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Tuesday 4 May 2021
Harrison County man indicted on drug chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Austin Lodge, of Bridgeport, West Virginia, was indicted today on drug charges, Acting United States Attorney Randolph J. Bernard announced.
Lodge, 28, was indicted on one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Possession with Intent to Distribute Heroin.” Lodge is accused of having methamphetamine and heroin in December 2018 in Harrison County.
Lodges faces up to 20 years of incarceration and a fine of up to $1,000,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative, and the Harrison County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Hammond Man Sentenced to 160 Months Imprisonment for Drug and Firearm ViolationsRead the Press Release
NEW ORLEANS – The United States Attorney’s Office for the Eastern District of Louisiana announced today that defendant LARRY GREEN (“GREEN”), age 38, of Hammond, LA, was sentenced to 160 months imprisonment by United States District Court Judge Wendy B. Vitter for possession of a firearm in furtherance of a drug trafficking crime (Count 1) and conspiracy to distribute and possess with intent to distribute a substance containing a detectable amount of methamphetamine (Count 2). For Count 1, the Court imposed a sentence of 60 months to run consecutively to a 100 month sentence GREEN received for Count 2. Additionally, GREEN was ordered to serve 3 years of supervised release as to both counts to run concurrently and pay $200 in special assessment fees. No fines were imposed in this case.
According to court documents, between February 2019 and April 2019, GREEN conspired to distribute or possess with intent to distribute approximately 3209 pills that contained 644 grams of a mixture or substance containing a detectable amount of methamphetamine. On Valentine’s Day 2019, GREEN possessed a loaded Taurus pistol in furtherance of one of his illegal drug transactions.
This matter was handled by the Bureau of Alcohol, Tobacco, Firearms and Explosives. United States Attorney Duane A. Evans is prosecuting the matter.
Glen Burnie Man Facing Federal Indictment for Impersonating a U.S. Marshal and Possession of a Fraudulently Made Government SealRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Renul Barnet Forbes, a/k/a “Michael Renul,” “Breion Jones,” and “Bree Jones,” age 32, of Glen Burnie, Maryland, on the federal charges of false personation of a federal officer and possession of a fraudulently made government seal. The indictment was returned on March 25, 2021 and was unsealed at his initial appearance on May 3, 2021.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; U.S. Marshal for the District of Maryland Johnny Hughes; and Anne Arundel County Police Chief Amal Awad.
According to the indictment, on September 26, 2020, Forbes pretended to be an agent of the United States Marshals Service and presented a fraudulent United States Marshals Service badge in relation to an investigation begin conducted by an Anne Arundel County Police officer, in an effort to avoid identification and prosecution.
If convicted, Forbes faces a maximum sentence of three years in federal prison for impersonating an officer and a maximum of five years in federal prison for presenting a fraudulent government seal. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors. At today’s initial appearance in U.S. District Court in Baltimore, U.S. Magistrate Judge Beth P. Gesner ordered that Forbes be released on electronic home monitoring pending trial.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the ATF, the USMS, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Mary W. Setzer who is prosecuting the case.
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Fugitive Guatemalan Man Indicted for Wire FraudRead the Press Release
CONCORD – Roberto Montano, 55, formerly of Guatemala City, Guatemala, was indicted by a federal grand jury on Monday and charged with three counts of wire fraud, Acting United States Attorney John J. Farley announced today.
According to the Indictment, Montano is a Guatemalan citizen who managed two forestry projects in Guatemala for investment funds managed by a New Hampshire-based investment adviser between 2007 and 2014. Beginning in approximately late 2009, Montano, whose management company was called Green Millennium, embezzled the projects' funds by (1) diverting cash and concealing the diversions using altered bank and financial statements; (2) mortgaging the Projects' properties without authorization and investing the proceeds in unsuccessful business ventures; and (3) stealing teak forestry subsidies paid by the Guatemalan government. A criminal complaint previously was filed against Montano in 2015 and a warrant was issued for his arrest. Montano has been a fugitive from justice since that time.
The charges in the indictment are only allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Special Assistant U.S. Attorney Alexander S. Chen and Assistant U.S. Attorney John S. Davis. Former Assistant U.S. Attorney William Morse previously handled the case.
The FBI has released a wanted poster which can be viewed at: https://www.fbi.gov/wanted/wcc/jorge-roberto-montano-pellegrini
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Former Tennis Coach Is Sentenced to 25 Years for the Sexual Exploitation of A MinorRead the Press Release
CHARLOTTE, N.C. – Acting U.S. Attorney William T. Stetzer announced that U.S. District Judge Max O. Cogburn Jr. sentenced Benjamin Swain, 47, of Charlotte, late yesterday, to 25 years in prison, on charges of sexual exploitation of a minor.
Robert R. Wells, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Jonny Jennings for the Charlotte-Mecklenburg Police Department join Acting U.S. Attorney Stetzer in making today’s announcement.
According to court filings, plea documents and statements made in court, Swain was a tennis coach in the greater Charlotte area. As Swain previously admitted in court, beginning in at least 2016, and on at least two different occasions, Swain secretly recorded three minors while they were undressing and showering. On December 9, 2019, Swain pleaded guilty to sexual exploitation of a minor. Swain was previously sentenced to 12 years in prison, after pleading guilty to Child Molestation and Enticing a Child for Indecent Purposes in an unrelated case prosecuted by the state of Georgia.
In announcing Swain’s sentence, Judge Cogburn said that the sentence should deter other coaches and people who serve in similar positions from committing similar crimes.
Swain is currently in federal custody. He will be ordered to report to the federal Bureau of Prisons upon designation of a federal facility. Swain, who is a British citizen, will also be subject to deportation proceedings upon completion of his federal sentence. If Swain is not deported, or later returns to the United States, he was ordered by Judge Cogburn to serve a lifetime of supervised release and to register as a sex offender.
In making today’s announcement, Acting U.S. Attorney Stetzer thanked the FBI, CMPD, and the Bibb County Sheriff’s Office in Georgia for their investigation of the case.
Assistant United States Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Former Paraprofessional at Blue Springs High School Pleads Guilty to Producing Child PornographyRead the Press Release
KANSAS CITY, Mo. – A former paraprofessional at Blue Springs High School pleaded guilty in federal court today to producing and distributing child pornography.
Steven B. Allen, 45, of Independence, Mo., pleaded guilty before U.S. District Judge Roseann Ketchmark to two counts of producing child pornography and one count of distributing child pornography over the internet. Allen, who has been in federal custody since his arrest on Nov. 25, 2019, remains detained until his sentencing hearing.
At the time of the offense, Allen worked as a paraprofessional at Blue Springs High School.
By pleading guilty today, Allen admitted that he used two minor victims to produce child pornography and distributed those images, and others, to individuals over the internet. Allen also admitted he had been sharing images of child pornography over the internet every couple of days for the past five to six years.
According to today’s plea agreement, Allen began communicating over the internet with an undercover officer in the United Kingdom in June 2019. The undercover officer purported to be the father of a 10-year-old girl. Allen sent the undercover officer numerous images of one of the minor victims. He also discussed participating in and fantasizing about sexually abusing the undercover officer’s daughter.
On Oct. 7, 2019, law enforcement officers executed a search warrant at Allen’s residence and seized numerous electronic devices that contained more than 9,200 images and 89 videos of child pornography, including more than 800 images of infants and toddlers being sexually assaulted, 65 images of violent sexual acts, and two images of bestiality.
Allen also produced a number of images and videos of prepubescent girls using a waterproof camera at a community swimming pool.
Under the terms of his plea agreement, Allen must pay $5,000 to each of the nine victims who have petitioned for restitution from every person who received or possessed pictures of their sexual abuse, or $3,000 if he can pay restitution within 30 days of his sentencing.
Allen is subject to a mandatory minimum sentence of 15 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Kenneth W. Borgnino. It was investigated by Homeland Security Investigations.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Former North Shore Resident Charged with COVID-Relief FraudRead the Press Release
BOSTON – A former North Shore resident was arrested today in connection with allegedly filing a fraudulent loan application in order to obtain over $660,000 in Paycheck Protection Program (PPP) loan funds and using those funds for personal expenses, including an alpaca farm in Vermont.
Dana L. McIntyre, 57, of Grafton, Vt. and previously of Beverly and Essex, Mass., was charged in a criminal complaint with one count of wire fraud and one count of money laundering. McIntyre will make a virtual initial appearance in federal court in Boston this afternoon.
McIntyre is the former owner of Rasta Pasta Pizzeria in Beverly. As alleged in the complaint, in April 2020, McIntyre submitted a fraudulent application for a PPP loan of over $660,000 through a Small Business Administration (SBA) approved lender. In the application, McIntyre allegedly inflated information about the pizzeria’s employees and payroll expenses and falsified an official tax form in an effort to qualify the business for a larger loan amount. McIntyre allegedly reported that the pizzeria employed nearly 50 individuals; however, records indicate that the business paid fewer than 10 employees at any time before or after McIntyre submitted the loan application.
The complaint further alleges that, after receiving a PPP loan of over $660,000, McIntyre sold the pizzeria and used nearly all the funds for personal expenses, including to purchase and upgrade a farm in Vermont as well as to buy several alpacas, at least two vehicles and weekly airtime for a cryptocurrency-themed radio show among other expenses.
The CARES Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of forgivable loans to small businesses for job retention and certain approved expenses, through the PPP.
The charge of wire fraud provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000, or twice the gross gain or loss from the scheme, whichever is greater. The charge of money laundering provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $500,000, or twice the value of the criminally derived property. 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; Ramsey E. Covington, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Christina Scaringi, Special Agent in Charge of the U.S. Department of Housing and Urban Development, Office of the Inspector General, Northeast Regional Office made the announcement today. Assistant U.S. Attorneys David M. Holcomb of Mendell’s Securities, Financial & Cyber Fraud Unit and Carol Head of Mendell’s Asset Recovery Unit are prosecuting the case.
Information about allegations of attempted fraud involving COVID-19 can be reported by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) hotline by phone (1-866-720-5721) or via an online reporting form available at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
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.
Former Netflix Executive Convicted of Receiving Bribes and Kickbacks from Companies Contracting with NetflixRead the Press Release
Amended as of May 4, 2021.
SAN JOSE – A federal jury convicted Michael Kail, the former Vice President of IT Operations at Netflix, of wire fraud, mail fraud, and money laundering, announced Acting United States Attorney Stephanie M. Hinds, Federal Bureau of Investigation Craig D. Fair, and IRS-Criminal Investigation Acting Special Agent in Charge Michael Daniels. The verdict follows a two and a half-week trial before the Honorable Beth L. Freeman, U.S. District Judge.
Kail was indicted May 1, 2018, of nineteen counts of wire fraud, three counts of mail fraud, and seven counts of money laundering, in violation of 18 U.S.C. §§ 1341 (mail fraud), 1343 (wire fraud), 1346 (honest services fraud), and 1957 (money laundering). The indictment also sought forfeiture of Kail’s Los Gatos residential property. The jury returned a verdict of guilty on 28 of the 29 counts. The jury further found real property purchased by Kail with laundered money is forfeitable to the government.
“Bribery undermines fair competition and innovation in any business arena, and particularly Silicon Valley’s highly competitive environment of cutting-edge innovation,” said Acting United States Attorney Stephanie M. Hinds. “As Netflix’s Vice President of IT Operations, Michael Kail wielded immense power to approve valuable Netflix contracts with small tech vendors, and he rigged that process to unlock a stream of cash and stock kickbacks to himself. Netflix and other companies expect and deserve honest services from its employees.”
“Not only did Mr. Kail deprive Netflix of its money and resources by abusing his position as VP of IT Operations, he created a pay-to-play environment whereby he stole the opportunity to work with an industry pioneer from honest, hardworking, Silicon Valley companies,” said FBI Special Agent in Charge Craig D. Fair. “Bribes and kickback schemes, such as those facilitated by Mr. Kail, undermine the fabric of competition in Silicon Valley, and the FBI will aggressively pursue anyone who attempts to criminally exploit their position for personal gain.”
“High-ranking corporate officials hold positions of trust not only in their companies, but also in the eyes of the public,” said Michael Daniels, Acting Special Agent in Charge IRS Criminal Investigation. “That trust is broken when such officials abuse their power and commit crimes to unjustly enrich themselves.”
According to the evidence presented at trial to the federal jury, Kail, 49, of Los Gatos, was employed at Netflix as the Vice President in charge of IT Operations from 2011 until July 2014. In this position, Kail owed Netflix his honest services. Netflix prohibited conflicts of interest by its employees in its Code of Ethics and its “Culture Deck” which required disclosure of actual or apparent conflicts of interest and the reporting of gifts from people or entities seeking to sell to the company.
As Netflix’s Vice President of IT Operations, Kail approved contracts to purchase IT products and services from smaller outside vendor companies and authorized their payment. The evidence demonstrated that Kail accepted bribes in ‘kickbacks’ from nine tech companies providing products or services to Netflix. In exchange, Kail approved millions of dollars in contracts for goods and services to be provided to Netflix. Kail ultimately received over $500,000 and stock options from these outside companies. He used his kickback payments to pay personal expenses and to buy a home in Los Gatos, California, in the name of a family trust.
To facilitate kickback payments, the evidence at trial showed that Kail created and controlled a limited liability corporation called Unix Mercenary, LLC. Established on February 7, 2012, Unix Mercenary had no employees and no business location. Kail was the sole signatory to its bank accounts.
Two days before Unix Mercenary was registered, Kail signed a Sales Representative Agreement to receive payments from Netenrich, Inc. amounting to 12% of the billings from Netenrich, Inc. to Netflix for its contract providing staffing and IT services to Netflix. Later in 2012, Kail began to receive 15% of all billing payments that VistaraIT, LLC, a wholly owned company of Netenrich, received from Netflix. From 2012 to 2014, Netenrich, Inc. paid Unix Mercenary approximately $269,986, and VistaraIT, LLC paid Unix Mercenary approximately $177,863. The payments stopped in mid-2014, after Kail left Netflix.
Evidence at trial showed that several more companies paid Kail. Neither Netenrich, Vistara, nor any of these other companies were charged with criminal conduct. Only Kail was charged with devising the criminal scheme to defraud Netflix.
In 2013, the evidence showed, Platfora, Inc. sought to do business with Netflix. In June 2013 – at the time Kail was seeking to buy his Los Gatos residence – he met with Platfora employees and signed an evaluation agreement for Netflix engineers to test Platfora’s product, a data analytics software program. On July 13, 2013, Kail met with Platfora’s CEO for drinks and later thanked him in an email, saying “I look forward to helping you in both a Netflix and Advisory capacity.” Two days later, Kail signed an “advisory” agreement with Platfora that provided him with the right to purchase up to 75,000 options, approximately .25% of the company. Shortly thereafter, Kail provided Platfora with Netflix’s internal information about Platfora’s competitor’s contract bid price to Netflix. In September 2013, while being a paid advisor to Platfora, Kail signed on behalf of Netflix a multi-stage $250,000 per year contract with Platfora. Kail then urged his Netflix employees to find a use for the product, despite their objections and preference for a competing product that Netflix was already paying for. When an inquiry from the Netflix CEO ensued, Kail falsely denied that he was formally working with Platfora. Kail resigned from his advisory position at Platfora the next week.
Additional evidence showed that Kail received payments or other compensation from numerous other companies doing business with Netflix. In June 2012, he became an advisor to and received options for shares in the company Sumo Logic, Inc. The next month, Kail authorized and signed on behalf of Netflix a vendor agreement between Netflix and Sumo Logic. The agreement led to over $300,000 in payments by Netflix, approved by Kail, to Sumo Logic. Kail then approved a further $800,000 two-year contract with Sumo Logic, despite his IT team feedback about the product underperforming. Kail acknowledged the problem in an email to Sumo Logic, saying “[i]t is becoming increasingly difficult for me to champion Sumo internally and then continue to have severe performance issues.”
Similarly, trial evidence showed Kail received $5,000 per month consulting for Netskope, Inc., and also received options to purchase 71,500 shares of Netskope stock options, and then authorized Netflix to enter a $112,500 contract with that company, in the same month that Kail resigned from Netflix. Kail also purchased, on behalf of Netflix, a small amount of storage from Maginatics, Inc., and thereafter became an advisor to Maginatics, which allowed him to purchase up to 30,000 shares. Kail then increased Netflix’s purchase of storage from Maginatics by tenfold. Kail made approximately $120,000 when Maginatics was sold the next year to EMC. Kail also was promised shares in the company ElasticBox, Inc., and thereafter signed a June 2013 Netflix order for a $600,000, 3-year subscription to ElasticBox’s cloud services. Later that year, he signed an additional $850,000 contract for more cloud services. Kail also accepted an advisor position with Numerify, Inc. in February 2014, which provided him with an early option to purchase 36,000 shares. Three months later, Kail, on behalf of Netflix, signed an $85,000 subscription agreement for Numerify’s software.
The evidence further showed that many Netflix IT employees involved with testing the products did not know that many of the startups’ software was being paid for by Netflix, assuming it instead to be unpaid “pilots” of the untested software, which was routine.
Kail faces a maximum sentence of twenty years in prison and a fine of $250,000, or twice his gross gain or twice the gross loss to Netflix, whichever is greater, for each count of a wire or mail fraud conviction, and ten years in prison and a fine of $250,000 for each count of a money laundering conviction. 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.
United States District Judge Beth L. Freeman scheduled post-verdict motions to be heard on June 29, 2021, at 10 a.m., with a sentencing hearing to follow on September 14, 2021.
Assistant U.S. Attorneys Colin Sampson and Daniel Kaleba prosecuted the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Former Atomwaffen Division Leader Sentenced for Swatting ConspiracyRead the Press Release
ALEXANDRIA, Va. – A former leader of the Atomwaffen Division in Texas, a racially motivated violent extremist group, was sentenced today to 41 months in prison for his role in a conspiracy that conducted multiple swatting events targeting journalists, a Virginia university, a former U.S. Cabinet member, a historic African American church, an Islamic Center in Arlington, Texas, and members of various minority groups and communities across the United States.
“The reprehensible conduct in this case terrorized communities across our Nation, as innocent Americans simply tried to attend school, practice their faith, and exercise their First Amendment rights,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “The defendants caused irreversible trauma to the victims of these hate-based crimes. This case sends an unmistakable message that those who target individuals because of their race, religion, or any other form of bias, will be identified, apprehended, and brought to justice.”
According to court documents, John Cameron Denton, 27, of Montgomery, Texas, participated in a conspiracy that conducted swatting attacks on at least 134 different locations across the United States between October 2018 and February 2019. Swatting is a harassment tactic that involves deceiving emergency dispatchers into believing that a person or persons are in imminent danger of death or bodily harm and causing the dispatchers to send police and emergency services to an unwitting third party’s address. Many of the conspirators, including Denton, chose targets because they were motivated by racial animus.
“Denton’s swatting activities were not harmless pranks; he carefully chose his targets to antagonize and harass religious and racial communities, journalists, and others against whom he held a bias or grievance,” said Timothy Thibault, acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division. “Today’s sentence demonstrates the FBI’s commitment to holding accountable anyone who terrorizes communities and threatens public safety by diverting emergency resources, which puts innocent people and first responders at risk.”
Conspirators targeted multiple locations in the Eastern District of Virginia, including a then-sitting U.S. Cabinet official living in northern Virginia on January 27, 2019; Old Dominion University on November 29 and December 4, 2018; and the Alfred Street Baptist Church in Old Town Alexandria on November 3, 2018. In each instance, conspirators selected the targets and called emergency dispatchers with false claims of pipe bombs, hostage takings, or other violent activity occurring at the targeted locations. As a result of these swatting calls, police were dispatched to Old Dominion University and the Alfred Street Baptist Church, and individuals in each location were required to shelter in place while the bomb threats were investigated. According to court documents, a conspirator admitted to choosing the Alfred Street Baptist Church as a target because its congregation is predominantly African American.
Additionally, Denton personally chose at least two targets to “swat”: the New York City office of ProPublica, a non-profit newsroom that produces investigative journalism; and an investigative journalist who produced materials for ProPublica. Denton chose these two targets because he was angry with ProPublica and the investigative journalist for publishing Denton’s identity and discussing his role in the Atomwaffen Division, a U.S.-based violent extremist group with cells in multiple states. The group’s targets have included racial minorities, the Jewish community, the LGBTQ community, the U.S. government, journalists, and critical infrastructure.
During the investigation, Denton unknowingly met with an undercover law enforcement officer and told the undercover officer about his role in the swatting conspiracy. Denton stated that he used a voice changer when he made swatting calls and admitted that he swatted the offices of ProPublica and the investigative journalist. Denton also stated that it would be good if he was “raided” for the swatting because it would be viewed as a top-tier crime, and he felt that his arrest could benefit the Atomwaffen Division.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Timothy Thibault, Acting Special Agent in Charge of the FBI’s Washington Field Office Criminal Division, made the announcement after sentencing by Senior U.S. District Judge Liam O’Grady.
Assistant U.S. Attorney Carina A. Cuellar prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-154.
Former AEP Employee Pleads Guilty to Wire Fraud, Tax Charges; Government Estimates Loss of 1.6 millionRead the Press Release
ROANOKE, Va. – A former American Electric Power (AEP) employee pleaded guilty yesterday to wire fraud and filing false tax returns.
According to court documents, Gregory Thomas Holland, 63, of Roanoke, was employed at AEP from 1982 until January 2018, where he worked for many years in the credit department. Specifically, Holland was responsible for managing AEP’s interests during customer bankruptcies, filing claims, and reducing debts.
Holland admitted yesterday that in 2001 he opened a personal checking account using AEP’s name and address unbeknownst to anyone else at the company. Beginning in May 2002, Holland began depositing checks into this account, written on behalf of AEP customers, and made payable to AEP. Between May 2002 and January 2018, Holland admitted to depositing more than 300 checks into this account. All the money he deposited into this account belonged to AEP. Nonetheless, Holland used the money from the account for personal expenses such as dues at the Roanoke Country Club, car payments, and clothing purchase, among other things.
Holland did not report any of this additional income on his Form 1040 Individual Income Tax Returns for tax years 2011 through 2017.
In all, it is estimated Holland stole $1.6 million dollars from AEP. The court will determine the exact amount of loss at Holland’s sentencing hearing.
Acting United States Attorney Daniel P. Bubar made the announcement today.
Holland pleaded guilty to one count of wire fraud and one count of willfully filing a false tax return. He is scheduled to be sentenced on September 10, 2021 and faces a maximum penalty of 20 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The United States Secret Service, Internal Revenue Service-Criminal Investigations, and Virginia State Police are investigating the case.
Assistant U.S. Attorney Michael Baudinet is prosecuting the case.
Financial Advisor Sentenced to More Than 13 Years in Prison for Swindling Investors Out of $5.1 MillionRead the Press Release
CHICAGO — A financial advisor who told clients they were guaranteed to make money by investing with him has been sentenced to more than 13 years in federal prison for defrauding those clients out of $5.1 million.
DARAYL DAVIS falsely represented to clients that they would receive fixed annual interest payments and guaranteed protection against losses if they invested with his firms - Washington, D.C.-based Financial Assurance Corp. and Los Angeles, Calif.-based Affluent Advisory Group LLC. Davis claimed that some of the investments would be backed by a well-known multinational life insurance company. In reality, Davis did not invest the funds as promised, and none of the purported investments had any affiliation with the life insurance company.
Davis instead spent the money for his own personal benefit, including rent for an eight-bedroom mansion in Los Angeles, airline tickets, luxury hotels, car rentals, a club membership, theater tickets, and other items. Davis often attempted to conceal the scam by using funds from some investors to make Ponzi-type payments to other investors.
The alleged fraud scheme lasted from at least 2003 to 2018. In all, Davis defrauded more than 25 victims out of more than $5.1 million. Many of the victims were retirees who gave Davis all of their savings.
Davis, 48, of Chicago, and formerly of Bowie, Md., pleaded guilty earlier this year to one count of mail fraud. U.S. District Judge Robert W. Gettleman on Monday imposed a 160-month prison sentence.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the U.S. Securities and Exchange Commission, which filed a civil complaint against Davis.
“Davis targeted his victims personally, seeking out fellow church members, individuals who had previously purchased legitimate investment products from him, or ‘friends’ to whom he offered the ‘favor’ of an inside investment opportunity,” Assistant U.S. Attorneys Christopher Catizone and Philip N. Fluhr argued in the government’s sentencing memorandum. “Davis knew these people trusted him and deliberately exploited that trust.”
Felon convicted of trafficking meth with firearmRead the Press Release
CORPUS CHRISTI, Texas - A 42-year-old Corpus Christi man has entered a guilty plea to possessing a semi-automatic handgun in furtherance of a drug-trafficking crime as well as possession with intent to distribute meth, announced Acting U.S. Attorney Jennifer B. Lowery.
On Nov. 18, 2020, authorities executed a federal arrest warrant Benjamin Govella, who was riding a bicycle near an apartment complex in Corpus Christi. At that time, he possessed a backpack containing a Ruger SR9C 9mm pistol and nearly 50 grams of pure meth as well as two loaded magazines and a scale.
U.S. District Judge Drew B. Tipton accepted the plea and set sentencing for July 29. At that time, Govella faces up to 20 years in prison and a possible $1 million maximum fine. He has been and will remain in custody pending that hearing.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Corpus Christi Police Department (CCPD) conducted the investigation with the assistance of the CCPD Narcotics Vice Investigations Division. Assistant U.S. Attorney Reid Manning is prosecuting the case.
Federal Jury Convicts Oklahoma City Man for Possession of Ammunition and Witness TamperingRead the Press Release
OKLAHOMA CITY – Last week, a federal jury convicted JIMMY LEE BROOKS, 35, of Oklahoma City, of possessing ammunition after a former conviction of a felony and a separate charge of witness tampering, announced Acting U.S. Attorney Robert J. Troester.
On October 21, 2020, a federal grand jury returned a three-count Superseding Indictment against Brooks. Count 1 charged Brooks with possessing ammunition after a former felony conviction. Count 2 charged him with possessing a long-barrel shotgun after a former felony conviction. Count 3 charged Brooks with witness tampering, specifically attempting to influence, delay, and prevent testimony in an official proceeding.
On April 29, 2021, after a three-day trial, the jury returned guilty verdicts on Counts 1 and 3. Evidence at trial showed that Brooks got into an altercation with his girlfriend on March 18, 2020, which resulted in Brooks brandishing a knife towards his girlfriend. When she fled the scene by hopping in a stranger’s vehicle, Brooks used a .380 caliber handgun to fire eight rounds towards the stranger’s vehicle, striking his girlfriend. Evidence at trial also showed that following his initial appearance in federal court, Brooks placed jail phone calls in which he attempted to convince his girlfriend to recant her earlier statements to the police and hospital staff that named Brooks as the shooter on March 18, 2020.
At sentencing in approximately 90 days, Brooks faces up to ten years in federal prison on the ammunition conviction, and up to 20 years in federal prison on the witness-tampering conviction. Each count of conviction also carries a fine of up to $250,000 and up to three years of supervised release following a term of imprisonment. Brooks has been detained in custody since March 26, 2020, pending charges from the March 18, 2020 shooting.
This case is the result of investigations by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Oklahoma City Police Department. Assistant U.S. Attorneys Nick Coffey and Charles Brown prosecuted the case.
This case is part of "Operation 922," the Western District’s local implementation of Project Safe Neighborhoods and Project Guardian, the Department of Justice’s initiatives to reduce gun violence and enforce federal firearms laws. "Operation 922" prioritizes firearms prosecutions connected to domestic violence, including domestic violence abusers who possess a firearm and are subject to a victim protective order or have been previously convicted of a misdemeanor crime of domestic violence.
Reference is made to court filings for further information.
Essex County Man Sentenced to Five Years in Prison for Possessing Firearm in Furtherance of Drug Trafficking CrimeRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was sentenced today to 60 months in prison for possessing a handgun in furtherance of a drug trafficking crime, Acting U.S. Attorney Rachael A. Honig announced today.
Ricky Terrell, 24, of Newark, previously pleaded guilty before U.S. District Court Judge John Michael Vazquez via videoconference to a one-count Information charging him with possession of a firearm in furtherance of a drug trafficking crime, specifically the possession with intent to distribute heroin and cocaine. Judge Vazquez imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Stephen Crane Village is a public housing complex in Newark, on the border with Belleville. From February 2019 through February 2020, law enforcement officers investigated individuals that controlled an open-air drug market that operated within Stephen Crane Village.
Through numerous controlled purchases of narcotics, consensually recorded telephone calls and text messages, physical surveillance, and the analysis of telephone call detail records, law enforcement determined that numerous individuals conspired to distribute and did actually distribute narcotics, including heroin, fentanyl, cocaine and cocaine base, in and around Stephen Crane Village.
On Feb. 25, 2020, law enforcement lawfully searched Terrell’s residence and found heroin and cocaine, a Smith & Wesson .40 caliber handgun, and numerous rounds of ammunition.
In addition to the prison term, Judge Vazquez sentenced Terrell to three years of supervised release.
Acting U.S. Attorney Honig credited special agents and task force officers with the ATF, Newark Division, under the direction of Acting Special Agent in Craig B. Kailimai; the Belleville Police Department, under the direction of Chief Mark Minichini; special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark; the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; and the Essex County Sheriff’s Office, under the direction of Sheriff Armando B. Fontoura, with the investigation leading to today’s sentencing. She also thanked the U.S. Marshals Service, the Nutley Police Department, the Bloomfield Police Department, the West Orange Police Department, the Verona Police Department, the Orange Police Department, and the Bergen County Sheriff’s Office for their assistance with this case.
This investigation was part of the Newark Violent Crime Initiative (VCI), where the U.S. Attorney’s Office has partnered with state, federal, county, and local law enforcement to investigate crime in Newark and the surrounding cities. This case is also conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
The government is represented by Assistant U.S. Attorney Tracey Agnew of the Organized Crime and Gangs Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Eight Drug Traffickers Are Sentenced to PrisonRead the Press Release
CHARLOTTE, N.C. – Eight members of a drug trafficking ring operating in and around Union County were handed down sentences ranging from 30 to 300 months in prison today, announced William T. Stetzer, Acting U.S. Attorney for the Western District of North Carolina.
According to court filings, plea documents, and statements made in court, the eight defendants are members of the Garcia Family drug trafficking organization (DTO). Over the course of the investigation, which began in April 2019, the defendants operated as a drug conspiracy and trafficked narcotics, including heroin, cocaine, and methamphetamine, in Union County and surrounding areas and involving the seizure of more than 16 kilograms of methamphetamine. The eight defendants were sentenced as follows:
- Elio Garcia Godinez, 32, of Monroe, N.C. was sentenced to 300 months in prison and five years of supervised release.
- Ivan Jardon Trujillo, 48, of Monroe, N.C. was sentenced to 156 months in prison and five years of supervised release.
- Ivan Trujillo Garcia, 23, of Monroe, N.C. was sentenced to 87 months in prison and four years of supervised release.
- Eleonel Castrejon Garcia, 24, of Monroe, N.C. was sentenced to 120 months in prison and five years of supervised release.
- Estefani Garcia Sandoval, 26, of Monroe, N.C. was sentenced to 30 months in prison and two years of supervised release.
- Luis David Bravo, 47, of Monroe, N.C. was sentenced to 60 months in prison and two years of supervised release.
- Miguel Benitez Castrejon, 40, of Monroe, N.C. was sentenced to 97 months in prison and two years of supervised release.
- Matilde Isaias Cruz Portillo, 36, of Atlanta, Georgia, was sentenced to 84 months in prison and two years of supervised release.
In making today’s announcement, Acting U.S. Attorney Stetzer praised the outstanding efforts of the FBI, ATF, DEA, the Monroe Police Department and the Union County Sheriff’s Office for their investigation which led to today’s outcome. Acting U.S. Attorney Stetzer also noted the assistance provided by ICE – Enforcement & Removal Operations and the Wadesboro Police Department.
Assistant U.S. Attorney Erik Lindahl of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This effort is part of an Organized Crime Drug Enforcement Task Force (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Duval Felon Sentenced to Nine Years in Federal Prison for Armed Drug TraffickingRead the Press Release
Jacksonville, Florida – U.S. District Judge Marcia Morales Howard has sentenced Tony Deshawn McFadden (29, Jacksonville) to nine years in federal prison for possessing a firearm in furtherance of drug trafficking.
McFadden had pleaded guilty on January 15, 2021.
According to court documents, on August 18, 2018, officers with the Jacksonville Sheriff’s Office (JSO) were patrolling the area of Woodbine Street and Springfield Boulevard in Brentwood, as a result of a recent shooting near that location. JSO officers observed McFadden involved in what appeared to be drug activity. As the officers approached to investigate, McFadden ran and ignored instructions to stop. The officers chased McFadden into a convenience store where he threw down a Glock .40 caliber pistol and 3.3 grams of crack cocaine before they took him into custody.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sheriff’s Office. It was prosecuted by Assistant United States Attorneys Beatriz Gonzalez, Laura Cofer Taylor, and Special Assistant United States Attorney Cyrus P. Zomorodian.
This case is part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce Federal firearms laws. Initiated by the Attorney General in the Fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence and enhances coordination of Federal, State, local, and tribal authorities in investigating and prosecuting gun crimes. For more information on Project Guardian visit www.justice.gov/projectguardian.
Dudley Man Arrested for Theft and Misuse of COVID-19 Pandemic AssistanceRead the Press Release
BOSTON – A Dudley man was arrested today in connection with his alleged involvement in a scheme to fraudulently obtain and misuse COVID-19-related unemployment assistance.
Norman Higgs, 34, was charged in a criminal complaint with bank fraud, conspiracy to commit wire fraud, theft of government property and money laundering. Higgs made his initial appearance in Boston this afternoon before U.S. District Court Magistrate Judge Judith G. Dein and was released on conditions.
According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers). As alleged in the complaint, from April to June 2020, Higgs obtained over $300,000 in proceeds from fraudulent PUA claims. When Higgs’s bank recalled a portion of those fraudulently-obtained funds, Higgs allegedly paid those recalls using the proceeds from COVID-19-related government loans.
The charge of bank fraud provides for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million. The charge of conspiracy to commit wire fraud provides for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charges of theft of government property and money laundering each provide for a sentence of up to 10 years in prison, 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; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; and Nikitas Splagounias, Acting Special Agent in Charge of the U.S. Department of Labor, Office of Inspector General, Office of Investigations-Labor Racketeering and Fraud made the announcement. The Massachusetts Department of Unemployment Assistance provided assistance in the investigation. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
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.
Driver in deadly smuggling attempt pleads guiltyRead the Press Release
CORPUS CHRISTI, Texas – A 34-year-old undocumented immigrant residing in Austin has entered a guilty plea to conspiring to transport other non-citizens, announced Acting U.S. Attorney Jennifer B. Lowery.
Lucio Magana Aguilar admitted he picked up a group of nine people Feb. 15 - the day the unusual harsh winter freeze struck Texas - with plans to transport them north.
The group had been traveling through the brush in an attempt to avoid the Javier Vega Jr. checkpoint near Sarita. During their journey, they had separated from their guide and faced extreme weather conditions. They made it back to the roadway where Aguilar arrived in his truck to transport them farther north.
However, by that time, one of the individuals was in extreme distress and another had already succumbed to the conditions. Five of the aliens, including the deceased one, were loaded into the backseat, while the other four were loaded into the rear cargo area of the truck.
Authorities later conducted a traffic stop on the vehicle, at which time they discovered the deceased alien dead at the scene.
Aguilar expected to be paid $1,000 in return for smuggling the group.
U.S. District Judge Drew B. Tipton will impose sentencing July 29. At that time, Aguilar faces up to 10 years in prison and a possible $250,000 maximum fine. He has been and will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of Border Patrol. Assistant U.S. Attorney Barbara J. De Pena prosecuted the case.
Dominican National Charged with Illegal ReentryRead the Press Release
BOSTON – A Dominican national was charged on April 29, 2021 in federal court in Boston for illegally reentering the United States.
Yomelvin Abreu Bonilla, 32, was indicted on one count of unlawful reentry of a deported alien.
According to the indictment, in March 2021, agents encountered Bonilla in Bedford, Mass. and determined that he was illegally present in the United States. Bonilla was previously deported in August 2016.
The charge provides for a sentence of up to 10 years in prison, three years of supervised released and a fine of up to $250,000. Bonilla will be subject to deportation upon completion of his sentence. 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 and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. Assistant U.S. Attorney Benjamin A. Saltzman of Mendell’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Defendant Who Orchestrated A Dozen Armed Robberies Targeting Small Businesses in Kentucky, Tennessee, and North Carolina Found Guilty Following Five Day Jury TrialRead the Press Release
BOWLING GREEN, Ky. – On May 3, 2021, a federal jury in Bowling Green, Kentucky returned a verdict convicting Jorge Santos Caballero Melgar, age 36, who formerly resided in Nashville, Tennessee, of conspiracy to interfere with commerce by robbery; conspiracy to use and carry firearms during and in relation to crimes of violence; interference with commerce by robbery in the March 17, 2017, robbery of La Placita in Bowling Green, Kentucky; murder through the use of a firearm during and in relation to the commission of a crime of violence; and illegal reentry into the United States after a previous deportation, announced Acting United States Attorney Michael A. Bennett.
Caballero Melgar was the last defendant in a case that originally charged a dozen individuals with perpetrating the violent robberies in which store employees were bound with duct tape and threatened at gunpoint while the store premises were searched for cash. The robbery of La Placita in Bowling Green resulted in the shooting death of the victim, J.C., who had arrived outside the store to pick up his young son who was inside while the robbery was in progress.
A feature of the charged robberies was that Caballero Melgar identified the locations to be robbed, drove co-conspirators to robbery sites, and stayed outside the store while in nearly constant cell phone contact with those inside during the robberies. The evidence at trial established that in one instance, a bound store employee, unable to understand the Spanish speaking defendants, had a cell phone held to her ear over which the defendant demanded that she tell the robbers where the store’s money was located. Five co-conspirators who had previously entered guilty pleas in the case testified at trial; their testimony was corroborated by cell phone location evidence offered through an FBI expert witness. Finally, the evidence at trial also established that Caballero Melgar was a citizen of Honduras and had been deported from the United States in early 2015. By no later than December 2016, he was back in the United States unlawfully leading a group that committed the multi-state robberies charged.
“These violent defendants are off the street because of the outstanding work of the FBI, the Bowling Green Police Department, and our federal, state, and local law enforcement partners across six states,” said Acting U.S. Attorney Bennett. “This case is an extraordinary example of the dedication and teamwork our law enforcement partners bring to the table every day in the fight against violent crime. I commend them for their work and thank them for making our communities safer.”
“Today brings to a close the spree of armed robberies that resulted in the death of an innocent bystander,” said FBI Louisville Special Agent in Charge Robert Brown. “Melgar and his previously convicted co-defendants demonstrated a penchant for violence and would have no doubt continued their path of carnage. FBI Louisville is proud of the role its agents and our law enforcement partners played in bringing these individuals to justice.”
The defendant is scheduled to be sentenced by Chief Judge Greg N. Stivers on August 2, 2021, at 9:00 a.m. at the U.S. District Courthouse in Bowling Green, Kentucky. The charge of murder through the use of a firearm during a crime of violence for the death of J.C. at La Placita carries a maximum penalty of life in prison. There is no parole in the federal system.
This case is being prosecuted by Assistant United States Attorneys Marisa Ford and Alicia Gomez. The investigation was led by FBI Louisville, and the Bowling Green, KY Police Department. The investigation was also assisted by FBI Charlotte; FBI Memphis; DHS/HSI Raleigh; DHS/HSI Bowling Green; Lexington, KY Police Department; Cary, NC Police Department; Clayton, NC Police Department; Snow Hill, NC Police Department; Greene County, NC Sheriff’s Department; Rocky Mount, NC Police Department; Henderson, NC Police Department; Gallatin, TN Police Department; Morristown, TN Police Department; McMinnville, TN Police Department; Metro Nashville Police Department; Clarksville, IN Police Department; Northampton County, VA Sheriff’s Department; and the Kansas Highway Patrol.
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Davenport Man Sentenced to Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa – On Monday, May 3, 2021, United States District Court Chief Judge John A. Jarvey sentenced Teron Deachon Conley, age 26, of Davenport, to 96 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Conley was ordered to serve three years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
In September of 2019, the Davenport Police Department responded to the 6300 block of Appomattox Road for multiple shots fired complaints. At that location, officers found eleven shell casings in the road as well as three other casings in a yard. Witnesses described Conley as one of the two shooters and stated the shooters and another man left in a tan SUV. When officers attempted to conduct a traffic stop of the SUV the car fled from law enforcement. All three occupants of the car eventually ditched the vehicle and left a firearm on the ground nearby the car.
The gun matched the shell casings found in the street. On November 18, 2020, Conley admitted to possessing the firearm in September 2019. As a convicted felon, Conley was prohibited from possessing firearms.
This matter was investigated by the Davenport Police Department and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Convicted Felon “Dollar Bill” Sentenced for Shooting Drug Customer Twice over Drug DebtRead the Press Release
BEAUMONT, Texas – A Beaumont man has been sentenced to federal prison for firearms violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.
Rustin Chase McKinsey, also known as “Dollar Bill,” 35, pleaded guilty on Jan. 6, 2021, to discharging a firearm in furtherance of a drug trafficking crime and being a felon in possession of a firearm. McKinsey was sentenced to 15 years in federal prison today by U.S. District Judge Marcia A. Crone.
“Felons who possess firearms, and certainly those who use firearms in furtherance of drug trafficking or violent crimes, are among the most dangerous members of our society,” said Acting U.S. Attorney Nicholas Ganjei. “These criminals will learn the hard way that violent drug trafficking will be met with swift and decisive action by law enforcement.”
According to information presented in court, on Sep. 4, 2020, law enforcement officers responded to a residence on Taylor Street in Beaumont, Texas in reference to a shooting. Upon arrival, officers discovered the victim laying on the front porch of the residence with a towel wrapped around a gunshot wound to his leg. The victim’s roommate told officers he awoke to an argument between McKinsey and the victim, and he observed McKinsey fire two shots at the victim before fleeing the scene. The victim stated that he owed money to McKinsey for methamphetamine that McKinsey sold him.
On Oct. 9, 2020, law enforcement officers responded again to the same residence in reference to another shooting. Upon arrival, officers discovered the same victim suffering from a gunshot wound to his back. A single spent .22 caliber shell casing was discovered at the scene. The victim stated that McKinsey shot him again over the same drug debt that was owed. Officers then immediately headed to McKinsey’s residence, ultimately finding McKinsey hiding in a car across the street. McKinsey admitted to officers that he had shot the victim on both occasions over a drug debt.
McKinsey is a convicted felon having previously been convicted of possession of a controlled substance in Jefferson County, Texas, on Dec. 18, 2017. As a convicted felon, McKinsey is prohibited by federal law of owning or possessing a firearm or ammunition.
This case is being investigated by the Beaumont Police Department and the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Matthew Quinn.
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Connecticut Man Sentenced to 120 Months in Prison Following Conviction for Drug Conspiracy Involving More Than 30 Kilograms of HeroinRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that on May 3, 2021, United States District Judge Christina Reiss sentenced Jose Fontanez, 33, to 120 months in prison following his guilty plea to a charge of conspiring to distribute in Vermont one kilogram or more of heroin, 400 grams or more of fentanyl, and 500 grams or more of cocaine between 2010 and November 26, 2018.
According to Court records, in November of 2018, an informant working with the Federal Bureau of Investigation and Vermont State Police Drug Task Force placed 11 recorded phone calls to Fontanez, also known as “Chiqui,” arranging the purchase of heroin. The FBI Northern Connecticut Gang Task Force watched as Fontanez travelled from his stash house in Hartford, Connecticut to a planned meeting location in Holyoke, Massachusetts, where Fontanez was arrested by the FBI Western Massachusetts Gang Task Force. At the time of his arrest, Fontanez was in possession of the heroin the informant had arranged to purchase.
After Fontanez’s arrest, the FBI executed a search warrant at Fontanez’s stash house. Inside Fontanez’s stash house, agents seized a mixture of heroin and fentanyl as well as packaging materials identical to those possessed by Fontanez at the time of his arrest. Subsequent investigation revealed that Fontanez used his Hartford, Connecticut stash house to process, package, and store heroin, and that Fontanez utilized co-conspirators in Vermont, Connecticut, Maine, and elsewhere to acquire, package, and re-distribute controlled substances.
At sentencing, Judge Reiss found that Fontanez’s criminal conduct involved over 30 kilograms of heroin; that he maintained a premises for the purpose of manufacturing and distributing a controlled substance; that he committed the offense as part of a pattern of criminal conduct engaged in as a livelihood; and that he was a manager or supervisor of criminal activity involving five or more participants. Judge Reiss also noted that Fontanez had been seen with over $250,000 on multiple occasions, and that Fontanez had intentionally utilized fentanyl with the purpose of increasing his drug sales.
Acting United States Attorney Jonathan Ophardt praised the collaborative, multi-state investigative effort that resulted in this successful prosecution. He added: “Drugs like heroin, fentanyl, and cocaine are illegal because they are dangerous. The consumption of these illicit substances rips at the fabric of our communities, results in the deterioration of our families, and impacts all aspects of our lives. The U.S. Attorney’s Office will continue to work diligently with our law enforcement partners to hold drug traffickers like Fontanez accountable for the damage inflicted by their greed. I commend the investigative efforts of the FBI in Vermont and the Vermont State Police Drug Task Force, as well as the FBI Northern Connecticut Gang Task Force and the FBI Western Massachusetts Gang Task Force. I also thank the Drug Enforcement Administration’s Hartford Regional Office and the New Hampshire State Police for their assistance.”
“Mr. Fontanez is one of dozens of deplorable individuals who spent years running a disturbing amount of dangerous drugs through our Vermont communities,” said Thomas F. Relford, Special Agent in Charge of the Federal Bureau of Investigation’s Albany Field Office. “Vermont residents should feel safer knowing he’ll spend the next decade behind bars. Today’s sentence is indicative of the success that can be attained when agencies combine resources to remove violent drug distributors from the streets. Our office is grateful for the continued partnership from the U.S. Attorney’s Office, Vermont State Police, New Hampshire State Police, DEA, and our colleagues in Massachusetts and Connecticut. We remain committed to working together to attack these dealers and remove violent criminals from our communities.”
The case was prosecuted by Assistant United States Attorneys Nate Burris and Paul Van de Graaf. Fontanez was represented by Attorney Brooks G. McArthur of Jarvis, Williams & McArthur.
Connecticut Man Agrees to Plead Guilty to Stolen Firearms Offenses and Making False StatementsRead the Press Release
BOSTON – A Connecticut man was charged and agreed to plead guilty to a variety of charges in connection with stealing 17 firearms from a West Springfield gun shop and making false statements to federal agents.
Christian Castro, 31, of New Britain, Conn., was charged and agreed to plead guilty to one count each of theft of firearm from a Federal Firearms Licensee; being a felon in possession of firearm; interstate transportation of a stolen firearm; receipt, possession, concealment, storage, barter, sale, or disposition of a stolen firearm in interstate commerce; and making false statements to a federal official. A plea hearing has not yet been scheduled by the court.
In September 2020, Castro was charged by criminal complaint with co-defendant Fernando Rivera, who is scheduled to plead guilty tomorrow.
According to the charging documents, Castro was a felon on state probation for two prior convictions in Connecticut for larceny and possessing narcotics with intent to distribute. Shortly after midnight on or about Aug. 29, 2020, Castro and Rivera engaged in a crime spree in Vermont, New Hampshire and Massachusetts that included seven ATM thefts and culminated in the theft of 17 firearms from a federal firearms licensee in West Springfield, Mass.
On Sept. 18, 2020, federal agents arrested Rivera and Castro at their homes in Connecticut. During interviews with investigators Castro admitted that he drove to and from several ATM robberies and the gun store robbery, but falsely stated he never received, kept or even touched any of the stolen guns.
During a search of Rivera’s phone investigators identified several photographs and videos depicting Rivera (and Castro in one instance) with many of the stolen firearms. A forensic extraction of the defendants’ phones allegedly revealed communications indicating that on Sept. 4, 2020, Rivera discovered that he was a suspect in the thefts and then traveled with Castro to New York to sell at least three of the firearms.
The firearms charges each provide for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of $250,000. The charge of making false statements provides for a sentence of up to five years in prison, 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 Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Boston Field Division made the announcement. Special assistance was provided by the Massachusetts State Police; Springfield, Hadley, West Springfield, New Britain (Conn.) and Middletown (Conn.) Police Departments; Connecticut State Police; Connecticut Department of Correction; and Connecticut Judicial Branch Adult Probation. Assistant U.S. Attorney Steven H. Breslow of Mendell’s Springfield Branch Office is prosecuting the case.
Clarksburg residents indicted on carjacking and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher M. Vickers and Courtney M. Oliverio, both of Clarksburg, West Virginia, are facing carjacking and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Vickers, 31, and Oliverio, 39, were each indicted on one count of “Conspiracy to Commit Carjacking,” one count of “Carjacking,” and one count of “Conspiracy to Use Firearm During and in Relation to a Crime of Violence.” Vickers was also indicted on one count of “Use of Firearm During and in Relation to a Crime of Violence” and one count of “Unlawful Possession of a Firearm.”
According to court documents, on June 3, 2020, Vickers and Oliverio drove to a residence in Shinnston, West Virginia to take a motorcycle. Vickers then allegedly grabbed a woman by her hair and held a gun to her head, demanding the location of the motorcycle. He also allegedly held a gun to the head of an 11-year-old child. According to the indictment, Vickers them rammed a vehicle into the garage of the residence to get the motorcycle. Vickers and Oliverio then allegedly attempted to take the motorcycle from the property.
Vickers, a person prohibited from having a firearm because of a prior drug conviction, is accused of having a 5-shot revolver allegedly used during the crime.
Vickers and Oliverio each face up to five years of incarceration and a fine of up to $250,000 for the carjacking conspiracy charge, up to 15 years of incarceration and fine of up to $250,000 for the carjacking charge, and up to 20 years of incarceration and a fine of up to $250,000 for the firearm conspiracy charge. Vickers also no less than seven years of incarceration and a fine of up to $250,000 for the firearm use charge and up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Shinnston Police Department investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Chinese National Pleads Guilty to Obstructing International Human Trafficking InvestigationRead the Press Release
NASHVILLE – A Chinese National pleaded guilty today in U.S. District Court to conspiring to commit evidence tampering in relation to an international human trafficking investigation, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
Xu Zhang, 31, a New York resident, was indicted in September 2019, after conspiring with his girlfriend and co-conspirator, Gao Xing, also a Chinese National, to destroy and conceal records pertinent to a federal grand jury investigation.
According to court documents, on September 6, 2019, Zhang visited Gao Xing in jail while she was in federal custody and the subject of an international human trafficking investigation. During the visit, Xing instructed Zhang to delete material information, including contacts and conversations from her WeChat account. WeChat is a Chinese multi-purpose messaging, social media, and mobile payment application that can be accessed by mobile devices, personal computers, and the internet. Xing provided Zhang with a method to obtain her online WeChat account login information from her mother in China, and other details pertaining to her account. Xing indicated that the items she needed Zhang to delete would make her case or situation worse and she further instructed Zhang to change her WeChat name.
The following day, during a telephone call from the jail, Zhang confirmed to Xing that he had deleted the information requested and had changed Xing’s WeChat name in an attempt to delete and destroy material information related to her WeChat account.
On November 1, 2019, Gao Xing committed suicide in her cell at the Daviess County, Kentucky Detention Center.
Zhang faces up to 20 years in prison when he is sentenced on September 15, 2021.
This case was investigated by Homeland Security Investigations; IRS-Criminal Investigation; and the Tennessee Bureau of Investigation. Assistant U.S. Attorney Sara Beth Myers is prosecuting the case.
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Cattaraugus County Man Arrested, Charged with Possessing and Distributing Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Thomas J. Conklin, 35, of Delevan, NY, was arrested and charged by criminal complaint with distribution and possession of child pornography. The charges carry a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Paul E. Bonnano, who is handling the case, stated that according to the complaint, in May 2019, the Royal Canadian Mounted Police (RCMP) received a report from Kik Messenger (a Canadian company) that a user, “butterflybullet6,” sent an image of child pornography on the Kik application. Subsequent investigation traced “butterflybullet6” to an IP address belonging to the defendant. On December 2, 2019, a search warrant was executed at Conklin’s residence in Delevan by Homeland Security Investigations. Special agents seized a cellular telephone belonging to the defendant. During a forensic review of the cell phone, the image reported by Kik Messenger was recovered, as well as another 294 image files of suspected child pornography.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and was held pending a detention hearing on May 5, 2021, at 1:30 p.m.
The complaint is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly. Additional assistance was provided by the Royal Canadian Mounted Police.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Cabell County Woman Pleads Guilty to Federal Drug ChargeRead the Press Release
CHARLESTON, W.Va. – A Cabell County woman pleaded guilty today to a federal drug charge.
According to court documents, on January 9, 2021, Kassie McNeeley, 21, of Lesage, delivered a package of methamphetamine for Myreo Dixon to an individual in an apartment on Crestmont Drive in Charleston. Dixon had directed McNeeley to deliver the package and collect $31,500 as payment for the methamphetamine. McNeeley utilized her cell phone to maintain contact with Dixon throughout the drug deal by texting him multiple times. When McNeeley left the apartment in her vehicle, law enforcement officers conducted a traffic stop and seized the $31,500 in drug proceeds.
McNeeley pleaded guilty to use of a telephone to facilitate drug trafficking and faces up to four years in prison when she is sentenced on August 12, 2021. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Lisa G. Johnston made the announcement. Assistant United States Attorney Monica D. Coleman is prosecuting the cases.
This case is part of a long-term investigation, dubbed the “Woo Boyz,” which resulted in federal charges against 15 individuals and was conducted by the Drug Enforcement Administration (DEA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Charleston Police Department, and the Metropolitan Drug Enforcement Network Team (MDENT), with assistance from the U.S. Marshals Service and the West Virginia State Police. The Appalachia High Intensity Drug Trafficking Area (AHIDTA) provided critical support to the investigative agencies.
Senior United States District Judge John T. Copenhaver, Jr. presided over the hearing.
The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). OCDETF was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations, transnational criminal organizations, and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 2:21-cr-00032.
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Baltimore Man Sentenced to 14 Years in Federal Prison for Kidnapping During an Armed Carjacking Where the Victim Also Had a Gun Shoved in His Mouth to Obtain His ATM PINRead the Press Release
Baltimore, Maryland - U.S. District Judge Richard D. Bennett today sentenced Michael Wedington, Jr., age 21, of Baltimore, Maryland, to 14 years in federal prison, followed by five years of supervised release, for the federal charge of kidnapping related to his role in the armed carjackings of two victims in June 2019.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Acting Special Agent in Charge Rachel Byrd of the Federal Bureau of Investigation, Baltimore Field Office; and Commissioner Michael Harrison of the Baltimore Police Department.
According to his plea agreement, Wedington participated in the armed carjackings of two different victims that occurred on June 8 and June 10, 2019, respectively. In each instance, the victim was intending to purchase tools as part of a purported transaction that Wedington set up through a cellular phone-based application, “OfferUp,” which allows sellers to post advertisements of personal property for sale. Through the OfferUp application, the buyer can then directly contact the seller and arrange to buy the property. When the victims arrived at the designated meeting spot, they were robbed at gunpoint by Wedington and his co-conspirators, who also stole their vehicles. In each instance, investigators were able to link the seller’s OfferUp account in the name of “Brian” to Michael Wedington, through Wedington’s phone number and other information.
In the carjacking on June 8, 2019, the victim arrived in the area of Washington Boulevard and South Monroe Street in Baltimore and was directed to the 2400 block of West Lexington Street. Upon arriving, the victim was waved down and approached by Wedington and two other men. At first the men appeared to load the victim’s van with the tools they were purportedly selling. However, one suspect, armed with a handgun, then forced the victim into the rear of his vehicle. Wedington and his accomplices stole the victim’s wallet and cash, a driver’s license, debit card, and the victim’s cellular phone. As they drove away, one suspect shoved a handgun in the victim’s mouth and demanded the Personal Identification Number (PIN) to the victim’s debit card. The suspects drove to a gas station in Northwest Baltimore with the victim still in the van, and one of the suspects used the PIN the victim had provided to obtain cash from an ATM. The victim escaped from the van in the area of the 7000 block of Park Heights Avenue and fled on foot, later calling the Baltimore Police Department to report the incident. The stolen vehicle was recovered five days later in the area of the 2700 block of Tivoly Avenue in Baltimore.
In the second carjacking on June 10, 2019, the victim was lured to the 2400 block of West Lexington Street through the OfferUp application by a user who was purportedly selling tools and equipment. When the victim arrived, he was directed to the back alley behind West Fayette Street, where Wedington and another individual approached him—both armed with handguns. The two men took the victim’s wallet, containing more than $1,000 in cash, the victim’s two cell phones, and the victim’s Toyota vehicle.
Wedington was identified in a photo array, and Wedington’s fingerprint was recovered from the van stolen in the second carjacking. On November 1, 2019, a federal search warrant was executed at Wedington’s primary residence, which is located near the scenes of the two carjackings, and law enforcement recovered a Toyota car key, a firearm, 1,000 rounds of ammunition, replica firearms, and cellular phones. Agents obtained a search warrant for Wedington’s cell phone, which revealed, among other things, that Wedington used the OfferUp application and the “Brian” account to communicate with the first victim’s friend and orchestrate the June 8, 2019 set up of the carjacking. Agents also found various photos and videos showing Wedington posing with or using firearms.
Acting United States Attorney Jonathan F. Lenzner commended FBI and BPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew DellaBetta and Daniel A. Loveland, Jr., who prosecuted the case.
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Monday 3 May 2021
Wolf Point man convicted of rape, child abuse and assault crimes sentenced to more than 20 years in prisonRead the Press Release
GREAT FALLS – A Wolf Point man convicted by juries in two separate trials of rape, child abuse and assault crimes was sentenced today to a total of 20 years and five months in prison, followed by a total of 10 years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
A jury convicted Luke John Scott, Sr., 33, on Jan. 28 of aggravated sexual abuse and of assault by striking, beating or wounding, a misdemeanor, in a July 2017 rape and assault of a woman. On Nov. 19, 2020, a separate jury convicted Scott of felony child abuse that began in July 2018 and of assault resulting in serious bodily injury for an assault on the same minor child in March 2019. The crimes in both cases occurred on the Fort Peck Indian Reservation.
Chief Judge Brian M. Morris presided.
In the aggravated sexual abuse and assault case, Chief Judge Morris sentenced Scott to 10 years and five months in prison and to 10 years of supervised release. In the felony child abuse and assault case, Chief Judge Morris sentenced Scott to 10 years in prison and to three years of supervised release. Chief Judge Morris ordered the prison sentences in the two cases to run consecutively, for a total of 20 years and five months, and for the terms of supervised release in the two cases to run concurrently, for a total of 10 years of supervised release.
“Mr. Scott’s violent conduct not only seriously harmed the victims in these two cases but also endangered the entire community. These sentences will hold Mr. Scott accountable for his crimes, while protecting the community from further violence by him. Those who rape women and abuse children will be prosecuted to the full extent of the law,” Acting U.S. Attorney Johnson said.
In the aggravated sexual abuse case, the government alleged in court records and through evidence presented at trial that on July 7, 2017, Scott approached the victim, identified as Jane Doe, on the street, told her he had a bottle of vodka and that a relative was fishing by the Poplar river. The victim went with Scott to the river, where he threatened to kill her, tried to strangle her and then raped her. Jane Doe reported the assault to law enforcement and was transported to the hospital in Poplar.
In the child abuse and assault case, the government alleged in court records and through evidence presented at trial that for approximately eight months, beginning in July 2018, Scott abused and injured a minor child in Wolf Point. The abuse culminated in a March 2019 assault in which the Scott assaulted the child by repeated blunt force trauma to the head and strangulation. The victim was treated for serious injuries.
Assistant U.S. Attorney Kalah A. Paisley prosecuted the cases, which were investigated by the FBI and Fort Peck Law Enforcement Services.
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Williamsport Man Sentenced to 25 Years’ Imprisonment for Drug TraffickingRead the Press Release
WILLIAMSPORT - The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 30, 2021, Raymond Howard, age 46, of Williamsport, Pennsylvania, was sentenced sentenced to 300 months' imprisonment followed by a four-year term of supervised release by U.S. District Court Judge Matthew W. Brann for drug trafficking.
According to Acting U.S. Attorney Bruce D. Brandler, Howard was found guilty after a five-day jury trial in October 2020 to conspiring to distribute heroin and a mixture of heroin and carfentanil. During a three-day period in June 2017, there was a rash of drug overdoses in Williamsport. At the time, UPMC Susquehanna in Williamsport and Wellsboro rpoerted treating 51 such cases within a 48-hour period.
Howard was determined to be the source of the carfentanil-laced heroin that led to the overdoses. In total, three co-conspirators identified on the indictment, Wayne Davidson, Nathan Crowder, and Markeese Askew, were charged with delivering the mixture of heroin and carfentanil that resulted in serious bodily injury to eight individuals. The three co-conspirators were previously sentenced after pleading guilty in October 2020. Davidson and Crowder were sentenced to 210 months’ imprisonment in March 2021 and Askew was sentenced to 192 months’ imprisonment in April 2021.
“The 25 year sentence imposed on Howard, and the substantial sentences imposed on his coconspirators, not only reflects the seriousness of these offenses but also the commitment of our office to aggressively prosecute all opioid related offenses,” stated Acting U.S. Attorney Brandler. “When these overdoses occurred in 2017, we decided to take whatever steps were necessary to make sure the responsible individuals were brought to justice. I want to thank all the law enforcement agents and prosecutors who tirelessly worked to accomplish that goal.”
The case was investigated by the Lycoming County District Attorney’s Office Narcotics Enforcement Unit, Montoursville Police Department, Old Lycoming Township Police Department, South Williamsport Police Department, Williamsport Bureau of Police, Pennsylvania State Police and the Federal Bureau of Investigation. Assistant United States Attorneys Alisan V. Martin and Geoffrey W. MacArthur prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement 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 enforcement and the local community to develop effective, locally-based strategies to reduce crime. This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state, and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Vivint Smart Home to Pay $20 Million for Violating the Fair Credit Reporting ActRead the Press Release
The Department of Justice, together with the Federal Trade Commission (FTC), announced a $20 million settlement resolving alleged violations of the FTC Act and the Fair Credit Reporting Act (FCRA), including violations of the Red Flags Rule. The settlement includes $15 million in civil penalties, which represents the largest civil penalty ever paid to resolve FCRA violations under the FTC Act.
Vivint Smart Home Inc. sells “smart” home security and monitoring systems, largely via a sales force that sells door-to-door. The complaint alleges that Vivint failed to implement an Identity Theft Prevention Program, allowing its sales representatives to obtain credit reports of unsuspecting consumers without the consumers’ knowledge or consent, and unfairly sold false debt to buyers or debt collectors. According to the complaint, the defendant’s lack of an Identity Theft Prevention Program violated the FTC’s Red Flags Rule, which requires covered financial institutions and creditors to establish and administer an appropriate, written Identity Theft Prevention Program. The Red Flags Rule plays an important role in the detection, prevention, and mitigation of identity theft.
The complaint further alleges that, due in part to the absence of an appropriate Identity Theft Prevention Program, Vivint’s door-to-door sales force was able to systematically use the names and identities of innocent victims to complete sales to potential Vivint customers who failed the required credit checks. When some of those Vivint customers later defaulted, Vivint allegedly then sold the false debt to third-party debt collectors that attempted to collect from the victims, who had no knowledge of the Vivint accounts created using their identities.
“The Justice Department is committed to protecting consumers against the unlawful use of their credit reports and the unfair sale of false debts,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “We are pleased to join with our partners at the Federal Trade Commission on this important matter.”
“Vivint’s sales staff stole people’s personal information to approve others for loans,” said Acting Director Daniel Kaufman of the FTC’s Bureau of Consumer Protection. “For misusing consumer credit reports and other sensitive data, and harming people’s credit, this company will pay $20 million.”
As reflected in the stipulated order entered by the court, Vivint will pay $15 million in civil penalties and $5 million in equitable monetary relief. Additionally, Vivint is required to take a number of steps to prevent a recurrence of its alleged unlawful conduct. Among other things, Vivint must establish a corporate component to verify certain accounts and to investigate reports of identity theft; establish an employee monitoring and Identity Theft Prevention Program; and comply with related recordkeeping, certification, and compliance obligations.
This matter was handled by Assistant Director Lisa K. Hsiao and Trial Attorney Alisha M. Crovetto of the Civil Division’s Consumer Protection Branch. Gorana Neskovic and Kevin H. Moriarty represented the FTC.
For more information about the Consumer Protection Branch and its enforcement efforts, visit its website at https://www.justice.gov/civil/consumer-protection-branch. For more information about the FTC, visit its website at https://www.FTC.gov.
Union Man Pleads Guilty to Meth Trafficking on Day of TrialRead the Press Release
SPRINGFIELD, Mo. – A Union, Missouri, man who was scheduled to begin his criminal jury trial today instead pleaded guilty in federal court to possessing six pounds of methamphetamine to distribute.
Felix Franz Forjan, 71, pleaded guilty before U.S. District Judge Stephen R. Bough to one count of possessing methamphetamine with the intent to distribute.
According to the plea agreement, on Dec. 20, 2016, Forjan was driving a Ford F-250 flat-bed truck and was stopped in Nixa, Mo., by a Christian County, Mo., sheriff’s deputy, for what he believed to be an expired license plate. Forjan also had an expired driver’s license and no proof of auto liability insurance for the vehicle he was driving. Another officer arrived with a police service dog, which alerted to the presence of illegal drugs.
The deputy searched Forjan’s vehicle and found six bags of methamphetamine, wrapped in black electrical tape, in a laundry basket in the back seat of the vehicle. The bundles of methamphetamine weighed a total of approximately six pounds.
Under federal statutes, Forjan is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing is scheduled on Sept. 17, 2021.
This case is being prosecuted by Special Assistant U.S. Attorney Cameron Beaver and Assistant U.S. Attorney Josephine L. Stockard. It was investigated by the Drug Enforcement Administration, the Springfield, Mo., Police Department, the Christian County, Mo., Sheriff’s Department, and the Ozark, Mo., Police Department.
U.S. Attorney's Office & IRS CI Remind Taxpayers About Their Reporting and Filing Obligations, and the Importance of Choosing Tax Preparers WiselyRead the Press Release
LAS VEGAS, Nev. – As the May 17 tax filing deadline approaches, the U.S. Attorney’s Office for the District of Nevada and IRS Criminal Investigations remind taxpayers to please pay careful attention to their reporting and filing obligations (and to timely pay all taxes due), and urge taxpayers to choose their return preparers wisely.
“Tax offenses are neither victimless nor without consequence, as taxes are how governments provide essential services,” said Acting U.S. Attorney Christopher Chiou for the District of Nevada. “Taxpayers are encouraged to visit the IRS website for tips on filing a tax return accurately and on searching for a reputable return preparer. Please keep in mind that criminals often use the tax filing deadline as an opportunity to steal personal and financial information.”
“The 2020 tax year included new tax laws, stimulus payments, and unemployment income benefits that may affect your tax return," said Special Agent in Charge Ismael Nevarez Jr. of IRS Criminal Investigation. “And as the American public begins to recover from the ongoing pandemic, taxpayers still have an obligation to file and pay their taxes. It is extremely important to report all taxable income to avoid the potential for further financial hardship.”
In collaboration with the IRS and other law enforcement partners, the U.S. Attorney’s Office has been investigating and prosecuting a broad array of tax offenses, from identity theft to businesses and white-collar professionals underreporting income.
Identity Theft Prosecution
- On October 7, 2020, a Las Vegas man was sentenced to 70 months in prison for mail and wire fraud conspiracy, following his jury trial convictions. The trial evidence proved that from January 2009 through April 2011, Terry Williamson and his co-conspirators filed false tax returns with the IRS to fraudulently obtain tax refunds. To facilitate the fraud, they used the names and social security numbers of deceased taxpayers. More than 480 fraudulent tax refund checks — totaling almost $2 million — were deposited into Williamson’s account.
Prosecution of Tax Return Preparers
- On March 18, 2021, a Las Vegas tax preparer pleaded guilty to preparing fraudulent tax returns over a seven year span and causing nearly $3 million in tax loss to the IRS. Anita Edoria Santa Ana, the owner and operator of Santana Tax Service and Silver Income Tax LLC, falsified clients’ tax returns by claiming deductions and exemptions to which the clients were not entitled. Santa Ana is currently awaiting sentencing.
- On December 3, 2020, a Las Vegas tax preparer pleaded guilty to preparing and filing fraudulent tax returns on behalf of her clients and causing at least $1.5 million in tax loss to the IRS. Baby Vasquez Beltran, the owner and operator of Speed Refund Tax Services, falsified clients’ tax returns by claiming deductions and exemptions to which the clients were not entitled. Beltran is awaiting sentencing.
Prosecution of White-Collar Professionals
- On April 7, 2021, a married couple was indicted for their alleged roles — in connection with a sleep study fraud scheme — to evade payment of taxes on more than $1.1 million in income. As alleged, Oganes Berberyan and Valentina Zemlyak evaded paying federal income taxes owing and due on income from the fraud scheme, as well as from other sources. They had bank accounts in business names pay their personal expenses directly, including approximately $1.14 million in payments towards the purchase of real property and mortgage payments. In each of tax years 2014 through 2016, Berberyan and Zemylak had a joint taxable income greater than the amount they reported to the IRS. Berberyan and Zemlyak are currently awaiting a jury trial.
- On October 15, 2020, a former Las Vegas and New York resident was indicted for his alleged participation in an investment fraud scheme. Mykalai Kontilai allegedly misappropriated $6.1 million in investor funds, manufactured evidence to mislead an investigation by the Securities and Exchange Commission, and concealed the proceeds of his fraudulent scheme from the IRS. As alleged, Kontilai lured investors into giving him money to start an e-commerce auction business. Kontilai led bank officials to believe that money he withdrew was for business purposes, when in fact it was for himself. Kontilai failed to file tax returns for tax years 2015 through 2018 when he was engaged in the alleged scheme.
An indictment is merely an allegation, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The IRS has information on its website for choosing a tax preparer, has launched a free directory of federal tax preparers, and offers information on how to avoid “ghost” tax preparers, whose refusal to sign a return should be a red flag to taxpayers. The IRS also has a list of important reminders for taxpayers who are about to file their 2020 tax returns, including how to prepare for a smooth filing process.
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Three Florida Men Charged in $46 Million Health Care Fraud, Kickback, and Money Laundering ConspiracyRead the Press Release
Miami, Fl. – Three telemarking company owners were charged for their alleged participation in a $47 million health care fraud, kickback, and money laundering scheme involving the referral of medically unnecessary cancer genetic tests to labs in exchange for kickbacks.
An indictment, unsealed today, charges Christian McKeon, 35, and Athanasios Ziros, 42, each of Boca Raton, Florida, with one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, multiple counts of substantive health care fraud and kickback offenses, conspiracy to commit money laundering, and substantive counts of money laundering offenses. Also, an information, unsealed today, charges Gregory Orr, 64, of Boca Raton, with one count of conspiracy to pay and receive kickbacks and one substantive count of receipt of kickbacks for his alleged role in this scheme.
According to the indictment, McKeon and Ziros allegedly participated in a scheme to operate a telemarketing campaign targeting Medicare beneficiaries in an effort to induce them to accept cancer genetic tests regardless of whether the tests were medically necessary or eligible for Medicare reimbursement. As part of the scheme, McKeon and Ziros allegedly offered and paid illegal kickbacks and bribes to telemedicine companies in exchange for doctors’ orders for expensive cancer genetic tests. The doctors’ orders were written by doctors contracted with telemedicine companies, even though those telemedicine doctors had no prior relationship with the beneficiaries, were not treating the beneficiaries for cancer or symptoms of cancer, did not use the test results in the treatment of the beneficiaries, and did not conduct a proper telemedicine visit.
According to court documents, all three men sold these signed doctors’ orders for cancer genetic tests to labs in exchange for illegal kickbacks. The indictment and information allege that the defendants caused one of the labs to submit approximately $46 million in claims to Medicare, of which over $27 million was paid. The indictment further alleges that the lab paid McKeon, Ziros, and others kickbacks totaling over $14 million, and that McKeon and Ziros laundered these unlawful proceeds knowing that the transactions at issue had been designed to conceal and disguise the nature, source, and control of the proceeds.
McKeon made his initial court appearance today before U.S. Magistrate Judge William Matthewman of the U.S. District Court for the Southern District of Florida, West Palm Division. Ziros and Orr are scheduled to appear for their initial appearances in front of Magistrate Judge Matthewman on May 5.
The counts charging conspiracy to commit health care fraud and wire fraud count, conspiracy to commit money laundering, and substantive money laundering are each punishable by a maximum potential penalty of 20 years in prison. The counts charging health care fraud and anti-kickback violations are each punishable by a maximum potential penalty of 10 years in prison. Finally, the conspiracy to pay and receive kickbacks count is punishable by a maximum potential penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Omar Perez of the U.S. Department of Health and Human Services (HHS) Office of Inspector General’s (HHS-OIG) Miami Region made the announcement.
Trial Attorney Patrick Queenan of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Richard Brown of the Southern District of Florida is handling the forfeiture aspect of the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine or genetic testing marketing schemes should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
An indictment and an information are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
A copy of this press release may be found on the website of the United States Attorney’s Office for the Southern District of Florida at www.usdoj.gov/usao/fls.
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Three Florida Men Charged in $46 Million Health Care Fraud, Kickback, and Money Laundering ConspiracyRead the Press Release
Three telemarketing company owners were charged for their alleged participation in a $47 million health care fraud, kickback, and money laundering scheme involving the referral of medically unnecessary cancer genetic tests to labs in exchange for kickbacks.
An indictment, unsealed today, charges Christian McKeon, 35, and Athanasios Ziros, 42, each of Boca Raton, Florida, with one count of conspiracy to commit health care fraud, one count of conspiracy to pay and receive kickbacks, multiple counts of substantive health care fraud and kickback offenses, conspiracy to commit money laundering, and substantive counts of money laundering offenses. Also, an information, unsealed today, charges Gregory Orr, 64, of Boca Raton, with one count of conspiracy to pay and receive kickbacks and one substantive count of receipt of kickbacks for his alleged role in this scheme.
According to the indictment, McKeon and Ziros allegedly participated in a scheme to operate a telemarketing campaign targeting Medicare beneficiaries in an effort to induce them to accept cancer genetic tests regardless of whether the tests were medically necessary or eligible for Medicare reimbursement. As part of the scheme, McKeon and Ziros allegedly offered and paid illegal kickbacks and bribes to telemedicine companies in exchange for doctors’ orders for expensive cancer genetic tests. The doctors’ orders were written by doctors contracted with telemedicine companies, even though those telemedicine doctors had no prior relationship with the beneficiaries, were not treating the beneficiaries for cancer or symptoms of cancer, did not use the test results in the treatment of the beneficiaries, and did not conduct a proper telemedicine visit.
According to court documents, all three men sold these signed doctors’ orders for cancer genetic tests to labs in exchange for illegal kickbacks. The indictment and information allege that the defendants caused one of the labs to submit approximately $46 million in claims to Medicare, of which over $27 million was paid. The indictment further alleges that the lab paid McKeon, Ziros, and others kickbacks totaling over $14 million, and that McKeon and Ziros laundered these unlawful proceeds knowing that the transactions at issue had been designed to conceal and disguise the nature, source, and control of the proceeds.
McKeon made his initial court appearance today before U.S. Magistrate Judge William Matthewman of the U.S. District Court for the Southern District of Florida, West Palm Division. Ziros and Orr are scheduled to appear for their initial appearances in front of Magistrate Judge Matthewman on May 5.
The counts charging conspiracy to commit health care fraud and wire fraud count, conspiracy to commit money laundering, and substantive money laundering are each punishable by a maximum potential penalty of 20 years in prison. The counts charging health care fraud and anti-kickback violations are each punishable by a maximum potential penalty of 10 years in prison. Finally, the conspiracy to pay and receive kickbacks count is punishable by a maximum potential penalty of five years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Juan Antonio Gonzalez of the Southern District of Florida; Special Agent in Charge George L. Piro of the FBI’s Miami Field Office; and Special Agent in Charge Omar Perez of the U.S. Department of Health and Human Services (HHS) Office of Inspector General’s (HHS-OIG) Miami Region made the announcement.
Trial Attorney Patrick Queenan of the Criminal Division’s Fraud Section is prosecuting the case. Assistant U.S. Attorney Richard Brown of the Southern District of Florida is handling the forfeiture aspect of the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Any doctors or medical professionals who have been involved with alleged fraudulent telemedicine or genetic testing marketing schemes should call to report this conduct to the FBI hotline at 1-800-CALL-FBI.
An indictment and an information are merely allegations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
South King County man sentenced to five years in prison for gun dealing and drug traffickingRead the Press Release
Tacoma – A 35-year-old Federal Way, Washington, man was sentenced today in U.S. District Court in Tacoma to 61 months in prison for drug and gun trafficking, announced Acting U.S. Attorney Tessa M. Gorman. Michael G. McPherson was indicted in May 2019 and pleaded guilty in November 2020 to trafficking in stolen firearms, possession of methamphetamine and heroin with intent to distribute, and possessing a firearm in furtherance of a drug trafficking crime. U.S. District Judge Benjamin H. Settle ordered four years of supervised release to follow the prison term.
"Our community, like much of the country, is strugging with an epidemic of gun violence," said Acting U.S. Attorney Gorman. "This defendant sold guns - some of them stolen - to someone who claimed to be providing the firearms to drug cartel and gang members. Such disregard for community safety requires significant punishment."
According to records filed in the case, McPherson was first on the radar of local law enforcement in September 2018 when a Court-authorized search warrant served at his residence in Bonney Lake resulted in the seizure of significant quantities of heroin, methamphetamine, and multiple firearms. Federal agents from the Bureau of Alcohol, Firearms, Tobacco & Explosives joined the investigation. An ATF undercover officer arranged to purchase firearms from McPherson. The men met at a storage unit McPherson owned, and the undercover agent purchase four firearms—three semi-automatic pistols and a revolver. Two of the guns had been reported stolen.
Within days of the sale, Court-authorized search warrants were issued for McPherson’s residence in Federal Way, the storage unit, and his two vehicles. Multiple firearms were recovered as well as dealer quantities of methamphetamine and heroin.
McPherson has been in custody since his arrest.
The case was investigated by the Kent Police Department, King County Sheriff’s Office, ATF, and the FBI.
The case was prosecuted by Assistant United States Attorney Gregory A. Gruber.
Recent Federal Tax Prosecutions Serve as A Reminder to Accurately File and Pay Taxes by May 17 DeadlineRead the Press Release
MINNEAPOLIS – As this year’s tax filing season comes to an end, the U.S. Attorney’s Office and the Internal Revenue Service’s Criminal Investigation Division urge all taxpayers to file correct and accurate tax returns by the Monday, May 17 deadline. Due to COVID-19, the original filing deadline and tax payment due date was postponed from April 15 to May 17. For people facing hardships, including those affected by COVID-19, who cannot pay in full, the IRS has several options available on IRS.gov/payments.
“As the May 17 deadline approaches, Minnesotans should remain vigilant and take care to protect their personal information. Remember, the IRS will not contact you by phone, email, or social media,” said Acting U.S. Attorney Anders Folk. “Scammers, fraudsters and predatory tax preparers looking to take advantage of law-abiding taxpayers will be held accountable.”
“I am asking all citizens to file correct and accurate tax returns and to pay their share of taxes,” says Tamera Cantu, Acting Special Agent in Charge of the IRS Criminal Investigation Division Chicago Field Office, who oversees the state of Minnesota. “We all pay when others cheat the government. IRS Criminal Investigation, together with the U.S. Attorney’s Office, works year-round to make certain that those who willfully defy the tax laws will be investigated and criminally prosecuted. Taxpayers are encouraged to visit the IRS.gov website for tips on filing a tax return accurately and searching for a reputable return preparer.”
The following court actions serve as a reminder to taxpayers, to think before filing a false or fraudulent tax return and to be wary of any schemes that falsify your income or deductions.
In November 2020, Muhumed Ali and Faysal Sayid were sentenced to prison for income tax evasion. Ali and Sayid were also ordered to pay a total of more than $1 million in restitution to the IRS. Ali and Sayid were co-owners of a company that provided adult day care services to individuals enrolled in the Minnesota Medicaid program. Between 2012 and 2014, Ali and Sayid removed approximately $1.3 million from the company’s operating accounts and used those funds to pay for personal, non-business expenses, such as clothing, rent for personal residences, vehicles, funds transfers to other parties, and international wire transfers. Ali and Sayid willfully attempted to evade and defeat income taxes due and owing on that money for tax years 2012, 2013, and 2014. This case was prosecuted by Assistant U.S. Attorney Matthew S. Ebert.
In March 2021, Daren Wradislavsky pleaded guilty to one count of making and subscribing a false return. According to his guilty plea, Wradislavsky was the general manager of a hotel in Owatonna, Minnesota, and was exclusively responsible for the employee payroll. For tax years 2014 through 2017, Wradislavsky included commissions and mileage reimbursement amounts on his personal paychecks but failed to report more than $350,482 in reimbursements on his individual income tax returns. This case is being prosecuted by Assistant U.S. Attorney Angela M. Munoz.
In April 2021, Shoua Isabelle Yang, the owner and operator of a staffing agency, was indicted on 13 counts of filing a false employer’s quarterly federal tax return and four counts of filing a false United States corporation income tax return. According to the allegations in the indictment, during tax years 2015 through 2018, Yang, employed workers but caused her staffing agency not to properly withhold, account for and pay over accurate payroll taxes, including federal income taxes and Social Security and Medicare taxes. This case is being prosecuted by Assistant U.S. Attorney Matthew S. Ebert. An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
In April 2021, Gospel Kordah pleaded guilty to one count of preparation of a false individual income tax return. According to his guilty plea, Kordah prepared tax returns on behalf of his clients that falsely and fraudulently represented, among other things, that the taxpayers incurred deductible medical and dental expenses. Kordah also prepared false and fraudulent income tax returns on behalf of himself and his wife. Kordah prepared and filed approximately 68 false tax returns seeking a total of approximately $237,432 in fraudulent federal and state income tax returns. This case is being prosecuted by Assistant U.S. Attorneys Allison K. Ethen and Kimberly A. Svendsen.
Repeat Violent Offender Sentenced to 30 Months for Assaulting Correctional OfficersRead the Press Release
Acting United States Attorney Bob Murray announced today that BENJAMIN ROBERT DMITRY DELANY, age 26, of Cheyenne, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson for assaulting a correctional officer at the Platte County Detention Facility and for assaulting a correctional officer at the Scotts Bluff Detention Center. The government argued for an upward variance and requested a sentence of 54 months in prison. The court denied that request and sentenced Delany to 30 months of imprisonment, followed by 3 years of supervised release on both counts, to run concurrently. He was also ordered to pay $396.50 in restitution and a $200 special assessment fee.
Previously, on January 23, 2020, Chief Federal District Court Judge Scott W. Skavdahl sentenced Delany for assault with a dangerous weapon on a federal employee for his attack with a baseball bat at the Cheyenne Veterans Affairs Medical Center. For that offense, he received 42 months of imprisonment, to be followed by 4 years of supervised release, and ordered to pay a $100 special assessment. The court granted the government’s request that this 42-month sentence run consecutively to the 30-month sentence imposed for Delany’s assaults on correctional officers.
While in federal custody on that charge, Delany was detained at the Scotts Bluff Detention Center in Gering, Nebraska, during which time he assaulted a correctional officer. The United States Attorney’s Office for the District of Nebraska indicted Delany in February 2020, and the case was later transferred to the District of Wyoming.
While in federal custody on the Nebraska assault, in October 2020, Delany assaulted a Sergeant at the Platte County Detention Facility in Wheatland, Wyoming. In November 2020, Delany was indicted by a Wyoming federal grand jury for that attack.
“Our office values the important work law enforcement performs, and we’re dedicated to aggressively prosecuting violent attacks against law enforcement who assist in the detention of federal inmates,” said Nicole M. Romine, Chief of the Criminal Division. “We are committed to prosecuting repeat violent offenders—such as Delany—and arguing for appropriate sentences to ensure the safety of our Wyoming communities.”
Delany’s assaults were investigated by the U.S. Marshals Service. Delany was prosecuted by Assistant United States Attorney Nicole M. Romine.
Providence Contractor Charged in Murder-For-Hire PlotRead the Press Release
PROVIDENCE – A Providence man has been ordered detained in federal custody in an alleged murder-for-hire plot. It is alleged that Agustin Vinas, 51, attempted to hire a person to kill two men, one a contractor he claimed owed him $8,500 and who threatened to harm his family if he did not stop his repeated requests for payment, and the second an employee of the contractor.
It is alleged in court documents that on April 19, 2021, Vinas had a chance meeting with an acquaintance. Vinas told that person of his unsuccessful attempts to collect money he was owed by a contractor, of the contractor’s threat against his family, and that he wanted to hire someone to kill the contractor and another man. Vinas’s acquaintance told him that he might know of someone interested in the job and that he would be in touch shortly.
The next day, while under surveillance by members of the FBI Rhode Island Safe Streets Task Force, the two met again in a parking lot in Providence. In a recorded conversation, Vinas allegedly repeated that he wanted the contractor and another person killed. Vinas offered to pay $3,000 for the killings and an additional $500 to make the bodies “disappear.” Vinas explained that he would like to have the victims tortured before they are killed.
It is alleged in court documents that two days later Vinas’s acquaintance arranged to meet with Vinas to introduce him to a “hitman.” They arranged to gather in a parking lot in Pawtucket and then follow Vinas to a second Pawtucket location. Once there, they moved to a third location and met in Vinas’s vehicle. During the meeting, Vinas identified the intended targets, and provided the “hitman” with the contractor’s cellphone number, address, and a description of the vehicle the contractor drives. Vinas told the “hitman,” who was actually an undercover law enforcement officer, that the contractor was the primary target and that he wanted him killed first. Vinas specified that the second victim was not as important but that he would be an easy person to kill. Vinas offered to pay the undercover law enforcement officer $3,000 to kill both individuals. Vinas agreed to provide a deposit for the killings, and stated, “I’m not dying until this guy is dead.”
On April 26, 2021, Vinas provided the officer with a $100 deposit for the killings with a promise of an additional $300 at their next meeting. At the meeting, Vinas showed the officer two checks made payable to his son totaling $2,700. Vinas said the checks would be cashed and the proceeds provided as payment once the murders occurred. Three days later, Vinas and the undercover officer met again, and Vinas provided the undercover officer an additional $200 in cash. Vinas was asked on several occasions at that meeting if he was certain he wanted the murders committed. He responded, “I am one hundred percent sure,” and offered to sign a contract.
Vinas was arrested by members of the FBI Rhode Island Safe Streets Task Force on Friday on a federal criminal complaint charging him with use of interstate commerce facilities in the commission of murder-for-hire. He was ordered detained by U.S. District Court Magistrate Judge Lincoln D. Almond.
The FBI Safe Streets Task Force is comprised of officers from the Providence Police Department, Cranston Police Department, Pawtucket Police Department, Central Falls Police Department, Woonsocket Police Department, West Warwick Police Department, Rhode Island State Police, and the United States Marshals Service. The arrest and detention of Vinas is announced by Acting United States Attorney Richard B. Myrus and Special Agent in Charge of the FBI Boston Division Joseph R. Bonavolonta.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
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Ponciana Woman Sentenced for Making False Statements to the Social Security AdministrationRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. today ordered Isis Baldwin (39, Ponciana) to pay $11,754.76 in restitution for making false statements to a federal agency. In addition, the court also sentenced Baldwin to three years’ probation and required her to perform 45 days of work duty at the Brevard County Sheriff’s Office Work Farm.
Baldwin had pleaded guilty on February 8, 2021.
According to court documents, Baldwin, a Social Security Administration (SSA) employee, applied for Supplemental Security Income (SSI) benefits on behalf of her minor child. The application was approved by SSA, and Baldwin was appointed as the representative payee for her child’s benefits. In April 2019, SSA initiated a redetermination of continuing eligibility to determine whether Baldwin’s child remained eligible for benefits. During the redetermination inquiry, Baldwin made false statements to SSA. Specifically, Baldwin made material misrepresentations regarding her child’s living arrangements during an interview with an SSA employee. Baldwin subsequently submitted a statement to SSA in which she falsely represented that her child had moved to a different address. Baldwin also provided a falsified lease agreement in support of her false claim regarding her child’s new living arrangements.
This case was investigated by the Social Security Administration, Office of the Inspector General. It was prosecuted by Special Assistant United States Attorney Suzanne Huyler.
Omaha Man Sentenced to 15 years for Production of Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Christopher Wagner, 46, of Omaha, Nebraska, was sentenced in federal court today in Omaha for production of child pornography. Senior United States District Judge Joseph F. Bataillon sentenced Wagner to 15 years of imprisonment. There is no parole in the federal system. After completing his term of imprisonment, Wagner will begin a 15-year term of supervised release and will be required to register as a sex offender. Senior Judge Bataillon ordered Wagner to pay a $17,000 fine and $3,000 in restitution.
On November 12, 2019, officers executed a federal search warrant at Wagner’s residence in Omaha. Officers collected Wagner’s cellular phone. Wagner admitted to viewing child pornography on the internet. Agents forensically examined Wagner’s cellular phone and located about 1,668 images of child pornography with the minors ranging from about 3 to 16 years old.
Four of the images of child pornography on Wagner’s phone showed a naked female who was about six years old. Location data showed the images were created at Wagner’s apartment complex in Omaha. The data showed they were created with Wagner’s cellular phone. Wagner took these images.
Wagner was previously convicted in California of burglary in the first degree (1993), burglary in the first degree (1995) for which he was sentenced to 4 years of imprisonment, and residential burglary (1999) for which he was sentenced to 12 years of imprisonment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
The case was investigated by the Omaha Police Department and the Omaha FBI's Child Exploitation and Human Trafficking Task Force.
New Mexico Man Sentenced to 10 Years in Federal Prison for Stalking and Threatening to Kill Ex-Wife and FamilyRead the Press Release
PORTLAND, Ore.—An Albuquerque, New Mexico man was sentenced to federal prison today after spending years abusing, terrorizing, and threatening to kill his ex-wife, former mother-in-law, and young daughters.
Oscar Adrian Marquez, 46, was sentenced to 120 months in federal prison and three years’ supervised release.
“Oscar Marquez is a serial abuser and perpetrator of domestic violence. Over a period of many years, he physically and emotionally tormented his spouses, daughters, and their extended families. I applaud the Portland Police Bureau’s quick and heroic efforts to arrest Marquez before he could inflict further and potentially deadly harm on his family,” said Scott Asphaug, Acting U.S. Attorney for the District of Oregon.
“I’m grateful that this violent abuser is being held accountable for his actions,” said Portland Police Chief Chuck Lovell. “My thanks go to the Portland officers who acted so quickly and professionally, and to the FBI and the U.S. Attorney’s Office for their hard work investigating and bringing this case to successful prosecution.”
“The stalking and violent threats were purely about control for Mr. Marquez, just as the abuse had been. His ex-wife and children suffered for years, and despite every effort to escape, they lived with the fear that he would find them. I am hopeful that today's lengthy sentence will, hopefully, allow them the peace to move forward with their lives,” said Kieran L. Ramsey, Special Agent in Charge of the FBI in Oregon.
According to court documents, Marquez’s history of abusing women spans more than 20 years, including the physical and emotional abuse of his first wife and their young daughter. This abuse continued into his daughter’s adolescent and young-adult years when Marquez would lock her in her bedroom for hours and beat her with a belt. As an adult, his daughter went to great lengths to hide from her father and, in 2018, secured a 40-year protective order against him.
Marquez remarried in 2001 and has two teenage daughters with his second wife. Marquez continued his abuse with his new family. In 2007, Marquez was convicted on two domestic violence charges after punching his second wife in the face while she was holding their then-three-year-old daughter. The final straw for his second wife came in August 2013, when Marquez physically assaulted her and trapped her and her daughters in separate bedrooms. In their divorce proceedings, Marquez’s second wife was given sole custody of their children and Marquez’s limited visitation rights were later revoked.
In the summer of 2014, Marquez kidnapped his two youngest daughters and fled to Mexico, resulting in an international amber alert. Marquez and the children were found several days later at a U.S.-Mexico border crossing. He was arrested and later convicted for the kidnapping. A new protective order was issued in October 2014, barring Marquez’s contact with his second wife and youngest daughters. Marquez repeatedly violated this new order. Thereafter, from January 2014 through July 2019, Marquez engaged in an increasingly aggressive course of conduct to intimidate and harass his second wife and her family.
In 2017, Marquez’s second wife changed her name and moved to Portland with her teenage daughters after learning of Marquez’s intent to murder her and her family. She provided a picture of Marquez to her daughters’ new school and advised them of the threat he posed to their family. In July 2018, Marquez posted a note on his mother-in-law’s fence in New Mexico threatening that he was on his way to find her daughter. In July 2019, Marquez obtained his second wife’s new name and Portland address via an online people-finding service.
On July 29, 2019, Marquez’s second wife observed him driving slowly past her Portland home in a vehicle with New Mexico license plates. She barricaded her teenage daughters into a room, contacted the Portland Police Bureau, and prepared for a confrontation with Marquez. While a Portland police officer was writing a report at their home, Marquez again drove past the residence. Several Portland police officers quickly conducted a traffic stop and arrested Marquez. Inside his vehicle, they located a replica Glock handgun, a face mask, gloves, several digital devices, and more than $2,000 in cash.
On January 14, 2020, a federal grand jury in Portland returned a five-count indictment charging Marquez with cyberstalking, stalking, and interstate violation of a protection order. In November 2020, Marquez was convicted at trial on all charges.
During his trial, prosecutors learned that Marquez attempted to intimidate a government witness while in custody and lied under oath during his trial testimony. Prosecutors sought and obtained sentencing enhancements for this conduct.
During sentencing, U.S. District Court Judge Michel W. Mosman ordered Marquez to pay $10,818 in restitution to his victims.
Acting U.S. Attorney Asphaug made this announcement with Chief Lovell and Special Agent in Charge Ramsey.
This case was jointly investigated by the Portland Police Bureau and the FBI. It was prosecuted by the U.S. Attorney’s Office for the District of Oregon.
All forms of stalking, including cyberstalking, are serious crimes prohibited by the federal Violence Against Women Act (VAWA). In 2013, an amendment to VAWA made it illegal to use any computer or electronic communication service to conduct activity placing a person in reasonable fear of death or serious bodily injury, or that causes substantial emotional distress.
Anyone with information about real or perceived threats of violence should call the FBI at (503) 224-4181 or submit a tip online at tips.fbi.gov.
For immediate threats to life and safety, please call 9-1-1.
New Jersey Woman Going to Prison for Her Role in Major Jamestown Area Methamphetamine RingRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Alexis Hall, 26, of Harrison, NJ, who was convicted of conspiring to possess with intent to distribute, and distributing, five grams or more of methamphetamine, was sentenced to serve 60 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorneys Misha A. Coulson and Brendan T. Cullinane, who handled the case, stated that between March 2017 and October 2018, the defendant conspired with 15 other co-defendants to operate a drug trafficking organization, primarily involving the distribution of methamphetamine, in the Jamestown area. During the execution of search warrants throughout the investigation, law enforcement officers recovered 10 firearms and multiple rounds of ammunition, over 20 cellular telephones, drug paraphernalia, and U.S. currency.
All 16 defendants charged in this case have been convicted. Hall is the 7th defendant to be sentenced.
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 sentencing is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Belongia; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Jamestown Police Department, under the direction of Chief Timothy Jackson; the New York State Police, under the direction of Major James Hall; the Southern Tier Regional Drug Task Force, under the direction of Chautauqua County Sheriff Timothy Whitcomb; the Ellicott Police Department, under the direction of Chief William Ohnmeiss Jr.; and the U.S. Postal Inspection Service, under the direction of Acting Boston Division Inspector-in-Charge Joshua W. McCallister.
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Neurosurgeon and Two Affiliated Companies Agree to Pay $4.4 Million to Settle Healthcare Fraud AllegationsRead the Press Release
WASHINGTON – Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, South Dakota, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.
Medical Designs and Sicage agreed to pay an additional $100,000 in penalties to settle allegations that they violated the Open Payments Program by failing to report to the Centers for Medicare & Medicaid Services (CMS) Asfora’s ownership interests and payments made to Asfora.
Under the terms of the settlement agreement, Asfora, Medical Designs, and Sicage each will be excluded from participation in federal healthcare programs for a period of six years.
“Physicians who accept kickbacks and perform unnecessary surgeries put their patients at risk and increase healthcare costs for everyone,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to hold physicians and medical device companies accountable for unlawful financial arrangements that undermine the integrity of federal healthcare programs.”
The settlement announced today resolves allegations that over the course of nearly a decade, Asfora, Medical Designs, and Sicage knowingly and willfully engaged in three kickback schemes to allow Asfora to profit from his use of over a dozen devices in his medical procedures. First, the United States alleged that Medical Designs and Sicage paid Asfora profit distributions in exchange for Asfora using Medical Designs’ and Sicage’s devices in his spine surgeries. Second, the United States alleged that Medical Designs acted as a distributor, reselling other manufacturers’ spinal devices and splitting the profits with Asfora when he used those devices in surgeries. Third, the United States alleged that Asfora solicited and received kickbacks from medical device manufacturer Medtronic USA Inc. in exchange for using its SynchroMed II infusion pumps, which are implantable devices used to deliver medication to patients. At Asfora’s request, Medtronic allegedly paid the kickbacks to Asfora through a restaurant he owned with his wife, called Carnaval Brazilian Grill, in the form of lavish meals and alcohol for Asfora and his friends, colleagues, and business partners.
In addition, the settlement resolves allegations that Asfora knowingly submitted false claims to federal healthcare programs for medically unnecessary procedures using the devices in which he had a financial interest. Despite receiving numerous warnings that he was performing medically unnecessary procedures – including warnings from his own physician colleagues – Asfora allegedly continued to perform such procedures while personally profiting from his use of devices sold by Medical Designs, Sicage, and Medtronic.
“Fraud in the healthcare arena is taken very seriously by the Department of Justice,” said Acting U.S. Attorney Dennis R. Holmes for the District of South Dakota. “South Dakota is fortunate to have many honest and dedicated healthcare providers who strive daily to provide high quality services. Dr. Asfora and his companies violated the trust that so many others have worked hard to earn.”
“Kickback dollars can corrupt the high quality medical care patients deserve and taxpayers fund,” said Special Agent in Charge Curt L. Muller of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We have excluded Dr. Asfora and his two medical distributorships from receiving Medicare, Medicaid, and other federal health program dollars.”
This settlement also resolves Medical Designs’ and Sicage’s liability under CMS’ Open Payments Program, which was established by the Affordable Care Act and requires medical device companies to disclose to CMS physician ownership interests and certain payments or other transfers of value to a physician.
The civil settlement includes the resolution of claims that Drs. Carl Dustin Bechtold and Bryan Wellman brought under the qui tam or whistleblower provisions of the False Claims Act against Asfora and Medical Designs. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any settlement. The qui tam case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The whistleblowers will receive $880,000 of the settlement proceeds.
This settlement was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Dakota, with assistance from HHS-OIG. As a result of its efforts, the United States has recovered a total of more than $33 million relating to conduct involving Asfora, including a False Claims Act settlement with Sanford Health entities for $20.25 million in October 2019 and a False Claims Act and Open Payments settlement with Medtronic for $9.21 million in October 2020. This matter and the related matters were investigated by Trial Attorneys Christopher Terranova and Harin C. Song and Assistant U.S. Attorneys Meghan K. Roche and Ellie J. Bailey.
Neurosurgeon and Two Affiliated Companies Agree to Pay $4.4 Million to Settle Health Care Fraud AllegationsRead the Press Release
Neurosurgeon Wilson Asfora, M.D. of Sioux Falls, South Dakota, and two medical device distributorships that he owns, Medical Designs LLC and Sicage LLC, have agreed to pay $4.4 million to resolve False Claims Act allegations relating to illegal payments to Asfora to induce the use of certain medical devices, in violation of the Anti-Kickback Statute, as well as claims for medically unnecessary surgeries.
Medical Designs and Sicage agreed to pay an additional $100,000 in penalties to settle allegations that they violated the Open Payments Program by failing to report to the Centers for Medicare & Medicaid Services (CMS) Asfora’s ownership interests and payments made to Asfora.
Under the terms of the settlement agreement, Asfora, Medical Designs, and Sicage each will be excluded from participation in federal health care programs for a period of six years.
“Physicians who accept kickbacks and perform unnecessary surgeries put their patients at risk and increase health care costs for everyone,” said Acting Assistant Attorney General Brian M. Boynton of the Department of Justice’s Civil Division. “We will continue to hold physicians and medical device companies accountable for unlawful financial arrangements that undermine the integrity of federal health care programs.”
The settlement announced today resolves allegations that over the course of nearly a decade, Asfora, Medical Designs, and Sicage knowingly and willfully engaged in three kickback schemes to allow Asfora to profit from his use of over a dozen devices in his medical procedures. First, the United States alleged that Medical Designs and Sicage paid Asfora profit distributions in exchange for Asfora using Medical Designs’ and Sicage’s devices in his spine surgeries. Second, the United States alleged that Medical Designs acted as a distributor, reselling other manufacturers’ spinal devices and splitting the profits with Asfora when he used those devices in surgeries. Third, the United States alleged that Asfora solicited and received kickbacks from medical device manufacturer Medtronic USA Inc. in exchange for using its SynchroMed II infusion pumps, which are implantable devices used to deliver medication to patients. At Asfora’s request, Medtronic allegedly paid the kickbacks to Asfora through a restaurant he owned with his wife, called Carnaval Brazilian Grill, in the form of lavish meals and alcohol for Asfora and his friends, colleagues, and business partners.
In addition, the settlement resolves allegations that Asfora knowingly submitted false claims to federal health care programs for medically unnecessary procedures using the devices in which he had a financial interest. Despite receiving numerous warnings that he was performing medically unnecessary procedures – including warnings from his own physician colleagues – Asfora allegedly continued to perform such procedures while personally profiting from his use of devices sold by Medical Designs, Sicage, and Medtronic.
“Fraud in the health care arena is taken very seriously by the Department of Justice,” said Acting U.S. Attorney Dennis R. Holmes for the District of South Dakota. “South Dakota is fortunate to have many honest and dedicated health care providers who strive daily to provide high quality services. Dr. Asfora and his companies violated the trust that so many others have worked hard to earn.”
“Kickback dollars can corrupt the high quality medical care patients deserve and taxpayers fund,” said Special Agent in Charge Curt L. Muller of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “We have excluded Dr. Asfora and his two medical distributorships from receiving Medicare, Medicaid, and other federal health program dollars.”
This settlement also resolves Medical Designs’ and Sicage’s liability under CMS’ Open Payments Program, which was established by the Affordable Care Act and requires medical device companies to disclose to CMS physician ownership interests and certain payments or other transfers of value to a physician.
The civil settlement includes the resolution of claims that Drs. Carl Dustin Bechtold and Bryan Wellman brought under the qui tam or whistleblower provisions of the False Claims Act against Asfora and Medical Designs. Under the qui tam provisions of the False Claims Act, a private party can file an action on behalf of the United States and receive a portion of any settlement. The qui tam case is captioned United States ex rel. Bechtold, et al. v. Asfora, et al., No. 4:16-cv-04115-LLP (D.S.D.). The whistleblowers will receive $880,000 of the settlement proceeds.
This settlement was the result of a coordinated effort between the Civil Division's Commercial Litigation Branch, Fraud Section, and the U.S. Attorney’s Office for the District of South Dakota, with assistance from HHS-OIG. As a result of its efforts, the United States has recovered a total of more than $33 million relating to conduct involving Asfora, including a False Claims Act settlement with Sanford Health entities for $20.25 million in October 2019 and a False Claims Act and Open Payments settlement with Medtronic for $9.21 million in October 2020. This matter and the related matters were investigated by Trial Attorneys Christopher Terranova and Harin C. Song and Assistant U.S. Attorneys Meghan K. Roche and Ellie J. Bailey.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Maryland man sentenced for firearms offenseRead the Press Release
MARTINSBURG, WEST VIRGINIA – Lemonte Green, of Hagerstown, Maryland, was sentenced today to 60 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Green, 37, pled guilty to one count of “Possession of a Firearm in Furtherance of a Drug Trafficking Crime” in September 2020. Green admitted to having a 9mm pistol while trafficking drugs in October 2019 in Berkeley County.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Maryland U.S. Attorney’s Office Seizes Domain Name Falsely Purporting to Provide COVID-19 VaccinesRead the Press Release
Baltimore, Maryland – The U.S. Attorney’s Office for the District of Maryland has seized “freevaccinecovax.org” which purported to be the website of an actual biotechnology company developing a vaccine for the COVID-19 virus but instead was allegedly used to collect the personal information of individuals visiting the site, in order to use the information for nefarious purposes, including fraud, phishing attacks, and/or deployment of malware. Individuals visiting the site will now see a message that the site has been seized by the federal government and be redirected to another site for additional information.
The seizure of the domain name was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge James R. Mancuso of Homeland Security Investigations - Baltimore.
“This is the ninth fraudulent website seeking to illegally profit from the COVID-19 pandemic that we have seized,” said Acting U.S. Attorney Jonathan F. Lenzner. “Members of the public should not provide personal information or click on links in unsolicited e-mails and should remember that the COVID-19 vaccine is not for sale. The Federal government is providing the vaccine free of charge to people living in the United States. Working with our partners at HSI, we will continue to aggressively prosecute fraudsters who seek to prey on unsuspecting residents and their families.”
“It’s a scary thought but what HSI wants the public to understand is all a bad guy needs to defraud thousands of Americans in search of COVD-19 information is the ability to create a website combined with malicious intent, “said James Mancuso, Special Agent in Charge for the HSI Baltimore Field Office. “We must make an example of these perpetrators in order to deter others from committing these crimes against an unsuspecting and vulnerable Internet user.”
According to the affidavit filed in support of the seizure, the HSI Intellectual Property Rights Center (“IPRC”) and the HSI Cyber Crimes Center (“C3”) discovered an apparent fraudulent website, named “freevaccinecovax.org.” A domain analysis conducted by HSI indicated the domain name was created on April 27, 2021, using an IP address located in Strasbourg. The registrant country was listed as Russia.
The HSI Cyber Operations Officer (COO) conducting domain analysis noted that the trademarked logos for Pfizer, the World Health Organization (WHO) and the United Nations High Commissioner for Refugees (UNHCR) appear on the homepage for the fraudulent site. Specifically, the fraudulent website contained a “Select your city” drop down and “Apply” and “Upload application” buttons. Upon selecting a city and clicking on “Apply” a PDF file is downloaded to your computer. This PDF file is written in Cyrillic. Once the PDF is completed, it then can be uploaded to the website by clicking on the “Upload application” button.
By seizing the site, the government has prevented third parties from acquiring the name and using it to commit additional crimes, as well as prevented third parties from continuing to access the site in its present form.
Federal law enforcement agencies are united in our efforts to fight against COVID-19 fraud. HSI has identified tips to recognize and report COVID-19 fraud. If you believe you are a victim of a fraud or attempted fraud involving COVID-19, you may also call the National Center for Disaster Fraud Hotline at 1-866-720-5721 or for more information visit justice.gov/coronavirus.
Acting United States Attorney Jonathan F. Lenzner commended HSI for its work in this investigation. Mr. Lenzner recognized the U.S. Food and Drug Administration’s Office of Criminal Investigations, the U.S. Postal Inspection Service and the Baltimore County Police Department for their assistance and thanked Assistant U.S. Attorneys Aaron S.J. Zelinsky and Sean R. Delaney, who are handling the case.
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Man Sentenced to More Than Nine Years in Prison for Illegally Possessing Ammunition in ChicagoRead the Press Release
CHICAGO — A man has been sentenced to more than nine years in federal prison for illegally possessing ammunition near Garfield Park on Chicago’s West Side.
RODNEY BURNETT, 25, of Chicago, illegally possessed four rounds of .40-caliber ammunition on May 15, 2018. Burnett, driving a stolen vehicle and fleeing the area where a shooting had recently occurred, led Chicago Police on a high-speed chase that ended when he crashed his car at the intersection of Hamlin and Jackson Boulevards near Garfield Park. Burnett and two passengers in his vehicle then fled on foot and discarded two firearms. CPD officers apprehended them a short time later.
Burnett pleaded guilty to a federal charge of illegal possession of ammunition by a convicted felon. He had previously been convicted in state court of a felony criminal offense and was not legally allowed to possess ammunition or a firearm.
U.S. District Judge John Z. Lee on April 27, 2021, imposed a 110-month federal prison sentence. Judge Lee found that, in addition to possessing the ammunition, the government met its burden in proving that Burnett possessed a firearm and was involved in the nearby shooting that preceded the vehicular chase.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI; and David Brown, Superintendent of the Chicago Police Department. The government was represented by Assistant U.S. Attorney Katie M. Durick.
Holding illegal firearm possessors accountable through federal prosecution is also a centerpiece of Project Guardian and Project Safe Neighborhoods, the Department of Justice’s violent crime reduction strategies. In the Northern District of Illinois, U.S. Attorney Lausch and law enforcement partners have deployed the Guardian and PSN programs to attack a broad range of violent crime issues facing the district, particularly firearm offenses.
Man Sentenced for Producing Images of Child Sexual AbuseRead the Press Release
NEWPORT NEWS, Va. – A Mathews County man was sentenced today to life in prison for engaging in a conspiracy to produce child pornography in connection with a purported “teen modeling” endeavor.
“As the evidence at trial demonstrated, the defendant preyed on, manipulated, and abused defenseless young girls,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Our Office expresses its gratitude to the trial and law enforcement team for their relentless efforts in bringing the defendant to justice and holding him accountable for repeatedly victimizing children.”
According to court documents and evidence presented at trial, William Wellington Hooper, Jr., 54, conspired with Jennifer Hutchens, 54, of Gloucester, to produce images of child sexual abuse of Jane Doe #1, a 15-year-old girl, and her 14-year-old friend, Jane Doe #2. During the months of April and May 2019, Hooper and Hutchens coerced Jane Doe #1 to engage in sexually explicit conduct in Gloucester County and Mathews County.
“Every case involving child sexual exploitation is difficult, but the level of manipulation and abuse carried out in this case is especially disturbing,” said Special Agent in Charge Raymond Villanueva for the HSI Washington, D.C. Field Office. “This individual deserved nothing less than a life sentence and HSI will continue to diligently investigate these crimes against children and rid our communities of these atrocious offenders.”
Hutchens, at the request of Hooper, also recruited other minor girls to pose for sexually explicit photographs in what Hooper called a “teen modeling” endeavor. Hooper promised these children, whose families were struggling financially, that they would be compensated. He specifically promised that Jane Doe #1 could make almost $3 million if she obeyed him completely. Hooper also asked Hutchens to find younger children for his photographs. In explaining his request, Hooper said that “[l]egal doesn’t matter” and suggested that Hutchens could get access to younger children by running a daycare, for which she could “[s]pecialize in problem[] girls between the ages of 8 and 12.”
A jury convicted Hooper at trial of conspiracy to produce child pornography, production of child pornography, and coercion and enticement of a child. Hutchens previously pleaded guilty to producing child pornography and was sentenced to 23 years’ imprisonment on October 13, 2020.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the 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.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Raymond Villanueva, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C.; L. Mark Barrick, Mathews County Sheriff; Darrell W. Warren, Jr., Gloucester County Sheriff; and Colonel Gary T. Settle, Virginia State Police Superintendent, made the announcement after sentencing by U.S. District Judge David J. Novak.
Assistant U.S. Attorneys Lisa R. McKeel, Howard J. Zlotnick, and Brittany M. Fisher prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:20-cr-18.