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16 June 2021
Russian National Convicted of Charges Relating to Kelihos BotnetRead the Press Release
A federal jury in Hartford convicted a Russian national yesterday for his role in operating a “crypting” service used to conceal “Kelihos” malware from antivirus software, enabling hackers to systematically infect victim computers around the world with malicious software, including ransomware. Oleg Koshkin, 41, formerly of Estonia, was convicted of one count of conspiracy to commit computer fraud and abuse and one count of aiding and abetting computer fraud and abuse. He faces a maximum penalty of 15 years in prison and is scheduled to be sentenced on September 20.
“By operating a website that was intended to hide malware from antivirus programs, Koshkin provided a critical service that enabled other cyber criminals to infect thousands of computers around the world,” said Acting U.S. Attorney Leonard C Boyle. “We will investigate and prosecute the individuals who aid and abet cyber criminals as vigorously as we do the ones who actually hit the ‘send’ button on viruses and other malicious software.”
“The defendant designed and operated a service that was an essential tool for some of the world’s most destructive cybercriminals, including ransomware attackers,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department's Criminal Division. “The verdict should serve as a warning to those who provide infrastructure to cybercriminals: the Criminal Division and our law enforcement partners consider you to be just as culpable as the hackers whose crimes you enable — and we will work tirelessly to bring you to justice.”
“Mr. Koshkin and his associates knowingly provided crypting services designed to help malicious software bypass anti-virus software,” said Special Agent in Charge David Sundberg of the FBI’s New Haven Division. “The criminal nature of the Crypt4U service was a clear threat to the confidentiality, integrity and availability of computer systems everywhere. We at the FBI will never stop pursuing those like Mr. Koshkin for perpetrating cyber crimes and threats to the public at large.”
According to court documents and evidence introduced during the trial, Koshkin operated the websites “crypt4u.com,” “fud.bz,” and others. The websites promised to render malicious software fully undetectable (FUD) by nearly every major provider of antivirus software. Koshkin and his co-conspirators claimed that their services could be used for malware such as botnets, remote access trojans (RATs), keyloggers, credential stealers, and cryptocurrency miners.
In particular, Koshkin worked with Peter Levashov, the operator of the Kelihos botnet, to develop a system that would allow Levashov to crypt the Kelihos malware multiple times each day. Koshkin provided Levashov with a custom, high-volume crypting service that enabled Levashov to distribute Kelihos through multiple criminal affiliates. The Kelihos botnet was used by Levashov to send spam, harvest account credentials, conduct denial of service attacks, and to distribute ransomware and other malicious software. At the time it was dismantled by the FBI, the Kelihos botnet was known to include at least 50,000 compromised computers around the world.
Koshkin was arrested in California on September 6, 2019, and has been detained since his arrest.
Koshkin’s co-defendant, Pavel Tsurkan, is charged with conspiring to cause damage to 10 or more protected computers, and aiding and abetting Levashov in causing damage to 10 or more protected computers. He is released on bond while awaiting trial.
As to Tsurkan, an indictment is merely an allegation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Levashov was arrested by the Spanish National Police on April 7, 2017, and extradited to the United States. On September 12, 2018, he pleaded guilty to one count of causing intentional damage to a protected computer, one count of conspiracy, one count of wire fraud, and one count of aggravated identity theft.
The FBI’s New Haven Division is investigating the case through its Connecticut Cyber Task Force. Assistant U.S. Attorney Edward Chang of the United States Attorney’s Office and Senior Counsel Ryan K.J. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case, with assistance from the Criminal Division’s Office of International Affairs. The Estonian Police and Border Guard Board also provided significant assistance.
In April 2021, the Department of Justice announced the creation of the Ransomware and Digital Extortion Task Force to combat the growing number of ransomware and digital extortion attacks. As part of the Task Force, the Criminal Division, working with the U.S. Attorneys’ Offices, prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The department, through the Task Force, also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
Rochester Man Indicted for Possession of Child PornographyRead the Press Release
CONCORD –Michael Clemence, 35, of Rochester was indicted by a federal grand jury on Monday and charged with one count of possession of child pornography, Acting United States Attorney John J. Farley announced today.
Clemence was arrested on June 7, 2021 and is currently detained.
According to the original complaint filed in court, federal agents located one or more images of child pornography on electronic devices seized from Clemence’s residence during the execution of a federal search warrant on June 4, 2021. The investigation into Clemence stemmed from a larger investigation into child exploitation material on the “dark web.”
The investigation is ongoing. Anyone with information regarding this matter is encouraged to contact Homeland Security Investigations at 603-629-2716.
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 Homeland Security Investigations and the Rochester Police Department and is being prosecuted by Assistant U.S. Attorneys Kasey Weiland and Anna Krasinski.
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Queens Woman Sentenced to More Than 16 Years’ Imprisonment for Teaching and Distributing Information About Weapons of Mass DestructionRead the Press Release
Today in federal court in Brooklyn, Noelle Velentzas was sentenced to 16 ½ years’ imprisonment by United States District Judge Sterling Johnson, Jr. for her role in planning a terrorist attack in the United States. Velentzas and her co-defendant, Asia Siddiqui, pleaded guilty on August 23, 2019 to teaching or distributing information pertaining to the making and use of an explosive, destructive device, or weapon of mass destruction in furtherance of a planned federal crime of violence. Siddiqui was sentenced in January 2020 to 15 years’ imprisonment.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York; John C. Demers, Assistant Attorney General for the Justice Department’s National Security Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the sentence.
“The defendant expressed her support for foreign terrorist organizations like al-Qaeda and the Islamic State of Iraq and al-Sham by learning how to build bombs and other explosive devices and targeting members of law enforcement for terror. Today’s sentence imposes a just punishment on the defendant for her planned horrific crimes,” stated Acting U.S. Attorney Lesko. “Counterterrorism and protecting the American people remain among the highest priorities of the Department of Justice, and this Office, together with the FBI, the NYPD and our Joint Terrorism Task Force partners, will continue to exercise extreme vigilance to incapacitate terrorists.”
“As part of her plan goal to wage violent jihad, Velentzas and her co-defendant Asia Siddiqui researched and taught each other how to construct bombs to be used on American soil against law enforcement and military targets,” stated Assistant Attorney General Demers. “With the sentence imposed by the court, Velentzas has been held accountable for her crimes. The Attorney General recently reminded us that we must remain vigilant against threats from international terrorism, and we are grateful for those agents, analysts and prosecutors who were and brought Velentzas to justice before she could carry out her plans.”
Between approximately 2013 and 2015, Velentzas and her co-defendant Asia Siddiqui taught each other chemistry and electrical skills directly related to creating explosives and building detonating devices; studied the explosives used in past terrorist attacks including the Boston Marathon bombing, the Oklahoma City bombing, and the 1993 World Trade Center attack; researched how to make plastic explosives and build car bombs; shopped for and acquired materials to be used in an explosive device; and assessed potential targets of an attack, focusing on law enforcement and military-related targets.
While engaging in these activities, Velentzas repeatedly expressed her support for promoting and waging violent jihad and her desire to commit acts of violence. Velentzas claimed that Osama bin Laden was her hero, and expressed praise for the September 11, 2001 attacks as well as Mohammed Shnewer, who was convicted of plotting a terrorist attack against members of the armed services at Fort Dix in New Jersey.
At the time that Velentzas and Siddiqui were arrested in 2015, law enforcement officers searched their residences and found tools of the trade for a terrorist attack, including propane gas tanks, soldering tools, car bomb instructions and jihadist literature, machetes and knives.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Craig R. Heeren, Jennifer M. Sasso, Josh Hafetz and Jonathan E. Algor are in charge of the prosecution, with assistance provided by Trial Attorney Jennifer Burke of the National Security Division’s Counterterrorism Section.
The Defendant:
NOELLE VELENTZAS
Age: 33
Queens, New YorkE.D.N.Y. Docket No. 15-CR-213 (SJ)
Pennsylvania man sentenced for methamphetamine chargeRead the Press Release
WHEELING, WEST VIRGINIA – Darren L. Fryson, of Verona, Pennsylvania, was sentenced today to three years of probation for distributing methamphetamine, Acting U.S. Attorney Randolph J. Bernard announced.
Fryson, age 50, pled guilty in June 2019 to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Methamphetamine” in June 2019. Fryson admitted to distributing methamphetamine in Ohio County and elsewhere from March 2018 to April 2019.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Ohio woman sentenced for role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Marisa Page, of Columbus, Ohio, was sentenced to three years of probation for her role in a drug conspiracy that spanned several states, Acting U.S. Attorney Randolph J. Bernard announced.
Page, 29, pled guilty in October 2020 to one count of “Conspiracy to Distribute and to Possess with the Intent to Distribute Controlled Substances.” Page admitted to working with others to traffic methamphetamine, cocaine and heroin in Wetzel County, Ohio, Georgia, as well as into the southern district of West Virginia.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the West Virginia State Police, the Wetzel County Sheriff’s Office, the Marshall County Sheriff’s Office, and the New Martinsville Police Department investigated.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
U.S. District Judge John Preston Bailey presided.
Related press release here: https://www.justice.gov/usao-ndwv/pr/31-ohio-and-west-virginia-residents-are-indicted-connection-drug-distribution-operation
Ohio man admits to methamphetamine and firearms chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – John Palmer, of Lore City, Ohio, has admitted to drug and firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Palmer, 57, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine” and one count of “Unlawful Possession of Firearm as a Felon.” Palmer, a person prohibited from having a firearm because of a prior conviction, admitted to having methamphetamine and two pistols in February 2018 in Harrison County.
Palmer faces up to 20 years of incarceration and a fine of up to $1,000,000 for the drug charge and faces up to 10 years of incarceration and a fine of up to $250,000 for the firearms 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 Andrew R. Cogar is prosecuting the case on behalf of the government. The Greater Harrison Drug Task Force, a HIDTA-funded initiative and the Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Related case here: https://www.justice.gov/usao-ndwv/pr/ohio-and-west-virginia-residents-indicted-drug-and-firearms-charges
Nigerian Citizen is Eleventh Person Sentenced in International Fraud SchemeRead the Press Release
Memphis, TN – Benard Okorhi 42, of Lagos, Nigeria, has been sentenced to serve 75 months in federal prison for his role in an international fraud conspiracy that used compromised email accounts to steal from businesses and romance scams on internet dating sites to trick individuals into wiring money overseas. The scheme is estimated to have cost residents of the U.S. approximately $8 million dollars. The total scheme is estimated to have netted over $10 million worldwide during criminal enterprise’s five-year lifespan. Acting U.S. Attorney Joseph C. Murphy Jr., announced the sentence today.
Evidence presented in court revealed that Okorhi and others, some U.S. citizens, some residents of Ghana and Nigeria--created fake profiles on online dating services to entice people looking for companionship into fraudulent relationships. Once the victim was fully involved, the scammers would develop elaborate storylines that always required the victim to send financial assistance to his or her beloved. The group also compromised the email networks of many businesses, redirecting wires intended to pay for services or goods to bank accounts under the control of the scammers. The money was subsequently moved through a number of bank accounts before ultimately being sent to Africa.
Okorhi, Maxwell Peter, and Babatunde Martins were arrested overseas and extradited to the United States for prosecution. Several of their alleged co-conspirators remain at large, including Dennis Miah, Sumaila Hardi Wumpini and Okorhi's brother Victor Okhori. Ayodeji Ojo has been arrested in Nigeria and is awaiting extradition.
On June 11, 2021, U.S. District Court Judge Sheryl H. Lipman sentenced Okorhi to 75 months in federal prison. The following individuals have been found guilty by a jury or entered pleas of guilty for their part in the scheme: Babatunde Martins of Nigeria, time served (approximately 3 and a half years); Maxwell Peter of Ghana, 55 months; Olufolajimi Abegunde of Atlanta and Nigeria, 78 months; Javier Luis Ramos-Alonso of California and Mexico, 31 months; Rashid Abdulai of New York and Ghana, 12 months;
Dana Brady of Washington, two years' supervised release: James Dean of Indiana, two years' probation; Marie Zamora of Utah, two years' probation; Edchae Caffey, 18 months' probation; and Ahmed Alimi, 14 months' probation.
The FBI led the investigation. The Criminal Division’s Office of International Affairs, as well as the FBI’s Legal Attaché in Accra, the FBI Transnational Organized Crime of the Eastern Hemisphere Section of the Criminal Investigative Division, the FBI’s Major Cyber Crimes Unit of the Cyber Division, and FBI’s International Organized Crime Intelligence and Operations Center all provided significant support in this case, as did the U.S. Marshals Service, INTERPOL Washington, the INTERPOL Unit of the Ghana Police Service, the Republic of Ghana’s Office of Attorney General, and Ghana’s Economic and Organized Crime Office.
Senior Trial Attorney Timothy C. Flowers of the Criminal Division’s Computer Crime and Intellectual Property Section and Assistant U.S. Attorney Debra L. Ireland of the U.S. Attorney’s Office for the Western District of Tennessee are prosecuting the case, with significant assistance from the Criminal Division’s Office of International Affairs.
For more information or to view a list of aliases used by members of the conspiracy on dating websites and social media, visit https://www.justice.gov/usao-wdtn/victim-witness-program.
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Newington Man Sentenced to More Than 6 Years in Federal Prison for Fentanyl and Firearm OffensesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOSEPH DIAZ, 28, of Newington, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 78 months of imprisonment, followed by four years of supervised release, for fentanyl distribution and firearm possession offenses.
According to court documents and statements made in court, on February 13, 2019, members of the FBI’s Northern Connecticut Gang Task Force were conducting surveillance in an unrelated investigation when they observed Diaz, who one investigator identified as a former Hartford Police Cadet, conducting a drug transaction on Stedman Street in Hartford. Later that day, investigators stopped a car Diaz was driving and found Diaz in possession of a loaded .380 caliber pistol, approximately 700 bags of heroin/fentanyl, and $1,704 in cash.
Diaz was placed under arrested and transported to the Hartford Police station, where he gave consent to investigators to search his Newington residence. After investigators left the interview room, an officer observed through a window that Diaz was typing something on his watch. The officer opened the door, removed the watch and discovered that it was an Apple-type watch. Shortly thereafter, investigators who had arrived at Diaz’s residence observed Diaz’s father, Jose Diaz, exit through the rear door of the residence carrying a black plastic bag and then run toward the parking lot area. Officers approached Jose Diaz, who dropped the plastic bag and a fanny pack. A search of the bag and fanny pack revealed more than 3,300 bags of fentanyl, approximately 80 grams of unpackaged fentanyl, and drug paraphernalia.
Jose Diaz consented to a search of his phone. On the phone screen there were several unopened text messages, including one from Jose Diaz that read “Go now. Everything.”
A search of Joseph Diaz’s residence revealed an additional quantity of packaged fentanyl, approximately 21 grams of unpackaged fentanyl, a loaded .22 caliber pistol, assorted ammunition, and approximately $2,500 in cash.
On February 17, 2021, Diaz pleaded guilty to one count of possession with intent to distribute fentanyl and one count of possession of a firearm in furtherance of a drug trafficking crime.
Diaz, who is released on a $75,000 bond, is required to report to prison on July 28, 2021.
Jose Diaz pleaded guilty to a related charge and has been sentenced.
This matter was investigated by the FBI’s Northern Connecticut Gang Task Force with the assistance of the Newington Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, West Hartford Police Department, New Britain Police Department, Connecticut State Police and Connecticut Department of Correction. This case was prosecuted by Assistant U.S. Attorney Brian P. Leaming.
New York City Man Pleads Guilty to Illegally Accessing Hundreds of Snapchat Accounts and Sending Nude PhotosRead 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 David Mondore, 29, of New York, New York, pleaded guilty before Senior U.S. District Judge William M. Skretny to accessing a protected computer without authorization and, by means of such conduct, furthering the intended fraud and obtaining anything of value. The charge carries a maximum penalty of five years in prison and a $250,000 fine.
Assistant U.S. Attorney Charles M. Kruly, who is handling the case, stated that between July 2018 and August 2020, the defendant gained unauthorized access to, and control of, Snapchat accounts belonging to third parties. After doing so, Mondore often located nude “selfie” photos saved in the victims’ “My Eyes Only” folder, which the defendant then saved to his own phone.
After gaining unauthorized access to a victim’s Snapchat account, Mondore typically sent messages from the Snapchat account to the victim’s Snapchat contacts, sending them under the ruse that the first victim needed the second victim’s Snapchat login credentials to access the second victim’s account. After receiving the second victim’s login credentials and gaining unauthorized access to the second victim’s Snapchat account, Mondore sent a text message to the second victim using a smartphone application that allowed him to anonymize his true phone number. The text message purported to be from Snapchat Security and requested—as a way of verifying that the second victim’s Snapchat account had been legitimately accessed—that the second victim send the passcode for his or her “My Eyes Only” folder. After the second victim sent his or her “My Eyes Only” passcode, Mondore could, and did, gain unauthorized access to the second victim’s “My Eyes Only” folder, from which he could locate and save the second victim’s nude photos. After gaining access to the second victim’s Snapchat account, the defendant then repeated this pattern of activity by using the second victim’s Snapchat account to contact, and then gain unauthorized access to, Snapchat accounts belonging to the second victim’s Snapchat contacts.
For example, in December 2019, Victim 1 received a Snapchat message from a Snapchat account belonging to an acquaintance known as Victim 2. The person who contacted Victim 1 from Victim 2’s Snapchat account asked Victim 1 for her Snapchat login credentials so that Victim 2 could use Victim 1’s Snapchat account to verify whether Victim 2 had been “blocked” by another Snapchat user. Victim 1 sent her Snapchat login credentials to Victim 2. Victim 1 then received a text message purporting to be from Snapchat Security, but which was, in reality, sent from the defendant’s smartphone. The text message stated that Victim 1’s Snapchat account had been locked and could only be unlocked if Victim 1 provided the passcode for her “My Eyes Only” folder. After gaining access to Victim 1’s “My Eyes Only” folder, Mondore sent an explicit photo of Victim 1 to 116 of Victim 1’s Snapchat contacts with a caption reading: “Flash me back if we are besties.” Four of Victim 1’s Snapchat contacts responded by sending the defendant explicit photos of themselves.
Mondore gained unauthorized access to Snapchat accounts belonging to 14 victims in the Western District of New York. The defendant admits that he gained unauthorized access to at least 300 Snapchat accounts belonging to victims both in the Western District of New York and elsewhere.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia.
Sentencing is scheduled for September 29, 2021, before Judge Skretny.
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Moorhead Man Charged with Illegal Possession of A Firearm After Juvenile Killed by Bullet Fired from the Defendant’s GunRead the Press Release
MINNEAPOLIS – A Moorhead man, Phillip Jones, Jr., 33, was arrested and charged with firearms violations after a juvenile was killed by a bullet fired from a gun that Jones allegedly possessed, announced Acting U.S. Attorney W. Anders Folk.
According to court documents, on March 21, 2021, officers of the Moorhead Police Department were dispatched to a residence in Moorhead, Minnesota, for a report of a juvenile male with a gunshot wound. After attempting life saving measures, paramedics pronounced the juvenile male, age 6, deceased. Investigators learned that three other juveniles were present in the residence at the time of the incident. According to investigators, Jones had been living at the residence but was not present at the time of the incident, nor were any other adults. Investigators learned that a firearm, a Smith and Wesson SW99, .40 caliber pistol, was located in a box on top of the kitchen cabinets. The firearm was still loaded and a .40 caliber Smith and Wesson spent casing was found in the kitchen trashcan. The investigation later revealed that DNA collected from the firearm matched the DNA profile of Jones. Because Jones has a prior felony conviction in Hennepin County, he is prohibited under federal law from purchasing or possessing firearms or ammunition at any time.
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the Moorhead Police Department.
Assistant U.S. Attorney Jeffrey S. Paulsen is prosecuting the case.
A criminal complaint is merely an allegation and the defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Monongalia County man sentenced for fentanyl distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Charles Clint Gaines, Jr., of Morgantown, West Virginia, was sentenced today to 96 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Gaines, 33, pled guilty in January 2021 to one count of “Possession with Intent to Distribute Fentanyl.” Gaines admitted to having fentanyl in February 2020 in Monongalia County.
Assistant U.S. Attorney Brandon S. Flower prosecuted the case on behalf of the government. The Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge Thomas S. Kleeh presided.
Minneapolis Man Sentenced to Prison for Arson of St. Paul Car Rental AgencyRead the Press Release
ST. PAUL, Minn. – A Minneapolis man was sentenced today to 72 months in prison followed by three years of supervised release for arson at a St. Paul car rental agency.
According to court documents, on May 28, 2020, an Enterprise Rent-A-Car building located in St. Paul, Minnesota, was completely destroyed due to arson. Surveillance video footage from cameras located inside and outside of the business showed Matthew Scott White, 31, entering the building and starting a fire in the back office. White fueled the fire by throwing papers and other flammable items onto the flames. As White exited the building, he told bystanders that the building was “going up” meaning, it was going to burn.
Acting U.S. Attorney W. Anders Folk for the District of Minnesota made the announcement after U.S. District Judge Wilhelmina M. Wright sentenced the defendant.
This case was the result of an investigation conducted jointly by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the FBI, the St. Paul Police Department, and the Minnesota State Fire Marshal Division.
This case was prosecuted by Assistant U.S. Attorney Bradley M. Endicott.
Michigan man admits to methamphetamine chargeRead the Press Release
ELKINS, WEST VIRGINIA – Tyreese Marsh, of Detroit, Michigan, has admitted to this role in a methamphetamine distribution operation in Marion County, Acting U.S. Attorney Randolph J. Bernard announced.
Marsh, 29, pleaded guilty today to one count of “Possession with the Intent to Distribute 50 Grams or More of Methamphetamine.” Marsh admitted to working with others to distribute more than 50 grams of methamphetamine in October 2019 in Marion County.
Marsh faces at least 10 years and up to life incarceration and a fine of up to $10 million. 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 Brandon S. Flower is prosecuting the case on behalf of the government. The Drug Enforcement Administration and the White Hall Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Methamphetamine and heroin trafficking send Great Falls woman to prisonRead the Press Release
GREAT FALLS – A Great Falls woman who admitted to dealing methamphetamine and heroin from a gas station and casino was sentenced today to 52 months in prison and to four years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Katrina Marie Bennett, 36, pleaded guilty on March 17 to possession with intent to distribute controlled substances.
Chief U.S. District Judge Brian M. Morris presided. Bennett was detained.
In court documents filed in the case, the government alleged that in the summer of 2019, law enforcement began receiving information that Bennett was trafficking meth and heroin in Great Falls. Investigators learned that Bennett was dealing drugs out of a gas station and used the casino as her office to conduct drug deals. Law enforcement made a series of undercover meth buys from Bennett and knew that she frequently traveled to Butte to engage in drug activities. In May 2020, law enforcement stopped Bennett’s car as she left Butte and searched it pursuant to a warrant. Bennett told officers she had returned from California the day before with a pound of meth, had already sold about seven ounces of meth in Butte and that another person had taken the other half-pound to Great Falls. Agents found meth and heroin during the search of the car.
Assistant U.S. Attorney Jessica A. Betley prosecuted the case, which was investigated by the Drug Enforcement Administration, Great Falls Police Department and Russell Country Drug Task Force.
This case is part of Project Safe Neighborhoods, a U.S. Department of Justice initiative to reduce violent crime. Through PSN, federal, tribal, state and local law enforcement partners in Montana focus on violent crime driven by methamphetamine trafficking, armed robbers, firearms offenses and violent offenders with outstanding warrants.
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Massachusetts Man Convicted of Placing Firebomb at Entrance of Jewish Nursing HomeRead the Press Release
A Massachusetts man was convicted by a federal jury yesterday in connection with placing a lit firebomb at the entrance of a Longmeadow senior health care facility in April 2020.
John Rathbun, 37, of East Longmeadow, was convicted following a week-long trial of one count of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure or intimidate any individual or unlawfully to damage or destroy any building, vehicle and one count of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle or other real or personal property used in interstate or foreign commerce. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 12.
“Mr. Rathburn’s dangerous and cruel acts harmed not only the elderly residents of this Jewish assisted living facility, but also the entire community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “I thank the jury, prosecutors and investigators for their efforts to ensure the defendant was held accountable for his actions.”
“The jury has spoken: Mr. Rathbun is guilty of lighting a firebomb right at the entrance to a Jewish assisted-living facility – a cruel and senseless crime,” said Acting U.S. Attorney Nathaniel R. Mendell for the District of Massachusetts. “Thanks to the jury’s verdict and the good work of prosecutors and investigators, the man who targeted vulnerable members of our community will not be a threat to public safety anytime soon.”
“The danger posed by John Rathbun in this case was very real. By trying to ignite a firebomb outside a Jewish assisted-living facility, he put the lives of innocent people at risk,” said Joseph R. Bonavolonta, Special Agent in Charge of the Boston FBI Field Office. “Through the diligent efforts of our Western Massachusetts Joint Terrorism Task Force, and the jury’s hard work, the community is much safer now.”
On Nov. 23, 2020, a federal jury convicted Rathbun of making false statements to a federal agent, but deadlocked on the arson counts, requiring a re-trial.
On the morning of April 2, 2020, Rathbun assembled, placed and lit a homemade incendiary device outside the entrance of Jewish Geriatric Services Lifecare, Inc., an assisted living facility in Longmeadow. The device consisted of a five-gallon Scepter fuel canister filled with gasoline and a Christian religious pamphlet as the wick. Forensic analysis identified Rathbun’s DNA on the canister and pamphlet.
On April 15, 2020, Rathbun falsely stated to a federal agent that he was at home on April 2, he was not familiar with the location on Converse Street where the device was placed and he had not possessed or even seen the fuel canister.
The charge of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle, or other real or personal property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle or other real or personal property used in interstate or foreign commerce provides for a mandatory minimum sentence of five years and up to 10 years in prison, three years of supervised release and a fine of $250,000. The false statement charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell and FBI Boston SAC Bonavolonta made the announcement. The investigation was led by the FBI’s Western Massachusetts Joint Terrorism Task Force with valuable assistance also provided by the Longmeadow and East Longmeadow Police Departments and the Massachusetts State Police. Assistant U.S. Attorneys Neil Desroches and Steven H. Breslow of Mendell’s Springfield Branch Office prosecuted the case. The Justice Department’s Civil Rights Division also assisted with the prosecution.
Maryland Man Charged with Fraudulently Obtaining More Than $500,000Read the Press Release
NEWARK, N.J. – A Maryland man was arrested today on charges of fraudulently obtaining more than $500,000 in COVID-19 relief funds, Acting U.S. Attorney Rachael A. Honig announced.
Mohamed Kamara, 40, of Greenbelt, Maryland, is charged by complaint with wire fraud. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Timothy J. Sullivan in Maryland federal court.
According to the documents filed in this case and statements made in court:
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law designed to provide emergency financial assistance to Americans suffering the economic effects of the COVID-19 pandemic. The CARES Act enables the Small Business Administration (SBA) to offer funding through the COVID-19 Economic Injury Disaster Loans (EIDL) program to business owners negatively affected by the COVID-19 pandemic.
Unemployment Insurance (UI) is a joint state/federal program that provides unemployment insurance benefits (UIB) to eligible workers who were unemployed through no fault of their own.
From April 2020 and June 2020, six applications were made to the SBA for EIDLs. Representatives for some of the companies whose names were used to make the applications stated that their company did not make the application. In response to the applications, the SBA provided EIDLs collectively worth more than $500,000. Kamara received or attempted to receive funds in connection with each of the EIDLs.
From Jan. 1, 2020, to Sept. 7, 2020, an IP addresses associated with Kamara’s address was used to submit approximately 50 New Jersey UIB applications for 42 individuals. This resulted in New Jersey Department of Labor (NJDOL) authorizing benefits of approximately $163,000. The IP address also was used to access numerous accounts that received funds as a result of UIB applications submitted to NJDOL from other IP addresses. Those accounts received approximately $34,000 in UIBs.
The charge of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a fine of the greater of $250,000, twice the gross profits or twice the gross loss suffered by the victims of his offense, whichever is greatest.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, and special agents of the U.S. Department of Labor, Office of Inspector General, under the direction of Special Agent in Charge Michael C. Mikulka in New York, with the investigation leading to today’s arrest. She also thanked the FBI Baltimore Field Office; the Small Business Administration, and the New Jersey Department of Labor & Workforce Development for their assistance.
The government is represented by Assistant U.S. Attorney Andrew Kogan of the U.S. Attorney’s Office Cybercrime Unit in Newark.
The charge and allegations contained in the complaint are merely accusations and the defendant is presumed innocent unless and until proven guilty.
Marshall County man sentenced for firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Jason Alexander Ruskin, of Moundsville, West Virginia, was sentenced today to 21 months of incarceration for a firearms charge, Acting U.S. Attorney Randolph J. Bernard announced.
Ruskin, 28, pled guilty in January 2021 to one count of “Unlawful Possession of a Firearm.” Ruskin, a person prohibited from having firearms because of a prior conviction, admitted to having a 9mm semi-automatic pistol in August 2020 in Marshall County.
Assistant U.S. Attorney Clayton J. Reid prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Marshall County Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. District Judge John Preston Bailey presided.
Manhattan Doctor Sentenced to Nearly 5 Years in Prison for Accepting Bribes and Kickbacks in Exchange for Prescribing Fentanyl DrugRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced today that JEFFREY GOLDSTEIN, a doctor who practiced in New York, New York, was sentenced today in Manhattan federal court to 57 months in prison for conspiring to violate the Anti-Kickback Statute, in connection with a scheme to prescribe Subsys, a potent fentanyl-based spray, in exchange for bribes and kickbacks from Subsys’s manufacturer, Insys Therapeutics. GOLDSTEIN previously pled guilty, on August 16, 2019, before U.S. Magistrate Judge Henry B. Pitman, and was sentenced today by U.S. District Judge Kimba M. Wood.
U.S. Attorney Audrey Strauss said: “Jeffrey Goldstein, an Upper East Side Manhattan doctor, prescribed Subsys, a powerful fentanyl opioid, in return for nearly $200,000 in bribes from the drug’s manufacturer, Insys Therapeutics. Goldstein put his own patients at risk in order to satisfy his own greed, and will now spend time in federal prison for recklessly prescribing this highly addictive and powerful opioid. This sentence sends a loud and clear signal to the medical community that if you take bribes in return for prescribing, you will be prosecuted to the full extent of the law and risk significant prison time.”
According to the allegations contained in the Indictment against GOLDSTEIN and filings in related proceedings:
The Insys Speakers Bureau
Subsys, which is manufactured by Insys, is a powerful painkiller approximately 50 to 100 times more potent than morphine. The FDA approved Subsys only for the management of breakthrough pain in cancer patients. Prescriptions of Subsys typically cost thousands of dollars each month, and Medicare and Medicaid, as well as commercial insurers, reimbursed prescriptions written by GOLDSTEIN.
In or about August 2012, Insys launched a “Speakers Bureau,” a roster of doctors who would conduct programs (“Speaker Programs”) purportedly aimed at educating other practitioners about Subsys. In reality, Insys used its Speakers Bureau to induce the doctors who served as speakers to prescribe large volumes of Subsys by paying them Speaker Program fees. Speakers were supposed to conduct an educational slide presentation for other health care practitioners at each Speaker Program. In reality, many of the Speaker Programs were predominantly social affairs where no educational presentation about Subsys occurred. Attendance sign-in sheets for the Speaker Programs were frequently forged by adding the names and signatures of health care practitioners who had not actually been present.
Goldstein’s Participation in the Scheme
GOLDSTEIN was a doctor of osteopathic medicine who owned a private medical office on the Upper East Side. GOLDSTEIN received approximately $196,000 in Speaker Program fees from Insys in exchange for prescribing large volumes of Subsys. After GOLDSTEIN began prescribing a competitor painkiller, Insys pressured him to stop doing so and switch patients back to Subsys, which GOLDSTEIN did.
GOLDSTEIN also received other items of value from Insys in order to induce him to prescribe. For example, Insys employees took GOLDSTEIN and Todd Schlifstein, who co-owned a private medical office with GOLDSTEIN, to a Manhattan strip club where Insys spent approximately $4,100 on a private room, alcoholic drinks, and “lap dances” for GOLDSTEIN and Schlifstein. GOLDSTEIN also arranged for Insys to pay for the annual holiday party for his private medical office.
In 2014, GOLDSTEIN was approximately the fifth-highest-paid Insys Speaker nationally. He was the sixth-highest prescriber of Subsys in the last quarter of 2014, accounting for approximately $809,275 in overall net sales of Subsys in that quarter.
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In addition to the prison sentence, GOLDSTEIN, 51, of New Rochelle, New York, was sentenced to two years of supervised release and ordered to forfeit $196,600.
GOLDSTEIN was one of five Manhattan doctors convicted for participating in the Subsys bribery conspiracy. Todd Schlifstein was convicted upon a guilty plea and sentenced by Judge Wood on October 28, 2019, principally to a term of two years in prison. Alexandru Burducea was convicted upon a guilty plea and sentenced by Judge Wood on January 27, 2020, principally to a term of 57 months in prison. Dialecti Voudouris was convicted upon a guilty plea and sentenced by Judge Wood on March 5, 2020, principally to time served. Gordon Freedman was convicted following a jury trial in December 2019 and is scheduled to be sentenced before Judge Wood on July 8, 2021.
Ms. Strauss praised the investigative work of the Federal Bureau of Investigation, and thanked the U.S. Department of Health and Human Services, Office of the Inspector General, for its participation in the investigation.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah Solowiejczyk, David Abramowicz, and Katherine Reilly are in charge of the prosecution.
Man admits assaulting dating partner on Fort Belknap Indian ReservationRead the Press Release
GREAT FALLS – A man accused of beating his dating partner on the Fort Belknap Indian Reservation and causing her substantial injuries admitted to an assault charge today, Acting U.S. Attorney Leif M. Johnson said.
Gordon Andrew Messerly, Jr., 42, address unknown, pleaded guilty to assault resulting in substantial bodily injury. Messerly faces a maximum of five years in prison, a $250,000 fine and three years of supervised release.
Chief U.S. District Judge Brian M. Morris presided. Chief Judge Morris set sentencing for Oct. 7. Messerly was detained pending further proceedings.
The government alleged in court documents that on Dec. 27, 2019 on the Fort Belknap Indian Reservation, Messerly assaulted his dating partner, identified as Jane Doe, by striking her in the head. Doe was treated for injuries at the hospital.
Assistant U.S. Attorney Jared C. Cobell is prosecuting the case, which was investigated by the FBI and Fort Belknap Law Enforcement.
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Local man found guilty of violent robbery attemptRead the Press Release
CORPUS CHRISTI, Texas – A Corpus Christi federal jury has convicted a 41-year-old man for attempted robbery and discharging a firearm in the commission of the crime, announced Acting U.S. Attorney Jennifer B. Lowery.
The jury deliberated for an less than two hours before convicting Eric Richard Garza, Corpus Christi, following a three-day trial.
On Dec. 14, 2018, Garza drove to Central Watch and Clock Repair in Corpus Christi with Christopher Rangel-Musial. Both were wearing masks. The jury heard that Garza gave Rangel-Musial a loaded firearm and told him to point the it at the shop owner while he robbed the business of money and goods.
Rangel-Musial did so, but the shop owner refused to get on the ground as told. Garza instructed Rangel-Musial to shoot him, at which time he fired three shots, hitting the victim twice. The shop owner managed to get his revolver and chased the two men out of the store, shooting Rangel-Musial twice as they fled.
The defense attempted to convince the jury that a female passenger in the getaway vehicle committed the crime. They did not believe those claims and found him guilty as charged.
U.S. District Judge Nelva Gonzales Ramos presided over trial and set sentencing for Sept. 15. At that time, Garza faces up to 30 years of imprisonment and a possible $500,000 maximum fine. He will remain in custody pending that hearing.
Rangel-Musial pleaded guilty in 2019. He has been and will remain in custody until his sentencing, set for June 30.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and Corpus Christi Police Department conducted the investigation. Assistant U.S. Attorneys Joel Dunn and Christopher Marin are prosecuted the case.
Local Construction Company Owner Pleads Guilty in Tax Evasion SchemeRead the Press Release
PORTLAND, Ore.—A Beaverton, Oregon man pleaded guilty today for his role in a scheme to use construction subcontracting companies to evade $100 million in payroll and income taxes on wages paid to unlicensed construction workers.
Francisco Mendez, 27, pleaded guilty to conspiracy to commit tax evasion.
According to court documents, between January 2014 and February 2018, Mendez conspired with others to make “under the table” cash payments to unlicensed construction work crews for the purpose of evading payroll and income taxes due on these wages.
As part of the scheme, otherwise legitimate construction companies would bid on residential real estate projects knowing they did not have enough employee-workers to perform all the work required. These companies would supplement their own workforce with independent work crews, some of whom did not possess valid Construction Contractors Board (CCB) licenses. Leaders of unlicensed crews would pay a fee to use another company’s CCB license.
Mendez registered a company, obtained a CCB license in his own name, and began accepting payments from unlicensed work crews for the use of his license. The legitimate construction companies did not put these unlicensed work crews on their regular payroll and, instead, wrote checks payable to Mendez’s company. Mendez cashed these payroll checks at check cashing businesses and made “under the table” cash wage payments to the unlicensed work crews. He further began accepting and cashing payroll checks from construction companies on behalf of other CCB license holding companies.
On May 20, 2021, Mendez was charged by criminal information with one count of conspiracy to commit tax evasion.
Mendez faces a maximum sentence of five years in prison, a $250,000 fine, and three years of supervised release. He will be sentenced on September 13, 2021 before U.S. District Court Judge Karin J. Immergut.
As part of the plea agreement, Mendez has agreed to pay restitution in full to the IRS as identified by the government prior to sentencing and ordered by the court.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by IRS Criminal Investigation. Assistant U.S. Attorneys Seth D. Uram and Gavin W. Bruce are prosecuting the case.
Leader of ‘Oxy Bandits’ Crew Found Guilty of Federal Charges Related to the Armed Robberies of 15 Southern California PharmaciesRead the Press Release
LOS ANGELES – A Lynwood man was found guilty today of federal robbery charges for organizing and leading a crew that committed 15 armed robberies of independent, “mom-and-pop” pharmacies across Southern California, with the intent of illegally selling the stolen prescription medication.
Tyrome Lewis, 26, a.k.a. “Boobie,” was found guilty of all eight felony charges he faced after a two-day bench trial in April. Lewis has been in federal custody since his arrest in July 2019.
In a ruling issued today, United States District Judge John A. Kronstadt found Lewis guilty of one count of conspiracy to interfere with commerce by robbery, one count of conspiracy to distribute oxycodone, two counts of interference with commerce by robbery, two counts of possession with intent to distribute oxycodone, and two counts of knowingly using and brandishing a firearm during a crime of violence.
According to the evidence presented at trial, from May 2018 to July 2019, Lewis conspired with others to commit 15 armed robberies. Lewis selected the pharmacies to be robbed, targeting smaller pharmacies to steal oxycodone and other similar prescription medication. He also assigned the roles from the crew members, and then he served as a lookout while co-conspirators committed the robberies. Following the pharmacy robberies, Lewis and others would sell the stolen prescription medication on the black market.
The court found the Lewis-led armed crew – dubbed the “Oxy Bandits” by law enforcement – robbed pharmacies in Glendale, Bellflower, Paramount, Cerritos, Hawthorne, South Los Angeles, Pico Rivera, Huntington Park, Claremont, Westminster, Fullerton, Anaheim, and Riverside.
Each of the robberies shared a common modus operandi, including targeting smaller pharmacies, placing the stolen prescription drugs into the pharmacy’s trash bags or trash cans, using a black semi-automatic handgun to threaten and intimidate store employees, and forcing employees to open the medication vault.
Today’s guilty verdict of Lewis for his role in this series of armed pharmacy robberies is part of a broader investigation of armed pharmacy robberies resulting from a partnership between the FBI and the Los Angeles County Sheriff’s Department. Through this partnership, the United States Attorney’s Office has charged 21 individuals for their roles in various pharmacy robberies. Since the investigation began in 2019, 19 individuals, including Lewis, have been convicted for their participation in pharmacy robberies, while two defendants await trial.
Judge Kronstadt has scheduled a September 23 sentencing hearing, at which time Lewis will face a statutory maximum sentence of life in federal prison.
The FBI and the Los Angeles County Sheriff’s Department investigated this matter, with assistance from the Claremont Police Department and the Glendale Police Department.
Assistant United States Attorneys Jeffrey M. Chemerinsky and Joseph D. Axelrad of the Violent and Organized Crime Section, and Assistant United States Attorney Peter Dahlquist of the Riverside Branch Office, prosecuted this case.
Lawton Man Indicted for Shooting at Federal OfficersRead the Press Release
OKLAHOMA CITY – MICHAEL HANS OLOA, 35, of Lawton, has been indicted for assaulting federal law enforcement officers by shooting at the officers in a Lawton casino parking lot, and for being a convicted felon in possession of a firearm, announced Acting U.S. Attorney Robert J. Troester.
On June 15, 2021, a federal grand jury returned a two-count Indictment against Oloa. Count 1 of the Indictment charges Oloa with assaulting a federal officer, and Count 2 charges him with being a convicted felon in possession of a firearm. According to a Criminal Complaint Affidavit filed on May 27, 2021, two officers with the Comanche Nation Police Department were called to the Comanche Nation Casino in Lawton, Oklahoma, on May 25, 2021. There, officers encountered Oloa, who then fled and discharged a firearm in the direction of the officers. Oloa is prohibited under federal law from possessing a firearm because he has been previously convicted of felony crimes. The Comanche Nation Police Department officers at whom Oloa fired his gun had been deputized by the Bureau of Indian Affairs Special Law Enforcement Commission to investigate federal crimes and are therefore considered federal law enforcement officers.
If convicted on Count 1, Oloa faces up to twenty years in prison, three years of supervised release, and a $250,000 fine. If convicted on Count 2, Oloa faces up to ten years in prison, three years of supervised release, and a $250,000 fine.
This case arises from an investigation by the Comanche Nation Police Department, the Lawton Police Department, the United States Marshals Service, the Federal Bureau of Investigation, the Bureau of Indian Affairs, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Mark Stoneman is prosecuting the case.
The public is reminded that these charges are merely allegations and that Oloa is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Reference is made to court filings for further information.
Las Vegas Woman Pleads Guilty to $10 Million Tech Support Fraud Scheme That Exploited the ElderlyRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that ROMANA LEYVA pled guilty today to participating in a conspiracy that for several years exploited elderly victims by remotely accessing their computers and convincing victims to pay for computer support services they did not need, and which were never actually provided. In total, the conspiracy generated more than $10 million in proceeds from at least approximately 7,500 victims. LEYVA pled guilty to conspiracy to commit wire fraud and conspiracy to intentionally damage victims’ computers, before U.S. District Judge Paul A. Crotty, to whom her case is assigned.
U.S. Attorney Audrey Strauss said: “As she admitted today, Romana Leyva was a leader of a conspiracy that caused pop-up windows to appear on victims’ computers – pop-up windows that claimed, falsely, that a virus had infected the victims’ computers. Through this and other misrepresentations, this fraud scheme deceived thousands of victims, including some of society’s most vulnerable members, into paying a total of more than $10 million. Leyva now awaits sentencing for her crimes.”
According to the allegations contained in the Superseding Information, court filings, and statements made during plea proceedings:
From approximately February 2015 through December 2018, LEYVA was a member of a criminal fraud ring (the “Fraud Ring”) based in the United States and India that committed a technical support fraud scheme that exploited elderly victims located across the United States and Canada, including in the Southern District of New York. The Fraud Ring’s primary objective was to trick victims into believing that their computers were infected with malware, in order to deceive them into paying hundreds or thousands of dollars for phony computer repair services. Over the course of the conspiracy, the Fraud Ring generated more than $10 million in proceeds from at least 7,500 victims.
The scheme generally worked as follows: First, the Fraud Ring caused pop-up windows to appear on victims’ computers. The pop-up windows claimed, falsely, that a virus had infected the victim’s computer. The pop-up window directed the victim to call a particular telephone number to obtain technical support. In at least some instances, the pop-up window threatened victims that, if they restarted or shut down their computer, it could “cause serious damage to the system,” including “complete data loss.” In an attempt to give the false appearance of legitimacy, in some instances the pop-up window included, without authorization, the corporate logo of a well-known, legitimate technology company. In fact, no virus had infected victims’ computers, and the technical support phone numbers were not associated with the legitimate technology company. Rather, these representations were false and were designed to trick victims into paying the Fraud Ring to “fix” a problem that did not exist. And while the purported “virus” was a hoax, the pop-up window itself did cause various victims’ computers to completely “freeze,” thereby preventing these victims from accessing the data and files in their computer – which caused some victims to call the phone number listed on the pop-up window. In exchange for victims’ payment of several hundreds or thousands of dollars (depending on the precise “service” victims purchased), the purported technician remotely accessed the victim’s computer and ran an anti-virus tool, which is free and available on the Internet. The Fraud Ring also re-victimized various victims, after they had made payments to purportedly “fix” their tech problems.
LEYVA’s roles in the scheme included (1) creating several fraudulent corporate entities that were used to receive fraud proceeds from victims, (2) recruiting others (including through misrepresentations) to register fraudulent corporate entities that became part of and facilitated the activities of the Fraud Ring, and (3) assisting others in setting up fraudulent corporate entities and bank accounts, including coaching them to make misrepresentations to bank employees where necessary. As she acknowledged as part of her guilty plea, LEYVA was a leader or organizer in this conspiracy.
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LEYVA, 37, of Las Vegas, Nevada, pled guilty to one count of conspiracy to commit wire fraud, which carries a maximum penalty of five years in prison; and one count of conspiracy to intentionally damage a protected computer, which carries a maximum penalty of five years in prison. The statutory maximum sentences are prescribed by Congress and are provided here for informational purposes only, as LEYVA’s sentence will be determined by the judge. LEYVA’s sentencing is scheduled for September 15, 2021, at 12:00 p.m.
Ms. Strauss praised the New York Office of Homeland Security Investigations’ (“HSI”) El Dorado Task Force, Cyber Intrusion/Cyber Fraud Group, for its outstanding work on the investigation. Ms. Strauss also thanked the New York City Police Department for its assistance on this case.
This matter is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorney Michael D. Neff is in charge of the prosecution.
Justice Department Sues to Block Aon’s Acquisition of Willis Towers WatsonRead the Press Release
The U.S. Department of Justice filed a civil antitrust lawsuit today to block Aon’s $30 billion proposed acquisition of Willis Towers Watson, a transaction that would bring together two of the “Big Three” global insurance brokers. As alleged in the complaint filed in the U.S. District Court for the District of Columbia, the merger threatens to eliminate competition, raise prices, and reduce innovation for American businesses, employers, and unions that rely on these important services.
“Today’s action demonstrates the Justice Department’s commitment to stopping harmful consolidation and preserving competition that directly and indirectly benefits Americans across the country,” said Attorney General Merrick B. Garland. “American companies and consumers rely on competition between Aon and Willis Towers Watson to lower prices for crucial services, such as health and retirement benefits consulting. Allowing Aon and Willis Towers Watson to merge would reduce that vital competition and leave American customers with fewer choices, higher prices, and lower quality services.”
Aon and Willis Towers Watson provide essential guidance to many of America’s largest companies. American companies depend on them to craft and administer health and retirement benefits, and to keep their costs down by managing complex and evolving risks. They compete head to head to provide these services, which helps ensure businesses obtain innovative, high-quality broking services to manage their risks and provide critical health and retirement benefits to their employees at a reasonable cost. As the complaint alleges, the merger would eliminate this important competition in five markets, resulting in higher costs to companies, higher costs to consumers, and decreased quality and innovation.
The merger between Aon and Willis Towers Watson would combine two of the “Big Three” insurance brokers who, as alleged in the complaint, can offer global service, sophisticated data and analytics, and a breadth and depth of knowledge and expertise that other brokers do not offer. As alleged in the complaint, Aon and Wills Towers Watson operate “in an oligopoly” and “will have even more [leverage] when [the] Willis deal is closed.” If permitted to merge, Aon and Willis Towers Watson could use their increased leverage to raise prices and reduce the quality of products relied on by thousands of American businesses — and their customers, employees, and retirees.
Although Aon and Willis Towers Watson have agreed to certain divestitures in connection with investigations by various international competition agencies, the complaint alleges these proposed remedies are inadequate to protect consumers in the United States. The complaint also alleges the U.S.-focused divestitures in health benefits and commercial risk broking, in particular, are wholly insufficient to resolve the department’s significant concerns.
Aon plc is incorporated in Ireland and headquartered in London. It has approximately 50,000 employees and offices in approximately 120 countries, including over 100 offices in the United States. In 2020, Aon reported revenues of more than $11 billion.
Willis Towers Watson plc is incorporated in Ireland and headquartered in London. It has approximately 45,000 employees and offices in more than 80 countries, including over 80 offices in the United States. In 2020, Willis Towers Watson reported revenues of more than $9 billion.
Justice Department Reaches Agreement with Newton County, Arkansas and its Board of Election Commissioners to Ensure Polling Place Accessibility for Voters with DisabilitiesRead the Press Release
The Justice Department yesterday reached a settlement under Title II of the Americans with Disabilities Act (ADA) with Newton County, Arkansas, and its Board of Election Commissioners to ensure that the County provides an accessible voting program, including accessible polling places, to voters with disabilities.
The Department of Justice reviewed the County’s voting program for compliance with the ADA. The United States identified architectural barriers at the County’s polling places, such as a lack of accessible parking areas and pathways made inaccessible by gaps and level changes, as well as gravel and grass. It also identified ramps that were too steep, some without handrails and edge protection, and barriers inside polling places. The United States also found that all polling places used in the March 2020 primary election lacked accessible voting machines that worked.
Under the ADA, governmental entities that conduct local, state or federal elections must select polling places that are accessible to individuals with disabilities, and they must make reasonable changes necessary to ensure equal opportunity to participate in voting programs. Governmental entities must also provide an election ballot that is accessible to individuals with disabilities, including individuals who are blind, so that they can vote privately and independently.
“The right to vote is the bedrock of our democracy,” said Assistant Attorney General Kristen Clarke for the Justice Department’s Civil Rights Division. “This settlement ensures that eligible voters with disabilities in Newton County, Arkansas, will have the opportunity to exercise this fundamental right and have a voice in our democratic process. We will continue working to ensure that all eligible Americans have access to the ballot.”
Under the agreement, the County will create and implement new policies to bring its voting program into compliance with the ADA. These policies include: creating an effective system for selecting accessible locations for polling places; surveying polling places to identify accessibility barriers; maintaining the accessibility of each polling place used on election days; using temporary accessibility measures, such as mats or ramps; and providing an accessible voting machine at each polling place. In addition, the County will designate an employee to serve as an ADA coordinator and provide training to election officers, poll workers, and County employees. The required training will cover accessibility under Title II of the ADA and anti-retaliation protections under Title V of the ADA.
This settlement is part of the department’s ADA Voting Initiative, which focuses on protecting the voting rights of individuals with disabilities. A hallmark of the ADA Voting Initiative is its collaboration with jurisdictions to increase accessibility at polling places. Through this Initiative, the Department of Justice has surveyed over 2,400 polling places and increased polling place accessibility in over 50 jurisdictions, including St. Louis, Missouri; Harris County, Texas; Lackawanna County, Pennsylvania; and Anderson County, South Carolina.
For more information about the ADA and today’s agreement, please visit http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY). ADA complaints may be filed online at http://www.ada.gov/complaint/.
Judge sentences Las Vegas man for possession with intent to distribute methamphetamineRead the Press Release
ST. LOUIS – United States District Judge Ronnie L. White sentenced Gregory Simms to 60 months in prison today. The 33-year-old Las Vegas, Nevada resident previously pleaded guilty in March to possession with the intent to distribute more than 50 grams of methamphetamine.
On June 13, 2020, St. Charles County police stopped Simms for driving a vehicle 80 miles per hour in a 60 miles per hour zone on eastbound Interstate 70 between Bryan Road and Highway K.
A subsequent search of Simms’ vehicle revealed 377 grams of methamphetamine. Simms admitted to the officer he was transporting “ice,” a slang term for crystal Methamphetamine, to St. Louis.
The St. Charles County Police Department investigated the case with assistance from the Drug Enforcement Administration.
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Jose Torrez sentenced to 17 years in federal prison on two separate cases involving conspiracy to kidnap, stolen mail and bank fraud schemeRead the Press Release
ALBUQUERQUE, N.M. – Jose Torrez, 48, of Albuquerque, was sentenced on June 10 in federal court to 17 consecutive years in prison on two separate cases. Upon his release from prison, he will be subject to a combined term of five years of supervised release.
In one case, Torrez pleaded guilty on Feb. 13, 2020, to conspiracy to kidnap. According to the defendants’ plea agreements, Torrez, Chase Smothermon, 32, and Mariah Ferry, 22, along with other co-conspirators took part in a scheme to retaliate against two victims who they believed stole marijuana and money from Smothermon’s home where he resided with Ferry. On Aug. 5, Smothermon called Torrez and told him his someone had stolen marijuana and money from his home. Torrez told Smothermon he believed the victims, J.S. and M.T., were responsible for taking the drugs and money. On Aug. 8, 2017, Torrez alerted Smothermon that J.S. was present at Torrez’s home. Smothermon went to Torrez’s home to retaliate against J.S. and try to get his drugs and money back. Ferry drove Smothermon to Torrez’s home where Smothermon and co-conspirators brutally beat J.S. with a baseball bat and the butt of a gun.
Smothermon and co-conspirators then put J.S. in the trunk of Ferry’s car and bound J.S.’s hands, ankles, and mouth with tape. Ferry drove Smothermon and J.S. to another co-conspirator’s home where J.S. died shortly thereafter. Ferry and Smothermon then mutilated J.S.’s body in a shed. Later the same day, Smothermon contacted M.T. under a ruse that Smothermon wanted to buy marijuana from M.T. When M.T. arrived at Smothermon’s home, Smothermon, Ferry and others bound, gagged and assaulted M.T. for hours. After several hours, two other co-conspirators escorted a bound and badly beaten M.T. out of Smothermon’s home and drove him to another location where M.T. was held overnight before M.T. was released. On Aug. 9, 2017, Ferry drove Smothermon and another co-conspirator to a rural area in New Mexico where they buried J.S.’s body in a shallow grave.
Ferry pleaded guilty on Feb. 13, 2020, to kidnapping and conspiracy to kidnap, resulting in the death of J.S. She was sentenced to 30 years in prison on June 26, 2020.
Smothermon pleaded guilty on Jan. 24, 2020, to kidnapping and conspiracy to kidnap, resulting in the death of J.S. He was sentenced to 45 years in prison on Aug. 28, 2020.
For this case, Torrez was sentenced to 14 years in prison. The DEA and FBI investigated this case with assistance from the Albuquerque Police Department and Second Judicial District Attorney’s Office. The Narcotics section of the U.S. Attorney’s Office prosecuted the case.
In the other case, Torrez pleaded guilty on July 19, 2019, to conspiracy, bank fraud, aggravated identity theft and possession of solen mail. According to the plea agreement, Torrez participated in a scheme with his wife and co-defendant, Christina Torrez, 46, to steal mail containing credit cards, debit cards, checks and personal information that could be used to commit more theft. Torrez and his wife accessed bank accounts using stolen identities and withdrew money from the accounts. They used stolen credit and debit cards to buy merchandise from various stores totaling more than $10,000. They also cashed checks from multiple banks and credit unions using false identification. During the scheme, Torrez and his wife obtained United States Postal Service uniforms, badges and keys to assist them in stealing mail.
Christina Torrez pleaded guilty to conspiracy, bank fraud, aggravated identity theft and possession of stolen mail on July 19, 2019. On Jan. 30, 2020, she was sentenced to three years and three months in prison.
For this case, Torrez was sentenced to three years in prison to run consecutively with the 14-year sentence for the kidnapping case for a total of 17 years. The United States Postal Inspection Service investigated this case with assistance from the Albuquerque Police Department, the Sandia Tribal Police and the Laguna Pueblo Police Department. Assistant U.S Attorney Kimberly A. Brawley prosecuted the case.
Jicarilla man sentenced to two years in prison for assaultRead the Press Release
ALBUQUERQUE, N.M. – Ronnie Tiznado, 47, of Dulce, New Mexico, and an enrolled member of the Jicarilla Apache Tribe, was sentenced on June 14 in federal court to two years in prison for assault resulting in serious bodily injury in Indian Country. Tiznado pleaded guilty on Feb. 27, 2020.
According to his plea agreement, Tiznado assaulted the victim on June 2, 2019, in Rio Arriba County, New Mexico, on the Jicarilla Apache Reservation. Tiznado admitted to throwing the victim to the ground and hitting her with his fists. The victim suffered serious bodily injuries as a result of the assault.
Upon his release from prison, Tiznado will be subject to three years of supervised release.
The FBI investigated this case with assistance from the Jicarilla Apache Police Department. Assistant U.S Attorney Frederick T. Mendenhall is prosecuting the case.
Jefferson County man admits to firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Rashad Khalill Faunteroy, of Charles Town, West Virginia, has admitted to a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Faunteroy, 21, pleaded guilty today to one count of “Unlawful Possession of a Firearm.” Faunteroy, a person prohibited from having a firearm because of a domestic violence conviction, admitted to having a 9mm handgun in July 2020 in Jefferson County.
Faunteroy faces up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Timothy D. Helman is prosecuting the case on behalf of the government. The Charles Town Police Department investigated.
U.S. Magistrate Robert W. Trumble presided.
Infant assault sends Wolf Point man to prison for 40 monthsRead the Press Release
GREAT FALLS — A Wolf Point man who admitted to seriously injuring an infant on the Fort Peck Indian Reservation was sentenced today to 40 months in prison followed by three years of supervised release, Acting U.S. Attorney Leif M. Johnson said.
Charles Connor Clark, 27, pleaded guilty on Feb. 17 to assault resulting in serious bodily injury as charged in a superseding information.
Chief U.S. District Judge Brian M. Morris presided. Clark was detained.
In court documents filed in the case, the government alleged that in November 2017, the FBI was notified that an infant, identified as John Doe, had been flown from Wolf Point, on the Fort Peck Indian Reservation, to a hospital in Billings. The victim appeared to have suffered life-threatening, non-accidental injuries. Doctors informed agents that John Doe’s injuries were classic signs of physical abuse. When interviewed, the victim’s mother said Clark had told her the victim had vomited, that he was trying to burp him and that the victim had choked.
Assistant U.S. Attorney Lori H. Suek prosecuted the case, which was investigated by the FBI and Fort Peck Tribal Law Enforcement.
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Great Lakes Dredge & Dock Company Pleads Guilty to Causing 2016 Oil Spill and Agrees to $1 Million FineRead the Press Release
NEW ORLEANS – United States Attorney Duane A. Evans announced that GREAT LAKES DREDGE & DOCK COMPANY, LLC (“GREAT LAKES”), a Texas company, pled guilty on June 15, 2021 to violating the Clean Water Act in connection with an oil spill in 2016, and agreed to pay a $1 million fine and additional restitution to be determined by the court.
According to court documents, GREAT LAKES admitted to negligently causing the discharge of a harmful quantity of oil into a navigable water of the United States, in violation of the Clean Water Act. The spill took place on September 5, 2016, on the edge of Bay Long near the Chenier Ronquille barrier island, which is east of Grand Isle.
In the plea documents, GREAT LAKES admitted that in its contract with National Oceanic and Atmospheric Administration (“NOAA”), GREAT LAKES was responsible for locating all pipelines in the area of the project and complying with the federal Pipeline Safety Act and the “One Call” system created by the Louisiana Underground Utilities and Facilities Damage Prevention Law. GREAT LAKES admitted that it violated those two laws by failing to alert pipeline companies about continuing work near their pipelines for several months leading up to the oil spill.
James Tassin, the subcontractor working for GREAT LAKES who operated the marsh buggy that physically caused the spill, was charged in a separate criminal case, No. 21-cr-8, and he pled guilty as charged on March 18, 2021 and is awaiting sentencing. According to court documents in Tassin’s case, after GREAT LAKES stopped complying with One Call requirements, a GREAT LAKES employee instructed Tassin to use his marsh buggy to dig near pipelines, despite that digging not being in NOAA’s approved plans, and without GREAT LAKES getting approval from any pipeline companies that it was safe to dig. While Tassin was in the area of that work on September 5, 2016, he struck one of the pipelines with his marsh buggy and caused the oil spill. Tassin admitted that a GREAT LAKES employee instructed Tassin not to tell anyone that Tassin had been digging near the site of the spill, so Tassin followed that instruction. In GREAT LAKES’ plea documents, GREAT LAKES admitted that it supervised Tassin’s work and that GREAT LAKES’ negligent supervision of Tassin caused the oil spill.
“Safeguarding the environment is one of the highest priorities for the Department of Justice,” said U.S. Attorney Duane A. Evans for the Eastern District of Louisiana. “The U.S. Attorney’s Office is committed to continue working with its federal partners to investigate and hold entities accountable when they neglect their professional and legal obligations and threaten the environment, which places the public and our ecosystem in Southeastern Louisiana at risk.”
“The defendant in this case recklessly violated regulations designed to protect the environment and then tried to hide its actions,” said Christopher Brooks, Special Agent in Charge of EPA’s Criminal Enforcement Program in Louisiana. “Today’s guilty plea demonstrates that we will hold violators responsible for breaking our environmental laws.”
“Failure to adhere to laws and regulations intended to protect our Nation’s natural resources can have serious consequences both for the environment and the integrity of the pipeline transportation system, as was the case in this instance,” said Todd Damiani, Special Agent-in-Charge, Southern Region, Department of Transportation Office of Inspector General. “We echo the commitment expressed by our law enforcement and prosecutorial partners to ensuring that those who violate these laws and regulations are held accountable.”
“The Department of Commerce OIG is dedicated to working with our partners to curb fraud, waste and abuse, especially when projects receiving NOAA funding result in environmental hazards. We greatly appreciate the cooperative efforts of the United States Attorney’s Office and our law enforcement counterparts in ensuring justice is served in this matter,” said Duane Townsend, Special Agent in Charge, U.S Department of Commerce, Office of Inspector General.
Under the terms of the plea agreement, GREAT LAKES agreed to pay a fine of $1 million. GREAT LAKES also agreed to deposit $2 million with the court in an advance of a future hearing to determine the final amount of restitution to any victims. U.S. District Court Judge Greg G. Guidry will set a sentencing hearing at a later date.
The case was investigated by the Environmental Protection Agency’s Criminal Investigation Division, the Department of Transportation’s Office of Inspector General, and the Department of Commerce’s Office of Inspector General. Assistant U.S. Attorney Nicholas D. Moses is in charge of the prosecution.
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Grand Jury Returns IndictmentsRead the Press Release
MADISON, WIS. – A federal grand jury in the Western District of Wisconsin, sitting in Madison, returned the following indictments today. You are advised that a charge is merely an accusation and that a defendant is presumed innocent until and unless proven guilty.
Columbia County Business Owner Charged with Tax Crimes
Christa Johnson, 56, Cambria, Wisconsin, is charged in a 17-count indictment with failing to pay payroll and other taxes associated with a business owned by her and with corruptly endeavoring to impede the Internal Revenue Service (IRS). The indictment alleges that from July 2015 to January 2017, Johnson was the owner of Johnson Sausage Shoppe, Inc. (JSS), a meat processing plant, grocery store, and catering business in Rio, Wisconsin, and failed to pay over to the IRS federal income taxes, social security taxes, and Medicare taxes withheld from the wages of JSS employees. The indictment also charges that during this same time period, Johnson failed to pay to the IRS all of the employer’s share of Social Security and Medicare (FICA) taxes due on behalf of JSS. The indictment further alleges that Johnson failed to pay to the IRS federal unemployment taxes in 2015 and 2016. Overall, the indictment alleges that Johnson failed to pay $155,936 in taxes owed.
The last count of the indictment charges Johnson with corruptly endeavoring to obstruct and impede the IRS in their collection efforts to obtain payment of the unpaid taxes and their investigation into Johnson’s failure to pay the taxes. The indictment alleges that she intentionally withheld corporate records requested by a grand jury subpoena issued to JSS and that she created a false narrative about other individuals she claimed were responsible for the failure to pay the taxes.
If convicted, Johnson faces a maximum penalty of 5 years in federal prison on each of the seven counts of failing to pay payroll taxes, 1 year for each of the nine counts of failing to pay the employer’s share of FICA taxes and failing to pay unemployment taxes, and 3 years on the charge of corruptly endeavoring to impede the IRS.
The charges against Johnson are the result of an investigation by IRS Criminal Investigation. Assistant U.S. Attorney Daniel Graber is handling the prosecution.
Two Chicago Men Charged with Possessing Methamphetamine for Distribution
Gregorio Arreola Mendoza, 34, and Jose A. Mendoza-Cortez, 32, both of Chicago, Illinois, are charged with possessing 500 grams or more of methamphetamine with the intent to distribute. The indictment alleges that they possessed the methamphetamine on February 24, 2021.
If convicted, Mendoza and Mendoza-Cortez face a mandatory minimum penalty of 10 years and a maximum of life in federal prison. The charge against them is the result of an investigation by the Wisconsin State Patrol, West Central Drug Task Force, Eau Claire County District Attorney’s Office, and Drug Enforcement Administration. Assistant U.S. Attorney Chadwick Elgersma is handling the prosecution.
La Crosse Man Charged with Possessing Methamphetamine for Distribution
Christopher H. McCartney, 35, La Crosse, Wisconsin, is charged with possessing 50 grams or more of methamphetamine with the intent to distribute. The indictment alleges that he possessed the methamphetamine on April 30, 2021.
If convicted, McCartney faces a mandatory minimum penalty of 5 years and a maximum of 40 years in federal prison. The charge against him is the result of an investigation by the La Crosse Police Department. Assistant U.S. Attorney Steven Anderson is handling the prosecution.
Chippewa County Man Charged with Gun Crime
Steven Sorensen, 42, Cornell, Wisconsin, is charged with being a felon in possession of a firearm and ammunition. The indictment alleges that on March 6, 2021, he possessed a .38 caliber revolver and ammunition.
If convicted, Sorensen faces a maximum penalty of 10 years in federal prison. The charge against him is the result of an investigation by the Eau Claire Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Attorney Corey Stephan is handling the prosecution.
Gang Members Charged in Connection with Murder and Attempted Murder as Part of RICO ConspiracyRead the Press Release
NEWARK, N.J. – A member of the Rollin’ 60s Neighborhood Crips appeared in court today on charges that include attempted murder and murder as part of a RICO conspiracy, Acting U.S. Attorney Rachael A. Honig announced.
Elijah Williams, aka “Lil Smith,” 21; Jason Franklin, aka “Freak,” aka “OG Freak,” 37; and Tre Byrd, aka “Bands,” aka “G Bandz,” 20, all of Newark, are charged by indictment with Racketeer Influenced and Corrupt Organizations (RICO) conspiracy. Williams was arraigned today before U.S. District Judge Susan D. Wigenton in Newark federal court. Byrd was arraigned on June 9, 2021 before Judge Wigenton. Franklin remains at large.
According to documents filed in this case and statements made in court:
Williams, Franklin, and Byrd are allegedly members and associates of the Rollin’ 60s Neighborhood Crips. On Sept. 25, 2018, Williams shot at four individuals in Newark, striking two. All of the victims survived the attack. On March 20, 2019, in Irvington, New Jersey, aided and abetted by Franklin and Byrd, Williams fatally shot another victim. On June 20, 2020, in Newark, Byrd worked with another member and associate of the Rollin’ 60s Neighborhood Crips to rob another victim at gunpoint.
All of the defendants face a maximum sentence of life imprisonment and a fine of $250,000.
Acting U.S. Attorney Honig credited special agents and task force officers of the DEA, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to the charges. She also thanked special agents and task force officers with the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Acting Special Agent in Charge Toby C. Taylor; prosecutors and detectives with the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; police officers and detectives of the Irvington Police Department, under the direction of Director Tracey Bowers; police officers and detectives of the Newark Police Department, under the direction of Public Safety Director Brian O’Hara; the Essex County Sherriff’s Office, under the direction of Sheriff Armando B. Fontoura; and the Bloomfield Police Department, under the direction of Samuel A. DeMaio, Director of Public Safety.
The government is represented by Assistant U.S. Attorney Francesca Liquori of the Organized Crime and Gangs Unit.
The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Former Store Operator Sentenced for Being A Felon in Possession of Firearms and AmmunitionRead the Press Release
CHATTANOOGA, Tenn. – June 16, 2021, Clinton P. Wilborn, 47, was sentenced to 57 months imprisonment followed by three years of supervised release by the Honorable Curtis L. Collier in the United States District Court for the Eastern District of Tennessee at Chattanooga.
Wilborn earlier pleaded guilty to an indictment charging him with one count of being a felon in possession of a firearm and ammunition violation of 18 U.S.C. § 922(g)(1).
According to court records, in April 2019, investigators with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and Chattanooga Police Department Gun Team responded to Discount Depot located at 6308 Highway 58 in Chattanooga following reports that the store operator was a convicted felon and illegally selling firearms from the business. Following a search of the premises, investigators recovered a large amount of assorted ammunition, firearm magazines, and 14 firearms—including rifles, shotguns, and pistols—hidden in various locations on the property. One of the firearms was stolen. During an interview with an ATF Special Agent, Wilborn, the store operator, admitted to possessing the firearms and stated he knew it was illegal to possess firearms due to his status as a convicted felon.
"This successful prosecution is the direct result of collaboration between federal and local law enforcement, "said Acting United States Attorney Francis M. Hamilton III. "We value these relationships and look forward to continuing to work with our law enforcement partners to combat the illegal possession of firearms in the Eastern District of Tennessee."
“It is imperative to keep firearms out of the hands of convicted felons and to prevent the sale of illegal firearms. ATF will continue to work in conjunction with and support local law enforcement agencies to prosecute those individuals who illegally possess and sell firearms,” stated Terry M. Jones, Resident Agent in Charge of ATF Chattanooga Field Office.
Chattanooga Chief of Police David Roddy said, “the dedicated teamwork by Chattanooga Police Investigators and our partners with the ATF and United States Attorney's Office has resulted, yet again, in the successful removal of crime guns and a criminal in Chattanooga. By working together, these law enforcement professionals have taken guns out of circulation and prevented a Wilborn from furthering the spread of gun violence.”
Special Assistant United States Attorney Kevin Brown represented the United States. Brown is a Special Assistant City Attorney with the Chattanooga Police Department assigned to the United States Attorney’s Office to prosecute violations of federal firearm and drug laws.
This case was brought as part of Project Safe Neighborhoods (PSN), a comprehensive national strategy that creates local partnerships with law enforcement agencies to effectively enforce existing gun laws. It provides more options to prosecutors, allowing them to utilize local, state, and federal laws to ensure that criminals who commit gun crime face tough sentences. PSN gives each federal district the flexibility it needs to focus on individual challenges that a specific community face.
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Former Rochester Housing Authority Employee Pleads Guilty to Defrauding Rochester Housing CharitiesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Janice White, 60, of Rochester, NY, pleaded guilty before U.S. District Judge Elizabeth A. Wolford to conspiracy to commit wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Richard A. Resnick, who is handling the case, stated that the Rochester Housing Authority (RHA) provided housing opportunities and services for the Rochester community. The RHA formed Rochester Housing Charities (RHC) to assist in advancing the purposes of the RHA. RHC, through the RHA, received thousands of dollars annually in assistance from the federal government. White was the Executive Secretary for the RHA from 2015 to 2020. She was also the Board Secretary for RHC and recorded the minutes for RHC board meetings.
On March 9, 2018, White started a company in Rochester called HJJ Property Development Inc. (HJJ Property), which was listed as a heating and air conditioning business. Between March 2018 and February 2019, White conspired with George Moses, RHA Chairman of the Board, to defraud RHC by falsely representing that HJJ Property was providing services to RHC when in fact it was not. To execute the scheme, White, with the knowledge of George Moses, created false invoices to make it appear that HJJ Property was a legitimate contractor that provided heating, air conditioning, roofing, and other services to RHC. The false invoices resulted in RHC paying HJJ Property for services that were never performed, overpaying HJJ Property for services that were performed by legitimate contractors, and paying HJJ Property for services that were performed by other contractors for the North East Area Development, Inc. (NEAD), not RHC. George Moses was the Executive Director of NEAD.
For example, High Performance Heating and Air Conditioning, a legitimate heating and air conditioning contractor, would provide RHC with an estimate for boiler services. George Moses would email the High Performance estimate to White who would then prepare a fraudulent and almost identical invoice from HJJ Property addressed to RHC. The fraudulent invoice made it appear that HJJ Property would perform the services for RHC that were going to be performed by High Performance. However, the amount requested to be paid on the HJJ Property fraudulent invoice would be more than what High Performance had originally requested for such services. White would then email the fraudulent HJJ Property invoices to George Moses, who authorized RHC to pay the invoices. On one occasion, White used a legitimate High Performance estimate in the amount of $9,000 to prepare a fraudulent and almost identical HJJ Property invoice to the RHC in the amount $15,000. After the work was completed by High Performance, RHC paid HJJ Property $15,000 and White used a portion of the funds to purchase a cashier’s check made payable to High Performance in the amount $9,000. The difference between what RHC paid HJJ Property and what White then authorized HJJ Property pay to High Performance was the amount that White and George Moses caused RHC to fraudulently overpay for the services provided by High Performance.
On a couple of other occasions, other legitimate contractors provided NEAD, not RHC, with an estimate for services to be performed for NEAD. White then prepared a fraudulent invoice from HJJ Property addressed to the RHC, not NEAD. The fraudulent HJJ Property invoice made it appear that HJJ Property would be providing the services to RHC that were actually going to be performed by the legitimate contractor for NEAD. Further, the amount requested to be paid on the fraudulent HJJ Property invoice would be more than what the legitimate contractor was even charging NEAD for the services. RHC then paid HJJ Property for the services performed for NEAD, and White again would use a portion of the funds to purchase cashier’s checks made payable to the legitimate contractor in the amount that the legitimate contractor had originally requested for the services it performed for NEAD. For example, Grant Heating and Cooling provided a legitimate estimate to NEAD in the amount of $4,340. George Moses then emailed the estimate to White who prepared a fraudulent and almost identical HJJ Property invoice to provide fake services for the RHC in the amount of $7,200.
“With this plea the defendant has admitted that she misused her positions with a public authority and charity to benefit herself and/or others,” stated U.S. Attorney Kennedy. “The defendant abused her position to divert—to a sham company she created—public funds which were intended to assist underserved communities and individuals, but in so doing, she robbed those most in need of the very funds which were intended to help benefit them.”
Between March and August 2018, RHC was defrauded into paying HJJ Property $87,069.
The plea is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Stephen Belongia; the Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent-in-Charge Brad Geary; and the Internal Revenue Service, Criminal Investigations Division, under the direction of Thomas Fattorusso, Acting Special Agent-in-Charge, New York Field Office.
Sentencing is scheduled for January 24, 2022, before Judge Wolford.
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Former Leader of New Bedford Latin Kings Chapter Pleads Guilty to Racketeering and Cocaine ConspiracyRead the Press Release
BOSTON – A former leader of the New Bedford Chapter of the Massachusetts Almighty Latin King and Queen Nation (Latin Kings) pleaded guilty yesterday to racketeering and drug charges. In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Rodriguez is the 45th defendant to plead guilty in the case.
Jose Rodriguez, a/k/a “King Stutter,” 34, pleaded guilty to conspiracy to distribute and possess with intent to distribute cocaine and cocaine base and to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy. U.S. Senior District Court Judge Rya W. Zobel scheduled sentencing for Sept. 22, 2021.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
Rodriguez served as Inca, or leader, of the New Bedford Chapter of the Latin Kings. Rodriguez admitted to conspiring with other members of the Latin Kings to distribute controlled substances such as cocaine and cocaine base in New Bedford through a series of “trap houses” or multi-unit apartment buildings controlled by the Latin Kings. Following the murder of a Latin Kings member in October 2019, and while serving as Inca of the New Bedford Chapter, Rodriguez was recorded during a Latin Kings meeting instructing members to attack rival gang members without seeking his specific approval for the acts of violence.
The RICO conspiracy charge provides for a sentence of up to 20 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and New Bedford Police Chief Joseph C. Cordeiro made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren A. Graber of Mendell’s Criminal Division are prosecuting the case.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Former Drug Enforcement Administration Special Agent and Task Force Officer Convicted of Conspiracy and Conversion of PropertyRead the Press Release
A former U.S. Drug Enforcement Administration (DEA) special agent and a former DEA task force officer were convicted Tuesday by a federal jury in New Orleans, Louisiana, in connection with a long-running scheme to steal personal property and money from individuals who had been arrested.
After a seven-day trial, Chad A. Scott, 53, of Covington, Louisiana, was found guilty of conspiracy and conversion of property, and Rodney P. Gemar, 45, of Ponchatoula, Louisiana, was found guilty of conspiracy, conversation of property, and removal of property. U.S. District Judge Jane Triche Milazzo of the Eastern District of Louisiana, who presided over the trial, has scheduled sentencing for Dec. 4.
According to court documents and the evidence presented during trial, Scott and Gemar both engaged in a long-running scheme to steal personal property and money from arrestees. Specifically, between 2009 and 2016, Scott and Gemar stole the personal property of arrestees, including items like wallets, phones, and keys. Instead of logging these items into evidence or returning them to the owners, Scott and Gemar would store the property in their desks and later throw it out. Scott and Gemar also took money from the pockets of arrestees, pilfered money from the wallets of individuals whom they arrested, and skimmed money off of cash seizures made by the DEA. After a co-conspirator was arrested in January 2016, Scott and Gemar, along with another colleague named Karl Newman, destroyed the evidence of their crimes, in part by throwing the evidence into the swamps outside New Orleans. They also used approximately $4,800 in money stolen from arrestees to pay for an attorney for their arrested co-conspirator.
“As law enforcement officers, Chad Scott and Rodney Gemar were entrusted with a special responsibility — to protect the the communities they served,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Instead of promoting justice, they violated the public trust to satisfy their own greed and to hurt individuals they arrested. This conviction sends a clear message to the public that law enforcement officers who corrupt their responsibilities will be held accountable.”
“Scott and Gemar conspired to steal from the people they arrested, and in doing so, compromised cases and undermined the values they swore to uphold as federal law enforcement officers,” said Special Agent in Charge Douglas B. Bruce of the Justice Department’s Office of the Inspector General (DOJ OIG) Denver Field Office. “Justice was served. They have been held accountable for their corrupt actions.”
"The convictions of Chad Scott and Rodney Gemar should send a clear message that law enforcement officers who tarnish their badge for their own personal gain are not above the law and will be held accountable," said FBI New Orleans Special Agent in Charge Douglas Williams Jr. "We thank our partners at DOJ, DEA-OPR, and DOJ-OIG for their strong partnership and unrelenting pursuit of justice."
“The convictions of Chad Scott and Rodney Gemar send a clear message to the public that law enforcement officers will be held accountable when they violate the laws they were entrusted to uphold,” said DEA Chief Inspector Brian McKnight. “DEA appreciates the partnership of all law enforcement entities who collaborated to reach this outcome.”
Scott has been fired from the DEA. Gemar has been removed from the DEA task force.
Two other former Tangipahoa Parish Sheriff’s Office deputies who had been serving as DEA task force officers in New Orleans have pleaded guilty in this investigation. Karl Emmett Newman, 54, of Kentwood, Louisiana, pleaded guilty to unlawfully carrying a firearm in furtherance of an August 2015 robbery, which was disguised as the execution of a search warrant, as well as misappropriating money confiscated by the DEA during another search. Johnny Domingue, 32, of Maurepas, Louisiana, pleaded guilty to possession of cocaine and misappropriating money confiscated by the DEA.
This case was initially investigated by the Louisiana State Police and later investigated by the FBI’s New Orleans Field Division, DEA-OPR and DOJ-OIG.
Assistant Deputy Chief Timothy Duree of the Criminal Division’s Fraud Section and Trial Attorney Charles Miracle of the Criminal Division’s Narcotic and Dangerous Drug Section are prosecuting the case.
Former Doctor Sentenced for Unlawfully Distributing Controlled SubstancesRead the Press Release
A former medical doctor was sentenced Tuesday to three years in prison for unlawfully distributing controlled substances.
According to court documents, Darrel R. Rinehart, 66, of Indianapolis, Indiana, admitted to distributing Schedule II controlled substances, primarily opioids, to four different patients without a legitimate medical purpose and outside the course of professional practice on 18 different occasions between December 2014 and December 2015. Rinehart also admitted to knowingly distributing hydrocodone, a Schedule II controlled substance, in January 2016 to a patient who did not have any significant underlying health issues justifying the prescription.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division made the announcement.
The U.S. Department of Health and Human Services Office of Inspector General, Tennessee Bureau of Investigation, and District Attorney General for Tennessee’s 22nd Judicial District investigated the case.
Assistant Chief Kilby Macfadden and Trial Attorney Leslie Fisher of the Criminal Division’s Fraud Section prosecuted 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 nearly $19 billion.
The Fraud Section leads the Appalachian Regional Prescription Opioid (ARPO) Strike Force. Since its inception in October 2018, the ARPO Strike Force, which operates in 10 districts, has charged more than 85 defendants who are collectively responsible for distributing more than 65 million pills. Since its inception in March 2007, the Health Care 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 approximately $19 billion. In addition, the Health and Human Services (HHS) Centers for Medicare & Medicaid Services, working in conjunction with the HHS-Office of Inspector General, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Former CEO Sentenced for Defrauding Multiple Federal AgenciesRead the Press Release
ALEXANDRIA, Va. – An Arlington businessman was sentenced today to 21 months in prison with three years of supervised release for making false statements to multiple federal agencies in order to fraudulently obtain multimillion-dollar government contracts, COVID-19 emergency relief loans, and undeserved military service benefits.
“In the early stages of the global pandemic, the defendant engaged in three egregious fraudulent schemes that he brazenly concocted to enrich himself,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “He falsely represented to the federal government that he could provide $38 million in life-saving N95 masks, and simultaneously, he fraudulently obtained over $1 million in pandemic assistance intended for deserving families and businesses. The defendant also continued an offensive seven-year scheme to obtain unearned veterans benefits by falsely claiming to have served as a Marine. This case underscores our commitment to holding accountable those who exploit essential government programs at the expense of veterans, front-line medical personnel, and vulnerable members of our communities.”
According to court documents, Robert S. Stewart, Jr., 35, was the owner and president of Federal Government Experts (FGE) LLC, an Arlington-based company that purported to provide various services to the U.S. government. In this capacity, between April 1, 2020 and May 14, 2020, Stewart made false statements to the Federal Emergency Management Agency (FEMA) and the Department of Veterans Affairs (VA) in order to obtain lucrative contracts to provide COVID-19 personal protective equipment (PPE). In addition, Stewart fraudulently obtained loans under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. He also defrauded the VA by falsely claiming to be entitled to veteran’s benefits for serving in the U.S. Marine Corps when, in fact, he never served in the Marines.
As part of his PPE scheme, Stewart falsely stated to procurement officials from FEMA and the VA that he was in possession of large quantities of PPE, including N95 masks. Based on Stewart’s false statements, the VA and FEMA awarded FGE contracts valued at $35,000,000 and $3,510,000, respectively. The VA intended to use the PPE purchased from FGE to protect employees and patients at various Veterans Health Administration facilities, which serve the medical needs of over nine million veterans each year. FGE failed to supply any PPE to the VA and FEMA. The U.S. government suffered no financial loss because the contract called for payment upon delivery and inspection of the goods.
“These were crimes against the American people. Stewart fraudulently pursued contracts that were needed to supply VA hospital patients and staff with critical personal protective equipment during the COVID-19 pandemic, and stole taxpayer dollars intended to help local businesses stay afloat during the pandemic. In addition, he lied about his service in the military and received veterans benefits for which he was not entitled,” said VA Inspector General Michael J. Missal. “This sentence should send a clear message that the VA Office of Inspector General will work diligently with its law enforcement partners to ensure those who would defraud the nation’s veterans and the public will be caught and prosecuted.”
“We continue to collaborate with our law enforcement partners to pursue and dismantle schemes aimed at exploiting critical COVID-19 resources, and we are grateful for today’s sentencing decision, which sends a strong message to help deter potential fraudsters,” said Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS).
“Today’s sentencing shows that we will not allow criminals to get away with exploiting government relief efforts that were designed to assist millions of Americans during the COVID-19 pandemic. Stewart fraudulently obtained government-backed loans, and his nefarious and unethical actions were for his own personal gain,” said Robert E. Bornstein, Acting Special Agent in Charge of FBI’s Washington Field Office Criminal Division. “The FBI and our partners are committed to protecting the American people and the integrity of government assistance programs and will work to identify, arrest, and prosecute those who choose criminal activity and greed over principle and the law.”
Stewart also applied for various loans on behalf of FGE under the federal Paycheck Protection Program and the Economic Injury Disaster Loan Program. These programs were designed to provide emergency financial assistance to the millions of people suffering the economic effects of the COVID-19 pandemic. The loan applications submitted by Stewart falsely overstated the number of FGE employees and the amount of FGE’s payroll, two factors that were important in determining loan eligibility and the proper amount of the loan. In addition, Stewart used some of the loan proceeds for personal expenditures rather than to pay employees or for other appropriate business expenses. As a result of these fraudulent loan applications, Stewart obtained approximately $1,066,000 in government-backed loans during the pandemic.
In a separate fraudulent scheme, Stewart, an Air Force veteran, submitted an application for benefits to the VA. The application was fraudulent in that Stewart falsely claimed that he also served in the U.S. Marine Corps. Stewart created fraudulent documents that stated he attained the rank of Corporal in the Marine Corps and was honorably discharged after receiving several awards and commendations, including the Rifle Expert Badge, Pistol Expert Badge, Meritorious Mast, National Defense Service Medal, Sea Service Deployment Ribbon, Southwest Asia Service Medal, Certificate of Appreciation, and the Kuwaiti Liberation Medal. Stewart, in fact, never served in the Marines. Based on his fraudulent application, he received excess benefits in the amount of $73,722.45 between September 2013 and October 2020.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Robert E. Bornstein, Acting Special Agent in Charge of FBI Washington Field Office Criminal Division; Joseph V. Cuffari, Inspector General for the Department of Homeland Security (DHS); and Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs, made the announcement after sentencing by U.S. District Judge Rossie D. Alston, Jr.
Assistant U.S. Attorney William Fitzpatrick 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. 1:21-cr-5.
Former Boston Police Officer Pleads Guilty in Overtime Fraud SchemeRead the Press Release
BOSTON – A former Boston Police officer pleaded guilty today in connection with an ongoing investigation of overtime fraud at the Boston Police Department’s (BPD) evidence warehouse.
Diana Lopez, 56, of Milton, pleaded guilty to one count of conspiracy to commit theft concerning programs receiving federal funds and one count of embezzlement from an agency receiving federal funds. U.S. District Court Judge Nathaniel M. Gorton scheduled sentencing for Oct. 21, 2021.
In September 2020, Lopez and eight other Boston Police officers were arrested and charged for their roles in an overtime fraud scheme that is alleged to have collectively embezzled over $250,000 between May 2016 and February 2019. As part of the ongoing investigation, four additional officers have been charged: former officer Joseph Nee, former Captain Richard Evans and former Sergeants George Finch and William Baxter. Nee is scheduled to plead guilty on June 22, 2021. Finch pleaded guilty on June 1, 2021 and Baxter is scheduled to plead guilty on June 25, 2021.
Lopez submitted false and fraudulent overtime slips for overtime hours that she did not work for two overtime shifts at the evidence warehouse. The first, called “purge” overtime, was a 4 – 8 p.m. weekday shift intended to dispose of old, unneeded evidence. The second shift, called “kiosk” overtime, involved driving to each police district in Boston one Saturday a month to collect old prescription drugs to be burned.
For the “purge” shift, Lopez claimed to have worked from 4 – 8 p.m., but she routinely left at 6 p.m., and sometimes earlier. For the “kiosk” shift, Lopez and, allegedly, others submitted overtime slips claiming to have worked eight-and-one-half hours, when in fact she and, allegedly, other members of the unit, only worked three-to-four hours of those shifts.
From January 2016 to February 2019, Lopez personally collected approximately $36,028 for overtime hours she did not work.
From 2015 through 2019, BPD received annual benefits from the U.S. Department of Transportation and U.S. Department of Justice in excess of $10,000, which were funded pursuant to numerous federal grants.
The charge of embezzlement from an agency receiving federal funds provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss. The charge of conspiracy provides for a sentence of up to five years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Russell W. Cunningham, Special Agent in Charge of the Department of Justice Office of the Inspector General, Washington Field Office; and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division made the announcement today. Assistance was provided by the Boston Police Department. Assistant U.S. Attorney Mark Grady of Mendell’s Public Corruption & Special Prosecutions Unit is prosecuting the case.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Essex County Man Admits Conspiring to Steal Mail and Commit Bank FraudRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man today admitted to conspiracy to commit bank fraud by soliciting U.S. Postal Service (USPS) employees to steal check books and credit cards from the mail, depositing fraudulent checks, including pandemic relief checks, and using stolen credit cards without authorization, Acting U.S. Attorney Rachael A. Honig announced.
Jahaad Flip, 20, of Newark, pleaded guilty by videoconference before U.S. District Judge Susan D. Wigenton to an information charging him with one count of conspiracy to commit bank fraud.
According to documents filed in this case and statements made in court:
From February 2019 to May 2020, Flip conspired to fraudulently obtain money from victim financial institutions by, among other things, depositing counterfeit checks and checks stolen from the mail into accounts and withdrawing funds from those accounts before the financial institutions identified the fraudulent checks and blocked further withdrawals. Flip and his conspirators arranged for USPS employees to steal credit cards and blank check books from the mail in exchange for cash payments. USPS employees provided the checks to Flip and his conspirators, who forged the signatures of the accountholders and negotiated the checks by making them payable to individuals. Some of these individuals were New Jersey high school students who had given Flip and his conspirators access to their accounts in exchange for cash. Flip and his conspirators also created counterfeit checks, including counterfeit pandemic relief checks. They deposited the fraudulent checks online and at various bank ATMs throughout New Jersey and later withdrew funds from the bank accounts before the victim financial institutions identified the checks as fraudulent. Flip and his conspirators obtained and attempted to obtain approximately $280,000 from victim financial institutions.
One of Flip’s conspirators, Tashon Ragan, pleaded guilty before Judge Wigenton last week to conspiracy to commit bank fraud and is due to be sentenced on Sept. 20, 2021. Charges are still pending against two other conspirators, Jeffrey Bennett and Janel Blackman. The charges against Bennett and Blackman are merely accusations, and they are presumed innocent unless and until proven guilty.
The conspiracy charge is punishable by a maximum potential penalty of 30 years in prison and a fine of up to $1 million. Sentencing is scheduled for Oct. 19, 2021.
Acting U.S. Attorney Honig credited postal inspectors of the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Rodney M. Hopkins; special agents with the U.S. Postal Service – Office of Inspector General, Northeast Area Field Office, under the direction of Special Agent in Charge Matthew Modafferi; special agents with IRS – Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez; and special agents with the Office of the Treasury Inspector General for Tax Administration (TIGTA), under the direction of Special Agent in Charge Andrew McKay, with the investigation leading to today’s guilty plea. She also thanked the Summit Police Department, the New Providence Police Department, the Piscataway Police Department, the Newark Police Department, the South Orange Police Department, and the Little Falls Police Department for their assistance.
The government is represented by Assistant U.S. Attorneys Jonathan Fayer and Elaine K. Lou in Newark.
Erie Felon Indicted on Drug and Gun ChargesRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal firearms and drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Javon Omar Franklin, 39, of Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about January 27, 2021, Franklin possessed firearms while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possession a firearm or ammunition. In addition, Franklin possessed with intent to distribute a quantity of cocaine, a Schedule II controlled substance.
The law provides for a maximum total of 30 years in prison, a fine of $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police Northwest Strike Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Erie Felon Charged with Illegally Possessing a Firearm, Meth and FentanylRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on charges of violating federal firearms and drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Thomas Keith Jones, 35, of Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about January 27, 2021, Jones possessed firearms while being a convicted felon. Federal law prohibits an individual who has been convicted of a felony from possession a firearm or ammunition. In addition, Jones possessed with intent to distribute fifty grams or more of a mixture and substance containing a detectable amount of methamphetamine and a quantity of a mixture and substance containing a detectable amount of fentanyl.
The law provides for a maximum total of 70 years in prison, a fine of $6,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Pennsylvania State Police Northwest Strike Force, Bureau of Alcohol, Tobacco, Firearms and Explosives, and Drug Enforcement Administration conducted the investigation leading to the Indictment in this case.
This case is part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
East Longmeadow Man Convicted of Placing Firebomb at Entrance of Jewish Nursing HomeRead the Press Release
BOSTON – An East Longmeadow man was convicted by a federal jury yesterday in connection with placing a lit firebomb at the entrance of a Longmeadow senior health care facility in April 2020.
John Rathbun, 37, was convicted following a week-long trial of one count of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle or other real or personal property and one count of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle, or other real or personal property used in interstate or foreign commerce. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for Nov. 12, 2021.
“The jury has spoken: Mr. Rathbun is guilty of lighting a firebomb right at the entrance to a Jewish assisted living facility – a cruel and senseless crime,” said Acting United States Attorney Nathaniel R. Mendell. “Thanks to the jury’s verdict and the good work of prosecutors and investigators, the man who targeted vulnerable members of our community will not be a threat to public safety anytime soon.”
“Mr. Rathburn’s dangerous and cruel acts harmed not only the elderly residents of this Jewish assisted living facility, but also the entire community,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “I thank the jury, prosecutors, and investigators for their efforts to ensure the defendant was held accountable for his actions.”
“The danger posed by John Rathbun in this case was very real. By trying to ignite a firebomb outside a Jewish assisted living facility, he put the lives of innocent people at risk,” said Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division. “Through the diligent efforts of our Western Massachusetts Joint Terrorism Task Force, and the jury’s hard work, the community is much safer now.”
On Nov. 23, 2020, a federal jury convicted Rathbun of making false statements to a federal agent, but deadlocked on the arson counts, requiring a re-trial.
On the morning of April 2, 2020, Rathbun assembled, placed, and lit a homemade incendiary device outside the entrance of Jewish Geriatric Services Lifecare, Inc., an assisted living facility in Longmeadow. The device consisted of a five-gallon Scepter fuel canister filled with gasoline and a Christian religious pamphlet as the wick. Forensic analysis identified Rathbun’s DNA on the canister and pamphlet.
On April 15, 2020, Rathbun falsely stated to a federal agent that he was at home on April 2, he was not familiar with the location on Converse Street where the device was placed, and he had not possessed or even seen the fuel canister.
The charge of attempting to transport or receive explosive devices in interstate or foreign commerce with the knowledge or intent that the device will be used to kill, injure, or intimidate any individual or unlawfully to damage or destroy any building, vehicle, or other real or personal property provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. The charge of attempting to maliciously damage or destroy, by means of fire or an explosive, any building, vehicle, or other real or personal property used in interstate or foreign commerce provides for a mandatory minimum sentence of five years and up to 10 years in prison, three years of supervised release and a fine of $250,000. The false statement charge provides for a sentence of up to 10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney Mendell, DOJ Civil Rights Division AAG Clarke and FBI Boston SAC Bonavolonta made the announcement. The investigation was led by the FBI’s Western Massachusetts Joint Terrorism Task Force with valuable assistance also provided by the Longmeadow and East Longmeadow Police Departments and the Massachusetts State Police. Assistant U.S. Attorneys Neil L. Desroches and Steven H. Breslow of Mendell’s Springfield Branch Office prosecuted the case. The Justice Department’s Civil Rights Division also assisted with the prosecution.
Drumright Man Sentenced for Stealing More Than $400,000 from an Illinois Oil and Gas CompanyRead the Press Release
A Drumright man was sentenced today in federal court for stealing $401, 146 worth of funds and oil and gas products from his former employer, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced David Owen West, 59, to 21 months in federal prison followed by three years of supervised release. Judge Eagan further ordered West to pay restitution in the amount of $401, 146 to Petco Petroleum. West previously pleaded guilty to two counts of mail fraud and one count of money laundering. The defendant will self-surrender on Aug. 4, 2021.
“David West ran two criminal schemes against his employer, Petco Petroleum, and pocketed more than $400,000 worth of stolen money and product,” said Acting U.S Attorney Clint Johnson. “West’s criminal acts and deceit finally caught up with him. This convicted felon will spend nearly two years in federal prison thanks to the work of Assistant U.S. Attorney Charles McLoughlin, the special agents of IRS-Criminal Investigation and the FBI, the U.S. Attorney’s Office Asset Forfeiture investigator Don Shoemake, and retired FBI special agent Daniel Risner.”
“I am very proud of the hard work and effort of the women and men of the IRS-Criminal Investigation, the FBI, and the U.S. Attorney’s Office who contributed to the successful prosecution of this individual that culminated in today’s sentencing,” said Acting Special Agent in Charge Mark Pearson, Dallas Field Office. “Mr. West stole nearly a half-a-million dollars from a company that trusted and relied on him. He lied and betrayed their trust for his own personal gain warranting the punishment for his crimes.”
West carried out his schemes at Petco Petroleum, an Illinois oil and gas company where he was employed for nearly 30 years. In one scheme, West produced and submitted to Petco Petroleum fraudulent invoices for services that were never rendered, totaling $129,038, which his employer paid in full and West pocketed. In a second scheme, West hired trucks to haul oil stolen from his employer’s oil leases to a reclaimer who then paid him $266,802 for the oil. Then West charged Petco Petroleum for the transport costs of their own stolen oil.
As field supervisor and oilfield pumper working in Oklahoma for Petco Petroleum (Petco), West checked wells to ensure they were properly functioning and to gauge oil production as well as selected vendors from which the company would purchase products or services needed to operate the wells. In order to be paid by Petco, vendors submitted invoices and documentation for goods or services provided to the company for West’s review and approval. West then mailed the approved invoices to Petco each month to be included in the company’s monthly accounts payable run.
In early 2015, West acquired a property in Drumright, Oklahoma, and on Oct. 27, 2015, legally registered Flash Electric Services, LLC, using the address in Drumright, with the Oklahoma Secretary of State. Flash was used as part of West’s scheme to defraud his employer. From September 2015 to December 2016, West included 116 fraudulent invoices from Flash, totaling $129,038.00, in the monthly documents mailed to Petco for alleged electrical services that were never performed on the company’s Oklahoma oil wells. Based on these invoices, Petco mailed 15 separate checks via the U.S. Mail to Flash in Drumright to pay for the alleged services. All payments from Petco to Flash were subsequently deposited into bank accounts which West controlled.
In addition to the Flash false invoice scheme, West arranged for approximately 50 loads of Petco’s oil to be transported by Lightning Tank Truck and Independent Trucking to U.S. Oil Reclaimers, Inc. West sold and had delivered approximately $266,802 worth of stolen oil to the reclaimer. West directed the company to issue payment to either himself or Flash Services and personally picked up the checks. He then forwarded to his employer invoices for payment from both trucking companies for the cost of the transportation of the stolen Petco oil, totaling $5,306. After West approved the trucking invoices to be paid, Petco issued and mailed checks to both trucking companies.
IRS-Criminal Investigation led the investigation with assistance from the FBI. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Defendants from Orleans and Jefferson Parishes Plead Guilty to Conspiring to Stage Automobile Accidents in Order to Defraud Insurance and Trucking CompaniesRead the Press Release
NEW ORLEANS, LOUISIANA – United States Attorney Duane A. Evans announced today that DONIESHA GIBSON (“GIBSON”), age 29, of New Orleans, Louisiana and ERICA LEE THOMPSON (“ERICA LEE”), age 46, of Harvey, Louisiana, entered guilty pleas today to Conspiracy to Commit Wire Fraud, in violation of Title 18, United States Code, Section 371, arising out of staged automobile accidents with tractor-trailers occurring in New Orleans before United States District Court Judge Sarah S. Vance.
According to today’s guilty pleas, GIBSON and ERICA LEE, along with their co-conspirators and others, beginning in approximately as early as 2015 and continuing through the present, conspired to commit wire fraud in connection with staged accidents with Cornelius Garrison, including two that occurred on October 15, 2015, and September 6, 2017. Today’s guilty pleas bring the total number of defendants convicted in “Operation Sideswipe” to twenty-two (22).
Today, GIBSON admitted to being a passenger in a staged accident on October 15, 2015. On that day, her former co-defendant intentionally drove a 2014 Dodge Avenger owned by GIBSON into a Hotard bus while traveling on the I-10 near the flyover of the I-510. GIBSON retained an attorney and thereafter made a claim for damages. The total settlement for the Hotard bus accident was approximately $677,500.
ERICA LEE admitted that on September 6, 2017, on the I-10 near the Almonaster exit, she was a passenger in LEE’s 2015 RAV4 being driven by their former co-defendant, when he intentionally crashed into a tractor-trailer owned by Averitt Express. ERICA LEE retained counsel and made a claim for damages. The total settlement for the Averitt accident was $30,000.
In total, the victim trucking, bus, and insurance companies paid out approximately $707,500.00 for these two fraudulent claims orchestrated by the defendants and others.
GIBSON and ERICA LEE face a maximum sentence of five (5) years of incarceration. Upon release from prison, each defendant also faces a term of supervised release of up to (3) three years, and/or a fine of $250,000 or the greater of twice the gross gain to each defendant or twice the gross loss to any person under Title 18, United States Code, Section 371. Sentencing in this matter is scheduled for November 3, 2021, before United States District Judge Sarah S. Vance.
The U.S. Attorney’s Office would also like to acknowledge the assistance of the Federal Bureau of Investigation, Louisiana State Police, and the Metropolitan Crime Commission with this matter. The prosecution of this case is being handled by Assistant U.S. Attorney Brian M. Klebba, Chief of the Financial Crimes Unit; Assistant U.S. Attorney Edward J. Rivera; Assistant U.S. Attorney Shirin Hakimzadeh; and Assistant U.S. Attorney Maria Carboni.
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Convicted Felon Pleads Guilty to Illegal Possession of Loaded FirearmRead the Press Release
Greenbelt, Maryland – Sherman Evans Jr., a/k/a “Face Evans”, age 33, of Washington, D.C., pleaded guilty yesterday to being a felon in possession of a firearm.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Timothy Jones of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Malik Aziz of the Prince George’s County Police Department (PGPD).
According to his guilty plea, on August 4, 2019 Prince George’s County Police Department officers responded to a location in Oxon Hill, Maryland for a reported shooting. Once officers arrived, officers noted that multiple vehicles were struck with bullets. Multiple 9mm shell casings were recovered on the scene. As a result of the investigation, PGPD officers identified Evans as a suspect in the shooting.
On August 5, 2019, Evans was arrested by PGPD and taken into custody. Evans informed law enforcement he used a firearm in self-defense and that the firearm he used was inside of his vehicle. Evans consented to a search of his vehicle and law enforcement discovered a loaded 9mm semi-automatic pistol. The firearm had nine 9mm cartridges in the magazine, which had a 16-round capacity.
As detailed in his plea agreement, on August 4, 2019, Evans knew he was prohibited from possessing a firearm due to a previous conviction punishable by more than one year in prison and his civil rights had not been restored.
Evans faces a maximum sentence of 10 years in prison followed by a maximum of three years of supervised release for being a felon in possession of a firearm. U.S. District Judge George J. Hazel has scheduled sentencing for October 19, 2021 at 10 a.m.
Acting United States Attorney Jonathan F. Lenzner commended the ATF and PGPD for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Timothy F. Hagan who is prosecuting the case.
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Columbus man sentenced for selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Deontre Christian Johnson, of Columbus, Ohio, was sentenced today to 57 months of incarceration for a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Johnson, also known as “Day Day,” age 21, pled guilty in October 2020 to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location.” Johnson admitted to selling cocaine near Jensen Playground on Wheeling Island in December 2019.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
Co-Conspirator Sentenced on Charge of Social Security FraudRead the Press Release
SAN JUAN, P.R. – Samuel Pérez-Rivera was sentenced to three years of probation by United States District Judge Silvia L. Carreño-Coll for conspiracy to commit wire fraud, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico. Pérez-Rivera plead guilty to the sole count of an Information on March 12, 2020.
As part of the sentence imposed, Pérez-Rivera paid $150,000 in restitution in favor of the Social Security Administration (SSA) and was excluded, in perpetuity, from participating as a Non-Attorney Representative before the SSA. Pérez-Rivera, as a Non-Attorney Representative, submitted fraudulent psychiatric medical reports to the Social Security Administration. The fraudulent reports were prepared by him and signed by Dr. Américo Oms-Rivera. Dr. Oms was sentenced on February 5, 2021, for conspiracy to commit wire fraud.
On March 12, 2020, the United States Attorney charged Samuel Pérez-Rivera for fraud in the application process for SSA disability insurance benefits in Puerto Rico. As part of this scheme, Samuel Pérez-Rivera admitted that even though he was not a physician, he would prepare psychiatric medical reports, using as a go-by a template report and adding fictitious medical appointments that never took place. This was done to create the appearance of a longer history of medical treatment and for the purpose of deceiving the SSA into approving disability insurance benefits. These reports were eventually signed by the psychiatrist, Dr. Américo Oms-Rivera and submitted to the SSA.
The SSA is responsible for the implementation of the Disability Insurance Benefits Program. The SSA provides monetary benefits to workers with severe, long-term disabilities, who have worked in SSA covered employment for a required length of time. Spouses and dependent children of disabled workers may also be eligible to receive benefits. Fraud schemes, such as the one perpetrated in this case, compromise the SSA’s limited funding and its ability to reach those in need of benefits.
“This defendant defrauded the SSA for personal gain. The U.S. Attorney’s Office will continue to work with our law enforcement partners to investigate and prosecute this type of cases to the fullest extent of the law,” said U.S. Attorney Muldrow.
“This sentence represents another major milestone in this fraud scheme that our OIG investigators and the U.S. Attorney’s Office have worked diligently for several years to dismantle,” said Gail S. Ennis, Inspector General of the Social Security Administration. “This individual knowingly conspired to submit false information in support of disability claims to defraud SSA. We will continue to pursue those who facilitate Social Security fraud. I thank our law enforcement partners, the U.S. Attorney’s Office, and Special Assistant U.S. Attorney Vanessa D. Bonano-Rodriguez, for their outstanding efforts in support of this case.”
Special Assistant United States Attorney Vanessa D. Bonano-Rodríguez from the Social Security Administration was in charge of the prosecution of the case. This case was investigated by the Social Security Administration Office of the Inspector General, New York Field Division, under the supervision of Special Agent-in-Charge John Grasso, jointly with the Drug Enforcement Administration and the Puerto Rico Police Bureau. The Federal Bureau of Investigation and the Office of Inspector General Health and Human Services also assisted during the investigation.
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