restitution may also be ordered.
The Indictment alleges that between 2018 and 2019, Shott knowingly and intentionally conspired with others to distribute 50 grams or more of methamphetamine in South Dakota. Further, on August 30, 2019, Shott possessed a handgun at a hotel in Eagle Butte, South Dakota, while being a user of methamphetamine.
The charges are merely accusations and Shott is presumed innocent until and unless proven guilty.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services, the Northern Plains Safe Trails Drug Enforcement Task Force, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Shott was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Man Convicted of Abusive Sexual Conduct Aboard an Airplane Sentenced to Statutory Maximum Federal Prison TermRead the Press Release
COLUMBIA, SC – Acting U.S. Attorney for the District of South Carolina M. Rhett DeHart, Acting U.S. Attorney for the Western District of North Carolina William T. Stetzer and FBI Special Agent in Charge Robert R. Wells announced that Siva K. Durbesula, 29, of India, who was convicted by jury of abusive sexual contact aboard an airplane, was sentenced to the statutory maximum federal prison term of two years for the offense.
According to filed court documents, witness testimony, and evidence presented at trial, on June 23, 2019, Durbesula was a passenger aboard a flight from Chicago O’Hare to Myrtle Beach. Over the course of the flight, Durbesula sexually assaulted a 22-year-old female who was seated next to him. As the victim testified at trial, Durbesula pulled her toward him and groped her repeatedly midflight. Court records show that after the flight crew moved Durbesula away from the victim, Durbesula asked to return to his previous seat so he could speak to the victim again.
During trial, prosecutors also presented the testimony of a second victim, who testified that on March 21, 2019 – approximately three months prior to the assault on the airplane – Durbesula pinned her into the corner on a New York City subway train and groped her. The victim was able to video record Durbesula’s exiting the train, which assisted the New York Police Department to identify Durbesula and charge him. Those charges were still pending when Durbesula sexually assaulted the victim on the airplane that resulted in federal charges.
The case was originally indicted in the District of South Carolina and was later transferred to the Western District of North Carolina. In handing out the statutory maximum prison term for the offense, Chief U.S. District Judge Martin Reidinger noted that Durbesula’s repeated sexual misconduct over a short period of time required the maximum statutory punishment to promote respect for the law. In addition to the prison term imposed, Judge Reidinger ordered Durbesula to serve 10 years of supervised release and to pay a $5,000 assessment.
Durbesula is currently in federal custody. He will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility.
In making the announcement, Acting U.S. Attorneys DeHart and Stetzer commended the FBI and the Horry County Police Department for their investigation of the case and thanked Homeland Security Investigations (HSI) for their invaluable assistance.
Assistant U.S. Attorneys Derek A. Shoemake of the District of South Carolina and Don Gast of the Western District of North Carolina prosecuted the case.
Local Man Sentenced to 12 Years for Armed Carjacking and Brandishing a Firearm in a Crime of ViolenceRead the Press Release
Memphis, TN – Courtney Freeman, 31, a/k/a Quatney Freeman has been sentenced to 154 months in federal prison for armed carjacking and brandishing a firearm during a crime of violence. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, on September 25, 2018, Freeman approached a man sitting in a 2011 GMC Acadia at the Jubilee Express gas station on North Watkins. When Freeman tapped on the glass, the victim rolled the window down; Freeman then pointed a handgun at him and said, "Get out the car or I’ll blow you away." He immediately exited the car and Freeman entered the vehicle and drove away.
The victim ran to his home a few blocks away, called law enforcement, and reported his car stolen. Police responded and he informed them that his cell phone, wallet with credit cards, social security card, $260 in cash and a Ruger .380 pistol were all in the car at the time. Law enforcement later recovered security camera footage from the store, which confirmed the victim’s description. The victim identified Freeman to law enforcement as the person who carjacked him. Officers put out a stolen vehicle report.
The next day, September 26, 2018, Memphis Police found the stolen car on St. Charles Street. The vehicle was then towed and processed by a crime scene officer. Investigators found 7 pieces of paper with ridge detail, which were then forwarded to latent print examiners, who determined some of the prints belonged to Courtney Freeman.
Agents with the National Insurance Crime Bureau examined the VIN of the 2011 GMC Acadia and concluded the vehicle was manufactured outside the state of Tennessee.
The defendant pled guilty on September 1, 2020.
On June 15, 2021, U.S. District Judge Mark S. Norris sentenced Freeman to 154 months in federal prison to be followed by three years’ supervised release. There is no parole in the federal system.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), National Crime Insurance Bureau and the Memphis Police Department.
U.S. Attorneys Raney Irwin and J. William Crow prosecuted this case on behalf of the government.
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Lee County Woman Pleads Guilty to Nearly $700,000 Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Lee County woman pleaded guilty today to conspiring to defraud the government of more than $699,124 in pandemic-related unemployment funds, mail fraud, and aggravated identity theft.
According to court documents, Farren Ricketts, 30, and others conspired to file fraudulent claims for pandemic unemployment benefits through the Virginia Employment Commission (VEC) website. The scheme involved Ricketts filing claims for various individuals, including her husband and others known to be ineligible to receive pandemic employment benefits.
To further the conspiracy, Ricketts developed a business entity called “Ricketts Advisory, LLC,” registered with the State Corporation Commission, and advertised as a financial services company providing assistance filing pandemic unemployment claims.
Between May 2020 and February 2021, Ricketts filed more than 100 fraudulent claims for pandemic unemployment benefits. For many of these filings, Ricketts created fraudulent documents to support the claims, including fraudulent IRS forms to purport pre-pandemic income.
In addition, Ricketts filed numerous claims in the names of prison inmates who were unaware that Ricketts was using their personally identifiable information.
“Defrauding the federal government of critical funds designed to assist those in need is unconscionable, particularly during a worldwide pandemic. It is also a federal crime with serious consequences,” Acting U.S. Attorney Bubar stated today. “Along with our partners at the Department of Labor and IRS, we will continue to investigate and prosecute anyone who stole from these vital programs and bring them to justice.”
“Farren Rickets engaged in a scheme to defraud the Pandemic Unemployment Assistance program by submitting fraudulent claims for benefits for herself and others. This scheme resulted in a loss to the government of more than $669,000. Unemployment insurance programs exists to provide needed assistance to qualified individuals who are unemployed or underemployed due to no fault of their own. Fraud against these programs causes state workforce agencies, like the Virginia Employment Commission, to redirect valuable resources to address fraud in order to ensure benefits go to individuals who are eligible to receive them. The U.S. Department of Labor Office of Inspector General will continue to work closely with the U.S. Attorney’s Office, the Virginia Employment Commission, and our many law enforcement partners to investigate those who exploit the unemployment insurance program,” stated Syreeta Scott, Acting Special Agent-in-Charge of the Philadelphia Region, U.S. Department of Labor Office of Inspector General
“Thieves fraudulently taking advantage of pandemic unemployment assistance is disgraceful. We will continue working with our law enforcement partners in an effort to hold those accountable who stole funds meant to help those in need,” said Darrell J. Waldon, Acting Special Agent in Charge of the IRS-CI Washington DC Field Office.
Ricketts pleaded guilty today to one count of conspiracy to defraud the United States, one count of mail fraud, and one count of aggravated identity theft. She is scheduled to be sentenced on October 29, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Department of Labor Office of the Inspector General, the Internal Revenue Service – Criminal Investigation, are investigating the case.
Assistant U.S. Attorney Daniel J. Murphy is prosecuting the case.
Leader of St. Louis County drug trafficking organization pleads guiltyRead the Press Release
ST. LOUIS – Ronald ‘Big Stink’ Gales, 54, of St. Louis, Missouri, pleaded guilty to conspiracy to distribute cocaine and cocaine base, possession with intent to distribute cocaine and cocaine base, and being a felon in possession of a firearm. Gales appeared today before United States District Court Judge John A. Ross.
Beginning in 2018, investigators with the Federal Bureau of Investigation and St. Louis County Police Department began an investigation into Gales, who was the principal supplier of a drug trafficking organization supplying cocaine to other distributors operating in the St. Louis area.
During the course of the investigation, law enforcement executed search warrants at various residences of individuals supplied by Gales, where they recovered distributable amounts of cocaine and cocaine base. Investigators also conducted controlled purchases of cocaine from Gales and conducted surveillance of Gales’ operations before ultimately executing a federal search warrant at Gales’ residence in October of 2019. Investigators found two .40 caliber handguns, $46,000 in cash, and drug trafficking paraphernalia, as well as distribution quantities of cocaine and cocaine base.
Judge Ross has set sentencing for September 28, 2021. Gales faces a minimum term of imprisonment of ten years and a maximum term of life in the Bureau of Prisons.
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.
The Federal Bureau of Investigation and St. Louis County Police Department investigated the case, and Assistant United States Attorney Lisa Yemm is handling the case for the United States Attorney’s Office.
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Leader of Pittsburgh Heroin Trafficking Organization Pleads Guilty, Faces 10 Years to Life at SentencingRead the Press Release
PITTSBURGH - A Pittsburgh resident pleaded guilty in federal court to violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
Trevon Kendrick, 28, pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin from September of 2018 through October of 2019, before United States District Judge William S. Stickman, IV. In addition, Kendrick accepted responsibility for possessing firearms in conjunction with his heroin trafficking. Kendrick is one of 19 defendants charged in the Indictment returned in this case.
In connection with the guilty plea, the court was advised that in 2018, the Federal Bureau of Investigation began investigating a heroin trafficking organization lead by Kendrick that operated throughout the greater Pittsburgh area. Beginning in February of 2019 and continuing through September of 2019, the FBI received authorization to conduct a Title III wiretap investigation into the organization. Kendrick, as the leader of this multi-member drug trafficking organization, was intercepted orchestrating and directing the movement of heroin from Philadelphia to Pittsburgh for distribution throughout Pittsburgh by various members of the organization. In addition to the intercepted communications, agents seized heroin, firearms, and bulk United States Currency from members of the organization, including Kendrick.
Judge Stickman scheduled sentencing for Nov. 1, 2021. The law provides for a total sentence of not less than 10 years to a maximum of life imprisonment, a fine not to exceed $10,000,000, 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. Kendrick remains in custody pending sentencing.
Assistant United States Attorney Mark V. Gurzo is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, Homeland Security Investigations, the Allegheny County Police Department, the Stowe Township Police Department, the Pittsburgh Bureau of Police, the Office of the Attorney General, the Allegheny County Sheriff's Office, the North Versailles Police Department, the Allegheny County Port Authority Police Department, the Munhall Police Department, and the Pennsylvania State Police conducted the investigation leading to the prosecution of Kendrick.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Kenyan National Pleads Guilty to Fraud Conspiracy Involving Romance ScamsRead the Press Release
BOSTON – A Kenyan national pleaded guilty today in connection with her role in a fraud conspiracy involving romance scams targeting individuals in the United States.
Florence Mwende Musau, 36, a Kenyan national previously residing in Canton, pleaded guilty to conspiracy to commit wire and bank fraud. U.S. District Court Judge Allison D. Burroughs scheduled sentencing for Oct. 14, 2021.
On March 25, 2021, Musau and five others were charged in connection with their roles in online scams that are alleged to have collectively defrauded victims of more than $4 million.
According to the charging documents, Musau participated in a series of romance scams designed to defraud victims into sending money to bank accounts controlled by her and others. Romance scams occur when a criminal adopts a fake online identity to gain a victim’s affection and trust. The scammer then uses the illusion of a romantic or close relationship to manipulate and/or steal from the victim. To carry out the schemes, Musau used fake passports in the names of numerous aliases to open bank accounts in and around Boston to collect and launder the proceeds of the romance scams. She then executed large cash withdrawals from those accounts, often multiple times on a single day and generally structured in amounts less than $10,000, in an effort to evade detection and currency transaction reporting requirements.
The charge of conspiracy to commit wire and bank fraud provide for a sentence of up to 30 years in prison, five years of supervised release, a fine of up to $1 million or twice the gross gain or loss, whichever is greater, restitution, and forfeiture. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division; and Jonathan Davidson, Special Agent in Charge of the U.S. Department of State’s Diplomatic Security Service made the announcement today. Assistant U.S. Attorney Ian Stearns of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Kansas Man Indicted for Child PornographyRead the Press Release
WICHITA, KAN. – A federal grand jury indicted Truman Gentry, 25, of Augusta, Kansas, on two counts of Production of Child Pornography, one count of Advertising for Production of Child Pornography and one count of Possession of Child Pornography.
If convicted, Gentry faces 15 to 30 years in prison for each count of Production of Child Pornography, 15 to 30 years in prison for Advertising for Production of Child Pornography and up to 20 years in prison for Possession of Child Pornography.
The investigating agencies include: the United States Attorney’s Office, North Carolina Internet Crimes Against Children, Kansas Internet Crimes Against Children, Homeland Security Investigations, Kansas Bureau of Investigation, the Boone, North Carolina Police Department, Wichita Police Department, Sedgwick County Sheriff’s Office, and the Augusta Department of Public Safety.
Assistant U.S. Attorney Jason Hart is 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.
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