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16 June 2021
Citizen of Estonia Admits Operating "Crypting" Service to Conceal Kelihos Botnet from Anti-Virus SoftwareRead the Press Release
PAVEL TSURKAN, 33, of Estonia, pleaded guilty today in the District of Connecticut to a federal charge related to 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.
Tsurkan pleaded guilty via videoconference before U.S. Magistrate Judge S. Dave Vatti to one count of aiding and abetting unauthorized access to a protected computer, an offense that carries a maximum term of imprisonment of 10 years.
According to court documents and statements made in court, Tsurkan, his co-defendant Oleg Koshkin, and others operated an online, for-profit service known as Crypt4U via the websites “crypt4u.com,” “crypt4u.net,” “fud.bz,” “fud.re,” as well as a custom FTP service for high-volume processing. The websites promised to render malicious software fully undetectable (FUD) by nearly every major provider of antivirus software. Tsurkan 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.
Tsurkan provided the Crypt4U service to assist individuals who created and maintained networks of infected and compromised computers, known as “botnets.” In particular, Tsurkan provided the Crypt4U service to Peter Yuryevich Levashov, who used the service in connection with the Kelihos botnet. The Kelihos botnet was used to send spam, to conduct denial of service attacks, and to distribute ransomware, among other criminal acts. 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, including computers in Connecticut.
Tsurkan is released on a $200,000 bond pending sentencing, which is scheduled for September 27, 2021, before U.S. District Judge Michael P. Shea in Hartford.
On June 15, 2016, a jury in Hartford found Oleg Koshkin, a Russian national last residing in Estonia, guilty of one count of conspiracy to commit computer fraud and abuse and one count of aiding and abetting computer fraud and abuse. Koshkin is detained while awaiting sentencing.
On September 12, 2018, Levashov 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. He is awaiting sentencing.
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.
Carroll County Man Pleads Guilty to Meth and Gun ChargesRead the Press Release
A man who conspired to distribute meth while possessing guns pled guilty June 15, 2021, in federal court in Sioux City.
Christopher O’Tool, 43, from Arcadia, Iowa, was convicted of two counts of conspiracy to distribute methamphetamine and one count of possession of a firearm in furtherance of a drug trafficking crime.
At the plea hearing, O’Tool admitted he was involved in two conspiracies, one from about January 2016 through June 2016 and another from March 2019 through July 2019, in which he and others distributed more than four pounds of methamphetamine. In May and June 2016, O’Tool distributed over 50 grams of pure methamphetamine to individuals cooperating with law enforcement. On June 2, 2016, law enforcement stopped O’Tool, searched his vehicle, and seized nearly a pound of methamphetamine and a .45 caliber handgun and ammunition. O’Tool admitted to his involvement in the distribution of methamphetamine in and around the Carroll, Iowa area, which he acquired from a source in Omaha, Nebraska. On July 11, 2019, law enforcement agents met with O’Tool, and with his consent, seized two 9mm pistols from O’Tool’s truck. Later that day, O’Tool also admitted to again distributing methamphetamine in and around the Carroll, Iowa area.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. O’Tool remains in custody pending sentencing. On the conspiracy convictions, O’Tool faces a mandatory minimum sentence of 10 years’ imprisonment and a possible maximum sentence of life imprisonment, a $10,000,000 fine, and at least 5 years of supervised release following any imprisonment. On the firearm conviction, O’Tool faces a mandatory minimum sentence of 5 years’ imprisonment, consecutive to any term of imprisonment imposed on the conspiracy convictions, and a possible maximum sentence of life imprisonment, a $250,000 fine, and not more than 3 years of supervised release.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Iowa Division of Narcotics Enforcement, Carroll County Sheriff’s Office, Iowa State Patrol, Southwest Iowa Narcotics Enforcement Task Force, Crawford County Sheriff’s Office, Denison Police Department, Carroll Police Department, and Iowa DCI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3017. Follow us on Twitter @USAO_NDIA.
California Woman Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LA – U.S. Attorney Duane A. Evans announced today that ZORAIDA LARA, a/k/a ZORAIDA TRINIDAD, age 50, a resident of Alta Loma, California, pleaded guilty on June 10, 2021 to a two-count Superseding Bill of Information, charging her with conspiracy to distribute and possess with intent to distribute heroin 100 grams or more of a mixture or substance containing heroin and distribution and possession with intent to distribute 100 grams or more of a mixture or substance containing heroin.
According to court records, in November 2019, during an investigation by the United States Drug Enforcement Administration, LARA communicated with a special agent working in an undercover capacity about the transportation of illegal narcotics to the New Orleans, LA area. Shortly after their conversation, LARA arranged for co-defendant, David Mora, to deliver the narcotics to the New Orleans area. After Mora delivered the narcotics, which included heroin, LARA flew from California to New Orleans to collect payment for the illegal narcotics and was subsequently arrested upon her arrival.
The Honorable District Court Judge Barry W. Ashe will sentence LARA on September 30, 2021. LARA faces a mandatory minimum term of imprisonment of 5 years in prison and a maximum of 40 years in prison, a fine of not more than $5,000,000.00, at least 4 years supervised release and a $100 mandatory special assessment as to each count.
The case was investigated by the Drug Enforcement Administration, with the assistance of the Louisiana State Police. Assistant United States Attorney Bayonle Osundare is in charge of the prosecution.
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Burlington Man Sentenced to Federal Prison for Drug ChargesRead the Press Release
Davenport, Iowa – On Friday, June 11, 2021, United States District Court Chief Judge John A. Jarvey sentenced Lamar Harris, age 37, of Burlington, to 210 months in prison for Conspiracy to Distribute Controlled Substances announced Acting United States Attorney Richard D. Westphal. Harris was ordered to serve four years of supervised release to follow his prison term as well as pay $100 to the Crime Victims’ Fund.
Harris was found to have been involved in a long-standing conspiracy to distribute significant quantities of controlled substances, with his involvement dating back to 2011. Harris has a history of violence and had two prior felony drug convictions. Harris was under criminal justice supervision at the time of this offense.
Harris was one of eight defendants who faced federal charges in the Southern District of Iowa after a multi-year joint federal and state investigation which culminated in the execution of several search warrants in various locations, including several in Burlington on November 19, 2019.
This investigation was conducted by numerous federal, state, and local law enforcement agencies including: the Federal Bureau of Investigation; Southeast Iowa Narcotics Taskforce; Burlington Police Department; Des Moines County Sheriff’s Office; West Central Illinois Taskforce; Quincy, Illinois Police Department; Drug Enforcement Administration; Iowa Division of Narcotics Enforcement; Henry County Sheriff’s Office; Mt. Pleasant Police Department; West Burlington Police Department; Keokuk Police Department; Ft. Madison Police Department; Lee County Sheriff’s Office; Iowa City Police Department; Johnson County Sheriff’s Office; North Liberty Police Department; Coralville Police Department; Muscatine County Sheriff’s Office; Louisa County Sheriff’s Office; Washington County Sheriff’s Office; Bettendorf Police Department; Illinois State Police; Monmouth, Illinois Police Department; Macomb, Illinois Police Department; Galesburg, Illinois Police Department; Adams County, Illinois Sheriff’s Office; and Fulton County, Illinois Sheriff’s Office.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
Billings man sentenced to 14 years in prison for receiving child pornography in coercion and enticement of minors caseRead the Press Release
BILLINGS — A Billings man was sentenced today to 14 years in prison followed by 12 years of supervised release after he admitted to receiving child pornography as part of scheme to coerce and entice minors to engage in sexually explicit activity, Acting U.S. Attorney Leif M. Johnson said.
Brandon Frank Stricker, 48, pleaded guilty on Feb. 11 to receipt of child pornography as charged in Count V of a superseding indictment, pursuant to a plea agreement.
U.S. District Judge Dana L. Christensen presided. Judge Christensen further ordered Stricker to register as a sex offender, pay a $5,000 assessment under the Justice for Victims of Trafficking Act, and pay $619 restitution. Stricker was remanded into custody.
“This case shocks the conscience, and the sentence here was well deserved. We have to do everything we can to protect minors from this sort of abuse and predatory conduct and we will continue to do so,” Acting U.S. Attorney Johnson said.
In court documents and in statements made in court, the government alleged that for almost a two-year period, from about June 2018 to May 2020, Stricker engaged in a pattern of exploitative and criminal conduct with numerous minors in the Billings community. The government alleged Stricker coerced and enticed multiple victims for the purpose of engaging in sexual relations with them and to produce sexually explicit material.
The government further alleged that Stricker received child pornography after meeting Jane Doe 1, a 14-year-old female, and communicating with her online. Jane Doe informed Stricker of her age. On August 11, 2018, Jane Doe 1 sent Stricker two videos via Facebook. One video depicted Jane Doe 1 engaged in sexually explicit conduct by herself, and the second video depicted Jane Doe 1 and another minor female engaged in sexually explicit conduct. Stricker expressed his approval of the videos to Jane Doe 1.
Assistant U.S. Attorneys Zeno B. Baucus and Karla E. Painter prosecuted the case, which was investigated by the FBI, Montana Division of Criminal Investigation, Montana Probation and Parole and Billings Police Department.
This case was initiated under the Department of Justice’s Project Safe Childhood initiative, which was launched in 2006 to combat the proliferation of technology-facilitated crimes involving the sexual exploitation of children. Through a network of federal, state and local law enforcement agencies and advocacy organizations, Project Safe Childhood attempts to protect children by investigating and prosecuting offenders involved in child sexual exploitation. It is implemented through partnerships including the Montana Internet Crimes Against Children Task Force. The ICAC Task Force Program was created to assist state and local law enforcement agencies by enhancing their investigative response to technology facilitated crimes against children.
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Berkeley County woman admits to role in drug trafficking operationRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jaime Renee Coddington, of Falling Waters, West Virginia, has admitted to her role in a drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Coddington, 34, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Eutylone and Cocaine Base.” Coddington admitted to working with others to distribute Eutylone and Cocaine Base from October 2019 to April 2020 in Berkeley and Jefferson Counties.Coddington faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Lara Omps-Botteicher is prosecuting the case on behalf of the government. The FBI; the Department of Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Marshals Service; the West Virginia State Police; the Eastern Panhandle Drug & Violent Crimes Task Force, a HIDTA-funded initiative; and the West Virginia Air National Guard investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Robert W. Trumble presided.
Find the related case here: https://www.justice.gov/usao-ndwv/pr/west-virginia-and-virginia-residents-indicted-drug-trafficking-operation-berkeley-and
Atlantic County Man Admits Causing a False Distress Call to U.S. Coast Guard and Committing Bank FraudRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, man today admitted sending a false distress call to the U.S. Coast Guard and submitting fraudulent information on a loan application, Acting U.S. Attorney Rachael A. Honig announced.
Andrew Biddle, 51, of Egg Harbor Township, New Jersey, pleaded guilty before U.S. District Judge Renée Marie Bumb to an indictment charging him with one count of bank fraud and one count of causing the U.S. Coast Guard to render unnecessary aid.
According to documents filed in this case and statements made in court:
On June 25, 2014, Biddle submitted documents to secure a loan for $55,000 from Southeast Financial Credit Union. Biddle listed as collateral for the loan a boat and provided a fraudulent appraisal document for the boat. Biddle also submitted to Southeast Financial a document that falsely listed his gross earnings as owner of Professional Boat; a document that falsely inflated the net income for Professional Boat; and a fraudulent income tax return. Based on the fraudulent documents Southeast Financial fund the loan and deposit $55,000 into Biddle’s account.
Between February 2014 and July 2014, the Egg Harbor Township Police Department filed theft charges against Biddle. Biddle admitted that on July 20, 2014, he and a passenger took a boat out of Seavillage Marina in Northfield and traveled across Great Egg Harbor Inlet to a restaurant in Somers Point to have dinner. During dinner, Biddle and the passenger finalized a scheme to fake Biddle’s disappearance. After dinner, Biddle and his passenger traveled back to the marina by boat. The passenger dropped Biddle off between two piers so that he could be picked up by another individual and driven out of the area. The passenger then continued back to Seaville Marina and he intentionally hit a navigational marker in Great Egg Harbor Inlet near Longport. The collision caused the passenger to be ejected from the boat. The passenger caused someone to call 911. Based on that call the U.S. Coast Guard, New Jersey State Police and Longport fire/rescue responded to the area to search for and try and save Biddle. The U.S. Coast Guard and others searched for Biddle using vessels and helicopters on July 20 and 21, 2014. Biddle admitted that while the Coast Guard was searching for him, he was in Florida.
Biddle admitted that he faked his disappearance in order to avoid prosecution by authorities in Atlantic County, but eventually turned himself into authorities in Atlantic County on Feb. 12, 2015.
The count of bank fraud carries a maximum potential penalty of 30 years in prison and a $1 million fine. The false distress call to the U.S. Coast Guard carries a maximum potential penalty of six years in prison and a $250,000 fine. Sentencing is scheduled for Oct. 18, 2021.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., and detectives of the N.J. State Police, under the direction of Colonel Patrick J. Callahan for the investigation leading to today’s guilty plea. She also thanked the U.S. Coast Guard Investigative Service, Egg Harbor Township Police Department, and the Atlantic County Prosecutor’s Office for their assistance.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
Atlantic City Woman Charged with Defrauding Elderly VictimsRead the Press Release
CAMDEN, N.J. – An Atlantic City woman was charged for her role in fraudulently obtaining money from elderly victims and not advising the Social Security Administration (SSA) and the U.S. Department of Housing and Urban Development (HUD) of the substantial amount of money she earned from the scheme, Acting U.S. Attorney Rachael A. Honig announced today.
Victoria Crosby, 44, is charged by complaint with one count of wire fraud, one count of concealing information affecting a continued right to payment by the SSA, one count of health care fraud and one count of making a false statement, representation or document to HUD. Crosby is scheduled to have her initial appearance by videoconference today before U.S. Magistrate Judge Sharon A. King.
According to documents filed in this case and statements made in court:
Crosby and others used prepaid cellular phones to contact victims whose spouses or other family members had recently died. Many of the victims were 70 or older. Crosby and others used fictitious names and purported to be employees of either a retirement benefit office or a life insurance company. They told the victims that life insurance policies, obtained by their deceased family member and for which they were the beneficiary, were in arrears and that to correct the underpayment, victims needed to pay thousands of dollars. Victims were instructed to purchase prepaid cards at various retailers and provide the caller with the 10-digit codes on the back. After obtaining the prepaid card information, Crosby and others loaded the money into accounts they controlled. According to video surveillance footage obtained by law enforcement officials, Crosby withdrew victim funds from various ATMs in New Jersey.
At the time that Crosby was involved in the fraud scheme, she was receiving Supplemental Security Income (SSI) benefits from the SSA and Medicaid. Crosby was also living in public housing in Atlantic City and receiving housing assistance through HUD’s Public and Indian Housing Program. Between January 2020 and December 2020, Crosby received $110,380 into her bank account. Had SSA or HUD been aware of her income, Crosby would have been ineligible for SSI, Medicaid, or HUD benefits.
The counts of wire fraud and health care fraud each carry a maximum of 20 years in prison and a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest. The count of concealing any event affecting continued right to payment by the SSA and making false statements to HUD each carry a maximum of five years in prison and a maximum $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.
Acting U.S. Attorney Honig credited criminal investigators of the U.S. Attorney’s Office, under the direction of Supervisory Special Agent in Charge Thomas Mahoney; special agents of the FBI Newark, Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr.; special agents of the SSA Office of the Inspector General, New York Field Division, under the direction of Special Agent in Charge John F. Grasso; and special agents of the U.S. Department of Housing and Urban Development, Office of the Inspector General, New York Region, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to the charges. She also thanked the Maryland Office of the Attorney General for its assistance.
The government is represented by Senior Trial Counsel Jason M. Richardson of the U.S. Attorney’s Office’s Criminal Division in Camden.
The charges and allegations contained in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Arkansas Man Pleads Guilty to Soliciting and Paying for the Production of A Video Depicting A 9-Year-Old Child Being MolestedRead the Press Release
Jacksonville, Florida – Cody Dillon Hogan (26, Leachville, Arkansas) has pleaded guilty to using the internet to solicit and pay an individual to molest a 9-year-old child and to creating a video recording depicting this sexual abuse. Hogan faces a mandatory minimum penalty of 15 years, and up to 30 years, in federal prison and a potential life term of supervised release. Hogan was arrested on November 9, 2020, at his residence in Arkansas and remains in custody. A sentencing date has not yet been set.
According to court documents, in December 2019, an undercover FBI agent in Jacksonville, who was posing as a parent of a 9-year-old child, made contact with Hogan in a particular online chat application. During an online session, Hogan, using the online name “stonetelephone,” sent the undercover agent a photo of his own genitalia and asked for “naughty” photos of the purported 9-year-old “child.” Hogan offered to pay the “parent” to create and send him a video of the “child” being sexually abused. Hogan gave specific instructions as to how he wanted to see the “child” molested in the video, and he sent the agent a $50 gift card as payment for the requested video. For several weeks, Hogan continued to solicit the undercover agent to produce and send him a video of the 9-year-old “child” being molested, and he provided advice on various ways to send it to him over the internet using group sharing accounts and online cloud storage. During one particular online chat, Hogan stated, “After I see this video there could be all kinds of money and requests coming your way lol.”
Subsequently, FBI agents and other law enforcement officers executed a federal search warrant at Hogan’s residence in Arkansas and placed him under arrest. During an interview with FBI agents, Hogan admitted that he had engaged in online conversations with the mother of a 9-year-old child about producing and sending him a pornographic video of the child. He also stated that he had successfully solicited at least three other children to produce and send him sexually explicit photos of themselves. A search of Hogan’s cellphone and his homemade computer revealed that these devices contained hundreds of videos and images depicting the sexual abuse of young children, including sadistic and masochistic conduct.
This case was investigated by the Federal Bureau of Investigation in Jacksonville and Memphis and the Jonesboro (Arkansas) Police Department. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Albany Man Pleads Guilty to Charges of Supplemental Security Income FraudRead the Press Release
ALBANY, NEW YORK – Jorge Ortiz, Jr., age 60, of Albany, pled guilty today to concealing his resources from the Social Security Administration (SSA) in order to defraud SSA into paying Supplemental Security Income (SSI) benefits to his stepson, who was otherwise ineligible to receive such benefits.
The announcement was made by Acting United States Attorney Antoinette T. Bacon and John F. Grasso, Special Agent in Charge of the Social Security Administration (SSA), Office of the Inspector General, New York Field Office.
As part of his guilty plea, Ortiz admitted that from November 2008 through February 2016, while acting as representative payee for a family member, Ortiz concealed and failed to disclose assets and resources in order to deceive SSA into making benefit payments to the family member who was otherwise ineligible to receive SSI benefit payments. SSI is a needs-based program, available to elderly, blind, and disabled individuals, that provides money to pay for basic living expenses.
As a result of his conviction, Ortiz faces up to 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. Sentencing is scheduled for October 12, 2021 before Senior United States District Judge Thomas J. McAvoy. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the SSA Office of the Inspector General and is being prosecuted by Special Assistant U.S. Attorney Adrian S. LaRochelle.
15 June 2021
World Elder Abuse Awareness DayRead the Press Release
NASHVILLE – Acting U.S. Attorney Mary Jane Stewart today, reminded the elderly and those responsible for their care to be cautious and vigilant in their financial and healthcare affairs to prevent them from becoming victims of scams and other abuses which target elderly and vulnerable populations.
“As we emerge from the pandemic, it is critical that we inform and educate our older population about the vast number of emerging scams which target the elderly,” said Acting U.S. Attorney Stewart. “Elder-fraud schemes were on the rise even before the pandemic and now we are seeing an explosive amount of fraudulent activity designed to profit from the abuse of senior citizens. The U.S. Attorney’s Office and our law enforcement partners will continue to vigorously pursue individuals and corporations who target the elderly with their scams.”
Individuals are reminded to use caution when encountering high-pressure sales tactics; being asked to pay “up front” fees; responding to unsolicited emails and phone calls from services that were not requested; or being asked to provide personal information, just to name a few examples. Other scams presently on the rise include fake post-vaccine scams; fake unemployment benefit and stimulus scams; grandparent scams; and others pretending to represent law enforcement.
Recent enforcement efforts by the U.S. Attorney’s Office involving scams targeting the elderly include:
- The settlement of False Claims Act allegations against SavaSeniorCare for $11.2 million. Allegations in this case included medically unnecessary rehabilitation therapy services and grossly substandard skilled nursing services provided to elderly patients in nursing homes.
- On May 13, 2021, Fredrick Stow, a former investments advisor, was sentenced to federal prison for defrauding two elderly investors of more than $933,000.
- On May 12, 2021, Karl Hampton and his wife Deborah Hampton, both of Franklin, Tennessee, were charged with defrauding an elderly widow and dementia patient of $1.7 million by convincing the woman that Karl Hampton was her son and acquiring a Power of Attorney over her affairs.
Elder abuse is widespread. Help spread the word and keep our elders informed.
If you are a victim of elder fraud, or know someone who is, take action and call the National Elder Fraud Hotline at 833-372-8311.
More information and additional resources on elder abuse and prevention can be found by visiting the National Center on Elder Abuse website (NCEA) https://ncea.acl.gov . Additional resources can be found here .
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Woman sentenced for embezzling more than half a million dollars from employerRead the Press Release
AUGUSTA, GA: The former office manager for an Augusta medical practice has been sentenced after admitting she stole more than half a million dollars from the business.
Shirley Ann Taylor, 65, of Gibson, Ga., was sentenced to 33 months in federal prison after pleading guilty to an Information charging her with nine counts of Wire Fraud, said David H. Estes, Acting U.S. Attorney for the Southern District of Georgia. U.S. District Court Judge J. Randal Hall also ordered Taylor to pay $1,163,091.68 in restitution, and to serve three years of supervised release after completion of her prison term.
There is no parole in the federal system.
“Shirley Ann Taylor violated the trust of her employer and fellow employees to enrich herself at the company’s expense,” said Acting U.S. Attorney Estes. “Thanks to the vigilance of a fellow employee, she’s now being held accountable for her thefts.”
As described in court documents and testimony, Taylor was employed at an Augusta medical practice from 2006 to 2020 as the office and payroll manager. The year after she was hired, Taylor began stealing from her employer by inflating her own pay and writing unauthorized company checks which she deposited in her own account or used to pay her mortgage.
The company in 2020 hired a new office manager who quickly noted accounting discrepancies amounting to nearly $1.2 million. In her guilty plea, Taylor accepted responsibility for stealing a minimum of $550,000 from the company.
“Taylor threw away an important position in a company that entrusted her by stealing money she didn’t deserve,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now she is being held accountable for her actions, thanks the cooperative efforts from the company and our law enforcement partners.”
The case was investigated by the FBI and the Richmond County Sheriff’s Office, and prosecuted for the United States by Assistant U.S. Attorney Patricia G. Rhodes.
Woman Sentenced for Attacking Boyfriend with a KnifeRead the Press Release
A Tulsa woman was sentenced in federal court for attacking a man with a knife during a domestic violence situation, announced Acting U.S. Attorney Clint Johnson.
U.S. District Judge Claire V. Eagan sentenced Sharilyn Rose Browning, 31, to 37 months in federal prison followed by 3 years of supervised release. Browning previously pleaded guilty to assault with a dangerous weapon in Indian Country.
On July 31, 2020, Browning, a White Mountain Apache citizen, attacked her boyfriend using a kitchen knife. According to court documents, Browning was intoxicated when the victim arrived at their home. The couple began arguing and Browning stabbed and sliced the male victim resulting in lacerations to his arm and head. The victim received over 200 stitches for his injuries. The crime occurred within the Muscogee Nation Reservation.
In her written plea agreement, Browning admitted that she had intent to do bodily harm when she assaulted a male victim with a knife by stabbing him on July 31, 2020.
The Tulsa Police Department and the FBI conducted the investigation. Assistant U.S. Attorney Kevin Fletcher prosecuted the case. AUSA Fletcher is a prosecutor from the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee Nation and Cherokee Nation Reservations.
Wilmington Man Sentenced to over 9 Years in Federal Prison for Multi-State Bank Robbery SpreeRead the Press Release
WILMINGTON, Del. – A Wilmington man was sentenced today to over 9 years in federal prison by the Honorable Richard G. Andrews, for four counts of bank robbery and two counts of attempted bank robbery.
According to court documents, Michael Wheeler, 41, committed a series of seven bank robberies and attempted bank robberies across Delaware, Pennsylvania, New Jersey, and Maryland over a 24-day period in July and August 2019. Victim banks were located in Wilmington, Delaware; Elkton, Maryland; Havertown, Pennsylvania; Broomall, Pennsylvania; and Haddon Heights, New Jersey. Banks impacted included PNC Bank, M&T Bank, and Wells Fargo Bank, among others.
Mr. Wheeler was not armed during the robberies, but led bank employees to believe he was armed and would shoot them if they did not comply with his demands. In one instance, Mr. Wheeler handed a bank employee a note stating he had a gun; in another, he warned a bank employee not to set off the bank’s alarm system and motioned as if he were reaching for a firearm. At least one victim has confirmed that she feared for her life. Over the course of his robbery spree, Mr. Wheeler absconded with a total of $14,165.
U.S. Attorney David C. Weiss stated, “The defendant’s multi-state bank robbery spree endangered not only the lives of bank personnel, but innocent civilians as well. I want to thank our federal, state, and local law enforcement partners for their tireless efforts in the investigation and prosecution of this case.”
“Michael Wheeler was a walking crime spree, endangering the lives of employees and customers at the banks that he robbed,” said Rachel Byrd, Acting Special Agent in Charge of the FBI Baltimore Field Office. “We hope today’s sentence sends a clear message that the FBI, and our law enforcement partners, will do everything in our power to bring these offenders to justice.”
The case was prosecuted by Assistant U.S. Attorneys Maureen McCartney and Carly Hudson. The case was investigated by the FBI Baltimore Division’s Wilmington Resident Agency with assistance from the FBI Philadelphia Division’s Philadelphia and South Jersey Residence Agencies; Delaware State Police; Elkton, Maryland Police Department; Haverford Township, Pennsylvania Police Department; and Camden County, New Jersey Prosecutor’s Office.
Upshur County man charged with carjacking and firearms chargesRead the Press Release
ELKINS, WEST VIRGINIA – Chad C. Newcome, of Rock Cave, West Virginia, was indicted today on carjacking and firearms charges, Acting United States Attorney Randolph J. Bernard announced.
Newcome, 40, was indicted on one count of “Carjacking,” one count of “Use of Firearm During and in Relation to a Crime of Violence,” and one count of “Unlawful Possession of a Firearm.” Newcome is accused of attempting to steal a 2018 Dodge Ram Truck on March 10, 2021 in Upshur County. Newcome, a person prohibited from having firearms because of a prior conviction, is accused of using a 12-gauge shotgun during the alleged carjacking.
Newcome faces up to 15 years of incarceration and a fine of up to $250,000 for the carjacking charge, at least seven years of incarceration and a fine of up to $250,000 for the use of a firearm charge, and up to 10 years of incarceration and a fine of up to $250,000 for the unlawful possession charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the West Virginia State Police, and the Upshur County Sheriff’s Office investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Files Suit Against California Skilled Nursing Chain and its Owner for Allegedly Paying Illegal Kickbacks to PhysiciansRead the Press Release
The United States filed a complaint in the U.S. District Court for the Central District of California yesterday under the False Claims Act against Paksn Inc.; Prema Thekkek, one of its owners; and seven skilled nursing facilities (SNFs) owned by Thekkek and/or operated by Paksn. Those seven SNFs are Bay Point Healthcare Center, Gateway Care & Rehabilitation Center, Hayward Convalescent Hospital, Hilltop Care & Rehabilitation Center, Martinez Convalescent Hospital, Park Central Care & Rehabilitation Hospital, and Yuba Skilled Nursing Center.
The United States alleges that defendants entered into medical directorship agreements with certain physicians that purported to provide compensation for administrative services, but in reality, were vehicles for the payment of kickbacks to induce the physicians to refer patients to the seven SNFs. The Anti-Kickback Statute prohibits offering or paying anything of value to encourage the referral of items or services covered by federal health care programs.
Specifically, the United States alleges that defendants hired certain physicians who promised in advance to refer a large number of patients to the SNFs, paid physicians in proportion to the number of expected referrals, and terminated physicians who did not refer enough patients. On one occasion, a Paksn employee told Thekkek that two physicians were being hired because “they are promising at least 10 patients for $2000 per month.” On another, Thekkek complained that if Paksn’s employees did not pay medical directors promptly every month, “[t]hese doctors will not give us patients.” On a third occasion, a Paksn employee told Thekkek that because “lately there are no real referrals” from one of the medical directors, “i am planning to say goodbye to him.”
“Illegal financial arrangements with physicians can improperly influence the type and amount of health care that is provided to patients,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to redressing the corrupting influence of kickbacks on the medical decision‑making of providers participating in federal health care programs.”
“The payment of kickbacks to physicians for referrals turns patients into commodities that can be traded,” said Acting U.S. Attorney Tracy L. Wilkison for the Central District of California. “Profits should not dictate medical decisions, which is why it is illegal to pay for referrals that can cloud physicians’ medical judgment.”
The lawsuit was initially filed in December 2015 by Trilochan Singh, who was previously employed as Paksn’s Vice President of Operations and Chief Operating Officer, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties. The case is captioned United States of America ex rel. Trilochan Singh v. Paksn, Inc. et al., No. 15‑cv-09064 (C.D. Cal.).
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the U.S. Attorney’s Office for the Central District of California, with assistance from the U.S. Department of Health and Human Services Office of Inspector General.
The claims asserted against defendants are allegations only and there has been no determination of liability.
United States Files Suit Against California Skilled Nursing Chain and its Owner for Allegedly Paying Illegal Kickbacks to PhysiciansRead the Press Release
LOS ANGELES – The United States has filed a complaint under the False Claims Act against a Vacaville company alleging one of its owners and seven skilled nursing facilities (SNFs) “systematically paid money to referring physicians…to induce those physicians to make patient referrals, in knowing and willful violation” of the federal Anti-Kickback Statute.
The complaint in intervention, which was filed in United States District Court in Los Angeles late Monday, names as defendants Paksn Inc.; Prema Thekkek, one of its owners; and seven SNFs owned by Thekkek and/or operated by Paksn.
The United States alleges that the defendants entered into medical directorship agreements with certain physicians that purported to provide compensation for administrative services, but in reality, were vehicles for the payment of kickbacks to induce the physicians to refer patients to the seven SNFs. The Anti-Kickback Statute prohibits offering or paying anything of value to encourage the referral of items or services covered by federal health care programs.
Those seven SNFs are four facilities in Hayward – Bay Point Healthcare Center, Gateway Care & Rehabilitation Center, Hayward Convalescent Hospital, and Hilltop Care & Rehabilitation Center – as well as Martinez Convalescent Hospital, Park Central Care & Rehabilitation Hospital in Fremont, and Yuba Skilled Nursing Center.
The United States specifically alleges that the defendants hired certain physicians who promised in advance to refer a large number of patients to the SNFs, paid physicians in proportion to the number of expected referrals and terminated physicians who did not refer enough patients.
On one occasion, a Paksn employee told Thekkek that two physicians were being hired because “they are promising at least 10 patients for $2000 per month.” On another, Thekkek complained that if Paksn’s employees did not pay medical directors promptly every month, “[t]hese doctors will not give us patients.” On a third occasion, a Paksn employee told Thekkek that because “lately there are no real referrals” from one of the medical directors, “i am planning to say goodbye to him.”
“The payment of kickbacks to physicians for referrals turns patients into commodities that can be traded,” said Acting United States Attorney Tracy L. Wilkison. “Profits should not dictate medical decisions, which is why it is illegal to pay for referrals that can cloud physicians’ medical judgment.”
“Illegal financial arrangements with physicians can improperly influence the type and amount of health care that is provided to patients,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The department is committed to redressing the corrupting influence of kickbacks on the medical decision making of providers participating in federal health care programs.”
This case was initially filed in December 2015 by Trilochan Singh, who was previously employed as Paksn’s vice president of operations and chief operating officer, under the whistleblower provisions of the False Claims Act. Those provisions authorize private parties to sue on behalf of the United States for false claims and share in any recovery. The Act permits the United States to intervene and take over the lawsuit, as it has done here in part. Those who violate the Act are subject to treble damages and applicable penalties.
The case is captioned United States of America ex rel. Trilochan Singh v. Paksn, Inc., et al., CV15-9064.
The United States’ intervention in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter is being handled by the Civil Division’s Commercial Litigation Branch (Fraud Section) and the United States Attorney’s Office for the Central District of California (Civil Fraud Section), with assistance from the U.S. Department of Health and Human Services’ Office of Inspector General.
The claims asserted against defendants are allegations only and there has been no determination of liability.
U.S. Attorney’s Office Recognizes ‘World Elder Abuse Awareness Day’Read the Press Release
ST. LOUIS – The U.S. Attorney’s Office is committed to ensuring the just treatment of all people and wants the public to be aware of the problem affecting communities throughout the Eastern District of Missouri. An estimated 1 in 10 adults aged 60 years of age or older experience some type of abuse annually in the United States. Elder abuse violates this principle. The costs of elder abuse are high not only for the affected individuals, but society. Older Americans’ losses can be tangible (homes and life savings) and intangible (dignity, independence, and possibly their lives). For society, elder abuse is both a social and economic issue and it is in everyone’s interest to be mindful of and help prevent it.
World Elder Abuse Awareness Day was launched on June 15, 2006 to promote a better understanding of abuse and neglect of older persons. Elder abuse takes many forms: neglect or isolation; physical abuse; sexual abuse; financial abuse and exploitation; and emotional or psychological abuse.
Like other forms of interpersonal violence, elder abuse usually occurs behind closed doors and the victims are reluctant to report their abuse, particularly if a family member is the perpetrator. The victims may feel ashamed and embarrassed of having fallen victim to a financial scheme or to have been abused by a child. Many victims of abuse may fear that the family member who abuses them risks criminal charges. Victims are also reluctant to speak out where there is fear, they will be forced to live in a nursing home. Worse yet, the victims may fear that the abuse will get worse if they report it.
As a community, we can create a stronger society that safeguards older adults and prevents this type of abuse from occurring.
- Keep in contact and talk with your older friends, neighbors, and relatives frequently
- Be aware and alert for the possibility of abuse
- Look around and take note of what may be happening with your older neighbors and acquaintances
- Ask questions and listen
Please call the Missouri Adult Abuse and Neglect Hotline at (800) 392-0210 or the National Elder Fraud Hotline at (833) FRAUD-11 if you suspect an older adult is being abused, neglected, or exploited. Please dial 911 if you believe an older person is in a life-threatening situation.
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U.S. Attorney’s Office Recognizes Annual World Elder Abuse Awareness DayRead the Press Release
Today, the United States Attorney’s Office for the District of Vermont will recognize World Elder Abuse Awareness Day. Around the world, organizations mark this day by voicing concern about the exploitation of vulnerable seniors and rallying individuals to identify and report suspected abuse.
Elder abuse refers to the intentional or negligent acts by a caregiver or trusted individual that causes harm to an older person. Elder abuse includes physical abuse, sexual abuse, financial abuse and exploitation, emotional and psychological abuse, and neglect. Elder abuse is both a social and economic issue. It causes tangible losses to victims (such as the loss of homes and savings), intangible losses to victims (such as the loss of dignity, independence, and safety), creates increased health care and legal costs, and can even result in the loss of life.
Elder abuse is largely underreported for multiple reasons. Seventy percent of elder abuse crimes are committed by victims’ relatives, friends, and acquaintances. Many seniors who experience abuse are reluctant to report it because of shame, fear of retribution, denial, or a close relationship with their victimizer. Further, some victims are unable to speak out due to dementia or other impairments. Elder abuse is truly an “invisible” problem that requires vigilance to be detected. Elder abuse affects people across all socioeconomic groups, cultures, and races, and occurs anywhere, particularly where a senior is disconnected from social supports.
Vermont is the second fastest-aging state in the country, and more than a quarter of the State’s population is over the age of 60. Nationally, 10% of Americans over the age of 60 have experienced some form of elder abuse. Therefore, this “invisible” problem is likely a prevalent one in Vermont.
“Our nation has a moral obligation to protect our elders from all forms of abuse,” stated Acting U.S. Attorney Jonathan A. Ophardt. “Vermonters pride ourselves on our dedication to our communities, and our collective efforts to protect the vulnerable. Over the past two years, the United States Attorney’s Office and our law enforcement partners have noted a marked uptick in the number of financial institutions reporting suspected elder financial exploitation. These have included lottery scams, romance scams, government impersonation scams, and suspected financial exploitation of the elderly by family members and trusted persons. According to federal law enforcement data, in the past 18 months over 200 complaints have been lodged by Vermont seniors, who reported dollar losses of over $1.9 million. I encourage all Vermonters to educate themselves on indicators of elder abuse and to report suspected abuse to authorities. The United States Attorney’s Office will continue to devote investigative and prosecutorial resources to hold bad actors who prey on the elderly accountable for their crimes. We also will continue to raise awareness of this problem to hopefully prevent abuse before it occurs.”If you believe you are a victim of fraud, or know a senior who may be—regardless of financial loss—you may report the fraud directly to the FBI by calling 1-800-CALL FBI, report online at https://tips.fbi.gov, or to the Internet Crime Complaint Center at www.ic3.gov. Suspected elder fraud can also be reported to the National Elder Fraud Hotline at 833-FRAUD-11. The hotline is staffed by experienced case managers who can provide assistance to elders and caretakers through assisting with reporting and referrals to appropriate services. More information on training, resources, research, and victim services is available at www.justice.gov/elderjustice.
Comments from U.S. Attorney General Merrick B. Garland regarding World Elder Abuse Day can be found at the following link: https://www.justice.gov/opa/pr/statement-attorney-general-merrick-b-garland-world-elder-abuse-awareness-day
U.S. Attorney's Office Launches Campaign in Conjunction with World Elder Abuse Awareness DayRead the Press Release
CHARLESTON, W.Va. – The U.S. Attorney’s Office for the Southern District of West Virginia launched a public messaging campaign today in conjunction with the observance of World Elder Abuse Awareness Day (WEAAD), announced Acting United States Attorney Lisa G. Johnston.
A video entitled “Financial Scams -- Deceit and Devastation” is accessible through the office website at https://www.justice.gov/usao-sdwv. Additional messages will soon be broadcast on radio and television stations throughout the district.
The outreach campaign is designed as part of the District’s Elder Justice Initiative (EJI) to highlight various types of schemes that individuals are using to target older Americans and warns the elderly and their family members to be on guard. The U.S. Attorney’s Office is committed to both preventing and prosecuting fraud on our seniors through outreach and enforcement. Raising public awareness is an important step in preventing potential victims from engaging and falling victim to fraudsters.
For more information about the Department of Justice Elder Justice Initiative (EJI), please go to https://www.justice.gov/elderjustice.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim, and identifying relevant next steps. Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals, on a case-by-case basis. Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses. The hotline is staffed 10am-6pm Eastern Time, Monday-Friday. English, Spanish, and other languages are available.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia.
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U.S. Attorney Escalona Recognizes World Elder Abuse Awareness DayRead the Press Release
BIRMINGHAM, Ala. – Today, U.S. Attorney Prim Escalona recognizes World Elder Abuse Awareness Day. This day provides an opportunity for the Department of Justice and the United States Attorney’s Office for the Northern District of Alabama to raise awareness of the abuse, fraud, neglect, and schemes committed against the elderly.
“Our seniors are vital members of our community. Unfortunately, they are often among the most vulnerable,” U.S. Attorney Escalona said. “Prosecuting those who prey on this vulnerable community is a top priority, and we remain committed to pursuing justice for the seniors in Northern Alabama.”
Each year June 15th is recognized as World Elder Abuse Awareness Day. Elder abuse is a serious crime against some of our nation’s most vulnerable citizens, affecting at least 10% of older Americans every year. Elder abuse has harmful impacts at all levels of society:
- Scammers exploit the elderly population through grandparent scams, fake prizes, romance scams, fraudulent Internal Revenue Service refunds, and deliberate extortion.
- Elder abuse triples the risk of premature death and causes unnecessary illness, injury, and suffering.
- Victims of elder abuse are four times more likely to be admitted to a nursing home and three times more likely to be admitted to a hospital.
- Older adults with cognitive incapacity suffer significantly greater economic losses than those without such incapacity.
- Elder abuse can lead to serious physical injuries and long-term psychological consequences.
As a community, we can all raise awareness and help protect elder Americans in the Northern District of Alabama. I encourage you to visit www.elderjustice.gov and learn more about the ways you can assist in our efforts to prevent fraud, neglect, and abuse of elders. To find help or report abuse visit https://www.justice.gov/elderjustice/find-support-elder-abuse.
The FBI Internet Crime Complaint Center (IC3) 2020 Elder Fraud Report was posted today on https://www.ic3.gov/Media/PDF/AnnualReport/2020_IC3ElderFraudReport.pdf. In 2020, IC3 received a total of 791,790 complaints with reported losses exceeding $4.1 billion. Based on the information provided in the complaints, approximately 28% of the total fraud losses were sustained by victims over the age of 60, resulting in approximately $1 billion in losses to seniors. This represents an increase of approximately $300 million in losses reported in 2020 versus what was reported by victims over 60 in 2019. To educate the public and provide as much information on the types of frauds targeting seniors as possible, the IC3 is offering its first publication of the 2020 IC3 Elder Fraud Annual Report. This report is a companion report to the 2020 IC3 Annual Report released in March 2021.
Two South Bay Residents to Face Securities Fraud Charges While A Third Defendant Pleads GuiltyRead the Press Release
SAN FRANCISCO –The office of the United States Attorney for the Northern District of California has filed securities fraud charges against Benjamin J. Wylam and Nathaniel A. Brown in connection with the illegal use of insider information obtained from Sunnyvale-based technology company Infinera Corporation. Each defendant was charged in a separate criminal information filed today. In related proceedings, Naveen Sood has pleaded guilty to one count of securities fraud for engaging in transactions in Infinera securities after receiving material nonpublic information about the company. That guilty plea was made public today.
One criminal information was filed against Brown, 49, of San Jose. According to the Brown information, the defendant was a Senior Revenue Manager employed in Infinera’s finance organization from 2011 to 2017. During the period April 2016 through November 2017, Brown allegedly used deceptive or improper means to collect confidential information related to Infinera’s financial performance and financial projections. Once in possession of the nonpublic information, Brown allegedly used the messaging service WhatsApp, among other means, to share the information with an individual Brown knew would use it to execute securities transactions in Infinera stock.
Another criminal information was filed today against Wylam, 42, of San Jose. The Wylam information alleges that during the period April 2016 through November 2017, Wylam used WhatsApp, among other means, to receive confidential information from another individual about Infinera’s financial performance and financial projections. Wylam allegedly knew when he received the information that it had been obtained through deceptive or improper means but nevertheless used the information for his own use while executing securities transactions in Infinera stock. The Wylam information contains a forfeiture allegation seeking a money judgment of $999,000, alleging that that amount constitutes or is derived from proceeds that Wylam obtained as a result of the criminal violation.
On March 31, 2021, Sood, 49, of Campbell, Calif., signed a written agreement in connection with submitting his guilty plea. The plea agreement was accepted by the Honorable Edward M. Chen, United States District Judge, and today, the agreement was unsealed. According to the plea agreement, Sood admitted that he socialized with two individuals, one of whom he knew regularly had access to confidential information about Infinera’s quarterly financial results and financial prospects before that information became available to the public. In the plea agreement, Sood refers to the individuals as Individual 1, to whom Sood owned a debt in April of 2016 of more than $100,000, and Individual 2, who Sood concluded was an employee of Infinera and was the source of the confidential information. Sood acknowledged that in the spring of 2016, Individual 1 presented him with what was described as an opportunity to get cash to pay off the $100,000 debt by trading in Infinera stock. Individual 1 divulged that Infinera was going to report lower-than-expected revenues for the quarter. In addition, Sood admitted that thereafter, Individual 1 regularly provided him with material nonpublic information about Infinera and, over time, the material nonpublic information he received became more detailed. For example, in August of 2017, Individual 1 informed Sood via WhatsApp that Infinera was going to report actual revenues of $176.8 million and projected revenues of $188 million for the second quarter and third quarter of 2017, respectively. Knowing that these figures fell short of Wall Street analysts’ expectations, Sood purchased put options in Infinera prior to its earnings announcement and later sold the options for a profit of $36,455. Sood admitted that he used his own and another person’s brokerage accounts to execute trades based upon material nonpublic information and that he acquired no less than $215,000 in criminal proceeds from the violations of the law described in the plea agreement.
In sum, Brown, Wylam, and Sood each were charged with one count of securities fraud, in violation of 18 U.S.C. § 1348. The informations contain allegations only; Brown and Wylam are presumed innocent until proven guilty beyond a reasonable doubt in a court of law. If convicted, Brown and Wylam face the same maximum statutory penalties as Sood; the maximum statutory penalties for a violation of 18 U.S.C. § 1348 is 25 years in prison and the greater of either $250,000 or twice the gross gain made from the offense. The court also may order additional terms of supervised release, fines, forfeitures, and restitution; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The next federal court appearance scheduled for Brown is on June 16, 2021, for arraignment and additional proceedings. The next federal court appearance scheduled for Wylam is on June 23, 2021, for arraignment and additional proceedings. The next federal court appearance scheduled for Sood is September 8, 2021, for a status conference.
The Securities and Exchange Commission has filed a separate enforcement action against Brown, Wylam, Sood, and three others. The announcement of that action can be viewed here.
Assistant U.S. Attorney Kyle Waldinger is prosecuting the case with assistance from Kathy Tat. This case was investigated by the FBI. The Department of Justice appreciates the assistance of the Securities and Exchange Commission.
Tulsa Man Convicted of 2019 MurderRead the Press Release
A Seminole Citizen pleaded guilty today in federal court for shooting and killing a man as he tried to flee from the defendant, announced Acting U.S. Attorney Clint Johnson.
“Defendant Anthony Ahaisse was enraged and acted callously when he pulled the trigger and took Gregory Collins’ life in 2019,” said Acting U.S. Attorney Clint Johnson. “This murder case is heartbreaking, and my thoughts today are with Mr. Collins’ friends and loved ones. I am thankful for the joint investigative and prosecutorial work of the Tulsa Police Department, FBI and Assistant U.S. Attorneys Dennis Fries and Rick Cella that helped ensure Ahaisse was brought to justice.”
Ahaisse, 30, of Tulsa, pleaded guilty to second degree murder. If the Court accepts the parties’ plea agreement at sentencing, Ahaisse will receive 420 months in federal prison. U.S. District Judge Claire V. Eagan set sentencing for Oct. 4, 2021.
In his written plea agreement, Ahaisse admitted to murdering Gregory Collins on March 23, 2019, just after 12 am. According to a criminal complaint initially filed in the case, a witness to the crime reported that the victim heard a loud noise outside the home and went to investigate. The victim then ran back to a bedroom and tried to hide under the bed. The woman saw Ahaisse, her ex-boyfriend, enter the room and shoot twice under the bed, striking the victim. The defendant then exited the room.
At approximately 12:20 am, a Tulsa police officer observed a white pickup traveling at a high rate of speed. When the officer attempted to stop the pickup, the driver continued recklessly. Eventually, the driver stopped and was taken into custody and identified as Anthony Ahaisse. The officer observed blood on the defendant’s clothing and discovered a loaded Glock 22 and a shotgun. The Glock recovered from the vehicle was later found to match the ballistics from the crime scene.
The Tulsa Police Department and FBI conducted the investigation. Assistant U.S. Attorney Dennis Fries and Richard Cella prosecuted the case.
Third and Final Defendant Pleads Guilty to Stealing from Railroad CarsRead 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 Paul Krieger, 46, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to breaking into and larceny from interstate carrier facilities. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Laura A. Higgins, who is handling the case, stated that on 10 dates in May and June 2018, the defendant and co-defendants Ray Chrostowski and Nicholas Birdwell went to the railyards in the vicinity of Broadway and Bailey Avenue in Buffalo, broke into railcars using a crowbar, bolt-cutters, and other tools, entered the cars, and stole property. The property included televisions, sound systems, microwaves, sneakers, liquor, tires and rims from vehicles, and UPS shipping parcels. On each occasion, Krieger directed Birdwell and Chrostowski regarding which railcar to enter, what property to remove, where to hide the stolen items, and the manner by which each should conduct themselves in order to conceal their conduct from the attention of law enforcement and railyard personnel.
• On June 8, 2018, the three defendants broke into a railcar carrying automobiles and removed the tires and rims from a 2018 Jeep and a 2018 Dodge.
• On June 22, 2018, the defendants stole approximately 20 cases (120 bottles) of Jefferson bourbon, and sold them for profit.
• On June 26, 2018, the defendants stole a 50-inch Samsung television.Chrostowski and Birdwell were previously convicted and are awaiting sentencing.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the CSX Police, under the direction of Chief Sean Douris.
Sentencing is scheduled for October 12, 2021, before Judge Sinatra.
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The U.S. Attorney’s Office for the Northern District of Georgia celebrates 16th annual World Elder Abuse Awareness DayRead the Press Release
ATLANTA - Acting U.S. Attorney Kurt R. Erskine joins the entire Department of Justice to observe the 16th Annual World Elder Abuse Awareness Day. The Department echoes voices around the world condemning elder abuse, neglect and exploitation.
"One of the Department of Justice’s top priorities is investigating and prosecuting elder abuse, as well as helping to educate the public on these issues.” said Acting U.S. Attorney Kurt R. Erskine. “Financial exploitation is the most common form of elder abuse and is estimated to cost older adults up to $36 billion annually.”
Combatting elder abuse and financial fraud targeted at seniors is a key priority of the Department of Justice. Elder abuse — an intentional or negligent act that causes harm or a serious risk of harm to an older adult — is a serious crime that affects at least 10 percent of older Americans every year. The Department of Justice is steadfastly committed to combatting all forms of elder abuse and financial exploitation through enhancement actions; training and resources; research; victim services; and public awareness.
Acting U.S. Attorney Erskine is joining forces with the U.S. Postal Service, the Prosecuting Attorneys’ Council of Georgia, and the American Bankers Association today to discuss financial fraud scams targeting the elderly and how we can protect ourselves and our loved ones from falling victim. The virtual townhall will be held from 3:00 – 4:00 p.m. Access information is available at https://www.justice.gov/usao-ndga/WEAAD.
As the world takes this day to honor our seniors, the Department of Justice remains committed — through its Department-wide Elder Justice Initiative — to preventing and prosecuting elder abuse.
Regarding prevention, our team routinely engages in community outreach to educate the public on current fraud scams, including by speaking at senior citizen centers, on the radio, and on television. In addition, our office regularly collaborates with our state and local law enforcement partners in the fight against elder abuse.
Our office also is one of seven around the country participating in the Transnational Elder Fraud Strike Force, which focuses on investigating and prosecuting individuals and entities associated with foreign-based fraud schemes affecting American seniors. For example, this past year, our office prosecuted the following:
- On April 29, 2021, in United States v. Mehulkumar Manubhai Patel and Chaitali Dave, the defendants were sentenced for laundering over $500,000 on behalf of India-based phone scammers. The India-based callers posed as federal agents so as to mislead victims into believing that their Social Security numbers were involved in crimes. The callers threatened to arrest the victim if they did not send money. The callers directed victims to mail cash to aliases used by other members of the fraud network, including Patel and Dave.
- On March 15, 2021, in United States v. Louis Beria, the defendant was sentenced to prison for defrauding a company and its elderly owner. The victim was an elderly, German investor who hired Beria to manage an apartment complex that the victim owned in Atlanta. Beria himself owned a separate apartment complex in Atlanta. Beria hired a company to do construction work on the complex that he owned but used the victim’s money to pay for it and lied to the victim about what he did. In total, Beria stole $1,621,979 from the elderly man.
- On February 3, 2021, in United States v. Karla Suzanne Spiker, the defendant was sentenced for her role in laundering money for an international telephone scam. Spiker worked with scammers in India, who sent out robocalls claiming to have an urgent message for the victim. When the victim — mostly elderly or otherwise vulnerable — returned the call, the scammers threatened or cajoled the victims into sending money. Specifically, the scammers told the victims that their Social Security number was used in a crime and that the victim would be arrested unless they paid money, or the scammers offered the victim a reduced mortgage if the victim first paid a fee. Once the victim agreed to make the payments, the scammers directed them to wire or send money to individuals in the United States — including Spiker — who worked for the India-based callers.
- On November 17, 2020, in United States v. Guarav Gupta and E Sampark, the defendants were charged in a first-of-its-kind indictment. Gupta directed and operated E Sampark, a Voice Over IP (VoIP) company that pushed out tens of millions of scam calls from criminal India-based call centers to victims in the United States. Gupta and his company thus provided the technological infrastructure for the India-based scammers to get their fraud calls into the United States, and financially profited from doing so. The callers defrauded the victims by, for example, claiming to be government agents and stating that the victim owed money and would be arrested if they did not pay (either by wiring money or buying gift cards), and by claiming to be from a bank and that the victim was eligible for fictious loans, thus convincing them to provide their bank account information.
On the civil side, this office obtained an injunction under 18 U.S.C. § 1345, shuttering foreign scammers’ access to a server farm in Florida. The first-ever Section 1345 injunction in this District shut down the robocall scammers’ VoIP technology, halting their ability to forward fraudulent calls to U.S. residents. Additionally, this office continues to investigate nursing homes and skilled nursing facilities as part of the Department of Justice Nursing Home Initiative for potential violations of the False Claims Act.
For more information on enforcement actions, training and resources, research, and victim services, please visit www.justice.gov/elderjustice.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Terrebonne Parish Man Pleads Guilty to Violating the Federal Controlled Substances ActRead the Press Release
NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that on June 14, 2021, CAESAR RAYMON WILLIAMS, 42, from Terrebonne Parish, pled guilty as charged to a five- count indictment for two counts of distribution of heroin, one count of distribution of cocaine base, one count of possession with the intent to distribute heroin, and one count of possession with the intent to distribute cocaine base, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(C).
In Count One, WILLIAMS distributed heroin to a confidential source on March 9, 2021. In Counts Two and Three, he sold heroin and cocaine base to a confidential source on March 18, 2021. In Counts Four and Five, on March 25, 2021, law enforcement executed a search warrant on WILLIAMS’s home and discovered that he possessed with the intent to distribute heroin and cocaine base.
Due to WILLIAMS’s extensive criminal history involving drug trafficking, at sentencing, he faces up to a maximum term of imprisonment of twenty (20) years, a maximum fine of up to
$1,000,000, at least 3 years of supervised release following any term of imprisonment, and a $100 mandatory special assessment.
This case was investigated by the U.S. Drug Enforcement Administration, Terrebonne Parish Sheriff’s Office, Houma Police Department, St. Charles Parish Sheriff’s Office, Lafourche Parish Sheriff’s Office, Jefferson Parish Sheriff’s Office, St. John Parish Sheriff’s Office, and the Louisiana State Police. The prosecution is being handled by Assistant United States Attorney Melissa Bücher.
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Tenth and Final Virgin Islands Defendant Involved in Complex Tax Fraud Scheme Convicted by St. Croix Jury in Federal CourtRead the Press Release
ST. CROIX, USVI – After a six-day trial, a federal jury yesterday evening found Jacinta Gussie, age 58 of St. Croix, guilty of Conspiracy to Defraud the United States; four counts of Theft of Government Money; and two counts of Aggravated Identity Theft, United States Attorney Gretchen C.F. Shappert announced today. Gussie faces up to 10 years in prison as a result of her convictions, with a mandatory minimum sentence of two years incarceration for Aggravated Identity Theft convictions, which must be served consecutive to any other sentence imposed, plus a maximum fine of $250,000. In addition, the Defendant may be subject to payment of restitution to the Government.
According to court documents and evidence presented at the trial, from January 2011 to July 2012, Jacinta Gussie and others participated in a scheme to steal money from the United States Treasury by fraudulently obtaining federal income tax refunds. The scheme involved the acquisition of personal identifying information of individuals (i.e. name, social security number, and date of birth) used to electronically file falsified tax returns with a designation of refunds to the acquired bank accounts or debit cards. Defendant and her co-conspirators withdrew the deposited refunds. They subsequently spent the funds, using a debit card, or transferred the funds to other accounts, all for personal use. As a result of the scheme, approximately $44,000 of falsely-claimed returns were deposited into Gussie’s bank account. By means of the scheme, the defendants obtained over $400,000 in illegal tax refunds. The defendants also claimed additional refunds totaling in excess of $100,000 that were not paid.
Of ten defendants charged in the tax fraud scheme, Gussie is the tenth to be convicted. Nine others have entered guilty pleas, five of whom have been sentenced. The remaining defendants are Joanne V. Benjamin, Lynell Hughes, Thema Liverpool, and Nicolette Alexander, pending sentencing.
The case is the culmination of years of investigative work by the Internal Revenue Service, Criminal Investigations, which conducted a probe into a massive stolen identity refund fraud scheme perpetrated in the Virgin Islands and elsewhere.
The case was investigated by the Internal Revenue Service, Criminal Investigations, and is being prosecuted by Assistant U.S. Attorney Melissa P. Ortiz.Sun Valley, California Man Pleads Guilty to Attempted Possession of Six Kilograms of Cocaine with Intent to DistributeRead the Press Release
Baltimore, Maryland – Pedro Avalos, age 33, of Sun Valley, California, pleaded guilty today to attempted possession with intent to distribute at least five kilograms of a substance containing cocaine.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Assistant Special Agent in Charge Orville O. Greene of the Drug Enforcement Administration, Baltimore District Office; Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police; Commissioner Michael Harrison of the Baltimore Police Department; and Anne Arundel County Police Chief Amal Awad.
According to his guilty plea, on February 19, 2020 an officer from the Maryland State Police Parcel Interdiction Initiative working at a mail shipping facility observed a parcel that displayed characteristics of a drug-laden parcel. The parcel was scanned by a narcotics detection K-9, which made a positive alert for controlled substances. Avalos was listed as the recipient.
Investigators searched the parcel pursuant to a search warrant and discovered that the parcel contained a record player. After the record player was dismantled, investigators discovered two rectangular shaped bricks wrapped in plastic and heat-sealed bags. One of the bricks revealed a white powdery substance which later tested positive for cocaine. Subsequent lab analysis confirmed that each brick was positive for cocaine.
Later that day, investigators arranged for a controlled delivery of the parcel. Prior to the controlled delivery, investigators removed and replaced the original two kilograms of cocaine with “sham” cocaine, leaving one ounce of real cocaine from one of the original bricks. An undercover officer posing as a delivery employee approached Avalos’s listed Baltimore delivery address. The residence was a rented property Avalos secured under a fictitious name. Avalos answered the door and accepted the parcel from the undercover officer. Avalos took possession of the parcel and returned into the residence. A few minutes later, Avalos exited the residence and officers placed him under arrest.
During a search of Avalos’s residence, a mail delivery employee approached the residence with a second parcel for delivery. The second parcel listed Avalos as the sender of the parcel and the owner of the residence as the recipient. A narcotics detection K-9 scanned the parcel and made a positive alert for the odor of controlled dangerous substances. The second parcel was searched pursuant to a search warrant. Like the first parcel, the second parcel contained two bricks of cocaine weighing approximately two kilograms hidden inside a record player. Subsequent lab analysis confirmed that each brick was positive for cocaine.
The next day, on February 20, 2020, the owner of the residence called investigators to report that delivery of a third parcel addressed to Avalos was attempted at the residence. Investigators recovered the third parcel and searched it pursuant to a search warrant. Like the first two parcels, the third parcel contained a record player with two kilograms of cocaine hidden inside.
In total, investigators recovered approximately six kilograms of cocaine from the three parcels. Avalos admitted he knowingly and intentionally attempted to possess the cocaine with the intent to distribute.
Avalos faces a maximum of life in prison followed by a mandatory minimum of five years of supervised release for attempted possession with intent to distribute controlled substances. U.S. District Judge Ellen L. Hollander has not scheduled a sentencing hearing at this time.
Acting United States Attorney Jonathan F. Lenzner commended the DEA, the Maryland State Police, Baltimore Police Department, and the Anne Arundel County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Anatoly Smolkin who is prosecuting the case.
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Statement of Attorney General Merrick B. Garland on World Elder Abuse Awareness DayRead the Press Release
U.S. Attorney General Merrick B. Garland today made the following statement in honor of World Elder Abuse Awareness Day:
“The COVID-19 pandemic has exposed and exacerbated injustices faced by far too many of the most vulnerable among us, including older Americans and elderly people around the world. For too long, elderly people have faced abuse, neglect, and exploitation. Even before the beginning of the worst pandemic in more than a century, a study supported by the Justice Department’s National Institute of Justice found that at least one in 10 older Americans are victims of some form of elder abuse each year.
“In observance of World Elder Abuse Awareness Day, the Department of Justice reaffirms its commitment to ending elder abuse in all its forms. Today we also recognize the Justice Department attorneys, investigators, grantmakers, policymakers and professional staff who work tirelessly every day with our partners both outside and inside every level of government across the United States and around the world to advance the cause of elder justice.
“In the days ahead, the Justice Department will continue to use all its available tools to prevent and combat elder abuse, neglect, and exploitation – from enforcement actions to public awareness campaigns, and from training and technical assistance to victims’ services and legal aid. Within the department, the Elder Justice Initiative will step up efforts to seek and deliver justice for older Americans through a coordinated approach. It will continue to lead and work with the Elder Justice Coordinators in all 94 U.S. Attorneys’ office, across our law enforcement and grantmaking components, and alongside the department’s recently-revived Office for Access to Justice. Taken together, the Justice Department’s FY 2022 budget request includes a 44% increase for elder justice efforts above the FY 2021 enacted budget.
“The Justice Department relies on the public’s assistance in remaining vigilant and reporting suspected fraud and abuse. To learn more about our elder justice efforts, find help, or report abuse, please visit the department’s Elder Justice website at www.elderjustice.gov, or call the department’s dedicated National Elder Fraud Hotline at 1-833–372–8311.”
Stamford Man Admits Trafficking Counterfeit Oxycodone Pills Containing Fentanyl AnaloguesRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that VINCENT DECARO, 31, of Stamford, pleaded guilty today before U.S. District Judge Stefan R. Underhill in Bridgeport to a charge related to his manufacturing and distributing counterfeit oxycodone pills containing fentanyl analogues.
According to court documents and statements made in court, Decaro and an associate purchased fentanyl analogues from suppliers in China and, working out of Decaro’s residence at 77 West Hill Circle in Stamford, pressed the drug into counterfeit oxycodone pills, which they sold to customers on dark web markets. David Reichard, who lived for a short time at Decaro’s residence, helped Decaro press pills and mail the pills to customers.
On April 3, 2018, a court-authorized search of Decaro’s residence revealed numerous pills containing approximately 330 grams of fentanyl and acetyl fentanyl, approximately 40 grams of fentanyl analogues in powder form, three pill presses, instructions on how to prepare the fentanyl analogue Carfentanil, a hazardous material suit, a gas/respirator-type mask, and numerous U.S. Postal mail envelopes.
At the time of the search of Decaro’s home in April 2018, Decaro was in Europe. On September 21, 2018, Decaro and his associate were arrested by Albanian State Police as they were attempting to cross the border from Albania into Kosovo. A search of an apartment in Tirana where they had been staying revealed alprazolam, fentanyl and other controlled substances; tools and dies for pressing pills, and instructions for synthesizing fentanyl.
Decaro pleaded guilty to one count of possession with intent to distribute 100 grams or more of fentanyl analogues. Judge Underhill scheduled sentencing for September 10, 2021.
Decaro is released on a $50,000 bond pending sentencing.
Reichard pleaded guilty to a related charge in September 2019 and awaits sentencing.
This matter has been investigated by the U.S. Postal Inspection Service, Drug Enforcement Administration, Connecticut State Police and Stamford Police Department, with the assistance of the Albanian State Police. The case is being prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Acting U.S. Attorney Boyle thanked the U.S. Department of Justice's Office of International Affairs for coordinating the extradition proceedings in this matter.
Stamford Heroin Trafficker Sentenced to More Than 6 Years in Federal PrisonRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOAQUIN VERAS, 47, of Stamford, was sentenced today by U.S. District Judge Kari A. Dooley in Bridgeport to 78 months of imprisonment, followed by five years of supervised release, for trafficking heroin.
According to court documents and statements made in court, in March and May 2019, investigators made two controlled purchases of approximately 100 grams of heroin each from Veras. Investigators then arranged to purchase a kilogram of heroin from Veras for $58,000.
On May 16, 2019, Veras was arrested in possession of approximately one kilogram of heroin. A search of a Stamford apartment that Veras used as a stash location revealed another kilogram of heroin, a quantity of cocaine, items used to process and package narcotics for sale, and $7,000 in cash.
Veras has been detained since his arrest. He pleaded guilty on September 28, 2020.
In August 2011, Veras was sentenced in the Eastern District of New York to 57 months of imprisonment for conspiring to distribute heroin.
This matter was investigated by the Drug Enforcement Administration’s Bridgeport High Intensity Drug Trafficking Area (HIDTA) Task Force and the Stamford Police Department. The Task Force includes personnel from the DEA, Connecticut State Police and Norwalk, Stamford, Stratford, Milford, Bridgeport and Trumbull Police Departments. The case was prosecuted by Assistant U.S. Attorney Joseph Vizcarrondo.
Southern District of Florida Observes the 16th Annual World Elder Abuse Awareness DayRead the Press Release
Miami, Florida -- Today, Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez joins leaders from South Florida’s federal law enforcement community in observing the 16th Annual World Elder Abuse Awareness Day. Each year, on June 15th, people across the world pause for a moment to reflect on the millions of older adults who have suffered abuse, neglect, and exploitation. As part of the observance, the South Florida U.S. Attorney’s Office and its law enforcement partners affirm their ongoing commitment to combatting elder abuse in all its forms.
"Seniors have a right to a safe and dignified life free from all forms of exploitation,” said Acting U.S. Attorney for the Southern District of Florida Juan Antonio Gonzalez. “Those who take advantage of South Florida’s seniors, whether through local criminal acts or through transnational fraud schemes, will be held accountable.”
“Elder fraud takes many shapes and sizes as criminal elements seek to take advantage of this vulnerable and growing population,” said George L. Piro, Special Agent in Charge, FBI Miami. “If you believe you are a victim of fraud, or know a senior who may be, regardless of financial loss, immediately report the incident to your local FBI field office or other law enforcement agency, or by calling 1-800-CALL-FBI or online at https://tips.fbi.gov.”
“It is the elderly that have paved the ways in our communities; therefore, we must strive together to protect them. Abuse of the elderly is inexcusable and will not be tolerated by IRS Criminal Investigation. We will continue our efforts in conjunction with the U.S. Attorney’s Office to bring justice to those who have been financially stripped of their lifelong earnings and victimized by appalling acts,” said Acting Special Agent in Charge Tyler R. Hatcher, IRS Criminal Investigation, Miami Field Office.
The Southern District of Florida is at the forefront of our nation’s elder justice efforts. For example, through their work on the Department of Justice’s Transnational Elder Fraud Strike Force, the South Florida U.S. Attorney’s Office and its partners investigate and prosecute foreign-based criminal organizations that target seniors in schemes including mass mailing fraud, grandparent scams, romance scams, lottery and sweepstakes scams, IRS and Social Security Administration imposter scams, and technical-support scams. Through the Southern District of Florida Covid-19 Fraud Task Force created at the start of the pandemic, they investigate and prosecute criminals who devise coronavirus testing, treatment, and financial relief scams to prey on people with increased vulnerabilities, including seniors who in 2020 quickly found themselves in isolation and at high risk of serious illness.
Recognizing the importance of prevention, the District complements its prosecution efforts with public awareness and education campaigns that seek to help seniors identify, avoid, and report potential fraud or abuse. These include direct outreach to seniors at residential living facilities and adult daycare centers, communicating through print, broadcast, and social media, and otherwise making themselves to concerned seniors and their loved ones.
“By educating others on how to recognize an elder fraud scheme and how to report it, the U.S. Postal Inspection Service and its law enforcement partners are providing the necessary tools to prevent elder victimization,” said Joseph W. Cronin, Inspector in Charge of the U.S. Postal Inspection Service, Miami Division. “We will continue to protect our most vulnerable population of elderly individuals by educating everyone on elder fraud schemes and bringing the fraud schemers to justice, today and every day.”
As the world takes this day to remember seniors, know that the Southern District of Florida’s federal prosecutors and law enforcement officers are relentlessly committed to preventing and prosecuting fraud and abuse on America’s seniors.
Soldiers charged with alien smugglingRead the Press Release
LAREDO, Texas – Two soldiers are set to make appearances in federal court today on allegations they attempted to smuggle two undocumented Mexican citizens to San Antonio, announced Acting U.S. Attorney Jennifer B. Lowery.
Emmanuel Oppongagyare, 20, and Ralph Gregory Saint-Joie, 18, are set to make their initial appearances before U.S. Magistrate Judge Diana Song Quiroga at 1:30 p.m. today.
Saint-Joie is an active duty member of the U.S. Army, while Oppongagyare is from the Pennsylvania National Guard.
According to the charges, Oppongagyare approached the Hebbronville Border Patrol (BP) Checkpoint driving a sedan on the morning of June 13. Saint-Joie was allegedly riding as passenger. Both men were wearing their uniforms, according to the complaint. During primary inspection, Oppongagyare allegedly told authorities they were traveling from Zapata to San Antonio.
Law enforcement referred them to secondary inspection, where they discovered two undocumented Mexican citizens in the trunk of the vehicle, according to the charges.
The complaint alleges they expected to receive an undetermined amount of money to pick up the individuals in McAllen and transport them to San Antonio. They were allegedly told to wear their U.S. Army uniforms in order to avoid questioning from authorities.
If convicted, Oppongagyare and Saint-Joie face up to 10 years in federal prison and a possible $250,000 maximum fine.
BP and Homeland Security Investigations are conducting the investigation.
Assistant U.S. Attorney Brian Bajew is prosecuting the case.
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Septuagenarian charged with manufacturing “ghost guns”Read the Press Release
McALLEN, Texas – A 73-year-old has been charged for selling illegally manufactured and unregistered firearms suppressors destined for a Mexican drug cartel, announced Acting U.S. Attorney Jennifer Lowery.
A federal grand jury returned a three-count indictment today against William Scott Simms. He made his initial appearance May 28 following his arrest, at which time he was ordered into custody pending further criminal proceedings. He is expected to appear again in the near future before a U.S. magistrate judge on the charges contained in the indictment.
Simms is charged with aiding and abetting the attempt to illegally export a silencer, possession of 11 unregistered machine and possession of an unregistered silencer.
Simms allegedly planned to sell illegally manufactured and unregistered firearm suppressors. The alleged recipients were members of a Mexican drug cartel seeking to purchase weapons to be illegally exported into Mexico. The charges further allege Simms illegally manufactured 11 fully-automatic firearms to be sold for $10,000 each.
Simms manufactured the machine guns without any identifying serial numbers, according to the criminal complaint originally filed in the case. Such firearms are commonly known as “ghost guns” because they are more difficult to trace their origins.
If convicted, Simms faces up to 10 years in prison and up to a $10,000 fine for each charge.
The Department of Justice launched Operation Guardian which targeted firearms and illegal export of firearms in November 2019. On April 8, President Biden issued executive orders specifically targeting the manufacturing and transfer of ghost guns.
Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant U.S. Attorney Robert L. Guerra Jr. is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
School Owner Sentenced for Defrauding Department of Veterans Affairs Program Dedicated to Rehabilitating Disabled Military VeteransRead the Press Release
A Maryland man was sentenced Monday to 30 months in prison and ordered to pay $150,000 in restitution for defrauding a U.S. Department of Veterans Affairs (VA) program dedicated to rehabilitating military veterans with disabilities.
According to court documents, Francis Engles, 65, of Bowie, was the owner and operator of Engles Security Training School (Engles Security). In August 2015, Engles Security became an approved vendor of the VA’s Vocational Rehabilitation & Employment program, which provides disabled U.S. military veterans with services. Thereafter, Engles Security obtained over 80% of its total revenue from the VA in exchange for purporting to provide certain courses to disabled military veterans.
To further the scheme, Engles falsely represented to the VA that his company was providing veterans with months-long courses for 40 hours per week and over 600 total hours. In fact, as Engles knew, Engles Security offered veterans far less than what Engles represented to the VA. In some instances, it offered only a few hours of class per day for several weeks. Some veterans did not attend more than one day of class. Engles nevertheless sent to the VA “Certificates of Training” stating that veterans had completed courses that they had not completed or, in some instances, had not taken at all. Similarly, Engles submitted letters to the VA falsely stating that the veterans were employed by Engles’ private security business. Engles also instructed veterans to sign attendance sheets for classes that he knew they did not in fact attend. In total, Engles Security obtained $337,960 from the VA for the purported education of military veterans.
Engles also attempted to obstruct the investigation into his fraud. During an interview with federal agents, Engles lied about veteran students’ attendance at the school and later, when Engles Security was served with a grand jury subpoena, Engles prevented his employee from producing responsive documents that she had gathered. Some of these documents were later discovered in the government’s search of Engles Security’s office.
In February 2019, four other individuals were sentenced in related cases following their guilty pleas. James King, a former VA employee, was sentenced to 11 years in prison for committing bribery, defrauding the VA and obstructing justice. Albert Poawui, the owner of Atius Technology Institute, was sentenced to 70 months in prison for committing bribery. Sombo Kanneh, Poawui’s employee, was sentenced to 20 months in prison for conspiracy to commit bribery. Michelle Stevens, the owner of Eelon Training School, was sentenced to 30 months in prison for committing bribery.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Channing D. Phillips for the District of Columbia; Special Agent in Charge James A. Dawson of the FBI’s Washington Field Office’s Criminal Division; and Special Agent in Charge Kim Lampkins of the VA Office of Inspector General’s Mid-Atlantic Field Office made the announcement.
Trial Attorney Lauren Castaldi of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Peter Lallas of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.
San Antonio man indicted for smuggling cocaine in pickup truck axleRead the Press Release
LAREDO, Texas – A 24-year-old San Antonio resident has been charged with importing 9.6 kilograms of cocaine, announced Acting U.S. Attorney Jennifer Lowery.
A Laredo federal grand jury returned a two-count indictment June 15 against Jonathan Nunez-Gamboa. He is set to appear before U.S. Magistrate Judge Diana Song Quiroga in the near future for his arraignment.
The indictment alleges that on May 26, Nunez-Gamboa applied for entry into the United States from Mexico at the Lincoln-Juarez bridge Port of Entry in Laredo. Authorities observed Nunez-Gamboa nervously shaking and sweating, according to the charges. He also allegedly gave inconsistent travel itineraries. The charges allege authorities then referred him and his truck to secondary inspection.
There, an X-ray scan of the pickup truck revealed anomalies in the rear axle, according to the charges. The indictment further alleges there were 14 packages of narcotics stuffed inside a hollowed-out rear axle. These packages were full of a white powdery substance that field tested positive for cocaine, according to the criminal complaint originally filed in the case.
The cocaine allegedly weighed 9.6 kilograms with an estimated street value of $230,400.
If convicted, Nunez-Gamboa faces up to life in prison as well as a possible $10 million maximum fine.
Homeland Security Investigations conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Paul A. Harrison is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence. A defendant is presumed innocent unless convicted through due process of law.
San Antonio Man Pleads Guilty to Role in Multi-Million Dollar Bribery and Government Contract Fraud SchemeRead the Press Release
SAN ANTONIO – Keith Alan Seguin, a 55-year-old former civilian employee at Randolph Air Force Base in San Antonio, admitted this morning to receiving millions of dollars in bribes in connection with a government contract fraud scheme that spanned more than a decade and impacted hundreds of millions of dollars in contract awards.
Appearing before U.S. District Judge Fred Biery, Seguin pleaded guilty to one count of conspiracy to commit wire fraud and one count of tax fraud and false statements.
According to formal charges, the QuantaDyn Corporation, a software engineering company based in Ashburn, Virginia; its owner, David Joseph Bolduc, Jr, age 60 of Herndon, Virginia; Rubens Wilson Fiuza Lima, age 72 of Atlanta, Georgia; and Seguin all conspired to secure government contracts. Seguin used his position to steer lucrative contracts and sub-contracts to QuantaDyn for aircraft and close-air-support training simulators. Seguin, who was intimately involved in the government contracting process, leaked confidential competitor proposals to a prime contractor who would then subcontract the work to QuantaDyn. He also leaked confidential government budget information to prime contractors and to QuantaDyn, enabling them to maximize profits at government expense. Seguin admitted to accepting more than $2.3 million in bribes from Bolduc and QuantaDyn from 2007 to 2018.
Seguin faces up to 20 years in federal prison for conspiracy to commit wire fraud and up to three years in federal prison for tax fraud and false statements. He remains on bond pending sentencing scheduled for December 7, 2021.
On September 15, 2020, Judge Biery placed QuantaDyn on probation for five years and ordered the corporation to pay a $6.3 million fine and more than $37 million in restitution for conspiracy to commit wire fraud. In addition to the fines and restitution, Judge Biery ordered QuantaDyn to pay a forfeiture money judgment in the amount of $22,834,526.31 as well as the forfeiture of seized funds in corporate accounts totaling over $7 million.
U.S. Attorney Ashley C. Hoff; Special Agent in Charge Jamie Willemin of the General Services Administration—Office of the Inspector General (GSA-OIG), Greater Southwest and Rocky Mountain Investigations Division; Special Agent in Charge Richard D. Goss of the Internal Revenue Service-Criminal Investigation (IRS-CI), Houston Field Office; Special Agent in Charge Michael Mentavlos of the Defense Criminal Investigative Service (DCIS), Southwest Field Office; Special Agent in Charge Ray Rayos of the U.S. Army Criminal Investigation Command, Southwestern Fraud Field Office (USACID); and, Special Agent in Charge Blair Holmstrand of the Air Force Office of Special Investigations (AFOSI), Procurement Fraud Detachment 3 in San Antonio made today’s announcement.
Bolduc and Fiuza Lima are charged by federal indictment with one count of conspiracy to defraud the U.S., one count of conspiracy to commit wire fraud and one count of conspiracy to commit money laundering. Upon conviction, Bolduc and Fiuza Lima would face up to five years imprisonment for conspiracy to defraud the U.S., up to 20 years for conspiracy to commit wire fraud and up to 20 years for conspiracy to commit money laundering. They would also face up to $1 million in fines. Jury selection for Bolduc and Fiuza Lima is scheduled for January 24, 2022.
The indictment further alleges that a portion of the bribe money paid to Seguin was laundered through Fiuza Lima’s business, Impex, Inc., for a 10 percent fee.
The GSA-OIG, IRS-CI, DCIS, USACID, and AFOSI continue to investigate this case. Individuals who may have information about this scheme or these defendants are asked to call the GSA-OIG fraud reporting hot line at (800) 424-5210, send an email to [email protected], or go online to www.gsaig.gov and click on the “report FRAUD” link. U. S. Attorney Hoff extends her appreciation to the U.S. Attorney’s Offices in the Eastern District of Virginia, Southern District of Ohio and Northern District of Georgia for their valuable assistance.
Assistant U.S. Attorney William F. Lewis, Jr, Special Assistant U.S. Attorney Jay Porier and Assistant U.S. Attorney Alan Buie are prosecuting this case.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. Bolduc and Fiuza Lima are presumed innocent until proven guilty in a court of law.
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Real Estate Developer Sentenced to over Five Years in Prison for Conspiring to Commit ArsonRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, John B. DeVito, the Special Agent in Charge of the New York Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”), Dermot Shea, the Commissioner of the New York City Police Department (“NYPD”), and Daniel A. Nigro, Commissioner of the New York City Fire Department (“FDNY”), announced that DANIEL MELAMED, a/k/a “Danny,” a real estate developer in New York City, was sentenced to 66 months in federal prison for participating in a conspiracy to commit arson in which he directed that multiple fires be set at residential buildings whose occupants he wished to vacate in order to develop the premises. MELAMED previously pled guilty to participating in a conspiracy to commit arson, before United States District Judge Lewis A. Kaplan who imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Almost a decade ago, Daniel Melamed decided that he could use his power and influence as a real estate developer to burn families out of their homes, homes that he wanted to develop and flip at a profit. As he learned when he was first arrested almost two years ago and was reminded again today, we will fight fire with fire and together with our partners in the ATF, the NYPD, and the FDNY bring to justice anyone who seeks to terrorize the members of this community through arson. And if you are a real estate developer in this city and think that you are above the law, then think again, unless you want to see your own plans go up in smoke.”
ATF Special Agent in Charge John B. DeVito said: “Arson is inherently dangerous, and we simply cannot allow it. I hope this sentencing acts as a significant deterrent for others who may consider committing this heinous crime. We are thankful that Melamed’s criminal actions did not cost anyone their life and that justice can be served in this case. ATF will continue to work with our law enforcement partners at the federal, state, and local levels to investigate and prosecute individuals who show a callous disregard for the safety of our community.”
FDNY Commissioner Daniel A. Nigro said: “Setting fires in residential buildings while occupants are sleeping is a truly despicable crime. These fires endangered the lives of the innocent residents and the Firefighters who bravely responded to save them. I applaud our Fire Marshals, members of the NYPD and ATF, and the U.S. Attorney’s office for their efforts to bring this individual to justice.”
According to the allegations contained in the Superseding Indictment, other court filings, publicly-available information, and statements made in public court proceedings:
Between 2011 and 2013, MELAMED directed his co-defendant and co-conspirator, Curtis Williams, to set multiple fires at residential buildings that MELAMED wished to develop and was planning to acquire or had recently acquired. The purpose of the fires was to terrorize and thereby drive out the occupants of these residential buildings, whose lawful removal achieved through eviction or voluntary buyout payments proved too burdensome for MELAMED, either because of the time or cost involved to achieve a vacant premises otherwise deemed ripe for development. MELAMED paid Williams to set the fires, and in turn, Williams retained another individual to set the fires, which were uniformly set at night when the occupants of the targeted properties were asleep. Ultimately, the investigation into these fires determined that MELAMED had directed Williams to use fire to vacate at least three occupied residential buildings at which a total of five separate fires were set. Although no person was physically harmed as a result of these fires, certain of the fires resulted in substantial damage, particularly in the case of a single-family home in Albertson, New York, which was largely incinerated and from which the members of the family who lived there escaped with their lives but not any of their multiple pets, who were burned alive, or their belongings, which were largely destroyed. As late as 2019, in video-recorded meetings between MELAMED and Williams, MELAMED discussed with Williams vacating another occupied residential building, which MELAMED owned, by either illegally cutting its utility lines or setting fire to it, the latter option being discussed using the term “milk” or the phrase “pour milk,” which was MELAMED’s coded terminology for using fire to vacate the occupants of a building. Following these meetings, MELAMED was arrested and ordered detained in November 2019.
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In addition to his prison term, MELAMED, 43, of Great Neck, New York, was sentenced to 3 years of supervised release and was ordered to forfeit $500,000 and pay a further fine of $50,000.
Curtis Williams, 52, pled guilty to participating in a conspiracy to commit arson, and multiple counts of arson, on April 14, 2021. A sentencing date has not yet been set.
Ms. Strauss praised the dogged and outstanding investigative work of the New York City Arson Explosives Task Force. The New York City Arson Explosives Task Force comprises Special Agents and Task Force Officers from multiple federal, state, and local law-enforcement agencies, including the ATF, NYPD, and FDNY. Ms. Strauss also thanked the Kings County District Attorney’s Office for its substantial contributions and ongoing assistance to the investigation culminating in MELAMED’s conviction and sentence.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Kyle Wirshba and Thomas John Wright are in charge of the prosecution.
Puerto Rican Man and Buffalo Man Going to Prison for Selling CocaineRead 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 Harold Alexis Ortiz Cosme, 26, of Puerto Rico, and Luis G. Candelario, 26, of Buffalo, were each sentenced to serve 37 months in prison by U.S. District Judge John L. Sinatra, Jr.
Assistant U.S. Attorney Charles E. Watkins, who handled the case, stated that on February 7, 2020, a federal search warrant was executed on a suspicious parcel in Puerto Rico addressed to “Harold Ortiz.” The package contained approximately one kilogram of cocaine, which was replaced with sham and sent on to its destination. On February 12, 2020, a controlled delivery of the package was conducted at a residence on Grant Street in Buffalo, which was rented by defendant Candelario in furtherance of the conspiracy. Candelario received the package, then got into a vehicle and took the package to defendant Cosme, who placed it in the trunk of his vehicle. Investigators conducted a traffic stop of both vehicles and recovered the parcel. A search of the Grant Street residence found the apartment devoid of any furniture, except for a chair located at a window with a clear view of the street and mailbox, suggesting that the sole purpose of the apartment was to possess narcotics in furtherance of the conspiracy. The defendants were subsequently arrested.
The sentencings are the result of an investigation by the U.S. Postal Inspection Service, under the direction of Boston Division Acting Inspector-in-Charge Joshua W. McCallister, and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Postal Worker Pleads Guilty to Sealing over $90,000 in Cash and Stamps from the Postal ServiceRead 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 Lisa Mesler, 55, of Niagara Falls, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to theft of government money. The charge carries a maximum penalty of 10 years in prison and a fine of $250,000.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that between October 2017 and June 2018, the defendant, while employed by the United States Postal Service as a Station Manager at the Cheektowaga, NY, Branch, stole $63,265.96 from the cash register drawers of sales associates, which she supervised. Mesler stole money on 53 different occasions. Also, on multiple occasions during that time period, the defendant stole stamps. The value of the stamps stolen was $28,265.30.
The plea is the result of an investigation by the United States Postal Service, Office of Inspector General, under the direction of Special Agent-in-Charge Kenneth Cleevely, Eastern Area Field Office, Pittsburgh, PA, and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for October 13, 2021, at 3:00 p.m. before Judge Sinatra.
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Portales man sentenced for failure to update sex offender registrationRead the Press Release
ALBUQUERQUE, N.M. – Erich Deolax Riker, 44, of Portales, New Mexico, was sentenced today in federal court to seven years and three months in prison for failing to update his sex offender registration.
On Sept. 22, 2020, Riker pleaded guilty to an indictment charging him with this offense. According to the indictment and other court records, Riker, under the name of Jamie Lee Wood, was previously convicted of three separate criminal sexual offenses in Minnesota.
While living in Portales, New Mexico, Riker was arrested by the New Mexico State Police on Nov. 13, 2019, in the course of an unrelated criminal investigation. Riker had failed to register as a sex offender in Roosevelt County, New Mexico between Oct. 10, 2019, and Nov. 13, 2019. He also had previously failed to register as a sex offender in Oregon and Minnesota.
Upon his release from prison, Riker will be subject to five years of supervised release and a lifetime of sex offender registration pursuant to the Sex Offender Registration and Notification Act upon his release.
The Roswell office of the United States Marshal Service investigated this case with assistance from the New Mexico State Police. The Criminal Division of the Office of the U.S. Attorney for the District of New Mexico prosecuted the case.
Pittsburgh Man Pleads Guilty to Violation of Federal Firearm LawsRead the Press Release
PITTSBURGH, PA – A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to a to a violation of federal firearms laws brought in connection with a large-scale investigation conducted by the Greater Pittsburgh Safe Streets Task Force, Acting United States Attorney Stephen R. Kaufman announced today.
Jaimone Robinson, 21, pleaded guilty to one count of possession of a firearm in furtherance of a drug trafficking crime, before United States District Judge William S. Stickman, IV. Mr. Robinson is one of 40 defendants charged in the Indictment and Superseding Indictment returned in the case.
In connection with the guilty plea, the court was advised that on January 12, 2019, Robinson was arrested by City of Pittsburgh police officers following the seizure of approximately 3 grams of a fentanyl and heroin mixture and a Ruger pistol with an obliterated serial number from the vehicle he had been driving. Text messages retrieved from his seized cell phone established that Robinson had obtained the fentanyl/heroin mixture shortly before his arrest from his co-defendant, Christopher Highsmith, and that he intended to sell the drugs to other individuals.
Judge Stickman scheduled sentencing for October 21, 2021, at 10:30 a.m. The law provides for a total sentence of not less than five (5) years and not more than life in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United State Attorneys Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the Bureau of Alcohol Tobacco Firearms and Explosives, Allegheny County Adult Probation, Allegheny County Police Department, Allegheny County Sheriff’s Office, Pennsylvania Attorney General’s Office Bureau of Narcotics, Pittsburgh Bureau of Police, and the Wilkinsburg Police Department. Other assisting agencies include the Green Tree Police Department, New York City Police Department, Mount Oliver Police Department, Pennsylvania State Police, Yonkers Police Department, United States Marshals Fugitive Task Force, and the United States Postal Inspection Service.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Philadelphia Man Charged with Stealing Nearly $1 Million in PPP FundsRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Devron Brown, 50, formerly of Philadelphia, PA, was arrested and charged by Indictment with two counts of bank fraud and nine counts of money laundering in connection with an alleged scheme to unlawfully obtain and misuse loan proceeds offered through the federal Paycheck Protection Program (“PPP”).
The Indictment alleges that, in June 2020, the defendant fraudulently obtained approximately $937,500 in PPP loan proceeds, pursuant to a PPP loan application that contained false representations regarding his alleged construction business, Just Us Construction Inc. According to the Indictment, Brown allegedly made multiple false characterizations about Just Us Construction, including the number of employees, the wages paid to them, the payroll taxes paid on those wages, and the intended use of the PPP loan proceeds. It is also alleged that Brown used those PPP loan proceeds for personal and unauthorized purchases, including a new residential property in Florida, a motorcycle, an all-terrain vehicle, a luxury automobile, and diamond jewelry. The defendant also allegedly caused a second fraudulent PPP loan application to be submitted for approximately the same amount in early 2021, but that application was denied.
“Paycheck Protection Program funds are intended to help American small-businesses continue paying their employees, even if revenues have dropped dramatically due to the pandemic,” said Acting U.S. Attorney Williams. “Thieves who attempt to take these funds are taking advantage of others’ misfortune – ripping them off while also ripping off all taxpayers who fund the program. As alleged, Brown fraudulently obtained nearly $1 million in funds that could have helped struggling businesses and individuals.”
“The Paycheck Protection Program was created to provide emergency financial assistance to businesses and employees battered by the pandemic,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Unfortunately, criminal opportunists with dollar signs in their eyes promptly got to work trying to defraud the federal government by seeking a cut of the funds. The FBI will continue to aggressively pursue those using the money from the PPP to bankroll their own lavish lifestyles at taxpayers’ expense.”
If convicted of all charges, the defendant faces a maximum possible sentence of 150 years of imprisonment, three years of supervised release, a $4,250,000 fine, restitution, and an $1100 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Federal Housing Finance Agency, Office of Inspector General, and is being prosecuted by Assistant United States Attorney Kathryn Deal.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pennsylvania man sentenced for role in drug conspiracyRead the Press Release
WHEELING, WEST VIRGINIA – Zjaondezel Solomyn Douglas, of Zelionople, Pennsylvania, was sentenced today to 33 months of incarceration for his role in a cocaine, crack cocaine, heroin, and fentanyl distribution operation, Acting U.S Attorney Randolph J. Bernard announced.
Douglas, 37, pleaded guilty in January 2021 to one count of “Aiding and Abetting Distribution of Cocaine Base.” Douglas admitted to working with another to distribute cocaine base, also known as “crack,” in August 2018 in Hancock County.
Assistant U.S. Attorneys Danae DeMasi-Lemon prosecuted the case on behalf of the government. The Drug Enforcement Administration; the Hancock-Brooke-Weirton Drug & Violent Crimes Task Force, a HIDTA-funded initiative; the West Virginia State Police; the Marshall County Drug & Violent Crimes task Force, a HIDTA-funded initiative; The Ohio Valley Drug & Violent Crimes task Force, a HIDTA-funded initiative; the Jefferson County, Ohio, Drug & Violent Crimes Task Force; the Hancock County Sheriff’s Office; the Brooke County Sheriff’s Office; the Weirton Police Department; and the West Virginia Division of Natural Resources Police investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. District Judge John Preston Bailey presided.
Related case press release: https://www.justice.gov/usao-ndwv/pr/ohio-west-virginia-and-pennsylvania-residents-indicted-drug-conspiracy-ohio-valley
New York Man Sentenced to Two Years in Prison for Role in Loan FraudRead the Press Release
NEWARK, N.J. – A New York man was sentenced today to 24 months in prison for his role in a $3.5 million scheme to use false information and simultaneous loan applications at multiple banks to fraudulently obtain home equity lines of credit, a practice known as “shotgunning,” Acting U.S. Attorney Rachael A. Honig announced.
Simon Curanaj, 67, of Yonkers, New York, previously pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with conspiracy to commit bank fraud. Judge Vazquez imposed the sentence by videoconference today.
According to documents filed in the case and statements made in court:
From 2012 through January 2014, Curanaj, Michael Arroyo, and others conspired to fraudulently obtain multiple home equity lines of credit (HELOCs) from banks on residential properties in New Jersey and New York, including a residential property on Havermeyer Avenue in the Bronx. In 2013, Curanaj, Arroyo, and others transferred ownership of the property to an individual living at the property and his family friend.
Curanaj, Arroyo, and others then applied, in the family friend’s name, for two HELOCs from two banks using the Havermeyer Avenue property as collateral. They hid from the lenders the fact that the property was either already subject to senior liens that had not yet been recorded, or that the same property was offered as collateral for a line of credit from another lender. The applications also falsely inflated the family friend’s income without his knowledge. In addition, the equity in the property was far less than the amount of the HELOC loans Curanaj, Arroyo, and others applied for.
The victim banks eventually issued loans to the family friend in excess of $500,000. After the victim banks deposited money into the family friend’s bank accounts, portions of the funds were disbursed to Curanaj, Arroyo, and others. Eventually, the family friend defaulted on the two HELOC loans. The overall scheme resulted in $2.2 million in losses to the victim banks.
In addition to the prison term, Judge Vazquez sentenced Curanaj to five years of supervised release and ordered him to pay $2.1 million in restitution. Arroyo was sentenced in September 2018 to 21 months in prison for his role in the scheme.
Acting U.S. Attorney Honig credited special agents of the Federal Housing Finance Agency (FHFA) – Office of Inspector General, under the direction of Special Agent in Charge Robert Manchak in Newark, and special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason S. Gould of the U.S. Attorney’s Office Criminal Division in Newark and Special Assistant U.S. Attorney Kevin DiGregory of the FHFA, Office of the Inspector General.Natchez Man Sentenced to 15 Months in Federal Prison for Possessing a Firearm as a Convicted FelonRead the Press Release
Jackson, Miss. – A Natchez man was sentenced today to 15 months in prison, followed by 3 years of supervised release, for possessing a firearm as a convicted felon, announced Acting United States Attorney Darren J. LaMarca and Special Agent in Charge Kurt Thielhorn with the Bureau of Alcohol, Tobacco, Firearms, and Explosives.
According to court documents, Adams County Sheriff’s deputies encountered Roy Ray III, 20, while searching for a wanted person. Although he was not the person deputies were looking for, Ray was in possession of a firearm and deputies knew a warrant had been issued for him over probation violations.
Ray was charged in a federal criminal indictment with possession of a firearm by a convicted felon. He pled guilty on March 16, 2021.
The Adams County Sheriff’s Office and the Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated the case.
Assistant U.S. Attorney Bert Carraway prosecuted the case.
This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
Naples Man Sentenced to 15 years for Drug and Firearm ChargesRead the Press Release
PORTLAND, Maine—A Naples man was sentenced today in federal court in Portland for drug trafficking and firearm offenses, Acting U.S. Attorney Donald E. Clark announced.
Chief U.S. District Judge John D. Levy sentenced Sean Mulkern, 54, to 15 years in prison followed by five years of supervised release. Mulkern was also ordered to forfeit over $13,000 in drug proceeds. He pleaded guilty on March 14, 2019.
According to court records, on May 25, 2017, Westbrook police officers conducted a traffic stop of Mulkern. When officers searched his vehicle, they found cocaine, cocaine base and heroin. They also found approximately $13,000 in cash, a digital scale and a loaded 9 mm pistol close to the drugs. Investigators then executed a search warrant at Mulkern’s Naples residence and found additional quantities of cocaine base, a digital scale and four more firearms.
Because the Court found that Mulkern had two prior drug trafficking convictions and one prior burglary conviction, he was subject to enhanced penalties under the Armed Career Criminal Act.
The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Maine Drug Enforcement Agency; and the Buxton and Westbrook Police Departments investigated the case.
This case was part of Project Safe Neighborhoods (PSN), a nationwide initiative that brings together federal, state, local, and tribal law enforcement officials, prosecutors, community leaders, and other stakeholders to identify the most pressing violent crime problems in a community and develop comprehensive solutions to address them. PSN is coordinated by the U.S. Attorneys’ Offices in the 94 federal judicial districts throughout the 50 states and U.S. territories.
Montgomery County Defendant Charged with Possession of Molotov CocktailRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Jacob Dean Robotin, 25, of Willow Grove, PA, was arrested and charged by Criminal Complaint on charges of possessing an unregistered destructive device, specifically, a homemade firebomb, also known as a “Molotov cocktail.”
The Complaint alleges that, on the evening of December 31, 2020, members of a large group of individuals wearing dark clothing vandalized the Federal Detention Center, the Robert C. Nix Federal Building, and other property in Center City Philadelphia by spray painting, setting off fireworks, and breaking windows. Shortly thereafter, at 600 Sansom Street, Philadelphia Police officers stopped three individuals, including the defendant. Robotin had a green, military-style backpack and was wearing dark clothing with spray paint on Robotin’s pants. After other police officers identified the three individuals as being among the larger group which had members participating in the vandalism of the Nix Building that evening, officers placed Robotin and the other two individuals under arrest.
According to the Complaint, officers found a glass bottle containing liquid and fuses, along with some tape inside Robotin’s backpack. Officers noticed that the glass bottle had a heavy odor of flammable liquid. In addition, the backpack contained additional fuses, lighters, camping heat sources, and fireworks, among other items. The Philadelphia Police Bomb Disposal Unit took custody of these items and later transferred custody of the items to the FBI. The Explosives Unit of FBI’s Laboratory later determined that the glass bottle contained gasoline, and together with the fuses, comprised a homemade firebomb, or Molotov cocktail.
Earlier today, Robotin was arrested by the FBI and had an initial appearance in federal court. The defendant has been released on conditions.
“Homemade Molotov cocktails can be incredibly dangerous,” Acting U.S. Attorney Williams said. “Here, the defendant is alleged to have carried all of the materials needed to endanger the lives of many people. Luckily, Philadelphia Police arrested Robotin before anyone was hurt. Let this case serve as a warning to others who might consider acting in a similar way – possession of a Molotov cocktail is not protected speech nor harmless hijinks; it is a serious federal crime.”
“Molotov Cocktails are incendiary weapons which pose a significant danger to the entire community,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “There is no telling what future acts of violence were prevented because of the swift action of law enforcement. ATF will continue to work alongside our local, state and federal partners to protect our communities against violent crime.”
“Robotin allegedly took to the streets of Center City on New Year’s Eve, armed with a dangerous incendiary device and components for more,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “People don’t casually stroll around with a Molotov cocktail in their bag, just for fun. It’s fortunate that Philadelphia police officers stopped and this defendant and found the firebomb before it did any damage or hurt someone.”
If convicted, the defendant faces a maximum possible sentence of 10 years in prison, followed by three years of supervised release, and a fine of up to $250,000.
The case was investigated by the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms, and Explosives; and the Philadelphia Police Department, and is being prosecuted by the United States Attorney’s Office for the Eastern District of Pennsylvania.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Massachusetts Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Alvaro Soto-Martinez, 35, of Haverhill, Massachusetts pleaded guilty in federal court on Monday to possession of fentanyl with the intent to distribute, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in November 2019, a New Hampshire State Trooper conducted a motor vehicle stop in Greenland. The occupants of the vehicle both were subjects of outstanding arrest warrants and were taken into custody.
The State Police obtained a search warrant for the vehicle and seized approximately 106 grams of fentanyl.
Investigators learned that the fentanyl had been obtained earlier that day from Soto-Martinez at a parking lot in Seabrook. Law enforcement officers had one of the vehicle’s occupants arrange for a second delivery of 100 grams of fentanyl from Soto-Martinez at the same location. After Soto-Martinez arrived to make the second delivery, he was arrested while in possession of approximately 100 grams of fentanyl.
Soto-Martinez is scheduled to be sentenced on September 23, 2021.
“Fentanyl is a deadly drug that continues to cause damage to individuals and communities throughout New Hampshire,” said Acting U.S. Attorney Farley. “The law enforcement community is united in its efforts to identify and prosecute the fentanyl traffickers who are bringing this dangerous substance into the Granite State.”
This matter was investigated by the Drug Enforcement Administration and New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney Jennifer Cole Davis.
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Man from Albuquerque sentenced to 22 years in federal prison for multiple armed robberiesRead the Press Release
ALBUQUERQUE, N.M. – Shakeam Kinney, 32, of Albuquerque, was sentenced in federal court on June 10 to 22 years and five months in prison for interference with interstate commerce by robbery and violence, possessing and discharging a firearm in furtherance of a crime and being a felon in possession of firearm and ammunition. Kinney pleaded guilty on Feb. 7, 2020.
According to the plea agreement and other court records, on March 19, 2018, Kinney and his accomplice, Lalonzo Simmons, 46, entered an Albuquerque business through the back of the store armed with firearms when they encountered two employees. Kinney demanded the phone of one of the employees, and when the employee initially did not give Kinney the phone Kinney discharged his weapon. Shortly after, Kinney and Simmons fled the store after taking the money from the register.
On Apr. 3, 2018, Kinney and Simmons robbed an Albuquerque marijuana dispensary at gunpoint and fled the store with stolen money and large amounts of marijuana. On May 1, 2018, Kinney and Simmons, robbed another Albuquerque dispensary at gunpoint. Kinney entered the business and discharged his weapon into the ceiling, demanding money and merchandise and threating an employee. Kinney and Simmons fled the store with stolen money and marijuana. Soon after, Kinney was arrested by law enforcement at his apartment.
On Dec. 26, 2019, Simmons pleaded guilty to interference with interstate commerce by robbery and violence, possessing and discharging a firearm in furtherance of a crime and being a felon in possession of a firearm and ammunition. Simmons is currently in custody awaiting sentencing, which has not been scheduled yet.
Upon his release from prison, Kinney will be subject to five years of supervised release.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Albuquerque Police Department investigated the case. Special Assistant U.S. Attorney Timothy D. Trembley prosecuted the case.