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11 June 2021
Two PA Chiropractic Practices Pay over $800,000 to Resolve Alleged False Claims Act Liability Arising from Billing of P-Stim DevicesRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that two related, integrative chiropractic practices and their chiropractor owners have agreed to make payments totaling $805,978 to resolve liability under the False Claims Act for the alleged improper billing of P-Stim electro-acupuncture devices, in these cases branded ‘ANSiStim.’
The settling parties are: (1) Discover Optimal Healthcare of Brookhaven, PA, with its owner, Jason Weigner, and his affiliate Weigner Healthcare Management Group, LLC (collectively, “Weigner”); and (2) Yucha Medical Pain Management & Chiropractic Rehabilitation, LLC of Pottstown, PA, and its owners, Randolph E. Yucha and Rodney Gabel (collectively, “Yucha”).
Chiropractors are generally limited in what services they can bill to federal healthcare programs (more information here). However, integrative chiropractic practices such as Weigner and Yucha may in certain circumstances bill additional services to federal healthcare programs through affiliated medical providers, in this case a medical doctor contractor. From approximately September 2016 to February 2017, Weigner and Yucha separately billed Medicare, and Weigner also billed the Federal Employees Health Benefit Program, for the implantation of neuro-stimulators – a surgical procedure which usually requires an operating room and which is reimbursed by federal healthcare programs – when in fact the only procedures performed had been the non-surgical application of ANSiStim by a non-surgeon contractor physician. ANSiStim is another brand name for the P-Stim device, which is also branded as NeuroStim, Stivax, E-Pulse, and NSS-2 Bridge. ANSiStim devices are applied with an adhesive and insertion of a limited number of needles; their application does not involve surgery or anesthesia, nor does it take place in an operating room. Federal healthcare programs do not reimburse for devices such as ANSiStim, whether they are characterized as an electro-acupuncture device or as an implantable neuro-stimulator. Weigner promoted this scheme to Yucha and received a portion of Yucha’s profits.
For the fraudulently billed P-Stim services here, Weigner previously repaid $306,342 to Medicare and will pay an additional $356,150. Likewise, Yucha had repaid $94,089 to Medicare and will pay an additional $49,397.
“As we have said before, the application of P-Stim devices is not surgery and should not be billed using the surgical codes improperly pushed by marketers,” said Acting U.S. Attorney Williams. “If a marketer pushes a healthcare scheme like P-Stim that sounds too good to be true, it likely is – and you shouldn’t agree to it.”
These are the fourth and fifth P-Stim provider settlements announced in this District as part of an ongoing investigation. Other jurisdictions including the Southern District of Texas, the Southern District of Georgia, and the Middle District of Tennessee have also taken action to hold providers accountable.
Acting U.S. Attorney Williams continued: “Our continued enforcement through this series of cases has already recovered millions and is a lesson to anyone who might consider a similar fraudulent billing scheme – especially those that prey on vulnerable Medicare beneficiaries looking for legitimate pain management solutions. You will be held accountable by our Office and our partners at the Centers for Medicare & Medicaid Services’ Center for Program Integrity, the Department of Health and Human Services Office of Inspector General, other federal healthcare programs, state partners, and sister U.S. Attorney’s Offices around the country. And if you have already been involved in such a scheme, it is better to come forward and self-disclose than have us find you, as we will.”
“Every time DOJ stops a provider who is committing fraud, it protects patients and improves the sustainability of the Medicare program,” said Chiquita Brooks-LaSure, Administrator for the Centers for Medicare and Medicaid Services (CMS). “Actions like this to combat fraud, waste and abuse in our federal programs would not be possible without the successful partnership of CMS, the Department of Justice and Department of Health and Human Services Office of Inspector General.”
“Accurately billing for services provided to Medicare beneficiaries is required of all health care providers,” said Maureen R. Dixon, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of the Inspector General. “HHS-OIG, CMS’s Center for Program Integrity, and the U.S. Attorney’s Office will continue to evaluate and pursue inaccurate billings of P-Stim and similar devices.”
The settled civil claims are allegations only. There has been no determination of civil liability. This case was investigated by the U.S. Department of Health and Human Services Office of the Inspector General. It was handled by Assistant U.S. Attorney Matthew E. K. Howatt, Civil Chief Gregory B. David, and Auditor Dawn Wiggins.
Two Charged as Co-Conspirators for Nearly $1 Million COVID-19 Relief Fraud Scheme and Money LaunderingRead the Press Release
A New York man and an Oklahoma woman were arrested Wednesday in Buffalo, New York and Altus, Oklahoma, respectively, on a criminal complaint filed in the Western District of New York charging them for their roles in fraudulently obtaining and laundering nearly $1 million in funds from the COVID-19 relief Paycheck Protection Program (PPP).
According to court documents, from May 2020 through October 2020, Adam D. Arena, 44, of Buffalo, and Amanda J. Gloria, 44, of Altus, allegedly conspired to fraudulently obtain and misuse a nearly $1 million PPP emergency relief loan through the U.S. Small Business Administration (SBA). Arena and Gloria allegedly submitted a false loan application to an SBA‑approved participating lender on behalf of a defunct business owned by Arena called ADA Auto Group LLC. This loan application allegedly contained materially false representations and certifications about Arena’s business and how the loan would be used. After fraudulently obtaining the loan, Arena and Gloria are alleged to have misused the loan proceeds on personal expenses the purchase of two cars.
Arena is charged with one count of conspiracy to commit bank fraud, one count of conspiracy to engage in monetary transactions with criminally derived proceeds, one substantive count of bank fraud, and three substantive counts of engaging in monetary transactions with criminally derived proceeds. Gloria is charged with one count of conspiracy to commit bank fraud, one count of conspiracy to engage in monetary transactions with criminally derived proceeds, one substantive count of bank fraud, and one substantive count of engaging in monetary transactions with criminally derived proceeds.
Arena made his initial court appearance Wednesday before U.S. Magistrate Judge Michael J. Roemer of the U.S. District Court for the Western District of New York. Gloria made her initial appearance today before U.S. Magistrate Judge Shon T. Erwin of the U.S. District Court for the Western District of Oklahoma. If convicted, Arena and Gloria each face a maximum penalty of 30 years in prison for each conspiracy and substantive count of bank fraud, and a maximum of 10 years in prison for each conspiracy and substantive count of engaging in monetary transactions with criminally derived proceeds. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; U.S. Attorney James P. Kennedy Jr. for the Western District of New York; Special Agent in Charge Stephen Bolongia of the FBI’s Buffalo Field Office; and Acting Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) Criminal Investigation Division made the announcement.
The FBI and IRS-CI are investigating the case.
Trial Attorney Cory E. Jacobs of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Laura A. Higgins of the U.S. Attorney’s Office for the Western District of New York are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Alleged Boston Gang Members Sentenced for Cocaine Trafficking and Firearm PossessionRead the Press Release
BOSTON – Two alleged Boston gang members were sentenced this week in federal court in Boston for cocaine conspiracy and firearm charges.
Winston McGhee, 36, of Dorchester, was sentenced yesterday by U.S. District Court Judge Richard G. Stearns to 115 months in prison, six years of supervised release and ordered to pay forfeiture of $24,984.
Eric Davis, 37, of Mattapan, was sentenced on Wednesday, June 9, 2020 by Judge Stearns to 105 months in prison, four years of supervised release and ordered to pay forfeiture of $49,000.
In February 2021, both men pleaded guilty to conspiracy to distribute cocaine and cocaine base and being a felon in possession of a firearm.
In June 2020, Davis and McGhee were charged along with 22 others as part of Operation Snowfall. According to the charging documents, beginning in November 2018, law enforcement conducted an investigation into drug trafficking activities by Boston-based street gang members and associates in the Commonwealth Development in Brighton, Mass., formerly known as Fidelis Way, a multi-apartment public housing development. It is alleged that the defendants, through their drug trafficking activities, assumed control over multiple apartments, where they stored, cooked, packaged and sold drugs. As a result, their activities caused a blight of the development and reduced the quality of life of the other residents.
The investigation also targeted large-scale drug suppliers and their associates. It is alleged that the targets continued to distribute cocaine and cocaine base throughout the COVID-19 pandemic and shutdown. Davis even traveled to California in April 2020 to try to obtain kilograms of cocaine.
At the conclusion of the investigation, law enforcement executed search warrants at Davis’s residence, a hotel room in Canton where Davis was arrested, McGhee’s residence and a “stash house” and recovered approximately two kilograms of cocaine, firearms, ammunition and nearly $75,000 in cash.
Acting United States Attorney Nathaniel R. Mendell; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; John Gibbons, U.S. Marshal for the District of Massachusetts; Colonel Christopher Mason, Superintendent of the Massachusetts State Police; and Boston Police Acting Commissioner Gregory Long made the announcement. Assistance with the investigation was provided by the Braintree, Cambridge, Canton, Randolph and Weymouth Police Departments; the Suffolk, Norfolk and Bristol County District Attorneys’ Offices; and the Suffolk, Plymouth and Norfolk County Sheriffs’ Office. Assistant U.S. Attorneys Kaitlin O’Donnell and Timothy Moran of Mendell’s Organized Crime and Gang Unit prosecuted the case.
The operation was conducted by a multi-agency task force through the Organized Crime Drug Enforcement Task Force (OCDETF), a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply. More information on the OCDETF program is available here: https://www.justice.gov/ocdetf/about-ocdetf.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Toppenish Man Convicted of Murdering A Native American Woman Within the External Boundaries of the Yakama NationRead the Press Release
Yakima – Today, Joseph H. Harrington, Acting United States Attorney for the Eastern District of Washington, announced that on June 10, 2021, a federal jury in Yakima, Washington, convicted Jordan Everett Stevens, an Indian, of First Degree Murder in violation of 18 U.S.C. §§ 1111, 1153 and Discharging a Firearm During and in Relation to a Crime of Violence in violation of 18 U.S.C. § 924(c)(1)(A)(iii).
According to court documents and evidence presented at trial, on or about April 30, 2019, Stevens assaulted a woman in Toppenish, Washington. A potential witness, ACM, a Native American female, was near the location of the assault and had a conversation with responding police officers. Stevens erroneously believed that ACM provided information to the police. On May 3, 2019, Stevens and two females drove ACM to a rural section of the Yakama reservation. Stevens pulled ACM out of the vehicle and shot her in the head as payback for speaking with the police. Stevens threatened to kill the female witnesses if they told anyone about the murder.
The FBI was alerted by a family member that ACM was missing and immediately began an investigation. In late May 2019, the FBI tracked down one of the female witnesses who identified Stevens as ACM’s killer. On May 29, 2019, the FBI found ACM’s body in a remote area of the Yakama Indian Reservation. Shortly after the FBI found the second female witness who confirmed what had happened to ACM. On July 17, 2019, an Indictment was filed charging Stevens with Discharge of a Firearm During a Crime of Violence, and First Degree Murder.
On June 7, 2021, a jury trial began at the federal courthouse in Yakima. Multiple witnesses were reluctant to testify out of fear of retribution and refused to appear for court. They were subsequently apprehended with the assistance of the U.S. Marshals Service and testified at the trial. On June 10, 2021, a federal jury found the Defendant guilty of First Degree Murder and Discharge of a Firearm in Furtherance of a Crime of Violence. A conviction for First Degree Murder carries a mandatory sentence of life imprisonment. On June 10, 2021, the Honorable Stanley Bastian ordered a sentencing hearing to take place on September 1, 2021.
Acting United States Attorney Harrington said, “The United States Attorney’s Office for the Eastern District of Washington commends the officers with the Yakama Nation Police Department, the Federal Bureau of Investigation, and the Klickitat County Sheriff’s Office who investigated this case. Their seamless partnership resulted in the successful outcome of this senseless murder. Investigating and prosecuting cases involving Missing and Murdered Indigenous Person (MMIP) is a top priority of the United States Attorney’s Office for the Eastern District of Washington. This Office is committed to prosecuting aggressively cases involving violent acts committed against Native American women who reside on Reservation lands within this District.”
“Too often, violence on the reservation results in the tragic and senseless loss of life,” said Donald M. Voiret, FBI Special Agent in Charge of the Seattle Field Office. “The FBI is committed to combatting crime on our state’s reservations. Stevens will have the rest of his life in prison to contemplate his choices.”
This case was investigated by the Yakama Nation Police Department, the Federal Bureau of Investigation and the Klickitat County Sheriff’s Office. This case was prosecuted by Benjamin D. Seal and Richard C. Burson, Assistant United States Attorneys for the Eastern District of Washington
Toledo Man Charged with Sex Trafficking and Transportation of a MinorRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that a federal grand jury returned a two-count indictment charging Derrick Murphy, 38, of Toledo, Ohio, with sex trafficking and transportation of a minor.
In April 2021, law enforcement officers received information regarding the sexual exploitation of a minor victim in the Toledo and Detroit areas by an individual later identified as the Defendant. After investigating the information, investigators were able to identify the minor victim and rescue her.
The Defendant was arrested on April 27, 2021.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
If convicted, the Defendant’s sentence will be determined by the Court after review of factors unique to this case, including the Defendant’s prior criminal record, if any, the Defendant’s role in the offense, and the characteristics of the violation.
In all cases, the sentence will not exceed the statutory maximum, and in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Federal Bureau of Investigation – Toledo Resident Agency. This case is being prosecuted by Assistant U.S. Attorney Tracey Ballard Tangeman.
Tohono O'odham Member Sentenced to over 8 Years for Assault with Intent to Commit KidnappingRead the Press Release
TUCSON, Ariz. – On Wednesday, Marvin Lee Enos, of Tucson was sentenced by U.S. District Judge James A. Soto to 102 months in prison, followed by three years of supervised release. Enos previously pleaded guilty to assault with intent to commit kidnapping.
On April 2, 2018, Marvin Lee Enos assaulted the victim by punching the victim in the head and stomach areas. Enos did this while physically moving the victim from one area of his house into another and while preventing the victim from leaving the house. Enos is an enrolled member of the Tohono O’odham Nation.
The Federal Bureau of Investigation and the Tohono O’odham Police Department conducted the investigation in this case. Assistant U.S. Attorney Raquel Arellano, District of Arizona, Tucson, handled the prosecution.
CASE NUMBER: CR-19-2041-TUC-JAS
RELEASE NUMBER: 2021-038_Enos# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.Tampa, Florida Man Facing Federal Indictment for Conspiracy to Commit Wire Fraud, Mail Fraud, and Other Federal ChargesRead the Press Release
Baltimore, Maryland – A federal grand jury has returned an indictment charging Christopher Kenneth Guy, age 29, of Tampa, Florida, for the federal charges of conspiracy to commit wire fraud and mail fraud, access device fraud, possession of unauthorized access devices, and aggravated identity theft.
The indictment was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge Derek Pickle, of the Washington Regional Office, U.S. Department of Labor Office of Inspector General; Postal Inspector in Charge Peter R. Rendina of the U.S. Postal Inspection Service - Washington Division; and Chief Lisa D. Myers of the Howard County Police Department.
According to the indictment, from May 2020 to August 2020, Guy and his co-conspirators submitted bogus unemployment benefit applications to the Oklahoma Employment Security Commission using the personal identifying information of several identity theft victims. Guy and his co-conspirators allegedly listed mailing addresses, easily accessible to members of the conspiracy, to receive prepaid debit cards through the United States Postal Service.
Due to a heightened financial need caused by the Covid-19 pandemic, the Coronavirus Aid, Relief, and Economic Security Act (CARES ACT) established the Federal Pandemic Unemployment Compensation program (FPUC). The FPUC program allotted an additional $600 per week to unemployment benefit recipients. Allegedly, Guy and his co-conspirators caused the disbursement of more than $176,970 in unemployment and FPUC proceeds. Guy purportedly expended the sum of the illegally obtained proceeds on personal retail transactions and cash withdrawals.
Additionally, the indictment further alleges that Guy spent more than $10,000 in fraudulent transactions using 15 debit cards issued in seven victims’ names.
If convicted, Guy faces a maximum of 20 years in federal prison for conspiracy to commit wire fraud and mail fraud; a maximum of 15 years in federal prison for access device fraud; a maximum of 10 years in federal prison for possession of unauthorized access devices; and a mandatory minimum sentence of two years in federal prison, consecutive to any other sentence imposed, for aggravated identity theft. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Jonathan F. Lenzner commended the U.S. Department of Labor- OIG, U.S. Postal Inspection Service, and the Howard County Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Matthew Maddox and Sean Delaney, who are prosecuting the federal case.
For more information on the Maryland U.S. Attorney’s Office, its priorities, and resources available to help the community, please visit https://www.justice.gov/usao-md/community-outreach. For more information on resources regarding reporting fraud, please visit https://www.justice.gov/usao-md/report-fraud.
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Tampa Man Sentenced to Five Years in Federal Prison for Uploading and Possessing Child Sexual Abuse Images and VideosRead the Press Release
Tampa, Florida – U.S. District Judge Susan C. Bucklew has sentenced John Dixon (76, Tampa) to five years in federal prison for possessing images and videos depicting children being sexually abused. Dixon was also ordered to serve a 10-year term of supervised release, register as a sex offender, and forfeit the electronic devices that he had used to commit his offense.
Dixon had pleaded guilty on December 20, 2020.
According to court documents, on January 26, 2019, Dixon uploaded 32 child sex abuse images to his cloud storage account. The National Center for Missing and Exploited Children then received information from the company hosting Dixon’s account that Dixon had uploaded these contraband images and referred the information to the Hillsborough County Sheriff’s Office (HCSO). On January 29, 2019, HCSO detectives and other officers executed a search warrant at Dixon’s residence in Tampa.
Several electronic devices were seized from Dixon. A forensic examination of these devices revealed that they contained more than 2,000 images and 100 videos depicting the sexual abuse of children, some of whom were under the age of 12. Additionally, some of these videos depicted children to whom Dixon had access and who were as young as three and five years old at the time the videos were created.
This case was investigated by the Hillsborough County Sheriff’s Office and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Candace Garcia Rich.
This is another case brough 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 Attorney’s 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.
Tallahassee Man Convicted of Enticing A Minor to Engage in ProstitutionRead the Press Release
TALLAHASSEE, FLORIDA – This morning a federal jury in Tallahassee convicted Jirard Quin Kincherlow, 39, of Tallahassee, on the sole count of coercing or enticing a minor to engage in prostitution. The conviction, which followed a three-day trial that began on Wednesday, was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
“The jury’s verdict provides justice for this child victim and affirms our commitment to the protection of our most vulnerable,” said Acting U.S. Attorney Coody. “Through concerted efforts like Operation Stolen Innocence, we will continue to work tirelessly with our law enforcement partners to investigate and prosecute those who prey upon our children.”
The Tallahassee Police Department is pleased to learn about the latest conviction in the cases related to Operation Stolen Innocence,” said Chief Lawrence Revell. “Our investigators worked tirelessly with our partners at United States Attorney’s Office, Florida Department of Law Enforcement, Leon County Sheriff’s Office, Homeland Security and the Federal Bureau of Investigations, to bring justice to the victims in this case and this is just the next step in the right direction. Additionally, this conviction serves as a reminder that this type of activity has no place in our community.”
“The effects of Operation Stolen Innocence continue to net results across our communities, making them safer for everyone,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs.
Kincherlow’s sentencing hearing is scheduled for October 22, 2021, at 10:00 am, at the United States Courthouse in Tallahassee before the Honorable Mark Walker. Kincherlow faces a mandatory minimum term of ten years imprisonment to Life imprisonment, a $250,000 fine, and a maximum term of Life on supervised release.
This conviction was the result of a collaborative investigation by the Tallahassee Police Department and Homeland Security Investigations as part of Operation Stolen Innocence, a multi-agency coordinated effort by the United States Marshals Service, the Florida Department of Law Enforcement, the Leon County Sheriff’s Office, and the Office of State Attorney, Second Judicial Circuit, to combat human trafficking in the Tallahassee area. Assistant United States Attorney Michelle Spaven prosecuted this case.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
String of Armed Robberies Leads to Decades in Prison for Nebraska PairRead the Press Release
Fairview Heights, Ill. – Two Nebraska men were sentenced this week to lengthy prison terms for committing a series of armed robberies in Effingham, Illinois, and the Metro East in April 2017.
Allen McCray, 23, and Victor Linton, 27, of Omaha, Nebraska, appeared in federal district court in the Southern District of Illinois this week and were sentenced to 26 years and 24 years, respectively.According to court documents, McCray, Linton, and a third man – Brandon D. English, Jr., 21 – stole a Hyundai Santa Fe out of a Nebraska driveway and went on a week-long, multi-state crime spree. The first robbery took place on April 13, 2017, in Raytown, Missouri, where they held up a convenience store. Receipts recovered later from the Santa Fe show they used the proceeds from the robbery to make cash purchases at Dollar General, Rally House, Foot Locker, and TJ Maxx locations in the Kansas City metropolitan area.
Two nights later, the trio covered their hair and faces and entered a Moto Mart in O’Fallon, Illinois, where English put a gun to the cashier’s head and demanded money. They also struck the cashier with her own purse before taking money out of her cash register and leaving. Less than an hour later, the men used similar methods to rob a Circle K in Troy, Illinois, and a Casey’s General
Store in Maryville.After purchasing ammunition and attempting to purchase another gun, the three robbers left the
Metro East, driving first to the Chicago area and from there to Indianapolis. They returned to
Illinois on April 19, 2017, where McCray and Linton stopped in a Prime Sole shoe store in
Effingham. When they tried to take merchandise without paying, a store employee confronted them.
McCray pulled out a gun and fired a shot at the clerk. The two men then fled the scene with the stolen items.McCray and Linton eventually abandoned the Santa Fe in Booneville, Missouri, when they missed the turn into the Break Time gas station just after midnight on April 21, 2017. The men spotted a truck in the parking lot and fired six shots into the vehicle, striking the driver four times.
Eventually, they stole another vehicle and led law enforcement on a chase through Lafayette County, Missouri. Spikes were used to stop the vehicle, and the pair were taken into custody.All three defendants entered guilty pleas to conspiracy, robbery (three counts), and brandishing a firearm during a crime of violence. McCray and Linton also pled guilty to a fourth robbery count and to discharging a firearm during a crime of violence.
English was sentenced in December 2018 to 20 years in prison.In addition to their terms of imprisonment, McCray and Linton will both serve 5 years of supervised release and pay $793.51 in restitution.
The FBI led the investigation, with assistance from state and local law enforcement agencies, including the O’Fallon Police Department, the Maryville Police Department, the
Troy Police
Department, Illinois State Police, and the Missouri Highway Patrol.St. Petersburg Man Indicted in Investment SchemeRead the Press Release
Tampa, Florida – Acting United States Attorney Karin Hoppmann announces the unsealing of an indictment charging Thomas Coelho (52, St. Petersburg), formerly Thomas Jurewicz, with two counts of wire fraud. If convicted, Coelho faces a maximum penalty of 20 years in federal prison on each count. The indictment also notifies Coelho that the United States is seeking a money judgment of approximately $1.8 million, the proceeds of the wire fraud scheme.
According to the indictment, Coelho recruited investors for a business opportunity that purportedly involved purchasing event tickets and reselling those tickets to third parties for a profit. Coelho used his association with persons and entities in the entertainment industry to give the appearance of the means and ability to acquire tickets to certain high-profile events. Instead of using investors’ money to buy event tickets, however, Coelho primarily used the funds for personal expenses, entertainment, and cash withdrawals.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Federal Bureau of Investigations and the Treasury Inspector General for Tax Administration. It will be prosecuted by Assistant United States Attorneys Rachel Jones and David Chee.
St. Francis Man Sentenced for Methamphetamine DistributionRead the Press Release
Acting United States Attorney Dennis Holmes announced that a St. Francis, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance, was sentenced on June 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Richard Charles Young, a/k/a RC Young, age 46, was sentenced to 60 months in federal prison, followed by four years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Young was indicted by a federal grand jury on August 14, 2019. He pled guilty on March 25, 2021.
The conviction stemmed from a conspiracy that occurred between January 2015 and December 2019. During this time, Young conspired with several others to distribute between 200 and 350 grams of methamphetamine on the Rosebud Sioux Indian Reservation in central South Dakota.
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.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Young was immediately remanded to the custody of the U.S. Marshals Service.
Sioux Falls Woman Sentenced for Meth and Launder Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance (methamphetamine) and Conspiracy to Launder Monetary Instruments was sentenced on June 3, 2021, by U.S. District Judge Karen E. Schreier.
Maria Delsolorro Garibay, age 37, was sentenced to 108 months in federal prison for each count to be served concurrently, followed by three years of supervised release on each count to run concurrently, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Garibay was indicted by a federal grand jury on September 1, 2020. She pled guilty on March 8, 2021.
The conviction regarding methamphetamine distribution stemmed from incidents beginning on an unknown date and continuing until approximately August 2020, when Garibay, along with at least one other person reached an agreement or came to an understanding to distribute 500 grams or more of a mixture of a substance containing methamphetamine in the District of South Dakota. Methamphetamine is a Schedule II controlled substance.
The conviction regarding money laundering stemmed from incidents beginning on an unknown date and continuing until approximately August 2020, when Garibay knowingly and intentionally combined, conspired, confederated, and agreed together, and with others, to knowingly conduct and attempt to conduct money transfers at financial institutions and transporting case drug proceeds, which involved the proceeds of a conspiracy to distribute a controlled substance.
This case was investigated by the South Dakota Division of Criminal Investigation, the Sioux Falls Area Drug Task Force, and the Drug Enforcement Administration. Special Assistant U.S. Attorney Tamara Nash prosecuted the case.
Garibay was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Indicted for Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Sioux Falls, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Michael Lovejoy, Jr., age 38, was indicted on June 8, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 10, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, five years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between September 28, 2020, and April 29, 2021, Lovejoy, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under state law, failed to properly register as a sex offender and update his registration.
The charge is merely an accusation and Lovejoy is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Lovejoy was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Russell Co. Woman Sentenced in $499,000 Unemployment Fraud SchemeRead the Press Release
ABINGDON, Va. – A Russell County woman was sentenced today to 108 months in prison and to pay $455,930.00 in restitution, for conspiring with others to defraud the government of more than $499,000 and to commit mail fraud, and committing aggravated identify theft and for distributing drugs into a prison facility.
According to court documents, Leelynn Danielle Chytka, 31, waived her right to be indicted in March 2021 and pleaded guilty to one count of conspiracy to defraud the government, one count of conspiracy to commit mail fraud with respect to benefits authorized and paid in connection with a presidentially declared major disaster or emergency, one count of aggravated identity theft, and one count of distribution of suboxone.
“In the midst of a global pandemic, this defendant conspired with others to defraud the Virginia Employment Commission of nearly $500,000 intended for Virginians in need,” Acting United States Attorney Bubar said today. “This was money set aside by the federal government to assist those struggling during the COVID-19 crisis—not meant to line the pockets of fraudsters. I am grateful for the work of the Department of Labor and the IRS for the tireless work the put in to uncovering this fraud and bringing these defendants to justice.”
“Chytka and her co-conspirators dishonestly obtained nearly half a million dollars in pandemic unemployment compensation. We will continue to investigate those who exploit programs designed to help those struggling through this global pandemic. There are criminal consequences to personally enriching yourself at the cost of others,” said Darrell J. Waldon, IRS-CI Special Agent in Charge of the Washington DC Field Office.
“LeeLynn Chytka defrauded the United States of at least $499,000 by leading a scheme involving more than 35 co-conspirators to include inmates in the custody of the Virginia Department of Corrections, in the fraudulent filing for and receipt of Pandemic Unemployment Assistance benefits. This type of fraud causes significant harm to many citizens. The U.S. Department of Labor Office of Inspector General and its partners at the Virginia Employment Commission will continue working with our law enforcement partners to vigorously pursue those who commit fraud against the unemployment insurance program,” said Syreeta Scott, Acting Special Agent-in-Charge, Philadelphia Region, U. S. Department of Labor Office of Inspector General.
Chytka admitted to leading a conspiracy to commit fraud against the United States in connection with a scheme involving the filing of fraudulent claims for pandemic unemployment benefits.
According to court documents, Chytka, and others, conspired to collect personal identification information of more than 35 co-conspirators, including 15 inmates in the custody of the Virginia Department of Corrections, and to file fraudulent claims of pandemic-related unemployment benefits.
Over the course of nine months, Chytka filed fraudulent claims for at least 37 individuals, with a total actual loss to the United States of at least $499,000.
The Department of Labor Office of the Inspector General and the Internal Revenue Service – Criminal Investigation, the Norton Police Department, and the Russell County Sheriff’s Office investigated the case.
Assistant United States Attorney Daniel J. Murphy prosecuted the case.
Rochester Man Pleads Guilty to Production of Child PornographyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051ROCHESTER, N.Y.- U.S. Attorney James P. Kennedy, Jr. announced today that Jeremy Hernandez, 30, of Rochester, NY, pleaded guilty to production of child pornography before U.S. District Judge Charles J. Siragusa. The charge carries a minimum penalty of 15 years in prison, a maximum of 30 years, and a $250,000 fine.
Assistant U.S. Attorney Kyle P. Rossi, who is handling the case, stated that in September and October 2018, the National Center for Missing and Exploited Children (NCMEC) received information from an electronic service provider that a user had uploaded several images of child pornography to a blog on the provider’s platform. The information was forwarded to the New York State Police Internet Crimes Against Children Taskforce. Between November 2018 and October 2019, the NYSP identified and located the source of the child pornography at an address in Rochester, NY.
On October 24, 2019, a search warrant was executed at defendant’s residence. Defendant, who was present during the search, admitted that he owned the user profile that had uploaded the child pornography to the internet blog. The NYSP seized several digital devices, including two cellular phones that belonged to defendant. A forensic analysis recovered images and videos from the phones which depicted Hernandez sexually abusing a minor less than 13 years old on multiple occasions between 2017 and 2019. The child has since been identified and located.
The plea is the result of an investigation by the National Center for Missing and Exploited Children; the New York State Police, under the direction of Major Barry Chase; Monroe County Child Protective Services, under the direction of Director Kathy Cardilli; the Bivona Child Advocacy Center, under the direction of Executive Director Deb Rosen; and Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for September 9, 2021, before Judge Siragusa. Hernandez is being held in custody without bail.
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Repeat Offender Sentenced to 200 Months in Prison for Dealing up to Ten Kilos of HeroinRead the Press Release
MACON, Ga. – A repeat offender arrested during an investigation into the distribution of heroin in Middle Georgia was sentenced to serve a total of 200 months in prison for his crimes.
Kenneth Bernard Miles, 59, of Jonesboro, Georgia, was sentenced to serve a total of 200 months in prison, to include 30 months of imprisonment for violating his supervised release, by U.S. District Judge Marc Treadwell on Thursday, June 10, after previously pleading guilty to one count distribution of heroin. There is no parole in the federal system.
“Miles chose to distribute a substantial amount of heroin into our Middle Georgia communities,—undoubtedly causing death and despair for users and their families—even after he served time in federal prison for trafficking drugs in Florida. Miles is now being held accountable for his continued criminal actions,” said Acting U.S. Attorney Leary. “Local, state and federal law enforcement agencies will work together to root out the most egregious repeat offenders who continually violate the law.”
On June 20, 2020, a confidential source (CS) contacted Miles about obtaining heroin. They agreed to meet off Exit 205 on I-75 in Butts County, Georgia. Prior to meeting with Miles, the CS was searched by agents with the Drug Enforcement Administration (DEA) and provided with an audio/video recording device. The two met, and Miles provided a bag of what was later confirmed to be 27.47 grams of heroin. As part of his plea, Miles admitted that the amount of heroin attributable to him in the investigation was more than 3 kilograms, but less than 10 kilograms.
Miles was previously convicted of conspiracy to manufacture, distribute and possess with intent to distribute more than five kilograms of cocaine and more than 50 grams of cocaine base and possession with intent to distribute more than 500 grams of cocaine in the Northern District of Florida. In that case, Miles was sentenced to a total of 135 months imprisonment and ten years of supervised release on April 12, 2006. When Miles entered his guilty plea in the Middle District of Georgia, he admitted that he had violated the terms of his supervised release from his prior Northern District of Florida conviction.
This case was investigated by the DEA, GBI, Butts County Sheriff’s Office and Byron Police Department.
Assistant U.S. Attorney Elizabeth Howard prosecuted the case for the Government.
Rapid City Woman Sentenced to 20 Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, woman who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on June 4, 2021, by U.S. District Court Judge Karen E. Schreier.
Sara Skinner, age 34, was sentenced to 20 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately July 2019 to late December 2019, methamphetamine was brought to South Dakota from Nevada by others. Skinner then dispersed the methamphetamine to others for use or additional distribution.
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.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, the South Dakota Division of Criminal Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Skinner was immediately returned to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced to 10 Years for Meth Trafficking ConspiracyRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Rapid City, South Dakota, man who pleaded guilty to Conspiracy to Distribute a Controlled Substance was sentenced on June 4, 2021, by U.S. District Court Chief Judge Roberto Lange.
Eric Bonadore, age 52, was sentenced to 10 years in federal prison, followed by five years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
From approximately November 2018 to March 2019, Bonadore brought methamphetamine from Colorado to South Dakota. Bonadore travelled to Colorado on at least two occasions to obtain methamphetamine from a person introduced to him by a co-defendant. The defendant then dispersed the methamphetamine to others for use or additional distribution in South Dakota.
This case was investigated by the Unified Narcotics Enforcement Team (UNET), Drug Enforcement Agency, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. UNET is comprised of law enforcement from the Pennington County Sheriff’s Office, Rapid City Police Department, South Dakota Division of Criminal Investigation, and the South Dakota National Guard.
Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Bonadore was immediately returned to the custody of the U.S. Marshals Service.
Rapid City Man Sentenced for Methamphetamine ChargeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Rapid City, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Daniel Roan Eagle, age 30, was sentenced to 55 months in federal prison, followed by three years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Roan Eagle was indicted by a federal grand jury on January 15, 2020. He pled guilty on March 17, 2021.
The conviction stemmed from an incident that occurred on October 27, 2019, on a rural road in Todd County. During the early morning hours, Roan Eagle became stranded during a snowstorm. Officers were able to locate Roan Eagle and get him to safety. During the contact officers found a backpack that contained marijuana and 80 grams of methamphetamine, along with a scale and other drug paraphernalia items. Roan Eagle was intending to distribute the methamphetamine on the Rosebud Indian Reservation in central South Dakota.
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.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Roan Eagle was immediately remanded to the custody of the U.S. Marshals Service.
Rock Springs Cpa Sentenced in Case of Preparing a False Income Tax ReturnRead the Press Release
Acting United States Attorney Bob Murray announced today that PAUL EDMAN, age 53 and a Certified Public Accountant practicing in Rock Springs, Wyoming, was sentenced by U.S. District Court Judge Alan B. Johnson to 120 days of imprisonment, followed by one year of supervised release. Edman pleaded guilty in March 2021 to aiding and assisting in the preparation of false tax returns filed with Internal Revenue Service.
In February 2017, agents from the Internal Revenue Service-Criminal Investigation (IRS-CI), Homeland Security Investigations (HSI) and the Division of Criminal Investigations (DCI), interviewed Edman about several of his clients, who are local restaurant owners and were believed to be suppressing cash sales. After a thorough investigation, including the use of a grand jury and interviews, the government determined Edman had willfully counseled the restaurant owners in the preparation of Internal Revenue Service Form 1040 for calendar year 2014, knowing that Form 1040 was false.
Edman made significant adjustments to both personal and business expenses related to the family-owned restaurants to reduce their tax bill, which totaled nearly $645,000. He recommended ways, via email, in which they could deduct expenses in a fashion that would not stand out in an audit. This communication was easily traced and proved that Edman willfully provided the advice in an effort to defraud the United States government. Ultimately, Edman reduced the amount of his client’s tax bill by $72,000 and then signed and filed the tax return electronically.
“Some may argue that tax evasion is a victimless crime, but that could not be further from the truth. We all end up paying when someone unlawfully evades our tax system,” said Acting U.S Attorney Bob Murray. “Edman’s aiding and assisting certain clients file false tax returns is an outright theft of the American taxpayer.”
“All certified public accountants must be held to a higher standard when working with the taxpaying public in preparing income tax returns,” said IRS-Criminal Investigation Special Agent in Charge Andy Tsui. “By disregarding this duty and preparing a client’s tax return knowing it contained false deductions, Paul Edman is now a convicted felon and will spend time in prison for his criminal actions.”
This case was investigated by the IRS-CI, HSI, and DCI. It was prosecuted by Assistant United States Attorney Stephanie I. Sprecher.
Philadelphia Man Convicted After Trial for Unlawful Possession of FirearmRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Kenneth Blakeney, 29, of Philadelphia, PA, was convicted today at trial for being a felon in possession of a firearm.
In March 2019, Philadelphia Police Officers pulled Blakeney over for a traffic violation in North Philadelphia, and they observed a gun in his car. The defendant was a convicted felon at the time and was not allowed by law to possess a firearm. The defendant fled from the police, leading officers on a car chase for multiple blocks until the defendant eventually jumped out of his car and ran. He was arrested several months later and was charged by federal indictment in October, 2019.
“The crime of being a felon in possession of a firearm is a serious offense, particularly in Philadelphia where gun violence is rampant,” said Acting U.S. Attorney Williams. “As the evidence presented at trial showed, Kenneth Blakeney illegally possessed a gun and then fled from police. Our Office is determined to continue doing everything we can to reduce gun violence in Philadelphia by being ‘All Hands On Deck’ to get criminals like this defendant off the streets for a long, long time.”
“ATF is determined to make our streets safer by working with our local, state and federal partners,” said Matthew Varisco, Special Agent in Charge of ATF’s Philadelphia Field Division. “We will always be committed to identifying and removing armed criminals from our communities. The conviction of Kenneth Blakeney is an example of the strong partnership between ATF and the Philadelphia Police Department and a credit to the excellent work of the U.S Attorney’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. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, and is being prosecuted by Assistant United States Attorney J. Jeanette Kang and Anthony Wzorek.
Pain doctor pays to settle allegations arising from false billingRead the Press Release
LAREDO, Texas – A 44-year-old physician from Laredo has paid $340,437.68 to resolve allegations he falsely billed Medicare for the use of electro-acupuncture devices, announced Acting U.S. Attorney Jennifer B. Lowery.
Dr. Marte A. Martinez Jr. is an anesthesiologist and pain management physician who practices in Laredo. Marte A. Martinez M.D. PLLC is an entity Martinez used to conduct his medical practice.
From Aug. 23, 2019, to Feb. 12, 2020, Martinez billed Medicare for the implantation of neurostimulator electrodes. These are surgical procedures usually requiring use of an operating room. Medicare pays thousands of dollars per procedure.
Neither Martinez nor his staff performed surgery. Instead, patients received devices used for electro-acupuncture. This involves inserting needles into patients’ ears with the neurostimulator taped behind them with an adhesive.
To date, the Southern District of Texas has resolved four other settlements with a Katy anesthesiologist, a Houston pain doctor, a Rockport chiropractor and a Houston chiropractor involving similar allegations of false billing.
The FBI and Department of Health and Human Services – Office of Inspector General conducted the investigation with the assistance of Qlarant, the Unified Program Integrity Contractor for Medicare. Assistant U.S. Attorney Brad Gray handled the matter.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
NDTX Round up: June 4 - 10Read the Press Release
SENTENCING – HENRY AGUSTIN MORENO
On June 7, Henry Agustin Moreno, 21, was sentenced to 12 years in federal prison for transporting or shipping child pornography. HSI received a tip from Kik that a user in the Dallas area was utilizing the messenger application to distribute child pornography. Agents obtained a search warrant of Moreno’s residence in Irving. Moreno admitted to agents that he downloaded several pornographic files depicting child pornography. He further admitted that he uploaded child pornography in exchange for other videos. This case was investigated by Homeland Security Investigations. Assistant U.S. Attorney Joseph Magliolo prosecuted the case.
SENTENCING – ESLEVY VARGAS-AVILA
On June 7, Eslevy Vargas-Avila, 31, was sentenced to 22 years in federal prison for two counts of interference with commerce by robbery and two counts of using or brandishing a firearm in furtherance of a crime of violence. In June 2016, Vargas-Avila and other co-conspirators conducted surveillance of jewelry stores to identify traveling jewelry salesmen. Vargas-Avila and the co-conspirators violently robbed two traveling salesmen at gunpoint in Tarrant County. This case was investigated by the FBI, Dallas Police Department, Garland Police Department, Arlington Police Department, and DFW Airport Department of Public Safety. Assistant U.S. Attorney Keith Robinson prosecuted the case.
SENTENCING – CHRISTOPHER JOEL RAMIREZ
On June 8, Christopher Joel Ramirez, 24, was sentenced to 4 years in federal prison for possession with the intent to distribute a controlled substance. On September 9, 2019, Ramirez possessed approximately 43 kilograms of heroin to distribute to another individual. The case was investigated by the DEA. Assistant U.S. Attorney P.J. Meitl prosecuted the case.
SENTENCING – SALVADOR GOMEZ
On June 4, Salvador Gomez, 24, was sentenced to 15 years in federal prison for conspiracy to possess with intent to distribute a controlled substance. In October 2020, Gomez negotiated the transaction of methamphetamine with another individual. Gomez indicated that a co-defendant delivering the methamphetamine would be pretending to perform maintenance on a red truck. Investigators observed and identified a co-defendant appearing as if he was performing maintenance on the vehicle as Gomez had instructed. Officers searched the vehicle and seized 5.2 kilograms of methamphetamine from the co-conspirator. This case was investigated by the DEA HIDTA. Assistant U.S. Attorney Laura Montes prosecuted the case.
Muskogee Resident Found Guilty of Attempted Sexual Abuse in Indian CountryRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced today that James Michael Stewart, age 42, of Muskogee, Oklahoma was found guilty by a federal jury of one count of Attempted Aggravated Sexual Abuse in Indian Country. This crime is punishable by imprisonment for any term of years or up to life imprisonment, a fine of up to $250,000.00, or both. The defendant was acquitted on two counts of Aggravated Sexual Abuse in Indian Country. The jury trial began with testimony on Monday, June 7, 2021 and concluded on Thursday, June 10, 2021 with the guilty verdict.
The evidence presented at trial proved that on May 25, 2018, the defendant attempted to sexually assault a female victim in a room at the Studio 6 hotel on North 32nd Street in Muskogee. The defendant undressed and pushed the victim onto a bed. The victim was able to free herself, ran to the bathroom, locked the door, and called 911. When the police arrived, they found the defendant still nude. According to the police officer, the victim was very emotional and appeared afraid of the defendant.
The United States Attorney’s Office for the Eastern District prosecuted the case because the defendant is a member of a federally-recognized Indian tribe and the crime occurred in Muskogee County, within the boundaries of the Muscogee (Creek) Nation, and within the Eastern District of Oklahoma.
The guilty verdict was the result of an investigation by the Muskogee Police Department and the Federal Bureau of Investigation.
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma in Muskogee, presided over the trial and ordered the completion of a presentence report. Sentencing will be scheduled following completion of the report. Stewart was remanded to the custody of the United States Marshal pending the imposition of sentencing.
Special Assistant United States Attorney Nathaniel Walters and Department of Justice Trial Attorney Julie Finocchiaro represented the United States.
Mosher Man Charged with Failure to Register as a Sex OffenderRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mosher, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Tyrone Steven Andrews, age 29, was indicted on June 2, 2021. He appeared before U.S. Magistrate Judge Veronica L. Duffy on June 4, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that Andrews, who had previously been convicted of a sex crime and required to register under the Sex Offender Registration and Notification Act, failed to do so between November 1, 2020, and June 2, 2021.
The charge is merely an accusation and Andrews is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jeffrey C. Clapper is prosecuting the case.
Andrews was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Mobridge Man Indicted for AssaultRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Mobridge, South Dakota, man has been indicted by a federal grand jury for Assault with a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Luke Newton Mowrer, age 33, was indicted on March 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on June 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is ten years in federal prison and/or a $250,000 fine, three years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
On October 5, 2019, near McLaughlin, South Dakota, Mowrer assaulted two individuals with a knife. One of the victims suffered a cut to the neck, while the other victim had her jacket slashed from the assault.
The charges are merely accusations and Mowrer is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Office of Justice Services. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Mowrer was released on bond pending trial. A trial date has not been set.
Mission Man Sentenced for Theft of Government PropertyRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man convicted of Theft of Government Property was sentenced on June 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Preston White Feather, age 25, was sentenced to 22 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. White Feather was also ordered to pay restitution in the amount of $26,198.30.
White Feather was indicted by a federal grand jury on August 11, 2020. He pled guilty on March 22, 2021.
The conviction stemmed from White Feather’s participation in a series of burglaries in Mission in April of 2021. Between April 2, 2021, and April 15, 2021, White Feather was involved in the burglary of multiple local businesses in Mission. On April 16, 2021, White Feather broke into the Bureau of Indian Affairs (BIA) Administration Building in Mission, and stole a pickup truck. On April 21, 2021, White Feather burglarized the BIA building a second time.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
White Feather was immediately remanded to the custody of the U.S. Marshals Service.
Mission Man Sentenced for Firearm ChargeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Mission, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on June 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Patrick Leonard Iron Cloud, Jr., age 39, was sentenced to 16 months in federal prison, followed by three years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. He was also ordered to forfeit all interest in the Colt pistol and ammunition seized.
Iron Cloud was indicted by a federal grand jury on November 10, 2020. He pled guilty on March 22, 2021.
The conviction stemmed from an incident that occurred on October 2, 2020, in Mission. Iron Cloud was involved in a traffic stop, and during the encounter law enforcement officers located various items of drug use and the Colt pistol. The Defendant has a prior felony conviction and is a drug user, making it illegal for him to possess any firearm.
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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the Rosebud Sioux Tribe Law Enforcement Services, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Iron Cloud was immediately remanded to the custody of the U.S. Marshals Service.
Minnesota man Sentenced in Federal Court for Abusive Sexual ContactRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Browns Valley, Minnesota, man convicted of abusive sexual contact was sentenced on June 7, 2021, by U.S. District Judge Charles B. Kornmann.
Howard Edison Derby, Jr., age 35, was sentenced to 120 months in federal prison, followed by five years of supervised release, and a $1,000 fine. He was also ordered to pay $100 to the Federal Crime Victims Fund.
Derby was indicted for aggravated sexual abuse and sexual abuse by a federal grand jury on July 20, 2020. He pled guilty to abusive sexual contact on March 18, 2021.
According to court documents, on or about the 23rd day of November, 2018, in Roberts County, Derby knowingly engaged in and attempted to engage in sexual contact with the victim, that is, sexual contact, by using force, involving Derby’s intentional touching, either directly or through clothing, of the victim’s genitalia.
Specifically, after the victim had alcoholic beverages to celebrate a friend’s birthday, she became intoxicated. The celebration concluded at the victim’s friend’s house, where she decided to sleep on a couch. Derby was present at that time and knew the victim was intoxicated and tired. Derby perpetrated the sexual assault knowing of the victim’s vulnerable state.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Jeremy Jehangiri prosecuted the case.
Derby was immediately turned over to the custody of the U.S. Marshals Service.
Michigan Man Indicted for Sexual Abuse of a MinorRead the Press Release
PORTLAND, Maine: A federal grand jury in Portland returned an indictment charging a Warren, Michigan man with sexual abuse of a minor, Acting U.S. Attorney Donald E. Clark announced.
According to the indictment, in August 2009, while at the Portsmouth Naval Shipyard, Matthew Boyd, 32, engaged in two separate sexual acts with a minor who was older than 12, but not yet 16 years old.
Boyd was arrested in Michigan and is expected to have his initial court appearance later today in the U.S. District Court for the Eastern District of Michigan. If convicted, Boyd faces up to 15 years in prison and a $250,000 fine. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Naval Criminal Investigative Service investigated the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Merrimac Man Sentenced to Ten Years in Federal Prison for Attempted Sex with a MinorRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on June 11, 2021, Zachary C. Wood (age: 45) of Merrimac, Wisconsin, was sentenced to ten years in federal prison by Senior District Judge William C. Griesbach.
According to court documents, in September 2020, Wood utilized a popular online messaging application to distribute digital videos of explicit child pornography depicting infants and toddlers being abused. Wood also expressed a desire to engage in the sexual assault of children, and he made arrangements to travel to Oshkosh, Wisconsin, to meet with a 14-year-old child.
On October 12, 2020, Wood travelled from his home in Merrimac to Oshkosh at which point he was promptly arrested. Unbeknownst to Wood, he distributed child pornography and communicated his desire to sexually assault children with a member of law enforcement.
Wood’s indictment and subsequent conviction were part of Operation Kick Boxer, a collaborative effort involving the Milwaukee Division of the Federal Bureau of Investigation (FBI), the U.S. Attorney's Office for the Eastern District of Wisconsin, and the Winnebago County Sheriff's Office. (https://go.usa.gov/xfPHh).
In handing down the sentence, Judge Griesbach noted the serious nature of the charge, the need to protect the public, and the need to deter Wood and others from abusing or attempting to abuse children in the future. Following his release from prison, Wood will spend five years on supervised release. He will also have to register as a sexual offender.
This case was investigated by the Winnebago County Sheriff’s Office with the assistance of the Green Bay and Milwaukee offices of the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006, by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices and the Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Merced Man Charged with Drug Trafficking OffenseRead the Press Release
FRESNO, Calif. — A federal grand jury returned a one-count indictment Thursday against Richard Charles Thomas Jr., 38, of Merced, charging him with possession with intent to distribute methamphetamine, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Aug. 25, 2020, Thomas led law enforcement officers on a highspeed chase through the city of Merced. While fleeing police, Thomas threw a black bag from the vehicle. Officers recovered the bag, which contained approximately 839 grams of methamphetamine, $3,162 in cash, and personal effects belonging to Thomas.
This case is the product of an investigation by the Drug Enforcement Administration and the Merced Police Department. Assistant U.S. Attorney Jessica A. Massey is prosecuting the case.
If convicted, Thomas faces a mandatory minimum statutory penalty of 10 years in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
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.
Member of Mescalero Apache Tribe sentenced to nine years in federal prison for voluntary manslaughterRead the Press Release
ALBUQUERQUE, N.M. – Mundo Barela, 19, of Mescalero, New Mexico, and an enrolled member of the Mescalero Apache Tribe, was sentenced in federal court on June 8 to nine years in prison for voluntary manslaughter in Indian Country.
Barela pleaded guilty on Jan. 6. According to his plea agreement, on or about July 20, 2020, Barela unlawfully killed John Doe in the heat of passion during a sudden altercation in Otero County, New Mexico. Barela stabbed the victim in the throat, chest and stomach during the incident causing fatal injuries to John Doe. The incident took place on the Mescalero Apache Reservation.
Upon his release from prison, Barela will be subject to three years of supervised release.
The Bureau of Indian Affairs investigated the case. Assistant U.S. Attorney Aaron O. Jordan prosecuted the case.
Maryland U.S. Attorney’s Office Joins with State and Non-Profits to Combat Elder Financial AbuseRead the Press Release
Baltimore, Maryland - The U.S. Attorney’s Office is partnering with Project SAFE and the PROTECT Week Coalition to help seniors in Maryland avoid falling victim to financial exploitation. PROTECT Week, held June 14-18, 2021, offers opportunities to learn about the many forms of abuse, neglect, and financial exploitation of older Marylanders. The public outreach events include a virtual press conference, tele-town hall, and educational programming via social media.
June 10, 2021 at 11:00 a.m. – Assistant United States Attorney Sean Delaney and FBI Supervisory Special Agent Keith Custer present on financial fraud targeting seniors at Oak Crest Senior Living, an over 55 community in Parkville, Maryland. ** This event was recorded and will be distributed to other senior living communities.
June 14, 2021 at 2:00 p.m. – Acting U.S. Attorney Jonathan F. Lenzner joins Maryland Attorney General Brian Frosh and Maryland Comptroller Peter Franchot at virtual press conference launching PROTECT Week. Online at www.Facebook.com/aarpmaryland and www.YouTube.com/aarpmaryland
June 15, 2021 at 10:00 a.m. – Acting U.S. Attorney Jonathan F. Lenzner joins Maryland AARP for Tele-town Hall event focusing on fake COVID-19 vaccines and treatments, government imposter scams, and romance scams targeting seniors. You can tune in, or register for the robo-call here https://vekeo.com/aarpmaryland/ or listen on FaceBook at https://www.facebook.com/aarpmd/
June 17, 2021 at 2:00 p.m. – Assistant United States Attorney Evelyn Cusson and BBB of Greater Maryland Executive Director Angie Barnett present to Civic Works Elder Services via Zoom on how to avoid gift card scams.
June 18, 2021 at 11:30 a.m. – Assistant United States Attorney Evelyn Cusson and BBB of Greater Maryland Executive Director Angie Barnett host Facebook Live Event “Why Scammers Love Gift Cards.”
Now in its fourth year, PROTECT Week 2021 coincides with World Elder Abuse Awareness Day, observed on June 15. PROTECT Week resources, available on www.protectweek.org, will help Marylanders identify financial exploitation so that they may protect themselves and their loved ones from abuse. Visit www.protectweek.org for event details and registration.
About the Partners
The PROTECT Week Coalition includes the following partners:
• Maryland Department of Aging
• Maryland Office of the Attorney General
• The United States Attorney’s Office for the District of Maryland
• Maryland Office of the Commissioner of Financial Regulation
• Maryland Office of the Comptroller
• Maryland Department of Human Services
• Maryland Volunteer Lawyers Service
• Maryland Consumer Rights Coalition
• EverSafe
• ElderSAFE
• SAFE: Stop Abuse of Elders
• Baltimore County Restoring Elder Safety Today – BC REST Coalition
• AARP Maryland
• CCCSMD – Consumer Credit Counseling Service of Maryland# # #
Man who volunteered as church bus driver sentenced to 30 years in prison for sexually abusing a minorRead the Press Release
CINCINNATI – A Warren County man who met his victims through his volunteer work as a church bus driver was sentenced in U.S. District Court to 360 months in prison for sexually abusing a minor under the age of 12.
A federal grand jury charged Jory Leedy, 51, of Franklin, Ohio, in April 2016. Leedy pleaded guilty in June 2019 on the day he was scheduled to begin a jury trial.
According to court documents, Leedy sexually abused at least two minor boys as young as 7 and 8 years old. Leedy met the minors through a religious organization in Dayton, where he volunteered as a bus driver. The children rode the bus, along with their mother, to the ministry on Sunday. Thereafter, Leedy stopped by the residence to play with the boys and eat dinner with the family. Leedy stopped volunteering as a bus driver shortly after.
Leedy began going to the residence on a nightly basis. He began buying the minors clothes and games. Eventually, Leedy ingratiated himself into the family, taking the boys to church in Cincinnati and on trips to the zoo, Cincinnati Reds games and Kings Island. He began taking the boys on vacations out of state. For example, Leedy took the victims to religious concerts and to Disney World.
Leedy arranged for the purchase of a car for the family. He helped enroll the boys in a private school. Further, Leedy assisted the family in securing another home that was owned by a friend of his; Leedy paid for part of the rent.
Leedy had provided the victims’ family with a fake name. His true identity was discovered during an altercation with the victims’ father in which the police were called. Police advised the parents of Leedy’s true identity and that he was a registered sex offender.
The victims told police the abuse took place over the course of two years and occurred in different states, including Kentucky, Florida and New York.
In addition, Leedy admitted in court documents that between 1999 and 2001 he sexually abused a then-minor relative when he would take the boy on trips for sporting events.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Chris Hoffman, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division; Hamilton County Sheriff Charmain McGuffey and other members of the Regional Electronics and Computer Investigations (RECI) Task Force announced the sentence imposed by U.S. District Court Judge Timothy S. Black. OCDETF Deputy Criminal Chief Christy L. Muncy and Assistant United States Attorney Kenneth L. Parker are representing the United States in this case.
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Man Sentenced for Production of Child PornographyRead the Press Release
A North Carolina man was sentenced Thursday to 30 years in prison for production of child pornography.
Raul Ayala, 72, of Angier, pleaded guilty on April 26, 2021. According to information provided to the court, Ayala’s crimes were initially discovered when a prepubescent minor victim disclosed to his parents that Ayala had sexually molested him. When investigators interviewed Ayala, he admitted molesting that victim and also admitted exploiting other victims as far back as the 1970s.
A search warrant was executed at Ayala’s residence and multiple digital devices were seized. During the search, law enforcement located in Ayala’s attic a hidden briefcase, suspended by a pulley system, that contained both adult pornography and child sexual abuse material (CSAM). The briefcase contained tri-fold advertisements for child sexual abuse videos that included pictures of children engaged in sexual acts with adults. The briefcase also contained numerous nude Polaroid pictures of minor victims dating back to the late 1960s and early 1970s. Seized digital devices also contained numerous CSAM images and videos. Homeland Security Investigations (HSI) agents were able to track down and identify one of the boys depicted in the Polaroids. He is now in his 50s and disclosed that Ayala had sexually abused him when he was a minor, beginning when he was 8 years old.
In addition to his prison term, Ayala was sentenced to a term of five years of post-incarceration supervised release. A restitution hearing may be scheduled in the future.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division and Acting U.S. Attorney G. Norman Acker III for the Eastern District of North Carolina made the announcement.
HSI, the Harnett County Sheriff’s Office, and the Fuquay-Varina Police Department investigated the case.
Trial Attorney Charles Schmitz of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Charity Wilson of the U.S. Attorney’s Office for the Eastern District of North Carolina prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc.
Man Pleads Guilty to Using Explosive Device in Attempt to Damage Suburban Chicago RestaurantRead the Press Release
CHICAGO — A man has pleaded guilty to a federal criminal charge for using an explosive device in an attempt to damage a suburban Chicago restaurant last year.
On June 1, 2021, DIEGO VARGAS threw a lit explosive device through the window of Egg Harbor Cafe in Naperville, Ill., resulting in two explosions. Vargas, 26, of Aurora, pleaded guilty Thursday to one count of maliciously attempting to damage and destroy a building by means of an explosive device. The charge is punishable by a minimum sentence of five years in federal prison and a maximum of 20 years. U.S. District Judge Elaine E. Bucklo set sentencing for Sept. 2, 2021.
The guilty plea was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The Naperville Police Department and Aurora Police Department provided valuable assistance. The government is represented by Assistant U.S. Attorneys Barry Jonas and Kate McClelland.
In addition to the restaurant incident, Vargas admitted in a plea agreement that a night earlier he tried to steal cash from an ATM in Aurora. Vargas admitted that he struck the ATM with a baseball bat and a metal pole from a street sign to try and pry it open. The ATM, located in the drive-through area of a First Midwest Bank branch in the first block of South Broadway, held more than $50,000 at the time of the attempted theft.
Little Rock Man Sentenced to Two Years in Prison for Defrauding Social Security AdministrationRead the Press Release
LITTLE ROCK—A Little Rock man was sentenced for collecting over $250,000 in Social Security Disability payments when he was not actually disabled. Levell Baltimore, Jr., 45, was sentenced to 24 months in federal prison by United States District Judge James M. Moody, Jr.
In 2005, Baltimore applied for Social Security benefits and claimed to be disabled. He filled out a form stating he could not work or leave his house. He cited seasonal allergies, migraines, asthma, physical limitations, and fatigue as the reasons for his disability. Social Security initially denied his claim, but in further attempts to convince Social Security that he was disabled, he reported that he had not performed any substantial gainful activity in recent years. The Social Security Administration (SSA) eventually approved Baltimore’s claim, and he began receiving benefits in 2007.
Although Baltimore informed the SSA he had no income, he created and operated at least six businesses during the time he received disability benefits. Two of his businesses obtained contracts with the State of Arkansas. Though he was required to report any income to the SSA, he did not; rather, he continued telling the SSA he was unable to work.
Baltimore received fraudulent benefits from 2007 through June of 2018 totaling $284,862.25. Judge Moody sentenced Baltimore to pay that money back in restitution and also sentenced Baltimore to three years of supervised release following his term of imprisonment.
Baltimore was charged in May 2018 with one count of theft of government funds and three counts of making false statements. In December 2020, he pleaded guilty to theft of government funds in exchange for dismissal of the other counts.
“This defendant stole from a system that is designed to support those who truly need help,” stated Acting United States Attorney Jonathan D. Ross. “This sentence shows that jail time awaits those whose greed and dishonesty embolden them to commit frauds such as these.”
“This sentencing sends a strong message that we are committed to protecting the Social Security disability programs and will hold accountable those who obtain benefits by fraudulent means,” said Gail S. Ennis, Inspector General of the Social Security Administration. “For over a decade, this individual willfully concealed his ability to work to collect federal benefits. I thank the Department of Health and Human Services Office of the Inspector General and the U.S. Attorney’s Office for their efforts in this case.”
The case was investigated by the Social Security Administration – Office of the Inspector General. Assistant United States Attorney Erin O’Leary prosecuted the case for the United States.
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This news release, as well as additional information about the office of the
United States Attorney for the Eastern District of Arkansas, is available online at
https://www.justice.gov/edar
Twitter:
@EDARNEWS
Kidnapping Charges Added to Shasta Lake Restaurant Owners Charged with Forced Labor and Harboring of AliensRead the Press Release
SACRAMENTO, Calif. — A federal grand jury returned a superseding indictment Thursday adding the charges of conspiracy to commit kidnapping and kidnapping to the previous charges of conspiracy to commit forced labor, forced labor, conspiracy to harbor aliens, and harboring aliens, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Nery A. Martinez Vasquez, 52, and his wife Maura N. Martinez, 52, both of Shasta Lake, were naturalized United States citizens, originally from Guatemala. They owned and operated Latino’s, a restaurant, and Redding Carpet Cleaning & Janitorial Services, a cleaning company that serviced various businesses, including multiple car dealerships, in the Shasta Lake area.
The original indictment alleges that between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the woman from her daughters, all to compel their labor.
In addition, according to the superseding indictment, in January 1997, the defendants conspired to kidnap a 13-year-old girl. They made promises to the girl’s parents that they would bring her back in a week and told the girl that they would give her presents and money. They then drove her from her home in Las Vegas to their home in Redding, California and held her against her will and the will of her parents for almost two years. They forced the girl to clean car dealerships and provide other labor, working long hours seven days a week without pay. Nery A. Martinez Vasquez is also alleged to have routinely sexually molested and raped the girl.
This case is the product of an investigation by the Federal Bureau of Investigation. Civil Rights Division Trial Attorney Avner Shapiro and Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed are prosecuting the case.
If convicted of the forced labor charges, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of harboring an alien, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of the kidnapping charges, the defendants face a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Kidnapping Charges Added to California Restaurant Owners Charged with Forced Labor and Harboring of AliensRead the Press Release
A federal grand jury returned a superseding indictment yesterday adding the charges of conspiracy to commit kidnapping and kidnapping to the previous charges of conspiracy to commit forced labor, forced labor, conspiracy to harbor aliens and harboring aliens.
According to court documents, Nery A. Martinez Vasquez, 52, and his wife Maura N. Martinez, 52, both of Shasta Lake, were naturalized United States citizens, originally from Guatemala. They owned and operated Latino’s, a restaurant, and Redding Carpet Cleaning & Janitorial Services, a cleaning company that serviced various businesses, including multiple car dealerships, in the Shasta Lake area.
The original indictment alleges that between September 2016 and February 2018, the defendants conspired to bring a Guatemalan woman and her two minor daughters to the United States using temporary visitor visas, harbored them after their visas expired, and forced them to work long hours at a restaurant and cleaning service for minimal to no pay. The indictment further alleges that the defendants imposed a debt on the victims to prevent them from returning to Guatemala; subjected them to physical, psychological, and verbal abuse; threatened them with arrest; and separated the woman from her daughters, all to compel their labor.
In addition, according to the superseding indictment, in January 1997, the defendants conspired to kidnap a 13-year-old girl. They made promises to the girl’s parents that they would bring her back in a week and told the girl that they would give her presents and money. They then drove her from her home in Las Vegas to their home in Redding, California, and held her against her will and the will of her parents for almost two years. They forced the girl to clean car dealerships and provide other labor, working long hours seven days a week without pay. Nery A. Martinez Vasquez is also alleged to have routinely sexually molested and raped the girl.
This case is the product of an investigation by the FBI. Civil Rights Division Trial Attorney Avner Shapiro and Assistant U.S. Attorneys Katherine T. Lydon and Tanya B. Syed of the Eastern District of California are prosecuting the case.
If convicted of the forced labor charges, the defendants face a maximum statutory penalty of 20 years in prison and a $250,000 fine. If convicted of harboring an alien, the defendants face a maximum statutory penalty of 10 years in prison and a $250,000 fine. If convicted of the kidnapping charges, the defendants face a maximum statutory penalty of life in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Justice Department Issues Statement on the U.S. Department of Agriculture’s Proposed Rules to Support Enforcement of the Packers and Stockyards ActRead the Press Release
Acting Assistant Attorney General Richard A. Powers of the Justice Department’s Antitrust Division issued the following statement today after the U.S. Department of Agriculture’s (USDA) announcement concerning their proposed rules to support enforcement of the Packers and Stockyards Act:
“The Justice Department commends the USDA for the new steps it announced today to strengthen enforcement of the Packers and Stockyards Act to improve competition in our agricultural markets. The Antitrust Division remains committed to vigorous enforcement of the antitrust laws to protect American farmers, ranchers, and consumers, and to ensure they all benefit from robust competition. We stand ready to work hand in hand with the USDA to use our combined enforcement authorities to pursue these shared goals.”
Jury finds former St. Ann Police Officer guilty of civil rights violationRead the Press Release
ST. LOUIS – A jury found Ellis C. Brown, III, 32, of High Ridge, Missouri guilty on one count of deprivation of civil rights under color of law following a three-day jury trial. United States District Judge Audrey G. Fleissig presided over the trial.
The evidence during the trial, which wrapped Thursday, proved Brown used unreasonable force during an encounter with a victim. In his capacity as a St. Ann police officer, Brown repeatedly kicked the victim who lay prone on the parking lot of a US Bank at the corner of Natural Bridge and Kingshighway in the city of St. Louis. The April 2019 incident was captured on video and followed a lengthy high-speed chase during which Brown and other St. Ann Police Department Officers pursued the victim through rush hour traffic for more than twenty minutes, at times reaching speeds exceeding 115 mph. Two St. Louis Metropolitan Police Officers intervened to stop Brown’s assault.
"Ellis Brown flagrantly abused the trust our community and his peers placed in him,” said U.S. Attorney Sayler Fleming. “I hope Brown’s conviction serves as a deterrent for others in law enforcement who might think about abusing their power.”
“Ellis Brown exceeded his authority and used excessive force in securing the arrest of an already compliant subject,” said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. “In doing so, he violated not only the law, but also his oath as a law enforcement officer.”
The case was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Derek Wiseman handled the case.
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Jefferson County Man Pleads Guilty to Failing to Register as a Sex OffenderRead the Press Release
SYRACUSE, NEW YORK – Chad A. Worthington, age 43, of Ellisburg, New York, pled guilty today in federal court in Syracuse to one felony count of failing to register and update his registration as a sex offender after it was discovered that he had an e-mail address that he had not disclosed to the New York State Division of Criminal Justice Services as required by the Sex Offender Registration and Notification Act (“SORNA”), announced Acting United States Attorney Antoinette T. Bacon and David L. McNulty, United States Marshal for the Northern District of New York.
In pleading guilty, Worthington admitted that from June 16, 2018, through April 21, 2021, he failed to register a Google email address he created on June 5, 2018, as required by SORNA. Worthington also admitted that he failed to register five other Google email addresses as required by SORNA between August 2016 and April 2021.
Worthington was required to register as a sex offender because of his federal convictions in 2005 for coercion and enticement of a minor and travel with intent to engage in illicit sexual conduct.
In addition to his plea to failure to register and update a registration as a sex offender, Worthington also admitted today that this conduct violated the terms of supervised release previously imposed after his 2005 convictions.
Sentencing is scheduled for October 12, 2021, before Senior United States District Judge Norman A. Mordue. In addition to any punishment for violating the terms of his supervised release, Worthington faces a maximum sentence of 10 years in prison, a fine of up to $250,000.00, and a term of supervised release of at least 5 years and up to life on the sex offender registration offense. 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 United States Marshals Service and is being prosecuted by Assistant United States Attorney Michael F. Perry as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc
Jacksonville Man Pleads Guilty to Using the Internet in Attempt to Entice and Meet A 12-Year-Old Child for SexRead the Press Release
Jacksonville, Florida – Wayne Dale Epps, Jr. (36, Jacksonville) has pleaded guilty to using the internet to attempt to entice a 12-year-old child to engage in sexual activity. Epps faces a mandatory minimum penalty of 10 years, and up to life, in federal prison and a potential life term of supervised release. Epps was arrested on February 18, 2020, and remains in custody. His sentencing hearing has not yet been scheduled.
According to court documents, on February 14, 2020, an undercover FBI agent who was posing online as the family member of a 12-year-old child was contacted by the user “ksaber2040,” who was identified as Epps. The same undercover agent had previously engaged in online conversation with Epps in October 2019. Over the next several days, Epps and the agent engaged in online conversation in which Epps expressed his desire to meet the 12-year-old “child.” Epps confirmed that he wanted to meet the “child” for sex, stating “[t]his is a first for me I’m nervous but I’ve been wanting to try younger.” Epps provided the agent with graphic details about the sexual acts that he wished to perform on the “child.” He offered to use a “flavored condom” and requested pictures of the “child.”
On February 18, 2020, Epps drove his vehicle to a prearranged location at a shopping center in Jacksonville to meet the “child” for sex and was arrested by FBI agents. During an interview with law enforcement, Epps stated that it was “possible that [he] would have followed through” and engaged in sex with the 12-year-old child, and further that he “should have never made that decision.”
This case was investigated by the Federal Bureau of Investigation in Jacksonville. 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.
Iowa Man Sentenced to over a Year in Federal Prison for Placing Threatening Phone Call to U.S. Congressman’s OfficeRead the Press Release
A man who called a United States Congressman’s office and told a staffer that he was going to find someone to assassinate the Congressman was sentenced today to more than a year in federal prison.
Kenneth Brown, age 57, previously living in Cedar Falls, Iowa, received the prison term after a December 4, 2020 guilty plea to one count of transmitting a threatening communication in interstate commerce.
At the plea hearing, Brown admitted that on December 18, 2019, he called the Washington D.C. office of Congressman Jerrold Nadler of New York. Brown admitted that he spoke with a staff assistant working in the office and threatened the Congressman. Specifically, as charged in the indictment, Brown said “I will find someone to assassinate that piece of (expletive deleted) you work for. Jerry Nadler is going to be assassinated.”
Information at sentencing showed that Brown has prior criminal convictions involving violence and threats of violence. In 1996, he was convicted of inflicting injury on a spouse and threatening to commit a crime to terrorize the victim. In 2005, he was convicted of two counts of aggravated battery against a household member using a deadly weapon. In that case, Brown restrained a woman against her will and used a knife to hurt the victim in a way that caused or could have caused the victim great bodily harm. In 2010, a warrant was issued for Brown’s arrest because he violated his probation by failing to report to his probation officer, failing to maintain employment, and by incurring new criminal charges. According to a witness, Brown then fled to Mexico because he knew there was a warrant for his arrest. Law enforcement ultimately arrested Brown in 2017 and he was sentenced to almost a year in prison.
Brown was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Brown was sentenced to 15 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Brown is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the Federal Bureau of Investigation, the Waterloo Police Department, and the United States Capitol Police.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2042.
Follow us on Twitter @USAO_NDIA.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and defendants are presumed innocent until proven guilty:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on June 8 was:
Gregg Lawrence Haywood, Sr., 53, of Billings, on charges of prohibited person in possession of a firearm. If convicted of the most serious crime, Haywood faces a maximum of 10 years in prison, a $250,000 fine and three years of supervised release. Haywood was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-40.
Appearing in Great Falls before U.S. Magistrate Judge John T. Johnston and pleading not guilty on June 8 was:
Duane Mittens, Jr., 29, of Browning, on charges of possession with intent to distribute methamphetamine. If convicted of the most serious crime, Mittens faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Mittens was released pending further proceedings. The FBI and Blackfeet Law Enforcement Services investigated the case. PACER case reference. 21-40.
Appearing on June 10 was:
Larry Albert Bernard, 37, of Box Elder, on charges of conspiracy to possess with intent to distribute controlled substances, possession with intent to distribute controlled substances and maintaining drug-involved premises. If convicted of the most serious crime, Bernard faces a maximum of 20 years in prison, a $1 million fine and three years of supervised release. Bernard was released pending further proceedings. The FBI and Tri Agency Task Force investigated the case. PACER case reference. 21-36.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Indiana Man Convicted of Murder for Hire Plot, Witness TamperingRead the Press Release
NEWARK, N.J. – An Indiana man was convicted on all counts today in connection with a plot to pay a purported hitman to kill his estranged wife, Acting U.S. Attorney Rachael A. Honig announced.
Narsan Lingala, 57, of Noblesville, Indiana, was convicted on one count each of conspiring to commit murder for hire and traveling interstate or using interstate facilities with intent that a murder for hire be committed and two counts of attempting to tamper with a witness. The jury deliberated three hours before returning the guilty verdicts following an eight-day trial before Chief U.S. District Judge Freda L. Wolfson in Trenton federal court.
According to documents filed in this case and the evidence at trial:
Lingala conspired and attempted to hire a purported hitman to kill his ex-wife. He also attempted to tamper with the testimony of a conspirator and an undercover law enforcement officer. The conduct for which he was convicted occurred between approximately May 2018 and March 2019.
Lingala’s conspirator, Sandya Reddy, pleaded guilty in April 2019 to her role in the scheme and was sentenced on Aug. 10, 2020, to 63 months in prison.
The murder-for-hire charges are each punishable by a maximum of 10 years in prison; the witness tampering charges are punishable by a maximum of 20 years. All of the charges are also punishable by a maximum fine of $250,000.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch in Newark, as well as the Middlesex County Prosecutor’s Office and detectives, under the direction of Prosecutor Yolanda Ciccone, with the investigation leading to today’s guilty verdict.
The government is represented by Assistant U.S. Attorneys Matthew Feldman Nikic of the Cybercrime Unit and Thomas S. Kearney of the Special Prosecutions Division in Newark.
Hot Springs Man Sentenced for Firearm ChargeRead the Press Release
Acting United States Attorney Dennis Holmes announced that a Hot Springs, South Dakota, man convicted of Prohibited Person in Possession of a Firearm was sentenced on June 7, 2021, by Chief Judge Roberto A. Lange, U.S. District Court.
Matthew Leddon, age 45, was sentenced to seven months in federal prison, followed by two years of supervised release, including five months of home confinement, and a special assessment to the Federal Crime Victims Fund in the amount of $100. Leddon was also ordered to forfeit all interest in the SIG Sauer pistol and ammunition seized.
Leddon was indicted by a federal grand jury on March 10, 2020. He pled guilty on March 22, 2021.
The conviction stemmed from an incident that occurred on December 24, 2019. Leddon, who was previously convicted of a felony drug offense, was traveling across the state when he ended up in the median along the interstate in Lyman County. A South Dakota Highway Patrol Trooper stopped to assist Leddon. During the interaction, the Trooper learned Leddon was a prohibited person due to the drug conviction and discovered the pistol in the vehicle.
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.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force, the South Dakota Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant U.S. Meghan N. Dilges prosecuted the case.
Leddon was immediately remanded to the custody of the U.S. Marshals Service.
Hawaii Couple Indicted in Tax Fraud SchemeRead the Press Release
A federal grand jury in Honolulu, Hawaii, returned an indictment today charging a Hawaii husband and wife with conspiring to defraud the United States and filing a false tax return. The wife was also charged with four counts of money laundering.
According to the indictment, from 2015 to 2019, Beverly Braumuller-Hawver and Scott F. Hawver, both of Ewa Beach, along with another individual, allegedly conspired to defraud the United States by filing a false 2014 amended individual income tax return claiming a refund of $188,239 to which they were not entitled. After the IRS issued the refund, Braumuller-Hawver allegedly laundered the fraudulently obtained tax refund through a series of financial transactions using banks located in the District of Hawaii.
Braumuller-Hawver is charged with conspiracy to defraud the United States, filing a false tax return, and four counts of money laundering. Hawver is charged with conspiracy to defraud the United States and filing a false tax return. The defendants are scheduled for their initial court appearances on June 16, before a U.S. Magistrate Judge of the U.S. District Court for Hawaii.
If convicted, Braumuller-Hawver faces a maximum sentence of 10 years in prison for each count of money laundering. The Hawvers each face a maximum sentence of three years for filing a false tax return and a maximum sentence of five years for conspiracy to defraud the United States. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Judith A. Philips for the District of Hawaii made the announcement.
The IRS-Criminal Investigation is investigating the case.
Trial Attorneys Sarah A. Kiewlicz and Valerie G. Preiss of the Tax Division and Assistant U.S. Attorney Gregg Paris Yates of the U.S. Attorney’s Office for the District of Hawaii are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.