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8 June 2021
Former Olympic Figure Skater Arrested for Role in Defrauding U.S. Small Business Administration of over $1.5 MillionRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, and William F. Sweeney, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation, announced today the unsealing of a complaint charging LUKA KLASINC, a former Olympic ice skater, with bank fraud and aggravated identity theft in connection with his use of falsified documents during his attempts to gain access to over $1.5 million in funds disbursed pursuant to fraudulent U.S. Small Business Administration (“SBA”) Economic Injury Disaster Loans. KLASINC, a Slovenian national, was arrested Monday afternoon in Manhattan, and will be presented today before Judge Kevin Nathaniel Fox.
Manhattan U.S. Attorney Audrey Strauss said: “As alleged, at a time when U.S. small businesses were struggling because of the COVID-19 pandemic, Klasinc thought he could scam his way to easy money. As alleged, Klasinc used false documents to try and obtain over a million dollars in funds intended to help hard working Americans but, thanks to the diligence of the FBI, his plans have been put on ice. He will now be held accountable for his alleged brazen lies.”
FBI Assistant Director-in-Charge William F. Sweeney, Jr., said: “Loans issued on behalf of the SBA were intended to provide relief for businesses struggling during the pandemic. Time and again we see instances of fraud and abuse of this program. We will investigate all instances of alleged SBA loan fraud and hold accountable those who take advantage of this program for personal gain.”
According to the allegations in the Complaint[1]:
KLASINC is the sole owner of a company named BOB77, LLC. KLASINC claimed that BOB77, LLC (“BOB77”) is an event management company that, in conjunction with its global partners, stages major ice-themed amusement park style events around the world. Beginning in or around 2019, BOB77 opened three business bank accounts (the “BOB77 Accounts”) with an international financial institution (“Bank-1”). Between July 2020 and September 2020, the BOB77 Accounts received a total of $1,595,800 from the SBA, pursuant to eleven Economic Injury Disaster Loans. In the same period, there were numerous wire transfers from the BOB77 Accounts to international beneficiaries. In late September 2020, after identifying potential fraud, Bank-1 froze all funds in the BOB77 Accounts and contacted KLASINC for additional information regarding the account activity. In response, KLASINC provided documentation — including a falsified document purporting to be a letter from the U.S. Small Business Administration — intended to legitimize the SBA deposits and persuade Bank-1 to release the funds. In or around June 2021, KLASINC traveled to the United States and appeared at in person at a New York branch of Bank-1, where he again attempted to persuade Bank-1 to release the funds by claiming that the SBA deposits were “investments” and not associated with a loan.
* * *
KLASINC, 48, of Slovenia, is charged with one count of bank fraud, which carries a maximum sentence of 30 years in prison, and with one count of aggravated identity theft, which carries a mandatory two-year prison term. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Ms. Strauss praised the outstanding investigative work of the FBI.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Ashley C. Nicolas is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth in this release constitute only allegations, and every fact described should be treated as an allegation.
Former Chiropractor Found Guilty of Health Care Fraud Charges that She Schemed to Defraud Health Insurers Out of $2.2 MillionRead the Press Release
SANTA ANA, California – A former Orange County chiropractor was found guilty by a jury today of federal criminal charges accusing her of defrauding health insurers by fraudulently submitting and causing to be billed $2.2 million in billings for chiropractic services never provided, bogus medical diagnoses, office visits that never occurred, and medical devices falsely prescribed.
Susan H. Poon, 56, of Dana Point, was found guilty of five counts of health care fraud, three counts of making false statements relating to health care matters, and one count of aggravated identity theft in the first criminal jury trial to occur in the Central District of California since March 2020.
According to the evidence presented at her five-day trial, from January 2015 to April 2018, Poon, whose office was located in Rancho Santa Margarita, schemed to defraud Anthem and Aetna by submitting false reimbursement claims for services that never occurred, false diagnoses and chiropractic services that were never performed.
Poon also submitted fraudulent prescriptions containing fabricated medical diagnoses of individuals that she had never met, including children, causing a medical device manufacturer to submit false claims for reimbursement to Blue Shield of California.
The patient-victims that Poon claimed to have met with and treated were dependents – such as the spouses and children – of Costco Wholesale Corp. and United Parcel Service Inc. employees, dependents whose personal identification information Poon unlawfully took and used in her reimbursement requests and prescriptions. Poon obtained the personal information of employee-dependents by attending health fairs at various UPS warehouses and Costco locations, and soliciting such information from employees.
In total, Poon billed and caused to be billed approximately $2.2 million through her scheme.
Poon’s chiropractic license was revoked in July 2019, according to the California Department of Consumer Affairs.
United States District Judge David O. Carter has scheduled an August 30 sentencing hearing, at which time Poon will face a statutory maximum sentence of 67 years in federal prison.
The following agencies investigated this matter: Amtrak - Office of the Inspector General, California Department of Insurance, U.S. Department of Labor - Employee Benefits Security Administration, U.S. Department of Labor - Office of the Inspector General, the FBI, and Office of Personnel Management - Office of the Inspector General.
Assistant United States Attorneys Daniel S. Lim and Daniel H. Ahn of the Santa Ana Branch Office are prosecuting this case.
Federal Jury Convicts Brandon Man of Trafficking Fentanyl Resulting in DeathRead the Press Release
Tampa, Florida – A federal jury has found Christopher A. Defilippis (43, Brandon) guilty of distribution of fentanyl resulting in death and possession with the intent to distribute fentanyl. Due to his prior felony drug convictions, Defilippis faces a mandatory sentence of life in federal prison. His sentencing hearing is scheduled for September 8, 2021.
Defilippis had been indicted on November 17, 2020.
According to evidence presented at trial, between March and April 2020, Defilippis distributed heroin in Hillsborough County. On April 17, 2020, Defilippis distributed fentanyl, which caused a fatal overdose. Deputies with the Hillsborough County Sheriff’s Office immediately began surveillance on Defilippis and, on April 18, 2020, observed him distributing narcotics throughout Hillsborough County. Law enforcement officers arrested Defilippis and found him to be in possession of fentanyl, cocaine, and packaging consistent with distribution.
The Hillsborough County Medical Examiner’s Office conducted an autopsy and determined that the use of the fentanyl had caused the victim’s death. Lab analysis also determined that the fentanyl mixtures found near the victim were all very similar to the narcotics seized from Defilippis.
This case was investigated by the Hillsborough County Sheriff’s Office, with assistance from the Hillsborough County Medical Examiner’s Office. It is being prosecuted by Assistant United States Attorney Diego F. Novaes.
Fayetteville Man Sentenced for Possessing a Firearm as a Convicted FelonRead the Press Release
NEW BERN, N.C. – A Fayetteville man was sentenced today to 115 months in prison and three years of supervised release for unlawfully possessing a firearm. On January 19, 2021, Shawn Antonio McNeill, 34, pled guilty to possessing a firearm as a convicted felon.
On October 24, 2018, while on patrol, an officer with the Fayetteville Police Department observed a Red Nissan Altima sedan pass him with a dark window tint and smelled an odor of marijuana as the car passed him. The officer turned around, and he observed the vehicle back into the driveway of a residence located on 7008 Radnor Street in Fayetteville and observed McNeill exiting the driver’s side. McNeill then proceeded to move towards the residence. Another officer on the scene shined his flashlight through the window and observed a firearm in plain view on the driver’s side floorboard. Officers subsequently towed and executed a search warrant on the vehicle and recovered a loaded Taurus 9mm handgun, a quantity of marijuana, a quantity of crack cocaine, a digital scale, and plastic baggies. Prior to this encounter, McNeill had been convicted of numerous felony offenses, including multiple prior convictions of firearm by felon.
G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Fayetteville Police Department investigated the case and Assistant U.S. Attorney Chad Rhoades prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:19-CR-00104-FL.
FBI’s Encrypted Phone Platform Infiltrated Hundreds of Criminal Syndicates; Result is Massive Worldwide TakedownRead the Press Release
For Further Information, Contact:
Media Relations Director Kelly Thornton (619) 546-9726
SAN DIEGO – A wave of hundreds of arrests that began in Australia and stretched across Europe culminated today with the unsealing of a federal grand jury indictment in San Diego charging 17 foreign nationals with distributing thousands of encrypted communication devices to criminal syndicates.
The 500-plus arrests that took place during a worldwide two-day takedown were possible because of a San Diego-based investigation like no other. For the first time, the FBI operated its own encrypted device company, called “ANOM,” which was promoted by criminal groups worldwide. These criminals sold more than 12,000 ANOM encrypted devices and services to more than 300 criminal syndicates operating in more than 100 countries, including Italian organized crime, Outlaw Motorcycle Gangs, and various international drug trafficking organizations, according to court records.
SEARCH WARRANT - Operation Trojan Shield
INDICTMENT - Operation Trojan Shield
During the course of the investigation, while ANOM’s criminal users unknowingly promoted and communicated on a system operated lawfully by the FBI, agents catalogued more than 27 million messages between users around the world who had their criminal discussions reviewed, recorded, and translated by the FBI, until the platform was taken down yesterday.
The users, believing their ANOM devices were protected from law enforcement by the shield of impenetrable encryption, openly discussed narcotics concealment methods, shipments of narcotics, money laundering, and in some groups—violent threats, the indictment said. Some users negotiated drug deals via these encrypted messages and sent pictures of drugs, in one instance hundreds of kilograms of cocaine concealed in shipments of pineapples and bananas, and in another instance, in cans of tuna, in order to evade law enforcement.
The indictment charges 17 alleged distributors of the FBI’s devices and platform. They are charged with conspiring to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), pertaining to their alleged involvement in marketing and distributing thousands of encrypted communication devices to transnational criminal organizations worldwide.
During the last 24 to 48 hours, in addition to the more than 500 arrests around the world, authorities searched more than 700 locations deploying more than 9,000 law enforcement officers worldwide and seized multi-ton quantities of illicit drugs.
CLICK HERE - Video Messages from International Partners
Grand totals for the entire investigation include 800 arrests; and seizures of more than 8 tons of cocaine; 22 tons of marijuana; 2 tons of methamphetamine/amphetamine; six tons of precursor chemicals; 250 firearms; and more than $48 million in various worldwide currencies. Dozens of public corruption cases have been initiated over the course of the investigation. And, during the course of the investigation, more than 50 clandestine drug labs have been dismantled. One of the labs hit yesterday was one of the largest clandestine labs in German history.
“This was an unprecedented operation in terms of its massive scale, innovative strategy and technological and investigative achievement,” said Acting U.S. Attorney Randy Grossman. “Hardened encrypted devices usually provide an impenetrable shield against law enforcement surveillance and detection. The supreme irony here is that the very devices that these criminals were using to hide from law enforcement were actually beacons for law enforcement. We aim to shatter any confidence in the hardened encrypted device industry with our indictment and announcement that this platform was run by the FBI.”
“Today marks the culmination of more than five years of innovative and complex investigative work strategically aimed to disrupt the encrypted communications space that caters to the criminal element,” said Suzanne Turner, Special Agent in Charge of the Federal Bureau of Investigation (FBI) - San Diego Field Office. “The FBI has brought together a network of dedicated international law enforcement partners who are steadfast in combating the global threat of organized crime. The immense and unprecedented success of Operation Trojan Shield should be a warning to international criminal organizations – your criminal communications may not be secure; and you can count on law enforcement worldwide working together to combat dangerous crime that crosses international borders.”
“Operation Trojan Shield is a perfect example of an OCDETF case - an investigation driven by intelligence and maximizing the strengths of partner law enforcement agencies in coordinated efforts to dismantle command and control elements of criminal networks,” said OCDETF Director Adam W. Cohen. “Coordination is the cornerstone of the OCDETF program, and the impressiveness of the combined efforts of the U.S. Attorney’s Office, FBI, and our foreign partners cannot be overstated. This effort has created lasting disruptive impacts to these transnational criminal organizations.”
“The AFP and FBI have been working together on a world-first operation to bring to justice the organised crime gangs flooding our communities with drugs, guns and violence,” said AFP Commissioner Reece Kershaw APM. “The FBI provided an encrypted communications platform while the AFP deployed the technical capability which helped unmask some of the biggest criminals in the world. This week the AFP and our state police partners will execute hundreds of warrants and we expect to arrest hundreds of offenders linked to the platform. This is the culmination of hard work, perseverance and an invaluable, trusted relationship with the FBI.
We thank the FBI for their long and integral partnership with the AFP.”
Europol’s Deputy Executive Director Jean-Philippe Lecouffe: “This operation is an exceptional success by the authorities in the United States, Sweden, the Netherlands, Australia, New Zealand and the other European members of the Operational Task Force. Europol coordinated the international law enforcement community, enriched the information picture and brought criminal intelligence into ongoing operations to target organised crime and drug trafficking organisations, wherever they are and however they choose to communicate. I am very satisfied to see Europol supporting this operation and strengthen law enforcement partnerships by emphasizing the multi-agency aspect of the case.”
“I am exceptionally proud of our New Zealand Police staff who supported Operation Trojan Shield,” said New Zealand Police Commissioner Andrew Coster. “This operation will have an unprecedented impact on organised crime syndicates across the globe. We value our strong relationship with the FBI, AFP and Europol and it is through these partnerships and the unrelenting efforts by law enforcement agencies from multiple countries that this operation has seen such incredible success This is a fantastic result and reiterates the importance of our transnational partnerships with law enforcement agencies across the globe in our common ongoing efforts to dismantle organised crime groups and the enormous harm they cause to our communities.”
“This remarkably successful operation demonstrates what can be accomplished when law enforcement agencies throughout the world work together,” said DEA Los Angeles Division Special Agent in Charge Bill Bodner. “Through strong relationships with our partners in more than 67 countries, professionals throughout the DEA, including experts in the Los Angeles Division, supported this unprecedented collaboration and our own mission to disrupt and dismantle the criminal organizations that profit from the distribution of illegal drugs.”
According to the San Diego indictment, ANOM’s administrators, distributors, and agents described the platform to potential users as “designed by criminals for criminals” and targeted the sale of ANOM to individuals that they knew participated in illegal activities.
All defendants are foreign nationals located outside of the U.S. In total, eight of the indicted defendants were taken into custody last night. Authorities are continuing to search for the remaining nine defendants.
The indictment alleges the defendants knew the devices they distributed were being used exclusively by criminals to coordinate drug trafficking and money laundering, including in the U.S. The defendants personally fielded “wipe requests” from users when devices fell into the hands of law enforcement.
The FBI’s review of ANOM users’ communications worked like a blind carbon copy function in an email. A copy of every message being sent from each device was sent to a server in a third-party country where the messages were collected and stored. The data was then provided to the FBI on a regular basis pursuant to an international cooperation agreement. Communications such as text messages, photos, audio messages, and other digital information were reviewed by the FBI for criminal activity and disseminated to partner law enforcement agencies in other countries. Each user was using ANOM for a criminal purpose. Those countries have built their own cases against ANOM users, many of whom were arrested in takedowns in Europe, Australia and New Zealand over the last several days.Intelligence derived from the FBI’s communications platform presented opportunities to disrupt major drug trafficking, money laundering, and other criminal activity while the platform was active. For example, over 150 unique threats to human life were mitigated.
This operation was led by the FBI and coordinated with the U.S. Drug Enforcement Administration, the U.S. Marshals Service, Australian Federal Police, Swedish Police Authority, National Police of the Netherlands, Lithuanian Criminal Police Bureau, Europol, and numerous other law enforcement partners from over a dozen other countries.
This investigation began after Canada-based encrypted device company Phantom Secure was dismantled by the FBI in 2018 through a San Diego-based federal RICO indictment and court-authorized seizure of the Phantom Secure platform, forcing many criminals to seek other secret communication methods to avoid law enforcement detection. The FBI—along with substantial contributions by the Australian Federal Police—filled that void with ANOM.
When the FBI and the San Diego U.S. Attorney’s Office dismantled Sky Global in March 2021, the demand for ANOM devices grew exponentially as criminal users sought a new brand of hardened encryption device to plot their drug trafficking and money laundering transactions and to evade law enforcement. Demand for ANOM from criminal groups also increased after European investigators announced the dismantlement of the EncroChat platform in July 2020. The ANOM platform - unlike Phantom Secure, EncroChat, and Sky Global - was exploited by the FBI from the very beginning of ANOM’s existence and was not an infiltration of an existing popular encrypted communications company.
In October 2018, Phantom Secure’s CEO pleaded guilty to a RICO conspiracy in the Southern District of California. He was sentenced to nine years in prison and ordered to forfeit $80 million in proceeds from the sale of Phantom devices.
For further information, please see https://www.justice.gov/usao-sdca/pr/chief-executive-communications-company-sentenced-prison-providing-encryption-services and https://www.justice.gov/usao-sdca/pr/sky-global-executive-and-associate-indicted-providing-encrypted-communication-devices.
Operation Trojan Shield is an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Assistant U.S. Attorneys Meghan E. Heesch, Joshua C. Mellor, Shauna Prewitt, and Mikaela Weber of the U.S. Attorney’s Office for the Southern District of California are prosecuting the case, with assistance from Paralegal Specialist Tracie Jarvis. Former Assistant U.S. Attorney Andrew P. Young made invaluable contributions during his tenure on the case team.
Acting U.S. Attorney Grossman praised federal prosecutors and FBI agents and international law enforcement partners for their relentless pursuit of justice in this extraordinary case. Additionally, Acting U.S. Attorney Grossman thanked the coordinated efforts of the Department of Justice’s Office of International Affairs which facilitated many international components of this complex investigation.
The charges and allegations contained in an indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
DEFENDANTS 21-CR-1623-JLS COUNTRY *Joseph Hakan Ayik (1) Domenico Catanzariti (2) Australia *Maximilian Rivkin (3) Abdelhakim Aharchaou (4) The Netherlands *Seyyed Hossein Hosseini (5) Alexander Dmitrienko (6) Spain *Baris Tukel (7) *Erkan Yusef Dogan (8) *Shane Geoffrey May (9) Aurangzeb Ayub (10) The Netherlands James Thomas Flood (11) Spain *Srdjan Todorovic aka Dr. Djek (12) *Shane Ngakuru (13) Edwin Harmendra Kumar (14) Australia Omar Malik (15) The Netherlands Miwand Zakhimi (16) The Netherlands *Osemah Elhassen (17) *FugitiveSUMMARY OF CHARGES
Conspiracy to Conduct Enterprise Affairs Through Pattern of Racketeering Activity (RICO Conspiracy), in violation of 18 U.S.C. § 1962(d)
Maximum Penalty: Twenty years in prion
AGENCIES
Federal Bureau of Investigation
Drug Enforcement Administration
United States Marshals Service
Department of Justice, Office of International Affairs
Australian Federal Police
Swedish Police Authority
Lithuanian Criminal Police Bureau
National Police of the Netherlands
EUROPOL
For further information, please see
https://www.europol.europa.eu/newsroom/news/800-criminals-arrested-in-biggest-ever-law-enforcement-operation-against-encrypted-communication
https://www.afp.gov.au/news-media/media-releases/afp-led-operation-ironside-smashes-organised-crime
Erie Man Indicted on Fentanyl ChargeRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of violating federal drug laws, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Dondiago Dan Collins, 24, Erie, Pennsylvania, as the sole defendant.
According to the Indictment presented to the court, on or about April 6, 2021, Collins attempted to possess with intent to distribute more than forty grams of a mixture and substance containing a detectable amount of fentanyl.
The law provides for a maximum total of 40 years in prison, a fine of $5,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul S. Sellers is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, Pennsylvania State Police Northwest Strike Force, United States Postal Inspection Service, Federal Bureau of Investigations, United States Postal Service Office of Inspector General, and the City of Erie Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Easton Man Admits Producing Images of Child Sex AbuseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that ROBERT McGUIRE, 41, of Easton, pleaded guilty today before U.S. District Judge Robert N. Chatigny to production of child pornography.
According to court documents and statements made in court, between February 2019 and June 2020, McGuire repeatedly sexually abused a minor victim and took photographs and videos of the sexual assaults.
Judge Chatigny scheduled sentencing for October 14, 2021, at which time McGuire faces a mandatory minimum term of imprisonment of 15 years and a maximum term of imprisonment of 30 years.
McGuire has been detained since his arrest by the Easton Police Department on related state charges on July 10, 2020.
This matter has been investigated by the Federal Bureau of Investigation and the Easton Police Department. The case is being prosecuted by Assistant U.S. Attorneys Konstantin Lantsman and Sarala V. Nagala.
Acting U.S. Attorney Boyle thanked the State’s Attorney’s Office for the Judicial District of Fairfield for its close cooperation in investigating and prosecuting this matter.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Drug Trafficking and DogFighting RingLeader Sentenced to Thirty Years in PrisonRead the Press Release
TALLAHASSEE, FLORIDA – Jermaine Hadley, 32, of Quincy, Florida was sentenced to 30 years in federal prison on Friday, June 4, 2021. Hadley headed a drug trafficking organization affiliated with a violent gang in the Gadsden County, Florida area that was responsible for the distribution of over 50 kilograms of methamphetamine, over 15 kilograms cocaine, MDMA, possession of illegal firearms, in addition to facilitating a largescale dogfighting ring throughout the north-central Florida Panhandle between 2018 and 2019. The sentencing was announced by Jason R. Coody, Acting United States Attorney for the Northern District of Florida.
A total of 21 defendants were arrested and have been sentenced or are awaiting sentencing from the long-term investigation into drug trafficking and dogfighting, to include:
- Dennis Lamar Howard, 47, of Chattahoochee, Florida; Sentenced to credit for time served, with 2 years of supervised release, 6 months of which will be served on home detention with location monitoring.
- Eddie Lee Hughes, 54, of Chattahoochee, Florida; Sentenced to credit for time served, with 3 years of supervised release.
- Leonard Safford, 39, of Gretna, Florida; Sentenced to 48 months in federal prison
- Patrick Lee Baker, 45, of Chattahoochee, Florida; Sentencing set for 6/24/2021
- Sariem Shanquell McMillian, 25, of Quincy, Florida; Sentencing set for 6/24/2021
- Bob Streets, 37, of Quincy, Florida; Sentencing set for 6/24/2021
- Jeremy Williams, 30, of Greenwood, Florida; Sentencing set for 6/25/2021
- Linda Lockwood, 50, of Chattahoochee, Florida; Sentencing set for 6/25/2021
- Zanntayfey Yohoun Bennett, 37, of Quincy, Florida; Sentencing set for 7/7/2021
- Samantha Eugenia Yelle, 32, of Marianna, Florida; Sentencing set for 7/7/2021
- Devar San Jacus Donaldson, 29, of Quincy, Florida; Sentencing set for 7/8/2021
- Tiffany Jean Hughes, 31, of Marianna, Florida; Sentencing set for 7/8/2021
- Jamaron Juanata Paden, Sr., 31, of Marianna, Florida; Sentencing set for 7/9/2021
- Tanya Henry, 43, of Marianna, Florida; Sentencing set for 7/9/2021
- Charles Randolph Corbin, 47, of Blountstown, Florida; Sentencing set for 7/21/2021
- Justin Cribley, 38, of Chattahoochee, Florida; Sentencing set for 7/21/2021
- Ja'Rod Lamar Bryant, 33, of Chattahoochee, Florida; Sentencing set for 7/22/2021
- DeCarlise Roidel Chapman, 47, of Marianna, Florida; Sentencing set for 7/22/2021
- Savanna Price, 21, of Marianna, Florida; Sentencing set for 7/23/2021
- Jequentavious Trayshon Owens, 26, of Chattahoochee, Florida; Sentencing set for 7/23/2021
Hadley led a drug trafficking organization supplied by multiple sources in Georgia, Louisiana, and Texas, from which he and his associates distributed narcotics throughout the Northern District of Florida. His narcotics distribution network involved members of the Gadsden County, Florida “424” criminal street gang. In addition, Hadley and his associates coordinated and conducted numerous dogfighting matches where the animals were often made to fight to the death, as participants paid to watch and gambled on the outcomes. The investigation resulted in the seizure of multi-kilograms quantities of methamphetamine, cocaine, MDMA, marijuana, numerous firearms, large sums of U.S. currency, as well as the rescue and rehabilitation of over 100 fighting dogs. Several parcels of real property in the Gadsden County area used to facilitate the criminal activities of the organization were seized and are being criminally forfeited.
“As a result of the incredible work of our law enforcement partners, this criminal has been held to account for the violence, armed drug trafficking, and horrific acts of animal cruelty he orchestrated,” stated Acting U.S. Attorney Coody. “The abuse of animals for profit is both inhumane and illegal and will be vigorously prosecuted by this office.”
“Jermaine Hadley can no longer distribute dangerous drugs nor harm innocent animals,” said DEA Miami Field Division Acting Special Agent in Charge La Verne Hibbert. “As a result of the strong multi-agency law enforcement collaboration in this case, Panhandle communities are less afflicted by the scourge of his drug distribution and gang related criminal activities.”
USDA-OIG Acting Special Agent-in-Charge Salina Walker stated, "The United States Department of Agriculture, Office of Inspector General-Investigations, actively investigates allegations of animal abuse. This agency has made animal fighting a high priority in order to demonstrate that these blatant acts of cruelty to animals will no longer be tolerated. We want to thank the outstanding work of our federal, state, and local law enforcement partners who investigated this case and the prosecutors of the U.S. Attorney's Office for aggressively prosecuting perpetrators of animal fighting."
“These investigations highlight the importance of law enforcement partnerships across the spectrum of local and federal government,” said HSI Tampa Assistant Special Agent in Charge Micah McCombs. “Our communities can rest easier knowing this criminal is behind bars for his illegal activities with narcotics and animal fighting ventures.”
“Reducing violent crime involving firearms and ammunition are at the forefront ATF’s mission”, said ATF Special Agent in Charge Craig W. Saier, “The collaboration of law enforcement at every level in this case is an example of the positive impact partnerships can make particularly when such heinous crimes have occurred”.
“The Gadsden County Sheriff’s Office appreciates the teamwork from all agencies. We are intolerable of offenses especially this kind,” stated Sheriff Morris Young.
This investigation and prosecution was the result of the collaborative effort of numerous federal, state, and local agencies, including the Drug Enforcement Administration, the U.S. Department of Agriculture Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the United States Marshals Service, the Gadsden County Sheriff’s Office, the Jackson County Sheriff’s Office, the Florida Highway Patrol, the Chattahoochee Police Department, the Tallahassee Police Department, the Leon County Sheriff’s Office, the Calhoun County Sheriff’s Office, the Florida Department of Law Enforcement, and the Florida Air National Guard Counterdrug Program. The case was prosecuted by Assistant United States Attorney Eric Mountin.
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.
Dothan Man Sentenced to Five Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
Montgomery, Alabama – On Thursday, June 3, 2021, Trajazman L. Farmer, a 31-year-old man from Dothan, Alabama, was sentenced to 60 months in prison for being a felon in possession of a firearm. In addition to his prison sentence, Farmer was ordered to serve three years of supervised release. There is no parole in the federal system.
According to court records, on July 11, 2019, the Dothan Police Department executed a search warrant at Farmer’s residence after receiving information from two of his children that he was selling drugs out of the home. During the search, officers discovered a .44 Special caliber revolver, a 9mm semiautomatic rifle, an Anderson Manufacturing, model AM-15, MULTI caliber semiautomatic rifle, and a 7.62x39 caliber semiautomatic rifle. Farmer has previous felony convictions and is prohibited from possessing firearms. During the sentencing hearing, it was revealed that the AM-15 was a stolen weapon.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Dothan Police Department investigated this case. Assistant United States Attorney Megan Kirkpatrick prosecuted the case.
Department of Justice Seizes $2.3 Million in Cryptocurrency Paid to the Ransomware Extortionists DarksideRead the Press Release
SAN FRANCISCO - The Department of Justice today announced that it has seized 63.7 bitcoins currently valued at over $2.3 million. These funds allegedly represent a significant portion of the proceeds of a May 8 ransom payment to individuals in a group known as DarkSide, which had targeted Colonial Pipeline resulting in critical infrastructure being taken out of operation. The seizure warrant was authorized earlier today by U.S. Magistrate Judge Laurel Beeler.
“Following the money remains one of the most basic, yet powerful tools we have,” said Deputy Attorney General Lisa O. Monaco for the U.S. Department of Justice. “Ransom payments are the fuel that propels the digital extortion engine, and today’s announcement demonstrates that the United States will use all available tools to make these attacks more costly and less profitable for criminal enterprises. We will continue to target the entire ransomware ecosystem to disrupt and deter these attacks. Today’s announcements also demonstrate the value of early notification to law enforcement; we thank Colonial Pipeline for quickly notifying the FBI when they learned that they were targeted by DarkSide.”
“There is no place beyond the reach of the FBI to conceal illicit funds that will prevent us from imposing risk and consequences upon malicious cyber actors,” said FBI Deputy Director Paul Abbate. “We will continue to use all of our available resources and leverage our domestic and international partnerships to disrupt ransomware attacks and protect our private sector partners and the American public.”
“Cyber criminals are employing ever more elaborate schemes to convert technology into tools of digital extortion,” said Acting U.S. Attorney for the Northern District of California Stephanie Hinds. “We need to continue improving the cyber resiliency of our critical infrastructure across the nation, including in the Northern District of California. We will also continue developing advanced methods to improve our ability to track and recover digital ransom payments.”
"Despite the extraordinary lengths the criminals took to cover the digital tracks of their ill-gotten gains, FBI San Francisco's investigative team was relentless and used all technical means to make this seizure," said FBI Special Agent in Charge Craig D. Fair. "Hackers and other cybercriminals simply cannot rely on cryptocurrency to evade the reaches of law enforcement."
On or about May 7, Colonial Pipeline was the victim of a highly publicized ransomware attack resulting in the company taking portions of its infrastructure out of operation. Colonial Pipeline reported to the FBI that its computer network was, among other things, accessed by an organization named DarkSide and that it had received and paid a ransom demand for approximately 75 bitcoins.
As alleged in the supporting affidavit, by reviewing the Bitcoin public ledger, law enforcement was able to track multiple transfers of bitcoin and identify that approximately 63.7 bitcoins, representing the proceeds of the victim’s ransom payment, had been transferred to a specific address, for which the FBI has the “private key,” or the rough equivalent of a password needed to access assets accessible from the specific Bitcoin address. This bitcoin represents proceeds traceable to a computer intrusion and property involved in money laundering and may be seized pursuant to criminal and civil forfeiture statutes.
The Special Prosecutions Section and Asset Forfeiture Unit of the U.S. Attorney’s Office for the Northern District of California is handling the seizure, with significant assistance from the Department of Justice Criminal Division’s Money Laundering and Asset Recovery Section and Computer Crime and Intellectual Property Section, and the National Security Division’s Counterintelligence and Export Control Section. The Department components who worked on this seizure coordinated their efforts through the Department’s Ransomware and Digital Extortion Task Force, which was created to combat the growing number of ransomware and digital extortion attacks.
The Task Force prioritizes the disruption, investigation, and prosecution of ransomware and digital extortion activity by tracking and dismantling the development and deployment of malware, identifying the cybercriminals responsible, and holding those individuals accountable for their crimes. The Task Force also strategically targets the ransomware criminal ecosystem as a whole and collaborates with domestic and foreign government agencies as well as private sector partners to combat this significant criminal threat.
Defendant on federal supervised release pleads guilty to drug crimeRead the Press Release
DAYTON, Ohio – A Dayton man on supervised release from a prior federal case pleaded guilty in U.S. District Court today to dealing methamphetamine near Austin Landing in Miamisburg.
Terry Scott Jones, 41, pleaded guilty to one count of possessing with intent to distribute 50 grams or more of methamphetamine.
In March 2021, officers with the City of Moraine executed a search warrant in Jones’ hotel room at the Home2Suites at Austin Landing. Detectives discovered more than 89 grams of methamphetamine and a loaded firearm.
Just one year prior, in March 2020, Jones was sentenced to 12 months in federal prison for aiding and abetting the theft of firearms from a Federal Firearms Licensee.
Jones faces a mandatory minimum of 10 years and up to life in prison. Congress sets the maximum statutory sentence. Sentencing of the defendant will be determined by the Court based on the advisory sentencing guidelines and other statutory factors.
Vipal J. Patel, Acting United States Attorney for the Southern District of Ohio; Roland Herndon, U.S. Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF); and Moraine Police Chief Craig Richardson announced the plea entered into today before U.S. District Judge Walter H. Rice. Assistant United States Attorney Ryan A. Saunders is representing the United States in this case.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Crownsville Man Pleads Guilty to Possession of Child PornographyRead the Press Release
Greenbelt, Maryland – Jared Johnson, age 36, of Crownsville, Maryland, pleaded guilty today to possession of child pornography.
The plea was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; Anne Colt Leitess of the Anne Arundel County State’s Attorney’s Office; and Anne Arundel Police Chief Amal Awad.
According to his guilty plea, from Mary 2020 to August 2020, an internet cloud storage service provider sent the National Center of Missing and Exploited Children five cybertipline reports detailing hundreds of child pornography images uploaded to an account within its internet platform. The account was associated with Johnson’s cellular number and IP address located at Johnson’s Crownsville, Maryland residence.
Over the course of five reports, the internet storage provider reported over 2,500 images of child pornography uploaded to Johnson’s account.
During a search of Johnson’s residence on July 24, 2020, Anne Arundel County detectives recovered Johnson’s cell phone and computer. The devices were hidden in the basement, submerged underwater within the basement’s sump pump system. A forensic analysis of the computer revealed that Johnson possessed over 12,000 images and videos of child pornography on the computer system.
After examination of Johnson’s online cloud account, Anne Arundel County Police detectives discovered thousands of images and videos containing child pornographic material, including a 38-minute video compilation depicting prepubescent children engaged in sexually explicit conduct.
U.S. District Judge Stephanie A. Gallagher has not scheduled a sentencing hearing at this time.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States 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. For more information about Internet safety education, please visit www.justice.gov/psc and click on the "Resources" tab on the left of the page.
Acting United States Attorney Jonathan F. Lenzner commended the HSI, Anne Arundel State’s Attorney’s Office, and the Anne Arundel Police Department for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Christine Duey who is prosecuting the federal case.
Clinical Researchers Plead Guilty in Connection with Scheme to Falsify Drug Trial DataRead the Press Release
A Florida nurse practitioner and a Florida woman pleaded guilty today to their participation in a conspiracy to falsify clinical trial data.
According to court documents, Eduardo Navarro, 52, of Miami, and Nayade Varona, 50, of Port St. Lucie, worked at a clinical research site called Tellus Clinical Research. Navarro was a sub-investigator, and Varona was an assistant study coordinator. As part of their plea agreements, Navarro and Varona admitted that they agreed with one another and others to falsify data in medical records in connection with two clinical trials intended to evaluate a treatment for irritable bowel syndrome. Among other things, Navarro and Varona falsified data to make it appear as though subjects were participating in the trials when, in truth, they were not.
“The falsification of clinical trial data puts the health and safety of the public at risk,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “The Justice Department will continue to work with its partners at the Food and Drug Administration to investigate and prosecute anyone who engages in this conduct.”
“Public health and safety must always take precedence over profit when new pharmaceutical drugs are being tested,” said Acting U.S. Attorney Juan Antonio Gonzalez for the Southern District of Florida. “Medical researchers needlessly endanger the public by manipulating clinical data and falsifying records. Such conduct is illegal and will be prosecuted.”
“FDA’s evaluation of a new drug begins with an analysis of reliable and accurate data from clinical trials,” said Assistant Commissioner for Criminal Investigations Catherine A. Hermsen of the Food and Drug Administration's (FDA) Office of Criminal Investigations. “Compromised clinical trial data could impact the agency’s decisions about the safety and effectiveness of the drug under review. We will continue to investigate and bring to justice those whose actions may subvert the FDA approval process and endanger the public health.”
Navarro and Varona both pleaded guilty before U.S. District Judge Jose E. Martinez of the Southern District of Florida to conspiracy to defraud the United States and to commit an offense against the United States. Both face a maximum penalty of five years in prison and are scheduled to be sentenced on Aug. 11. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The FDA's Office of Criminal Investigations is investigating the case.
Trial Attorneys Lauren M. Elfner and Joshua D. Rothman of the Civil Division's Consumer Protection Branch are prosecuting the case. The U.S. Attorney’s Office for the Southern District of Florida provided critical assistance.
Chicago Man Sentenced to 30 Years in Prison for Kidnapping and Assaulting Women He Met OnlineRead the Press Release
CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.
KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016. Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings. Once there, he physically assaulted each of the women and raped two of them. Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.
Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification. U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated by the FBI and the Will County Safe Streets Task Force. Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.
“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum. “Defendant showed a complete disregard for human life and respect for a person’s dignity.”
Chicago Man Sentenced to 30 Years in Prison for Kidnapping and Assaulting Women He Met OnlineRead the Press Release
CHICAGO — A Chicago man was sentenced today to 30 years in federal prison for kidnapping and assaulting three women he met online.
KEITH DEWITT DAVIS, 31, assaulted the women in vacant buildings in Calumet City, Ill., in the summer of 2016. Davis met the women online and used a pretext of engaging in consensual, commercial sex acts to lure them to the vacant buildings. Once there, he physically assaulted each of the women and raped two of them. Davis displayed a handgun and pointed it at one of the victims, and he displayed a wrench or pipe in the two other incidents.
Davis pleaded guilty in 2019 to three counts of kidnapping for sexual gratification. U.S. District Judge Harry D. Leinenweber imposed the sentence after a hearing in federal court in Chicago.
The sentence was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Emmerson Buie, Jr., Special Agent-in-Charge of the Chicago Field Office of the FBI. The case was investigated by the FBI and the Will County Safe Streets Task Force. Substantial assistance was provided by the Calumet City Police Department, Hazel Crest Police Department, Midlothian Police Department, South Bend, Ind., Police Department, and the St. Joseph County, Ind., Prosecutor’s Office.
“Defendant’s crime was vicious,” Assistant U.S. Attorney Abigail L. Peluso argued in the government’s sentencing memorandum. “Defendant showed a complete disregard for human life and respect for a person’s dignity.”
CEO of Reality TV Production Companies Agrees to Plead Guilty to Defrauding Private Lender out of $2 MillionRead the Press Release
LOS ANGELES – The CEO of two Hollywood production companies that specialize in reality television programming has agreed to plead guilty to wire fraud for obtaining a $2 million business loan using fabricated documents and by misrepresenting his companies’ financial circumstances.
Jonathan Lee Smith, 40, of West Hollywood, was charged in an information with wire fraud. In a plea agreement also filed today, Smith agreed to plead guilty to the felony offense, which carries a statutory maximum penalty of 20 years in federal prison.
According to the plea agreement, Smith managed and owned two production companies, Hoplite Entertainment, Inc. and Hoplite, Inc. To convince a private lender to fund a $2 million loan last year, Smith falsely represented that his two companies had accounts receivable of $3,348,000, and he submitted falsified license agreements and other forgeries to back up the claim.
To convince the private lender to give him additional time to repay the loan, court documents state, Smith falsely represented that payment was imminent. He also emailed a fake record showing a $100,000 wire payment from Hoplite, Inc. to the lender. In reality, the loan was never repaid, and Smith has agreed to pay $2 million in restitution.
Smith is expected to make his initial appearance in this case in United States District Court on July 6.
The FBI investigated this matter.
Assistant United States Attorney Alexander B. Schwab of the Major Frauds Section is prosecuting the case.
California Man Pleads Guilty to Fraudulenty Obtaining over $170,000 in Unemployment BenefitsRead the Press Release
LAS VEGAS, Nev. – A California man pleaded guilty today to fraudulently obtaining over $170,000 in unemployment benefits by submitting multiple unemployment claims in other people’s names and using benefits debit cards not belonging to him.
According to court documents and admissions made in court, on September 11, 2020, Keheir Jordan Parker (25, of Victorville, Calif.) and co-conspirator Robert Devon Barber (25, of Lawrenceville, Georgia) were stopped in Las Vegas for a traffic violation. During the traffic stop, law enforcement officers recovered 12 California Employment Development Department (EDD) unemployment insurance benefits debit cards issued in other peoples’ names, along with ATM receipts showing that the debit cards had been used to make cash withdrawals totaling $7,400 in Nevada and California.
At least $249,460 in unemployment benefits was approved for claims associated with the 12 recovered EDD cards. Approximately $170,715.78 was obtained from accounts associated with those 12 cards, including $148,400 in ATM cash withdrawals and $22,315.78 in purchases.
Parker pleaded guilty to one count of conspiracy to effectuate illegal transaction with an access device. He faces a statutory maximum penalty of seven and a half years in prison and a $250,000 fine. U.S. District Judge Jennifer A. Dorsey scheduled sentencing for September 13, 2021.
Acting U.S. Attorney Christopher Chiou for the District of Nevada and Special Agent-in-Charge Quentin Heiden of the U.S. Department of Labor Office of Inspector General (DOL-OIG), Los Angeles Region made the announcement.
This case was investigated by DOL-OIG. Assistant U.S. Attorney Jim Fang is prosecuting the case.
Anyone with information about allegations of attempted fraud involving COVID-19 should please report it by calling the Department of Justice’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.
For information about COVID-19 fraud, visit the Department of Justice’s website at https://www.justice.gov/coronavirus.
Buffalo Man Going to Prison on Drug and Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051Buffalo, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Felix M. Velazquez, 44, of Buffalo, NY, who was convicted of possessing with intent to distribute cocaine and possessing a firearm in furtherance of drug trafficking, was sentenced to serve 96 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Seth T. Molisani, who handled the case, stated that in June 2018, the Lackawanna Police Department Narcotics Unit began investigating the narcotics trafficking activities of the defendant, a mid-level street cocaine distributor who had a large customer base in the Buffalo area. Velazquez conducted his distribution activities through his cellular phone, and at his apartment on Weyand Avenue in Buffalo.
On August 14, 2018, the Buffalo Police Department executed a New York State search warrant at the defendant’s Weyand Avenue residence. Officers recovered approximately 130 grams of cocaine; a digital scale; drug packaging materials; a .380 semi-automatic pistol, loaded with seven rounds; and $42,955.00 cash.
The sentencing is the result of an investigation by the Lackawanna Police Department, under the direction of Chief Mark Packard; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division.
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Buckhannon man admits to drug and counterfeit chargesRead the Press Release
CLARKSBURG, WEST VIRGINIA – Garry William Moran, II, of Buckhannon, West Virginia, has admitted to drug and counterfeit charges, Acting United States Attorney Randolph J. Bernard announced.
Moran, 41, pleaded guilty today to one count of “Conspiracy to Possess with Intent to Distribute Methamphetamine” and one count of “Possession of Counterfeit Obligations.” Moran admitted to having methamphetamine to sell from January to May 2019 in Upshur County and elsewhere. Moran also admitted to having $1,100 in counterfeit bills in May 2019 in Upshur County.
Moran faces up to 20 years of incarceration and fine of up to $1,000,000 for the drug charge and faces up to 20 years of incarceration and a fine of up to $250,000 for the counterfeit charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.Assistant U.S. Attorney Brandon S. Flower is prosecuting the case on behalf of the government. The Mountain Lakes Drug Task Force and the U.S. Secret Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Biotech Research Company Ordered to Pay $881,669.69 in Restitution for False Statements in Grant ApplicationsRead the Press Release
GREENSBORO, N.C. – Bio-Adhesive Alliance, Inc. (Bio-Adhesive) was sentenced yesterday in federal court for false statements made in grant applications submitted to the Environmental Protection Agency and the National Science Foundation, announced Acting U.S. Attorney Sandra J. Hairston.
United States District Court Judge Catherine C. Eagles of the Middle District of North Carolina ordered Bio-Adhesive to pay restitution in the amount of $562,500.00 to the National Science Foundation and $319,199.69 to the Environmental Protection Agency a $800 special assessment, and serve five years of a probationary term. The defendant corporation pleaded guilty in March 2021 to two counts of false statements.
According to court records, Bio-Adhesive was founded in February of 2013 by Employee-1, Employee-2, and Employee-3. Employee-1 is the President and Co-Owner of Bio-Adhesive. At the time of founding until the summer of 2019, Employee-1 was an Assistant Professor in the Applied Engineering and Technology Department at North Carolina Agricultural and Technical State University (“A&T”). Employee-2 is a Co-Owner of Bio-Adhesive and, until the summer of 2019, was an Associate Professor in the Civil, Architectural and Environmental Engineering Department, also at A&T. Employee-1 and Employee-2 are married to each other. North Carolina Secretary of State documents list Employee-3 as the Chief Operating Officer of Bio-Adhesive. Until the summer of 2019, Employee-3 was a graduate student at A&T. At all times relevant herein, Employee-3 was pursuing a Master’s Degree in Civil Engineering from A&T and worked as a Graduate Assistant at A&T.
The Environmental Protection Agency (EPA) and the National Science Foundation (NSF) are federal agencies that participate in set-aside programs for small businesses, including the Small Business Innovative Research (SBIR) Program and the Small Business Technology Transfer Program (STTR). SBIR supports federal research and development (R&D) with potential for commercialization of the developed product, and STTR expands funding opportunities in the federal innovation R&D arena. The programs require that applicants establish the technical merit, feasibility, and commercial potential of proposed R&D efforts in Phase I. In Phase II, the awarding agency must determine the quality of performance of the small business awardee organization in Phase I and the potential of the proposed project prior to providing further federal support.
Bio-Adhesive applied for and received multiple STTR and SBIR grant awards from NSF and EPA between 2013 and 2016. The awards totaled $1,375,000. Not all of the awarded funds were disbursed: Bio-Adhesive received, in total, $881,669.69 in award funds from NSF and EPA. During this time period, Bio-Adhesive submitted multiple proposals that contained misrepresentations regarding its eligibility to seek SBIR and/or STTR grant awards from NSF and EPA, as well as other material aspects of their project, including employees, budget, and recommenders. For example, on or about July 30, 2015, in an NSF SBIR/Phase II award application, Bio-Adhesive represented that:
- Employee-3 was eligible to be the Principal Investigator (PI) for the project, knowing that he was not;
- A subcontract of $134,058 would be paid to A&T (it was not);
- An individual with the initials S.H. would act as the Chief Technology Officer of Bio-Adhesive, knowing that S.H. had not agreed to assume that role; and
- An individual with the initials W.M. had written a letter in support of Bio-Adhesive’s application, knowing that he had not.
“Applicants that make false representations in order to access government grants are cheating taxpayers and taking resources from honest researchers and businesses,” said Acting United States Attorney Hairston. “We commend NSF-OIG and EPA-OIG for their vigilance and determined investigation of the Bio-Adhesive fraud.”
“The National Science Foundation’s Small Business Innovation Research program provides small businesses with funding to conduct research and development work that will lead to the commercialization of innovative new products and services,” said NSF Inspector General Allison Lerner. “Today’s sentence serves as a reminder that fraud in the SBIR Program will not be tolerated. The NSF Office of Inspector General remains committed to ensuring the integrity of the SBIR program and will actively pursue oversight of these taxpayer funds. I commend the U.S. Attorney’s Office and our investigative partners for their support in this effort.”
“Protecting the integrity of research and development programs funded by the U.S. Environmental Protection Agency is a priority for my office,” said EPA Inspector General Sean W. O’Donnell. “This sentencing follows a joint effort with the National Science Foundation’s Office of Inspector General. The EPA Office of Inspector General is committed to working with its law enforcement partners in bringing to justice individuals who defraud the SBIR and STTR programs.”
The case was investigated by the National Science Foundation Office of Inspector General and the Environmental Protection Agency Office of Inspector General. The case was prosecuted by Assistant United States Attorney JoAnna G. McFadden.
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Berkeley County man sentenced for role in drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Theodore Richardson, of Martinsburg, west Virginia, was sentenced today to 30 months of incarceration for his role in a drug conspiracy that spanned several states, Acting United States Attorney Randolph J. Bernard announced.
Richardson, also known as “JR,” age 57, pleaded guilty in March 2021 to one count of “Aiding and Abetting the Distribution of Fentanyl and Cocaine.” Richardson admitted to selling cocaine hydrochloride, also known as “coke,” and fentanyl in June 2019 in Berkeley County.
This case is the result of investigations supported by the Organized Crime Drug Enforcement Task Force (OCDETF) under the Attorney General-led Synthetic Opioid Surge (SOS)/Special Operations Division (SOD) Project Clean Sweep. This initiative seeks to reduce the supply of synthetic opioids in “hot spot” areas previously identified by the Attorney General of the United States, thereby reducing drug overdoses and drug overdose deaths, and identify wholesale distribution networks and sources of supply operating nationally and internationally.
OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Find the related case here: https://www.justice.gov/usao-ndwv/pr/25-charged-six-state-drug-conspiracy-involving-heroin-fentanyl-cocaine
Berkeley County man sentenced for child pornography chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jeffrey Allen Johnson, of Martinsburg, West Virginia, was sentenced today to one year of home confinement and a lifetime of supervision for having child pornography, Acting U.S. Attorney Randolph J. Bernard announced.
Johnson, age 51, pleaded guilty in February 2020 to one count of “Possession of Child Pornography.” Johnson admitted to having more than 600 images of child pornography in May 2019 in Berkeley County.
Johnson was also ordered to pay $10,000 in assessments toward a victim assistance fund.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorneys’ Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/.
Assistant U.S. Attorney Kimberley D. Crockett prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Chief U.S. District Judge Gina M. Groh presided.
Baker City Man Pleads Guilty in Covid-Relief Fraud SchemeRead the Press Release
PORTLAND, Ore.—A Baker City, Oregon man pleaded guilty today for fraudulently converting loans intended to help small business during the COVID-19 pandemic to his personal use.
Jeremy Clawson, 32, pleaded guilty to one count of theft of public money.
Clawson took advantage of economic relief programs administered by the Small Business Administration (SBA) through Economic Injury Disaster Loans (EIDLs) and the Paycheck Protection Program (PPP), as authorized by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The CARES Act, signed into law on March 27, 2020, was designed to provide emergency financial assistance to millions of Americans and small businesses suffering the economic effects of the COVID-19 pandemic.
According to court documents, on August 11, 2020, the proceeds of an SBA EIDL totaling $145,200 were deposited into an Umpqua Bank account owned by Jeremy Clawson and his girlfriend. Shortly after receiving the deposit, Clawson began making multiple large cash withdrawals at the drive-through window of an Umpqua Bank in Baker City. On August 17, 2020, Clawson withdrew $49,905 in the form of a cashier’s check to purchase a 2016 Dodge Challenger. Umpqua Bank investigators detected the unusual activity and reported it to the SBA.
SBA loan documents showed that the loan was made for the benefit of Halperin Manufacturing Company in San Diego, California. Though there is no record of any such company, the loan application listed the company’s owner and claimed it employed 350 people. Investigators contacted the person listed as the owner, but that person denied owning or being affiliated with any such company. The purported owner further stated that the company’s supposed address in San Diego was that individual’s personal residence and not a commercial property with 350 employees.
In early September 2020, investigators learned that, in late August, Clawson had been arrested by the Baker City Police Department for driving under the influence, reckless driving, driving with a suspended license, and attempting to elude the police. Clawson was driving the 2016 Dodge Challenger at the time of his arrest. Clawson later told authorities that he had received a large inheritance from his father, including $30,000 in cash he had on his person during a subsequent arrest.
On September 11, 2020, investigators interviewed Clawson at the Baker County Jail where he was incarcerated on an unrelated charge. Clawson claimed to have received the $145,200 from a woman with whom he had an online dating relationship. He further claimed that he didn’t know what to do with the money and, after he stopped communicating with the woman, began spending the money himself. Clawson admitted to using the SBA money to purchase the Dodge Challenger and several other vehicles.
On December 21, 2020, Clawson was charged by criminal complaint with theft of government property. Later, on February 2, 2021, a federal grand jury in Portland returned a single-count indictment charging Clawson with theft of public money.
Federal agents seized the Dodge Challenger and approximately $50,000 in cash derived from the fraudulent EIDL pursuant to seizure warrants issued by the federal court and voluntary abandonment of funds in third parties’ possession.
Theft of public money is punishable by up to 10 years in prison, a $250,000 fine, and three years’ supervised release. With Clawson’s continued acceptance of responsibility, the U.S. Attorney’s Office will recommend a 24-month prison sentence followed by three years’ supervised release. Clawson will be sentenced on September 13, 2021.
As part of the plea agreement, Clawson has agreed to pay $125,200 in restitution to the U.S. Treasury.
Acting U.S. Attorney Scott Erik Asphaug of the District of Oregon made the announcement.
This case was investigated by the SBA and U.S. Secret Service. It is being prosecuted by the U.S. Attorney’s Office for the District of Oregon.
Anyone with information about fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
Australian National Pleads Guilty to Multimillion-Dollar Text-Messaging Consumer Fraud SchemeRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, announced that MICHAEL PEARSE, an Australian national who was extradited to the United States from Australia in January 2021, pled guilty today to conspiracy to commit wire fraud stemming from his participation in a fraudulent scheme to charge hundreds of thousands of mobile phone customers millions of dollars in monthly fees for unsolicited, recurring text messages about topics such as horoscopes, celebrity gossip, and trivia facts, without the customers’ knowledge or consent – a practice to which the conspirators referred as “auto-subscribing.” PEARSE played a key role in the scheme as CEO of a company that created the computer program that was used to enroll victims into the text message services without their knowledge or consent. PEARSE pled guilty before United States District Judge Analisa Torres.
U.S. Attorney Audrey Strauss said: “As he admitted in court today, Michael Pearse played a vital role in an international consumer fraud conspiracy that swindled hundreds of thousands of mobile phone customers out of more than $50 million. Thanks to IRS Criminal Investigation and the FBI, as well as our international partners, Pearse now awaits sentencing for his crime.”
According to the allegations contained in the Indictment, evidence presented at the trial of co-conspirator Darcy Wedd, court filings, and statements made during plea proceedings:
From in or about 2011 through in or about 2013, PEARSE and his co-conspirators engaged in a multimillion-dollar scheme to defraud consumers by placing unauthorized charges for premium text messaging services on consumers’ cellular phone bills. To carry out the scheme, PEARSE and others caused unsolicited and recurring text messages to be sent to mobile phone users containing content such as horoscopes, celebrity gossip, or trivia facts. The victims of the fraud scheme never ordered these services, which were known in the industry as premium text messaging (“PSMS”) services, but were fraudulently “auto-subscribed” and billed for them at a rate of $9.99 per month. The $9.99 charge recurred each month unless and until consumers noticed the charges and took action to unsubscribe. Even then, consumers’ attempts to dispute the charges and obtain refunds were often unsuccessful.
During the relevant period, co-conspirator Lin Miao operated a company called Tatto Inc., a/k/a “Tatto Media” (“Tatto”), which offered PSMS services to mobile phone customers. PEARSE was the CEO of a company called Bullroarer, which was affiliated with Tatto. To enable Tatto to auto-subscribe consumers to unwanted PSMS services, PEARSE and co-defendant Yongchao Liu, a/k/a “Kevin Liu,” who worked as a Java Development Engineer for Bullroarer, agreed to build a computer program that could spoof the required consumer authorizations – i.e., a program that could generate the text message correspondence that one would ordinarily see with genuine PSMS subscriptions. PEARSE and Liu agreed to build the program (the “Auto-Subscription Platform”), which was operational by in or about the middle of 2011. PEARSE, Liu, and Miao then used the Auto-Subscription Platform to fraudulently auto-subscribe hundreds of thousands of mobile phone customers, using phone numbers provided by co-conspirators at Mobile Messenger, a U.S. aggregation company operated by Darcy Wedd that served as a middleman between content providers such as Tatto and mobile phone carriers. Through their successful orchestration of the fraudulent scheme, PEARSE and his co-conspirators generated more than $50 million in fraud proceeds for themselves.
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PEARSE, 52, of Australia, pled guilty to one count of conspiracy to commit wire fraud, in violation of 18 U.S.C. § 1349, which carries a maximum penalty of 20 years in prison. As part of his plea agreement, PEARSE agreed to forfeit $10,162,937.96, as well as his interest in three real properties in Australia and other assets, representing proceeds traceable to the fraud that PEARSE personally obtained.
The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as the sentence of PEARSE will be determined by the Court.
To date, nine defendants, Liu, Miao, Andrew Bachman, Michael Pajaczkowski, Erdolo Eromo, Jonathan Murad, Francis Assifuah, Jason Lee, and Christopher Goff have pled guilty in connection with their participation in the fraud. Two additional defendants, Darcy Wedd and Fraser Thompson, were convicted in 2017 following jury trials.
Ms. Strauss praised the outstanding investigative work of the Internal Revenue Service, Criminal Investigation and the Federal Bureau of Investigation. In addition, Ms. Strauss thanked law enforcement partners in Australia, as well as the U.S. Department of Justice’s Office of International Affairs, for their support and assistance with the extradition of PEARSE and co-defendant Liu.
This case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Jilan Kamal and Olga I. Zverovich are in charge of the prosecution.
2 Defendants Plead Guilty to Rioting for Their Roles in Arsons During May 2020 Violent Protests in RochesterRead 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 two defendants pleaded guilty before U.S. District Judge David G. Larimer for their roles in violent protests held in the City of Rochester in May 2020. Shakell Sanks and Mackenzie Drechsler pleaded guilty to rioting and face a maximum penalty of five years in prison and a $250,000 fine. Following her plea, Judge Larimer ordered defendant Drechsler to be held in custody until sentencing stating that she is a danger to the community based on her conduct during the violent protests.
“These defendants, like all of us, enjoy certain rights under our Constitution, including the right to assemble and the right to speak freely,” stated U.S. Attorney Kennedy. “Rioting, the setting of fires, and the destruction of property, however, are not constitutionally protected activities. They are crimes. The proceedings before Judge Larimer should serve as a reminder to those who commit crimes that when you do so you may ultimately forfeit your most precious constitutional right—your right to liberty.”
Assistant U.S. Attorneys Brett A. Harvey and Cassie M. Kocher, who are handling the cases, stated that on May 30, 2020, Rochester Police Department (RPD) officers were assigned to assist with crowd control during protests scheduled at the Public Safety Building (PSB) on Exchange Boulevard. During the late-afternoon/early evening, those protests, being held in response to the death of George Floyd in Minneapolis, Minnesota, turned violent and resulted in vandalism, damaged property, looting, and fires.
At approximately 6:00 p.m. on May 30th in downtown Rochester, Sanks and Dreschler assisted others in attempting to light fabric on fire. The fabric was stuffed into the gas tank of a parked car belonging to the City of Rochester Family Crisis Intervention Team (FACIT). At approximately 6:20 p.m., the FACIT car began to smoke and shortly thereafter became engulfed in flames. The car was a total loss. Dreschler also set fire to an official vehicle owned by the New York State Attorney General’s Office, after crouching down, placing cardboard inside the vehicle and then walking away. Approximately one minute later, smoke began billowing from the car, and as the fire grew, the car became engulfed in flames. The car was a total loss. Following her actions in the burning of the two cars, Drechsler also participated in breaking glass during looting that took place.
The pleas are the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito, New York Field Division; the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; the Gates Police Department, under the direction of Chief James VanBrederode; the Monroe County Sheriff’s Office, under the direction of Sheriff Todd Baxter; the New York State Police, under the direction of Major Barry Chase; the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley; the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Robert Hill; and the Rochester Fire Department, under the direction of Fire Chief Felipe Hernandez Jr.
Drechsler is scheduled to be sentenced on August 9, 2021, while Sanks is scheduled to be sentenced on August 23, both before Judge Larimer.
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7 June 2021
United States Attorney’s Office Announces Tina L. Nommay as Acting United States AttorneyRead the Press Release
HAMMOND- The United States Attorney’s Office announced that Tina L. Nommay is now the Acting United States Attorney.
The Vacancies Reform Act (VRA), 5 U.S.C. § 3345(a)(1), provides that when a presidentially appointed U. S. Attorney resigns, the First Assistant U.S. Attorney (“FAUSA”) of that office automatically becomes Acting U.S. Attorney. As a result of Thomas L. Kirsch’s resignation in December 2020, Gary T. Bell was the Acting United States Attorney. Mr. Bell has resigned to take a position as the Clerk of Court for the Northern District of Indiana, therefore, Tina L. Nommay will now be the Acting United States Attorney. She will hold this position until the Northern District of Indiana receives its politically appointed, senate confirmed United States Attorney.
Ms. Nommay has been an Assistant United States Attorney in the Fort Wayne Division since 1989, when she started her career in the civil division. In 1992, Ms. Nommay transitioned to the criminal division, where, as an AUSA, she prosecuted a wide range of criminal cases. In 2012 she was promoted and served as the Fort Wayne Division’s Branch Chief. In that role, she supervised and mentored AUSAs while personally being involved in a series of complex white collar, gun, drug and violent crime cases. In October 2020, Ms. Nommay was promoted to Chief of the Criminal Division where she oversees the work of over 30 AUSAs from the Hammond, South Bend and Fort Wayne divisions. Most recently she was also named FAUSA. Prior to her employment in this Office, Ms. Nommay was a Judicial Law Clerk in the Hammond Division of the Northern District of Indiana for two years.
Tina earned a Bachelor of Arts Degree in Philosophy from Michigan State University in June 1984, and her law degree (Juris Doctor) from Valparaiso University School of Law in May 1987. Over her career, she earned a number of law enforcement awards and recognition. She is a Fellow of the American College of Trial Lawyers.
“I will continue the District’s long tradition of seeking justice and protecting the citizens of the Northern District of Indiana by prosecuting those individuals who violate federal law,” said Acting United States Attorney Tina L. Nommay. “My office will continue to promote public safety throughout Northern Indiana by coordinating our efforts with federal, state, tribal and local law enforcement agencies, local prosecutors, along with civic and community groups.”
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Two Dominican Republic Citizens Plead Guilty to Mail Fraud and Aggravated Identity Theft SchemeRead the Press Release
EL PASO – Wilver Jose Polanco-Alvarez, a 26-year-old Dominican Republic citizen residing in Miami, and Jose Eduardo Gomez Salas, a 25-year-old Dominican Republic citizen residing in New York, admitted in federal court today to using stolen personal identification information to obtain high-end electronic devices such as cell phones, laptop computers, tablets and watches.
Appearing before Senior U.S. District Judge David Briones this morning, both defendants pleaded guilty to one count of conspiracy to commit mail fraud and three counts of aggravated identity theft.
According to court documents, U.S. Customs and Border Protection officers at the Paso Del Norte International Bridge in El Paso encountered the defendants on April 11, 2020. During an inspection, officers seized several electronic devices belonging to the defendants. A subsequent review of Gomez’s iPhone revealed personal identification information of multiple individuals as well as photographs of Polanco assuming and utilizing different aliases in the form of fraudulent driver’s licenses from Indiana, Texas, California, New Mexico, South Carolina and Tennessee.
Further investigation revealed that the defendants operated a scheme in at least five different states with the help of others to purchase and activate cell phones and other electronic devices at retail stores using fraudulent identification documents and stolen personal identification information to include wireless account information. After collecting the new phones and devices, Gomez mailed the items to 28-year-old alleged ringleader Marcos Andres Briceno-Romero in New Jersey.
Polanco and Gomez have remained in federal custody since their arrest in April 2020. They face up to 20 years in federal prison on the conspiracy charge. Each aggravated identity theft charge calls for a mandatory two years in federal prison. Sentencing has yet to be scheduled.
U.S. Attorney Ashley C. Hoff and Special Agent in Charge Erik P. Breitzke of Homeland Security Investigations’ (HSI) El Paso Division made today’s announcement.
Jury selection and trial has yet to be scheduled for three remaining co-defendants: Briceno-Romero, 21-year-old Wiktoria Lawika of New York and 20-year-old Justin Brito of New York.
HSI, U.S. Secret Service and U.S. Customs and Border Protection investigated this case. Assistant U.S. Attorney Sarah Valenzuela is prosecuting this case.
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Texas man admits to role in drug distribution operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Michael Alcendor, of Houston, Texas, has admitted to his role in methamphetamine, crack cocaine, fentanyl, and heroin drug distribution operation, Acting United States Attorney Randolph J. Bernard announced.
Alcendor, age 20, pleaded guilty today to one count of “Conspiracy to Distribute Controlled Substances,” one count of “Distribution of Fentanyl,” and one count of “Possession with Intent to Distribute Methamphetamine.” Alcendor admitted to working with others to distribute methamphetamine, crack cocaine, fentanyl, and heroin from the spring of 2018 to October 2020 in Monongalia County and elsewhere.
Alcendor faces up to 20 years of incarceration and a fine of up to $1,000,000 for each count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Zelda E. Wesley and Sarah E. Wagner are prosecuting the case on behalf of the government. The FBI's Northern West Virginia Drug Task Force in partnership with the Mon Metro Drug Task Force, a HIDTA-funded initiative, investigated. The Task Forces have members from the Federal Bureau of Investigation; the Drug Enforcement Administration; the Bureau of Alcohol, Tobacco, Firearms and Explosives; West Virginia State Police; Monongalia County Sheriff's Office; and, the Morgantown, WVU, Granville and Star City Police Departments. The investigation was also assisted by the following law enforcement partners: the Monongalia County Prosecutor’s Office, the FBI in Houston, Texas; the Houston Police Department's Multi Agency Gang Initiative; the United States Postal Inspection Service in Houston; and, the FBI and DEA in Los Angeles, California.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Taylor County man admits to child pornography chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Dallas Edward Weber, Jr. has admitted to a child pornography charge, Acting United States Attorney Randolph J. Bernard announced.
Weber, 40, pleaded guilty today to one count of “Aiding and Abetting Production of Child Pornography.” Weber is accused of using a minor child to engage in sexually explicit conduct and producing child pornography from that conduct in June 2020 in Taylor County.
Weber is facing at least 15 and up to 30 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Sarah E. Wagner is prosecuting the case on behalf of the government. The Taylor County Sheriff’s Office and the FBI investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Tax Preparer and His Company Permanently Barred from Preparing Federal Tax Returns for Others; Defendants to Pay Disgorgement to the United StatesRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that U.S. District Judge Jed S. Rakoff entered an order today permanently barring RAFAEL ALVAREZ (“ALVAREZ”) and ATAX New York LLC (“ATAX NEW YORK”) from, among other things, preparing federal tax returns for others. In its civil complaint, the United States alleged that ALVAREZ and ATAX NEW YORK had prepared and filed fraudulent tax returns on behalf of their customers in which they falsely reduced their customers’ tax liabilities and generated tax refunds to which those customers were not entitled. According to the complaint, ATAX NEW YORK filed over 36,000 tax returns on behalf of its customers from 2016 to 2019.
Manhattan U.S. Attorney Audrey Strauss said: “This Office will take appropriate actions to shut down tax preparation businesses that prepare and file fraudulent returns and unfairly shift the tax burden to honest American taxpayers.”
After the Government filed its complaint, ALVAREZ and ATAX NEW YORK consented to the entry of a permanent injunction and admitted, among other things, that:
- Between 2016 and 2019, they prepared and filed many federal income tax returns for ATAX NEW YORK’s customers that included claims of expenses, losses, or “head of household” status that lacked adequate supporting information or documentation.
- These unsupported entries caused the customers’ tax liabilities to be substantially understated.
- They had no adequate basis for including these entries on their customers’ returns.
The Government’s complaint also asked the Court to order disgorgement of the net profits that ALVAREZ and ATAX NEW YORK earned for preparing federal tax returns in which they made reckless or fraudulent claims with respect to their customers’ federal income tax liability. As part of today’s court-ordered resolution, ALVAREZ and ATAX NEW YORK agreed to pay $159,600 to the United States in disgorgement.
Ms. Strauss thanked the Internal Revenue Service’s Small Business/Self-Employed Division for its invaluable assistance in this matter.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant United States Attorneys Charles S. Jacob and Ilan Stein are in charge of the case.
- Between 2016 and 2019, they prepared and filed many federal income tax returns for ATAX NEW YORK’s customers that included claims of expenses, losses, or “head of household” status that lacked adequate supporting information or documentation.
Staples Man Sentenced to Prison, $12 Million in Restitution for Minneapolis Police Third Precinct ArsonRead the Press Release
MINNEAPOLIS – A Staples man was sentenced today to 27 months in prison for his role in the arsons at the Minneapolis Police Department’s Third Precinct building.
According to court documents, on the night of May 28, 2020, Bryce Michael Williams, 27, went to the Third Precinct where a crowd of hundreds had gathered. At one point, the crowd began shouting, “Burn it down, burn it down.” Soon after, a fence that was designed to keep trespassers out of the Third Precinct building was torn down. Williams, along with other co-conspirators, breached the fence and entered the Third Precinct building. Surveillance video footage from the Third Precinct showed Williams standing near the entrance of the Third Precinct holding a Molotov cocktail while a co-conspirator (later identified as Davon De-Andre Turner) lit the wick. The Molotov cocktail was taken into the Third Precinct by Turner and was used to start a fire. Williams later threw a box on an existing fire located just outside the Third Precinct entrance.
“All four defendants charged in federal court have now been sentenced for their individual roles in the burning and near total destruction of the Minneapolis Police Department’s Third Precinct building,” said Acting U.S. Attorney W. Anders Folk. “Mr. Williams and his co-defendants have been held accountable for their dangerous and destructive actions. I thank our federal, state, and local partners who pursued justice in these cases.”
On November 19, 2020, Williams pleaded guilty to one count of conspiracy to commit arson. As part of his sentencing, Williams was ordered to serve two years of supervised release and pay $12 million in restitution.
This case was the result of an investigation conducted jointly by the ATF, the FBI, the Minneapolis Police Department, and the Minnesota State Fire Marshal Division.
This case was prosecuted by Assistant U.S. Attorneys Harry M. Jacobs and David P. Steinkamp.
Six Charged in Methamphetamine ConspiracyRead the Press Release
MADISON, WIS. – Six individuals are charged with a methamphetamine conspiracy in an indictment returned by a federal grand jury sitting in Madison on May 12, 2021, announced Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, and Wisconsin Attorney General Josh Kaul. The indictment was unsealed following the arrests of the defendants.
The defendants are Levi Bagne, 30, Buckeye, Arizona; Corey Freyermuth, 38, Oshkosh, Wisconsin; TJ Myers, 32, Merrill, Wisconsin; Amy Pehlke, 33, Merrill; Krista Sparks, 26, Phoenix, Arizona; and Matthew White, 36, Merrill.
Each of the defendants is charged with conspiring to distribute methamphetamine and to possess 50 grams of more of methamphetamine for distribution. The indictment alleges that the conspiracy operated from June 2019 through May 2021. In addition, Myers is charged with possessing 50 grams or more of methamphetamine for distribution on June 8, 2020. Pehlke and White also are charged with distributing 50 grams or more of methamphetamine. The indictment alleges that Pehlke distributed the drug on July 23, 2020, and White did so on July 28, 2020. Bagne and Freyermuth are charged with possessing 50 grams or more of methamphetamine for distribution on September 2, 2020.
The government’s investigation revealed that beginning in June of 2019, Bagne and Sparks used the United States Postal Service to mail methamphetamine from Phoenix, Arizona, to Freyermuth in Oshkosh. In November of 2019, agents seized a mail parcel sent by Bagne and Sparks to Freyermuth and found two pounds of methamphetamine. In February of 2020, agents seized another mail parcel sent by Bagne and Sparks to Freyermuth and found approximately six pounds of methamphetamine. On September 2, 2020, agents executed a search warrant on a storage facility in Stevens Point, Wisconsin, used by Bagne and Freyermuth and found ten pounds of methamphetamine. In total, agents have seized approximately 20 pounds of methamphetamine and 14 firearms during the course of the investigation.
The indictment also seeks the forfeiture of property constituting or derived from proceeds of the conspiracy, including real property located in Buckeye, Arizona; $5,866 in U.S. currency seized on July 23, 2020, in Merrill; $1,180 in U.S. currency seized on April 8, 2021, in Merrill; and $31,220 in U.S. currency seized on April 8, 2021 in Schofield, Wisconsin.
“A combined local, state, and federal investigation led to the indictment charging these six individuals with operating an interstate drug trafficking scheme,” said Acting U.S. Attorney O’Shea. “The U.S. Attorney’s Office is committed to working with our law enforcement partners to identify and prosecute those who bring methamphetamine into Wisconsin and distribute it in our communities.”
“By working up the supply chain, the investigators in this case were able to identify individuals allegedly responsible for trafficking large amounts of meth into Wisconsin,” said AG Kaul. “Thank you to Lake Winnebago Area Metropolitan Enforcement Group and the many agencies that worked together to make Wisconsin safer by taking down this alleged drug trafficking organization.”
Bagne and Sparks were arrested in Arizona on May 26. The same day, Freyermuth was arrested in Oshkosh and Pehlke was arrested in Merrill. Myers and White are in state custody on state charges. Bagne and Sparks have made an initial appearance in Arizona; no date has been set for their appearance in U.S. District Court in Wisconsin. Pehlke and Freyermuth had detention hearings in federal court in Madison on June 1 and June 2, respectively. Pehlke was released this morning on court-imposed conditions, and Freyermuth remains detained.
If convicted, each defendant faces a mandatory minimum penalty of 10 years and a maximum of life in federal prison on each charge. The charges against the defendants are the result of an investigation by the Wisconsin Department of Justice Division of Criminal Investigation, Federal Bureau of Investigation, Drug Enforcement Administration, Lake Winnebago Area MEG Unit, Central Wisconsin Narcotics Task Force, Glendale (Arizona) Police Department – Special Investigations Unit, Arizona High Intensity Drug Trafficking Area West Valley Task Force, and the U.S. Postal Inspection Service.
Shooter pleads guiltyRead the Press Release
VICTORIA, Texas - A 20-year-old Bloomington man has admitted to assaulting a federal marshal, announced acting U.S. Attorney Jennifer B. Lowery.
Today, Jose Luis Vasquez Jr. also admitted he discharged a weapon and used a weapon during a crime violence.
On Feb. 3, Vasquez assaulted a U.S. deputy marshal as she and the other members of the Violent Crimes Fugitive Task Force attempted to arrest him. The marshal had to shield herself behind a truck for protection as Vasquez fired his weapon numerous times, striking the door of the vehicle.
Vasquez shouted “I’m not going back” as he fired a Smith and Wesson M7P40, .40 caliber semi-automatic pistol at authorities. The weapon’s magazine held at least 20 rounds of ammunition.
Senior U.S. District Judge John D. Rainey accepted the plea and has set sentencing for Sept. 7. At that time, Vasquez faces a sentence up to 20 years for the assault as well as a minimum of 10 years for the firearms conviction which must be served consecutively to the other sentence imposed.
He has been and will remain in custody pending sentencing.
The FBI; Bureau of Alcohol, Tobacco, Firearms and Explosives; Texas Rangers and U.S. Marshals Service conducted the investigation with assistance from the Victoria County Sheriff ‘s Office and Victoria County District Attorney’s Office. Assistant U.S. Attorney Patti Hubert Booth is prosecuting the case.
Saraland Man Sentenced to More Than Twenty Years in Methamphetamine and Firearms CaseRead the Press Release
United States Attorney Sean P. Costello of the Southern District of Alabama announced that William Thomas Carver II, 44, of Saraland, was sentenced today for his participation in a conspiracy to possess with intent to distribute methamphetamine. In January of 2021, Carver pled guilty to the conspiracy charge and a charge of carrying a firearm in relation to and in furtherance of the drug trafficking felony.
According to documents filed in connection with his guilty plea, Carver participated with several others in the conspiracy to possess with intent to distribute methamphetamine. He had different sources of supply and several distributors who received methamphetamine from him for further distribution in Mobile and Baldwin Counties. Carver was arrested with a firearm, methamphetamine and cash in his vehicle by Saraland police, and he provided information to federal and local agencies about the scope of some of his illegal activities.
United States District Court Judge Jeffery U. Beaverstock imposed a 248-month sentence in Carver’s case this morning, consisting of 188 months as to the drug count, to run consecutively to the 60-month sentence imposed for the gun count. Upon his release from custody, Carver was ordered to serve a five-year term of supervised release. Carver was also ordered to pay $200 in mandatory special assessments. No fine was imposed. The judge further entered a forfeiture order as to the firearm used in the commission of the crime.
The case was investigated by the Saraland Police Department, the Mobile County Sheriff’s Office, the Baldwin County Sheriff’s Office and the Department of Homeland Security. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Ringleader and Five Members of Rochester Drug Trafficking Organization Charged with Narcotics ConspiracyRead 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 six Rochester men were charged by criminal complaint with conspiring to possess with intent to distribute, and distributing, at least 280 grams or more of crack cocaine, and at least 500 grams or more of cocaine. The charges carry a mandatory minimum term of imprisonment of 10 years and a maximum penalty of life in prison, as well as a $10,000,000 fine. Named in the complaint are:
• Jason Siplin a/k/a J, 44; • Jason Siplin, Jr. a/k/a Mush, 27; • Ernest Gamble a/k/a Dred, 19; • Lytrice Jackson a/k/a Storm, 31; • Timothy Granison, 42; and
• Dkeidron Dublin, 39.Defendant Dkeidron Dublin is also charged with possession of a firearm in furtherance of a drug trafficking crime, which carries a minimum penalty of five years in prison and a maximum of life, which must be served consecutive to any penalty imposed on the drug conspiracy charge.
Assistant U.S. Attorney Matthew T. McGrath, who is handling the case, stated that according to the criminal complaint, the Greater Rochester Area Narcotics Enforcement Team (GRANET) has been investigating a drug trafficking organization led by Jason Siplin. The investigation revealed that since at least August 2020, the drug trafficking organization was distributing large quantities of cocaine and crack cocaine in the City of Rochester and the surrounding areas. Jason Siplin regularly obtained large quantities of cocaine that he in turned used to supply a drug house located at 230 Glenwood Avenue in Rochester, from which cocaine and crack cocaine were sold to individual drug users. Siplin had one or more storage locations for narcotics and United States currency. At least one of those storage locations was 62 Clifton Street in Rochester, and the 230 Glenwood Avenue was regularly supplied with crack cocaine stored at 62 Clifton Street.
The drug trafficking organization included a number of members who fulfilled various roles in furtherance of Siplin’s narcotics trafficking activities. Siplin obtained bulk quantities of cocaine, which would then be cooked or transformed into crack cocaine by another member. The crack cocaine was then broken down into individual units and bagged for street sale. Members also staffed the aforementioned drug house at 230 Glenwood Avenue. Siplin’s workers included his son, Jason Siplin, Jr. Ernest Gamble and Lytrice Jackson, who were among a number of individuals who packaged drugs for street sale and conducted hand-to-hand drug transactions out of 230 Glenwood Avenue. The investigation determined that roughly 40 to 50 drug transactions were conducted each day out of 230 Glenwood Avenue. Investigators also believe that Jason Siplin supplied bulk quantities of cocaine and crack cocaine to other drug dealers, including Timothy Granison, which Granison, in turn, distributed to other narcotics traffickers, including Dkeidron Dublin.
On May 19, 2021, defendants Granison and Dublin were detained after investigators observed a suspected drug deal at 5 Birch Crescent in Rochester. A “31” or a bag of cocaine equaling approximately 31 grams was found wrapped in a paper towel on the floor of Granison’s vehicle. Dublin was found in possession of approximately $1,241.00 in U.S. currency. During the execution of a search warrant of 5 Birch Crescent, which is believed to be the residence of Dkeidron Dublin, investigators recovered a quantity of crack cocaine, a razor blade, a scale and numerous new and unused plastic baggies commonly used to package narcotics. Approximately $400.00 in U.S. currency and .22 caliber semiautomatic pistol and ammunition were also recovered. A search warrant was also executed at Granison’s residence at 93 Woodman Park in Rochester.
Also on May 19, 2021, in addition to executing search warrants at the Birch Crescent and Woodman Park residences, search warrants were also executed at four additional premises, including the stash house and drug house located at 62 Clifton Street in Rochester, and 230 Glenwood Avenue in Rochester, respectively. During the search of 62 Clifton Street, investigators recovered quantities of bulk cocaine and crack cocaine, four boxes of baking soda, three digital scales, new and unused small plastic baggies, and beakers and other paraphernalia associated with cooking crack cocaine. During the search of 230 Glenwood Avenue, investigators encountered defendants Ernest Gamble and Lytrice Jackson, among others. It appeared that individuals inside the residence were in the process of flushing narcotics down an upstairs toilet. Over 80 small plastic baggies containing crack cocaine were recovered from the toilet bowl. During the search, quantities of crack cocaine were recovered along with walkie-talkies, a closed-circuit television system and DVR, digital scales, and approximately $10,888.00 in U.S. currency. Ernest Gamble had approximately $5,470.00 in U.S. currency on his person when taken into custody.
On that date, search warrants were also executed at 2013 Norton Street in Rochester, the residence of Jason Siplin, Jr., and 14 Elwood Drive in Rochester, the residence of Jason Siplin. As agents were preparing to execute the search warrant, Siplin, Jr. left the residence and began driving away. Law enforcement officers stopped him as he drove away and located approximately $62,581.00 in U.S. currency inside of Siplin Jr.’s vehicle. Another $300.00 in U.S. currency was recovered on Siplin, Jr.’s person, along with individually packaged baggies of cocaine. Another 8.5 grams of cocaine were found in the vehicle. During the search of the residence, investigators recovered a quantity of cocaine, new and unused plastic baggies, and numerous cellular phones. A search warrant was also executed that same night at 14 Elwood Drive, and a digital scale with white residue, baggies, and a small amount of crack cocaine were recovered along with $62,593.00 in U.S. currency.
During the execution of the six search warrants, investigators seized more than 1 kilogram of cocaine and more than a ½ kilogram of crack cocaine.
Defendants Jason Siplin, Jason Siplin, Jr., Ernest Gamble, and Dkeidron Dublin made an initial appearance this morning before U.S. Magistrate Mark W. Pedersen and were detained. DefendantTimothy Granison made an initial appearance and was released on conditions.
The complaint is the result of an investigation by the Rochester Police Department, under the direction of Chief Cynthia Herriott-Sullivan; Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly; the New York State Police, under the direction of Major Barry Chase; the Greater Rochester Area Narcotics Enforcement Team, under the direction of Lieutenant Robert Hill; and the Monroe County District Attorney’s Office, under the direction of District Attorney Sandra Doorley. Additional assistance was provided by the New York State Department of Corrections and Community Supervision and Customs and Border Protection.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Registered sex offender sentenced to 29 years in prison for soliciting and producing child pornography from teenage boys on social mediaRead the Press Release
DAYTON, Ohio – Brendan J. Eardly, 50, of Troy, Ohio, was sentenced in U.S. District Court to 348 months in prison for producing child pornography by enticing juvenile males to send him sexually explicit videos and images via social media.
According to court documents, between October 2015 and August 2018, Eardly created multiple social media accounts on Facebook, Instagram and Kik Messenger and communicated with more than 60 juveniles worldwide.
Eardly told some of the minors that he could be their “gay mentor,” someone whom they could talk to about sex, and someone who could provide them advice about sex. The defendant sent and requested nude and sexually explicit images to and from the minors.
For example, Eardly sent videos and images of himself to a 13-year-old male in Utah. Eardly purchased gifts for the boy and coerced him into sending at least 8 images and two videos of child pornography.
Eardly similarly victimized teenage males in Ohio, Colorado, Nevada, California and New York. He sometimes sent the child pornography obtained from one victim to other victims with whom he was communicating.
At the time of his instant offense, Eardly was required to register as a sex offender as the result of a prior sex conviction in Miami County.
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; Troy Police Chief Charles Phelps; and Ohio Attorney General Dave Yost’s Ohio Bureau of Criminal Investigation (BCI) announced the sentence imposed Friday evening by U.S. District Court Judge Walter H. Rice. Assistant Deputy Criminal Chief Laura I. Clemmens is representing the United States in this case.
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Queens Acupuncture Clinic Owner Charged with Tax CrimesRead the Press Release
A federal grand jury in Brooklyn, New York, returned an indictment on June 4, charging a New York City woman with conspiring to defraud the United States and aiding and assisting in the preparation of a false tax return.
According to the indictment, from 2008 to 2013, Alice Bixuan Zhang of Queens owned and operated Welling Physical Therapy and Acupuncture PLLC (Welling) and, from 2012 to 2013, co-owned Wellife Physical Therapy and Acupuncture PLLC (Wellife). Both businesses had locations throughout New York City. As charged, Zhang and her co-conspirator took multiple steps to reduce the income they reported and taxes they paid to the IRS. They allegedly diverted funds from Welling and Wellife to other entities that they controlled (“Related Companies”), and Zhang and her co-conspirator reported those funds as deductible business expenses, thereby reducing the taxable income of Welling and Wellife. Zhang and her co-conspirator then allegedly sought to conceal from the IRS income earned by the Related Companies by cashing checks made to those firms at a check cashing business, and not disclosing that income to their tax return preparers, which resulted in the preparation of false income tax returns.
Zhang will make her initial court appearance at a later date before a U.S. Magistrate Judge of the U.S. District Court for the Eastern District of New York. If convicted, she faces a maximum penalty of five years in prison on the conspiracy charge and three years in prison for assisting in filing a false return. 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 Mark J. Lesko for the Eastern District of New York made the announcement.
IRS Criminal Investigation is investigating the case.
Trial Attorneys Anahi Cortada and Thomas F. Koelbl of the Tax Division 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.
Providence Man Sentenced to Five Years in Prison for Trafficking CocaineRead the Press Release
PROVIDENCE, R.I. – A Providence man who took possession of a package containing more than a kilogram of cocaine shipped from Puerto Rico moments after it was delivered by the U.S. Postal Service to the front porch of a Providence residence was sentenced today to five years in federal prison.
Modesto Batista, 30, was sentenced by U.S. District Court Chief Judge John J. McConnell, Jr., to 60 months in federal prison to be followed by four years of federal supervised release. He pleaded guilty on March 11, 2021, to possession of over 500 grams of cocaine with the intent to distribute.
According to documents filed with the court, on December 10, 2020, Batista, while under surveillance by law enforcement, was seen sitting inside of a vehicle parked near a Providence residence as the U.S. Postal Service delivered a package, which law enforcement knew to contain cocaine. Shortly after the package was left on the front porch, Batista retrieved the package and immediately drove to his residence.
Moments after Batista arrive at his home, Homeland Security Investigations agents, U.S. Postal Inspection Service agents, and detectives assigned to the Rhode Island High Intensity Drug Trafficking Area Task Force, forcibly entered the building. Batista was found standing at the foot of the stairs leading to the upstairs portion of the house. The package Batista was seen removing from the front porch and transporting to his residence was found at his feet. The package contained more than 1,400 grams of cocaine.
A court-authorized search of Batista’s residence resulted in the seizure of a 9mm semi-automatic handgun and a magazine with fourteen rounds of live ammunition.
Batista’s sentence is announced by Acting United States Attorney Richard B. Myrus.
The case was prosecuted by Assistant United States Attorney William J. Ferland.
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Pittsburgh Pagans Motorcycle Club Vice-President Pleads Guilty to Illegally Possessing FirearmsRead the Press Release
PITTSBURGH, PA – The vice-president of the Pagans Motorcycle Club, Pittsburgh Chapter pleaded guilty in federal court to a charge of violating federal firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
Patrick Rizzo, 46, formerly of McKees Rocks, PA 15136, pleaded guilty to one count before United States District Judge Robert J. Colville.
In connection with the guilty plea, the court was advised that the Greater Pittsburgh Safe Streets Task Force conducted a long-term investigation into drug-trafficking and illegal firearms activity occurring in the Western District of Pennsylvania, involving, among others, members and associates of the Pagans Motorcycle Club (MC), Pittsburgh Chapter. One of the targets of the investigation was Pagans MC Vice President, Patrick Rizzo.
Beginning in August of 2020 and continuing through November 2020, the FBI conducted a federal Title III investigation, which resulted in the interception of thousands of wire and electronic communications over a total of ten telephones, one of which was Rizzo’s.
In connection with his guilty plea, Rizzo admitted that on October 17 and 18, 2020, over intercepted communications, Rizzo and other members of the conspiracy discussed Rizzo possessing a “Judge” – that is, a Taurus Judge revolver. Then, on October 21, 2020, Rizzo acknowledged that he was the subject of a lawful traffic stop by City of Pittsburgh Police (PBP) after he nearly caused an accident in downtown Pittsburgh. After smelling marijuana coming from the inside of the vehicle, Rizzo was patted down, and a marijuana roach was found on his person. Law enforcement searched his vehicle and located a Black Taurus Judge revolver with five live rounds, as well as a black holster for the firearm in the center console. Rizzo further admitted that he has a prior felony conviction and could not lawfully possess that firearm.
Further, in connection with his guilty plea, Rizzo also admitted that on December 8, 2020, law enforcement executed a federal search warrant at his apartment and located two additional handguns, one of which was stolen as well as related magazines and 165 rounds of ammunition. Further, law enforcement seized marijuana, packaged for resale, as well as user quantities of heroin and cocaine and paraphernalia related to using controlled substances. Rizzo admitted that in addition to his prior felony conviction, which prohibited him from possessing these firearms and ammunition as well, it was also illegal for him to possess them because he was an unlawful user of and addicted to controlled substances.
Judge Colville scheduled sentencing for October 26, 2021, at 9:00 a.m. The law provides for a total sentence of 10 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant. Rizzo remains in custody pending sentencing.
Assistant United States Attorney Rebecca L. Silinski is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation led the multi-agency investigation of this case, which also included the United States Postal Inspection Service, Drug Enforcement Administration, United States Marshals Fugitive Task Force, Allegheny County Sheriff’s Office, Pennsylvania State Police, Pittsburgh Bureau of Police, and the Pennsylvania Office of Attorney General Bureau of Narcotics Investigations. Other assisting agencies include the Allegheny County Police Department Homicide, Baldwin Police Department, Brentwood Police Department, McKees Rocks Police Department, Stowe Township Police Department and West Deer Township Police Department.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Pensacola Insurance Company Owner Arrested on Wire Fraud Charges; FBI Seeks Victims of Potential FraudRead the Press Release
PENSACOLA, FLORIDA – John Michael Thomas, 51, of Pensacola made his initial appearance today on wire fraud charges related to his business, Thomas Insurance, LLC. A federal criminal complaint was filed on March 12, 2021, charging Thomas with selling fraudulent insurance policies to his clients in exchange for approximately $4 million in insurance premium payments. On April 1, 2021, Thomas was arrested on the criminal complaint in Phoenix, Arizona, and was transported to Pensacola by the United States Marshal’s Service for today’s hearing. Jason R. Coody, Acting United States Attorney for the Northern District of Florida, announced the charges today after Thomas made his initial appearance in federal court in Pensacola.
The criminal complaint alleges between September 2013 and December 2020, John Thomas operated an insurance business known as Thomas Insurance, LLC, and defrauded customers through a type of insurance fraud known as premium diversion. Thomas executed this scheme by collecting insurance premiums from customers and keeping the funds for personal use instead of producing insurance policies. Thomas gave the customers fraudulent documents referencing insurance policies that did not exist.
This arrest resulted from a joint investigation by the FBI and the Florida Division of Investigative and Forensic Services, Bureau of Insurance Fraud, and work is ongoing to ensure all alleged victims are identified. If you are a client of Thomas Insurance, LLC and wish to speak to an investigating agent regarding your policy, please contact FBI Jacksonville at (904) 248-7000 or email [email protected], and reference “Thomas Insurance.” An FBI representative will respond with additional instructions.
Assistant United States Attorney Jeffrey Tharp is prosecuting this case for the Northern District of Florida.
A criminal complaint is merely an allegation by a sworn affiant that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to due process, to include a fair trial, during which it is the government’s burden to prove guilt beyond a reasonable doubt at trial.
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 available 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.
Oregon Biotech Consultant Sentenced for Insider Trading SchemeRead the Press Release
BOSTON – An Oregon biotechnology consultant was sentenced today in federal court in Boston in connection with his role in an insider trading scheme involving the acquisition of a Cambridge biotechnology company in 2017.
Mark Joseph Ahn, 58, of Lake Oswego, Ore., was sentenced by U.S. District Court Judge Richard G. Stearns to six months in prison, six months of home detention, two years of supervised release, a fine of $5,500, forfeiture of $49,421 and restitution to be determined at a later date. On March 2, 2021, Ahn pleaded guilty to two counts of securities fraud.
From April to August 2017, Ahn, a long-time senior corporate executive and board director for biotech companies, worked as a consultant for a New York firm, and advised it during its efforts to acquire Dimension Therapeutics, Inc., a biotech firm formerly headquartered in Cambridge, Mass. In the course of his work for the New York firm, Ahn learned about Dimension’s intention to be acquired by another biotech firm, the details and the timing of his employer’s proposals to acquire Dimension and gained access to confidential information about Dimension’s business. Ahn thereafter bought Dimension stock while in possession of that nonpublic information. When Dimension announced that it would be acquired in August 2017, its stock increased 262% in one day.
The SEC previously filed a separate civil action against Ahn in federal court in Boston.
Acting United States Attorney Nathaniel R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigations, Boston Division made the announcement today. The U.S. Attorney’s Office received valuable assistance from the Securities & Exchange Commission. Assistant U.S. Attorney Kriss Basil of Mendell’s Securities, Financial & Cyber Fraud Unit prosecuted the case.
Operation Second Wave Update: Montgomery Man Sentenced to Ten Years in Federal Prison for Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Montgomery man charged as a result of a long-term investigation known as “Second Wave” was sentenced today to 10 years in federal prison for conspiracy to distribute methamphetamine.
According to court documents, Sammy Joe Fragale, Sr., 73, pleaded guilty in December and admitted to working with his son, Sammy Joe Fragale II, also known as “Bubby Fragale,” to distribute methamphetamine in Montgomery and St. Albans. Between February and August 2020, Fragale sold more than 100 grams of ICE methamphetamine to a confidential informant working with the Drug Enforcement Administration (DEA). Earlier this year, Bubby Fragale was sentenced to 42 months in federal prison.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the investigative work of the DEA. Senior United States District Judge David A. Faber imposed the sentence. Assistant United States Attorney Joshua C. Hanks is handling the prosecution.
This case was part of operation “Second Wave,” a long-term investigation of a drug trafficking ring involved in the distribution of methamphetamine, cocaine, heroin, marijuana, and THC products. More than a dozen individuals have been charged in federal court as part of the investigation. All have pled guilty. The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force, the United States Postal Inspection Service (USPIS), the United States Postal Service – Office of Inspector General, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Kanawha County Sheriff’s Office (KCSO), the Metropolitan Drug Enforcement Network Team (MDENT), and the Charleston Police Department conducted the “Second Wave” investigation
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case Nos. 2:20-cr-00184 (Fragale, Sr.);and 2:20-cr-00176 (Fragale, II).
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Ohio County man admits to a drug chargeRead the Press Release
WHEELING, WEST VIRGINIA – Mark Joseph Dobrzynski, of Valley Grove, West Virginia, has admitted to a drug charge, Acting U.S. Attorney Randolph J. Bernard announced.
Dobrzynski, 58, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Dobrzynski admitted to having methamphetamine in November 2020 in Ohio County.
Dobrzynski faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins is prosecuting the case on behalf of the government. The Ohio Valley Drug Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New York Plumbing Contractor Sentenced to 20 Months in Prison for Employment Tax FraudRead the Press Release
A New York man was sentenced today to 20 months in prison for failing to collect and pay over to the IRS $732,462 in employment taxes.
Sergei Denko, of Queens, New York, owned and operated Denko Mechanical Inc. and Independent Mechanical Inc., both contracting businesses in Queens that specialized in plumbing. According to court documents and statements made in court, from 2010 through 2014, Denko cashed more than $5 million in checks made out to companies he owned and operated to fund an “off the books” cash payroll. He did not report the cash wages to the IRS, filed false employment tax returns, and did not pay to the IRS the employment taxes arising from the cash payroll. Denko admitted to causing a total tax loss of $732,462 .
In addition to the term of imprisonment, U.S. District Judge Rachel P. Kovner ordered Denko to serve one year of supervised release. The defendant has already paid $366,231 in restitution to the United States.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
The IRS Criminal Investigation investigated the case.
Trial Attorneys Sam Bean and Mark Kotila of the Tax Division prosecuted the case.
New Orleans Felon Indicted on Numerous Gun and Drug Distribution ChargesRead the Press Release
NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that on June 4, 2021, a Federal Grand Jury indicted QUENTRELL BERTHOLOTTE, age 29 of New Orleans, Louisiana, in a four count indictment for violations of Title 18, United States Code, Sections 922(g)(1) and 924(c)(1)(A)(i) and Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
According to court documents, BERTHOLOTTE was previously convicted of a drug trafficking offense in Orleans Parish. He is now alleged to be in possession of multiple firearms and in possession with the intent to distribute a large amount of a narcotic mixture containing fentanyl. BERTHOLOTTE is prohibited from possessing firearms due to his criminal history.
BERTHOLOTTE, if convicted of possession with intent to distribute narcotics, faces a minimum term of five (5) years up to a maximum term of life imprisonment, a fine of up to $5,000,000.00, a minimum of five (5) years of supervised release following any term of imprisonment, and a $100.00 mandatory special assessment fee. If convicted of possession of a firearm in furtherance of a drug trafficking crime, he faces a minimum term of five (5) years up to a maximum term of life imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee. If convicted of possession of a firearm by a convicted felon, he faces up to a maximum of ten (10) years imprisonment, a fine of up to $250,000, up to three (3) years of supervised release, and a $100.00 mandatory special assessment fee for each count.
U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.
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New Jersey Company Fined $325,000 and Sentenced to A Two Year Term of Corporate Probation for Committing an Osha Violation That Resulted in A Worker’s DeathRead the Press Release
SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Dana Container, Inc., (“Dana”), a company headquartered in Avenel, New Jersey, was sentenced by United States Magistrate Judge Joseph F. Saporito, Jr. to pay a fine of $325,000 and to serve a two-year term of probation for willfully committing an OSHA violation that resulted in an employee’s death.
According to Acting United States Attorney Bruce D. Brandler, in or about March of 2019, using the trade name “Dana Rail Care,” Dana contracted with another firm to clean crude oil residue from approximately 100 rail cars that were located at a rail yard in Pittston, Pennsylvania. Under regulations issued by the Occupational Safety and Health Administration (“OSHA”), an employee who is tasked by his or her employer to work in a confined space, like the interior of a rail car, must be protected in various ways. Employers are required to test and monitor atmospheric conditions within the space to ensure that the atmosphere is non-hazardous and to purge, flush or ventilate the space as necessary to eliminate or control any atmospheric hazards, including oxygen concentrations below 19.5 percent. Employers must also outfit any employee tasked with working in any atmosphere considered to be potentially hazardous with a particular type of OSHA-certified respirator.
On May 31, 2019, a Dana employee entered one of the rail cars at the Pittston site in order to scrape crude oil from the walls of the car. About 30 minutes later, the employee collapsed inside the car. He later died on scene, with the cause of death ruled asphyxiation. The atmosphere inside the car was determined to be oxygen-deficient and although Dana was aware of applicable OSHA regulations, the employee had not been outfitted with the proper OSHA-certified respirator. At sentencing, Dana represented to the Court that it is no longer in the business of cleaning crude oil from rail cars. Under the terms of its probation, Dana is required to make regular, monthly payments in satisfaction of the $325,000.00 fine, as well as to immediately report any future OSHA citations to the Court.
“The death of the employee was a tragedy and could have been avoided if the company had followed the regulations for this type of dangerous activity,” stated Acting U.S. Attorney Bruce D. Brandler. “Our office and OSHA take these cases very seriously and willful violations of OSHA regulations will be aggressively prosecuted to deter this type of behavior and ensure that workers are protected. Our investigation continues as to any individuals who may have criminal responsibility for this tragic event.”
This matter was investigation by the Occupational Safety and Health Administration (OSHA) and by the United States Department of Labor, Office of Inspector General, Office of Investigations. The case was prosecuted by Assistant U.S. Attorney Jeffery St John.
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New Haven Man Charged with Distributing Heroin and FentanylRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration for New England, announced that VINCENT CLARK, also known as “Pudge,” 26, of New Haven, was arrested today on a federal criminal complaint charging him with distributing heroin and fentanyl.
Clark appeared today via videoconference before U.S. Magistrate Judge Sarah A. L. Merriam in New Haven and is detained.
As alleged in court documents, between March and May 2021, law enforcement made six controlled purchases of redistribution quantities of heroin/fentanyl from Clark in New Haven. Clark is currently on state parole for a 2019 narcotics conviction.
The complaint charges Clark with possession with intent to distribute, and distribution of, heroin and fentanyl, which carries a maximum term of imprisonment of 20 years.
Acting U.S. Attorney Boyle stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the DEA’s New Haven Task Force, which includes personnel from the DEA, U.S. Marshals Service, Internal Revenue Service – Criminal Investigation Division, and the New Haven, Hamden, West Haven, North Haven, Branford, Ansonia, Meriden, Derby, Middletown, Naugatuck and Waterbury Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez through the Organized Crime Drug Enforcement Task Forces (OCDETF) Program. OCDETF identifies, disrupts and dismantles drug traffickers, money launderers, gangs and transnational criminal organizations through a prosecutor-led and intelligence-driven approach that leverages the strengths of federal, state and local law enforcement agencies. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Michigan Man Sentenced to Prison for Federal Drug CrimeRead the Press Release
HUNTINGTON, W.Va. – A Michigan man caught selling drugs in Huntington last year was sentenced today to 15 months in federal prison for aiding and abetting the distribution of heroin.
According to court documents, Steven McGee, 51, admitted that on February 24, and March 10, 2020, he directed the distribution of heroin and fentanyl to a confidential informant in Huntington. McGee also admitted that he previously distributed methamphetamine to an informant on June 26, 2019, also in Huntington.
Acting United States Lisa G. Johnston made the announcement and commended the investigative work of the Huntington Police Department.
United States District Judge Robert C. Chambers imposed the sentence. Assistant United States Attorney Joseph F. Adams handled the prosecution.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:20-cr-00170.
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McLean County Man Sentenced to 20 Years in Prison for Distribution of Heroin Resulting in DeathRead the Press Release
PEORIA, Ill. – A Bloomington, Ill., man, Jacob R. Schultz, 36, of the 500 block of W. Seminary St., was sentenced on June 3, 2021, to serve 20 years in prison for distribution of heroin that resulted in the death of an individual in November 2018. In addition to the prison sentence, Senior U.S. District Judge Michael M. Mihm ordered that Schultz remain on supervised release for five years following his release from prison.
Schultz has been in the custody of the U.S. Marshals Service since his arrest on June 19, 2019. On Feb. 18, 2021, Schultz pleaded guilty to one count of distribution of heroin resulting in the death of an individual on Nov. 8, 2018, and one count of distribution of heroin on Feb. 24, 2019, which also resulted in a heroin overdose; however, the individual was successfully resuscitated.
The Bloomington Police Department and McLean County Sheriff’s Office investigated the case; Assistant U.S. Attorney Douglas F. McMeyer represented the government in the prosecution.
Martinsburg woman sentenced for role in drug conspiracyRead the Press Release
ARTINSBURG, WEST VIRGINIA – Lisa Richardson, of Martinsburg, West Virginia, was sentenced today to 30 months of incarceration for her role in a drug conspiracy that spanned several states, Acting U.S. Attorney Randolph J. Bernard announced.
Richardson, 50, pleaded guilty in October 2020 to one count of “Distribution of Fentanyl and Heroin.” Richardson admitted to selling heroin and fentanyl in June 2019 in Berkeley County.
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach.
Assistant U.S. Attorney Lara Omps-Botteicher and Special Assistant U.S. Attorney C. Lydia Lehman, also with the Berkeley County Prosecuting Attorney’s Office, prosecuted the case on behalf of the government. The FBI; Homeland Security Investigations; the Bureau of Alcohol, Tobacco, Firearms & Explosives; and the Eastern Panhandle Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.