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Thursday 22 April 2021
Charleston Man Sentenced to Six Years in Federal Prison for Gun and Drug CrimesRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to 72 months in prison for gun and drug crimes including distribution of methamphetamine, possession with intent to distribute methamphetamine, and being a felon in possession of a firearm.
According to court documents, Rahmell Rashaad Thomas, 32, sold approximately four ounces of methamphetamine to a confidential informant from his residence in Charleston on March 5, 2020. Shortly after that transaction, law enforcement officers obtained a search warrant for the same residence and conducted a search. Approximately 341 additional grams of methamphetamine were located inside along with a Lorcin .380 semi-automatic pistol and United States currency. Thomas later admitted to possessing those items, and to selling methamphetamine in the Charleston area for at least three months prior to his arrest. He admitted to obtaining methamphetamine in one pound increments from a source in Morgantown which he would then bring back to Charleston to sell. Thomas has a prior felony conviction in the state of New York for attempted assault in the second degree which prohibits him from possessing firearms.
Acting United States Attorney Lisa G. Johnston for the Southern District of West Virginia made the announcement and commended the work of the Charleston Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the United States Marshals Service.
United States District Judge Irene C. Berger imposed the sentence. Assistant United States Attorney Jeremy B. Wolfe 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. 2:20-cr-00074.
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Buffalo Woman Pleads Guilty to Being A Felon in Possession of A GunRead 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 Sharee Bailey, 29, of Buffalo, NY, pleaded guilty before U.S. District Judge John L. Sinatra, Jr. to being a felon-in-possession of a firearm. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
Assistant U.S. Attorneys Justin G. Bish and Nicholas T. Cooper, who are handling the case, stated that on August 4, 2020, the defendant was present at 216 Landon Street in Buffalo, when the Bureau of Alcohol, Tobacco, Firearms, and Explosives executed search warrants on her person and the residence. Inside of 216 Landon Street, investigators observed and recovered a .22 caliber semi-automatic rifle, and multiple rounds of ammunition belonging to Bailey. The defendant was previously convicted in 2012 in Niagara County Court of Criminal Sale of a Controlled Substance-5th Degree, and as a result, she is legally prohibited from possessing a gun.
The plea is 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, and the Buffalo Police Department, under the direction of Commissioner Byron Lockwood.
Sentencing is scheduled for August 18, 2021, at 10:00 a.m. before Judge Sinatra.
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Bridgeport Tax Return Preparer IndictedRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, and Ramsey E. Covington, Acting Special Agent in Charge of IRS Criminal Investigation in New England, today announced that a federal grand jury in Hartford has returned a 14-count indictment charging TORISE BAKER, 37, of Bridgeport, with tax fraud offenses.
The indictment was returned on April 6, 2021. Baker appeared yesterday via videoconference before U.S. Magistrate Judge S. Dave Vatti, entered a plea of not guilty, and was released on bond.
As alleged in the indictment, Baker prepared tax returns for clients through 101 Things 2 Do, LLC, a multi-service business she operated in Bridgeport. For the 2014 through 2016 tax years, Baker prepared numerous federal tax returns for taxpayers that claimed false deductions, including unreimbursed business expenses, charitable contributions and tax preparation fees. In addition, Baker failed to file her own federal tax return for the 2015 tax year.
The indictment charges Baker with 13 counts of aiding and assisting in the preparation and presentation of false and fraudulent income tax returns, an offense that carries a maximum term of imprisonment of three years on each count, and one count of failure to file an income tax return, an offense that carries a maximum term of imprisonment of one year.
Acting U.S. Attorney Boyle stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This investigation is being conducted by the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
The Justice Department issued a statement today that warns taxpayers to avoid fraudulent tax preparers, notes recent criminal and civil enforcement actions against fraudulent tax preparers, and provides resources for taxpayers and tax preparers.
Bradenton Man Convicted of Possessing Fentanyl with the Intent to Distribute and Being A Felon in Possession of A FirearmRead the Press Release
Tampa, Florida –A federal jury has found Larome D. Waiters (31, Bradenton) guilty of possession of fentanyl and heroin with the intent to distribute and being a convicted felon in possession of a firearm. Waiters faces a mandatory minimum sentence of 15 years, and up to life, in federal prison. His sentencing hearing is scheduled for July 21, 2021.
Waiters had been indicted on October 1, 2019.
According to testimony and evidence presented at trial, in August 2019, officers arrested Waiters, based on an active arrest warrant, as he was coming out of an apartment wearing a fanny pack. Inside the fanny pack, Waiters had almost 17 grams of a fentanyl/heroin mixture packaged for sale. Inside the apartment, investigators found two guns. During an interview with law enforcement, after his arrest, Waiters told officers that he was planning to sell the fentanyl and that he owned the guns. As a previously convicted felon, Waiters is prohibited from possessing a firearm of ammunition under federal law.
This case was investigated by the Drug Enforcement Administration and Bradenton Police Department. It is being prosecuted by Assistant United States Attorney Callan L. Albritton.
This case is the result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation entitled “Hot Batch.” The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
Booneville Pharmacy Agrees to Pay $250,000 to Resolve Alleged Violations of the Controlled Substances ActRead the Press Release
LEXINGTON, Ky. – A Booneville, Kentucky pharmacy, Public Drug Company, d/b/a Booneville Discount Drugs, has agreed to pay the United States $250,000 to settle civil allegations that it failed to make and maintain complete and accurate records of its controlled substances, in violation of the federal Controlled Substances Act (“CSA”).
Under the CSA, pharmacies authorized to possess controlled substances are required to maintain complete and accurate records of each controlled substance received, dispensed, and disposed. The U.S. Drug Enforcement Administration (“DEA”) has the authority to inspect the records of these pharmacies and verify that their controlled substances records are complete and accurate in compliance with the CSA.
The United States alleged that Booneville Discount Drugs failed to maintain complete and accurate records of its controlled substances inventories from November 25, 2016 to April 25, 2018. In an audit performed by the DEA, Booneville Discount Drugs’ records did not account for observed shortages of oxycodone and methadone in its inventories during this time period. Booneville Discount Drugs also self-disclosed its recordkeeping discrepancies of controlled substances to the DEA.
The Government’s work in this investigation illustrates its commitment to combatting violations of controlled substances laws. Tips from all sources about possible violations of controlled substances laws can be reported to the DEA at www.dea.gov/submit-tip.
The DEA, Diversion Control Division conducted the investigation of alleged violations. Assistant United States Attorney Meghan Stubblebine represented the United States. The claims resolved by the settlement are allegations only, and there has been no determination of liability.
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Black Hawk Man Sentenced on Robbery ChargeRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Black Hawk, South Dakota, man convicted of Interference with Commerce by Robbery was sentenced by Jeffrey L. Viken, U.S. District Judge.
Nicholas Butler, age 19, was sentenced on April 19, 2021, to 30 months in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $1,579.49 in restitution to Rushmore Casino.
The charge relates to Butler who, along with two other individuals, robbed the casino at gunpoint in March 2020 in Rapid City.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of its renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and local communities to develop effective, locally-based strategies to reduce violent crime.
This case is also part of Project Guardian, the Department of Justice’ssignature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see: https://www.justice.gov/projectguardian.
The investigation was conducted by the Bureau of Alcohol, Firearms, Tobacco, and Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Butler was immediately remanded to the custody of the US Marshals Service.
Bergen County Man Charged with Mortgage Fraud, Fraudulently Obtaining SBA Loan and Aggravated Identity TheftRead the Press Release
NEWARK, N.J. – A Bergen County, New Jersey, man was arrested today on charges of engaging in mortgage fraud, fraudulently obtaining an SBA loan, and stealing another person’s identity information, Acting U.S. Attorney Rachael A. Honig announced.
Nathanael Zimmerman, 40, of Wyckoff, New Jersey, is charged by complaint with one count each of wire fraud, bank fraud and aggravated identity theft. He is scheduled to appear by videoconference this afternoon before U.S. Magistrate Judge Jessica S. Allen.
According to the complaint:
From August 2013 through January 2014, Zimmerman orchestrated a scheme to engage in mortgage fraud concerning Federal Housing Administration (FHA)-insured loans. Zimmerman aided individuals in applying for FHA-insured loans and caused fraudulent representations to be made to the lenders, including submitting false bank statements. Zimmerman received a portion of the loan proceeds. Later, these unqualified individuals defaulted on their loans, causing losses to the U.S. Department of Housing and Urban Development of more than $300,000.
In 2020 Zimmerman used his deceased brother’s identity to obtain a U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL). Zimmerman received more than $150,00 by applying for EIDL funds in his brother’s name and using his brother’s personal identification information.
The charges of wire fraud affecting a financial institution and bank fraud are each punishable by a maximum potential penalty of 30 years in prison and a fine of $1 million, or twice the gross profits or twice the gross loss suffered by the victims, whichever is greater. The charge of aggravated identity theft is punishable by a mandatory consecutive term of imprisonment of two years in prison and a fine of $250,000, twice the gross profits or twice the gross loss suffered by the victims, whichever is greater.
Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr., in Newark, and special agents of the U.S. Department of Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Christina Scaringi, with the investigation leading to today’s arrest.
The government is represented by Assistant U.S. Attorneys Sammi Malek and Andrew Kogan of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the complaint are merely accusations and the defendant is considered innocent unless and until proven guilty.
Beaverton Man Charged with Child Exploitation Crimes After Stalking and Exploiting Australian Minor Using Social MediaRead the Press Release
PORTLAND, Ore.—A local man has been charged with federal child exploitation crimes after using various social media applications, including Snapchat and TikTok, to stalk and sexually exploit a minor victim from Australia, announced Acting U.S. Attorney Scott Erik Asphaug.
Jorge Rosales, 25, of Beaverton, Oregon, has been charged by criminal complaint with sexually exploiting children, distributing and possessing child pornography, cyberstalking, and enticing a minor online.
“This case demonstrates the extraordinary lengths sexual predators will go to victimize children. It also demonstrates the tenacity and reach of law enforcement when investigating these heinous crimes,” said Acting U.S. Attorney Asphaug. “I applaud the incredible investigative efforts of our domestic and international law enforcement partners to identify this defendant and see to it that his ability to victimize vulnerable children across the globe ends immediately.”
“Protecting our children from predators lurking on the internet is truly a global challenge, requiring coordination with our international law enforcement partners” said Special Agent in Charge Robert Hammer, who oversees Homeland Security Investigations (HSI) operations in the Pacific Northwest. “HSI will continue to pursue online predators that exploit popular apps such as Snapchat and TikTok to lure innocent children.”
According to court documents, in April 2021, a special agent from HSI received an investigative referral from INTERPOL and the Australian Federal Police related to the sexual exploitation of a then-nine-year-old victim in Australia. According to the Australian authorities, in 2016 or 2017, an individual later identified as Rosales began communicating with the minor victim using Musical.ly, a social media application now known as TikTok. Rosales claimed he was a 36-year-old male named Alex.
Over a period of months, Rosales engaged the minor in a series of progressively more sexually explicit conversations even after the minor told him she was nine years old. Rosales sent the minor sexually explicit photos and videos to demonstrate how she could engage in various sex acts. These materials included photos and videos of older men having sex with toddlers and young girls. Rosales encouraged the victim to produce and send him sexually explicit photos and videos of herself. When the victim declined, he threatened to turn her friends and family against her, and, in at least one instance, sent her photos of animals beaten until injured. Eventually, the minor victim sent naked photos of herself to Rosales.
Rosales later began communicating with the minor victim using Snapchat, wherein he would send her videos of himself masturbating. He claimed he could see where the victim lived on Snap Map, a Snapchat feature where users can see the location of various Snaps, and threatened to come get her if she didn’t continue sending him explicit photos. These threats prompted the victim to send Rosales additional naked photos and videos, which she produced at his request.
Eventually, after receiving many similar requests from Rosales, the minor victim blocked Rosales’ accounts. In response, over a period of several years, Rosales created and used dozens of new social media accounts to stalk and torment the minor victim. Rosales began following several of the victim’s friends on TikTok. On one occasion, one of the victim’s friends followed a link posted by Rosales that led to a website displaying photos of young naked girls. The website included some of the photos the minor victim had sent to Rosales several years earlier.
Australian investigators obtained and sent to HSI the TikTok subscriber record for the first account Rosales used to communicate with the minor victim. This record included IP addresses later matched to Rosales’ mobile phone and Beaverton residence. Investigators from HSI searched the National Center for Missing & Exploited Children’s CyberTipline Reports and found 13 reports connected to Rosales’ mobile phone and home internet connection. These reports indicated that Rosales had used several social media platforms, including Snapchat, TikTok, Twitter, and Instagram, to distribute photos and videos depicting child sexual abuse to other users between September 2019 and November 2020. HSI investigators also discovered a parallel investigation into Rosales’ conduct being conducted by the Hillsboro Police Department.
Rosales was arrested on April 21, 2021, and made his initial appearance in federal court today before U.S. Magistrate Judge John V. Acosta. He was ordered detained pending further court proceedings.
This case was investigated by HSI and the Hillsboro Police Department with assistance from INTERPOL, the Australian Federal Police, and the Victoria Police in Victoria, Australia. It is being prosecuted by Gary Y. Sussman, Assistant U.S. Attorney for the District of Oregon.
A criminal complaint is only an accusation of a crime, and a defendant is presumed innocent unless and until proven guilty.
Anyone who has information about the physical or online exploitation of children are encouraged to contact HSI at (866) 347-2423or submit a tip online at www.ice.gov/tips.
Federal law defines child pornography as any visual depiction of sexually explicit conduct involving a minor. It is important to remember child sexual abuse material depicts actual crimes being committed against children. Not only do these images and videos document the victims’ exploitation and abuse, but when shared across the internet, re-victimize and re-traumatize the child victims each time their abuse is viewed. To learn more, please visit the National Center for Missing & Exploited Children at www.missingkids.org.
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. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Barbour County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Theodore Edward Coontz, of Belington, West Virginia, has admitted to a methamphetamine charge, Acting U.S. Attorney Randolph J. Bernard announced.
Coontz, 47, pleaded guilty today to one count of “Possession with Intent to Distribute Methamphetamine.” Coontz admitted to having methamphetamine in August 2020 in Barbour County.
The plea agreement also stipulates that Coontz will forfeit two pistols, a revolver, a shotgun, a rifle, ammunition, and $1,538 in cash found during a traffic stop and a subsequent search of his home.
Coontz 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 Christopher L. Bauer is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Mountain Region Drug Task Force, and the West Virginia State Police investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Atlanta Man Indicted in Pittsburgh on Charges Relating to Check Fraud SchemeRead the Press Release
PITTSBURGH, PA- A resident of Atlanta, Georgia has been indicted by a federal grand jury in Pittsburgh on charges related to check fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The indictment, returned on April 13 and unsealed today, charged Joshua Buice, 36, with one count of conspiracy to commit offenses against the United States.
According to the Indictment, from in and around April 2019 to in and around January 2020, the defendant conspired to steal mail matter from the United States mail for the purpose of stealing checks. The legitimate checks were drawn on accounts of businesses operating in interstate commerce and were drawn on accounts at financial institutions then insured by the Federal Deposit Insurance Corporation. These checks were altered by changing the payee names to the names of individuals recruited to cash the fraudulent checks.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Brian M. Czarnecki is prosecuting this case on behalf of the government.
The United States Secret Service, the United States Postal Inspection Service, and the Pennsylvania State Police 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.
Aliquippa Man Sentenced for Possessing Cocaine, a Firearm and AmmunitionRead the Press Release
PITTSBURGH - A former resident of Aliquippa, Pennsylvania, has been sentenced in federal court to 63 months’ imprisonment, followed by six years of supervised release on his conviction of narcotics trafficking and possession of a firearm and ammunition by a convicted felon, Acting United States Attorney Stephen R. Kaufman announced today.
Senior United States District Judge Nora Barry Fischer imposed the sentence on Antoine Cummings, age 37.
According to previous information presented to the court, in September 2019, the Beaver County Drug Task Force and Aliquippa Police Department searched an apartment in which Cummings was living. During the search, law enforcement officers found and seized around 51 grams of powder cocaine, a loaded Smith and Wesson 40 caliber pistol, ammunition, and over $5,800, all possessed by Cummings. Because Cummings had prior felony convictions, including one for drug trafficking, he was a person not to possess a firearm and ammunition.
Assistant United States Attorney Brian M. Czarnecki prosecuted this case on behalf of the government.
Acting United States Attorney Kaufman commended the Beaver County Drug Task Force which led the multi-agency investigation of this case. Other agencies involved in the investigation include the Beaver County High Intensity Drug Trafficking Area (HIDTA) Task Force and the Aliquippa Police Department.
Akayed Ullah Sentenced to Life in Prison for Bombing New York City Subway Station in 2017 on Behalf of ISISRead the Press Release
Audrey Strauss, the U.S. Attorney for the Southern District of New York, John C. Demers, the Assistant Attorney General for National Security, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dermot Shea, Commissioner of the Police Department for the City of New York (“NYPD”), announced that AKAYED ULLAH was sentenced today in Manhattan federal court to life in prison for carrying out a terrorist bombing attack on behalf of the Islamic State of Iraq and al-Sham (“ISIS”) in a subway station under the Port Authority Bus Terminal in New York City on December 11, 2017. In November 2018, a jury convicted ULLAH after a one-week trial of all six counts in the Indictment. The sentence was imposed by the Honorable Richard J. Sullivan, who also presided over the trial.
Manhattan U.S. Attorney Audrey Strauss said: “Akayed Ullah, previously convicted in a New York federal court of carrying out a lone-wolf bombing attack on behalf of ISIS at the Port Authority Bus Terminal, a bustling transit artery in New York City, admittedly intended to murder as many innocent Americans as possible. Ullah’s motive was clear and unambiguous: a deeply held ideological hatred for America. Ironically, Ullah’s actions resulted only in reaffirming the greatness of America by displaying the fairness and impartiality for which our justice system stands. Ullah received a speedy, fair, public trial, and was convicted by a jury of his peers. Akayed Ullah’s message of hatred clearly backfired; his just sentence of life in prison only exemplifies that cowardly acts of terrorism will be met with law enforcement’s unwavering resolve to protect our core values of freedom and democracy.”
Assistant Attorney General John C. Demers said: “Ullah constructed a pipe bomb and detonated it in a mass transit hub in the heart of New York City to harm and terrorize as many people as possible – and he admitted that he did it on behalf of ISIS. This case reminds us that the threat of ISIS-inspired terrorism remains real. This sentence holds Ullah accountable, as he will spend the rest of his life in federal prison for his crimes. I want to thank all of the agents, analysts, and prosecutors whose outstanding work made this result possible.”
FBI Assistant Director William F. Sweeney Jr. said: “Bound and determined to incite fear and create a mass casualty incident, Ullah detonated a pipe bomb of his own creation in one of New York City’s major transportation hubs during morning rush hour. The quick thinking of PAPD officers, who responded to the threat undeterred by the potential risk to their safety, in addition to the work of the FBI’s JTTF and the NYPD, is another example for the public of our joint commitment to keep the citizens and visitors of New York City safe. Today’s sentencing is a just ending in this case.”
NYPD Commissioner Dermot Shea said: “Akayed Ullah accepted the call from ISIS to target and kill New Yorkers. Through planning and research, he built a pipe bomb and detonated it in the heart of the New York City Transit System under the Port Authority Bus Terminal. Fortunately, this cowardly act resulted in no loss of life to New Yorkers. I commend the FBI agents and NYPD detectives of the JTTF, prosecutors from the United States Attorney for the Southern District of New York, and our other Law Enforcement partners for bringing this individual to Justice.”
As set forth in the Complaint, Indictment, evidence presented at trial, and other court filings and proceedings:
On December 11, 2017, at approximately 7:20 a.m., AKAYED ULLAH detonated a pipe bomb strapped to his chest in a subway station under the Port Authority Bus Terminal in midtown Manhattan. Shortly after the blast, first responders located ULLAH lying on the ground in the station where he had detonated the improvised explosive device, and he was taken into custody. Surveillance footage captured ULLAH walking through the station immediately prior to the explosion, and then detonating the bomb.
ULLAH began radicalizing in about 2014. ULLAH was angry at U.S. foreign policy in the Middle East, and began seeking out online materials promoting radical Islamic terrorist ideology. In particular, ULLAH was inspired by ISIS propaganda, including a video in which ISIS instructed supporters to carry out attacks in their homelands if they were unable to travel overseas to join ISIS. ULLAH began researching how to build a bomb about a year prior to his attack. He built his pipe bomb in the weeks leading up to the attack at his Brooklyn apartment.
Following the attack on December 11, 2017, law enforcement located remnants of the pipe bomb on ULLAH’s person and strewn across the attack site in the subway station. Law enforcement found, among other things: (i) a nine-volt battery inside ULLAH’s pants pocket, which he used as the power source for triggering the bomb; (ii) wires connected to the battery and running underneath ULLAH’s jacket; (iii) plastic zip ties underneath ULLAH’s jacket, which he used to strap the bomb to his body; (iv) several fragments of a metal pipe, which ULLAH had filled with an explosive substance that he made using sugar and match heads; (v) fragments of Christmas tree lightbulbs attached to wires, which ULLAH used to ignite the explosion; and (vi) numerous metal screws. ULLAH filled his pipe bomb with dozens of metal screws to function as shrapnel, for the purpose of causing maximum damage.
On the morning of the attack, shortly before detonating his bomb, ULLAH posted a statement on Facebook referring to the then-President of the United States, stating: “Trump you failed to protect your nation.” ULLAH also posted an ISIS slogan so that ISIS would know that he had carried out the attack on behalf of ISIS.
After ULLAH was taken into custody following the attack, he waived his Miranda rights and spoke to law enforcement. ULLAH stated, among other things, that he carried out the bombing on behalf of ISIS, and chose a busy weekday morning for the attack in order to “terrorize as many people as possible.” One commuter who was inside the station when ULLAH detonated the pipe bomb suffered a shrapnel wound to his leg, and two other victims partly lost their hearing as a result of the blast. ULLAH’s attack caused the Port Authority subway station and bus terminal to shut down temporarily, disrupting the lives of commuters across the New York City area.
After the attack, law enforcement searched ULLAH’s apartment pursuant to a search warrant. Agents recovered, among other things, ULLAH’s passport, which contained the handwritten statement, “O AMERICA, DIE IN YOUR RAGE.” Less than two weeks before carrying out the attack, ULLAH had watched and drawn inspiration from a particular ISIS propaganda video that proclaimed, “die in your rage, America,” with an image of the U.S. Congress in the background.
Later in December 2017, while in custody at the Metropolitan Correctional Center on the charges in this case, ULLAH began chanting “more is coming” at a correctional officer, and then told the officer: “You started this war, we will finish it. More is coming, you’ll see.”
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In addition to the prison term, ULLAH, 31, was sentenced to life of supervised release.
Ms. Strauss praised the outstanding investigative efforts of the FBI, the NYPD, and the Port Authority of New York and New Jersey Police Department. ULLAH’s conviction is the result of the close cooperative efforts of the U.S. Attorney’s Office for the Southern District of New York and the FBI’s New York Joint Terrorism Task Force, which consists of investigators and analysts from the FBI, the NYPD, and over 50 other federal, state, and local agencies.
The prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorneys Rebekah Donaleski and George D. Turner are in charge of the prosecution, with assistance from Trial Attorneys Jason Denney and Felice Viti of the Counterterrorism Section of the Department of Justice’s National Security Division.
Acting U.S. Attorney Gonzalez Encourages Idahoans to Participate in DEA’s National Prescription Drug Take Back Day This SaturdayRead the Press Release
BOISE – Acting U.S. Attorney Rafael M. Gonzalez, Jr. wants to ensure that Idahoans are aware how to rid their homes of unused and unwanted medications.
With opioid overdose deaths increasing during the pandemic, the Drug Enforcement Administration (DEA) is holding its 20th National Prescription Drug Take Back Day this Saturday, April 24, 2021, at locations across the country, including 38 here in Idaho. The nationwide initiative aims to addresses a vital public safety and public health issue. Medicines that languish in home cabinets are highly susceptible to diversion, misuse, and abuse.
“Prescription medications often end up in the wrong hands, fueling an epidemic that kills more Americans than car accidents,” said Gonzalez. “DEA is providing an actionable way for our communities to step up and help combat this crisis by simply cleaning out their medicine cabinet. I urge Idahoans to do their part by going to a collection site and safely disposing of unused, expired, and dangerous prescriptions. DEA makes it easy for all of us and I thank them for organizing this biannual event.”
Rates of prescription drug abuse in the United States are alarmingly high, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that most abused prescription drugs are obtained from family and friends, including from the home medicine cabinet.
Collection sites will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement.
“You can help save lives by participating in DEA’s Drug Take Back Day,” said DEA Special Agent in Charge Frank Tarentino. “More than 87,200 drug overdose deaths occurred in a one-year period in the U.S., the highest number of overdose deaths ever recorded in a 12-month period. We can all do our part by disposing of unwanted and expired prescription medications at one of the 176 collection sites.”
Given the ongoing COVID-19 public health emergency, DEA wants to ensure that the public is aware of other ways they can dispose of unwanted prescription drugs without having to leave their homes. Both the U.S. Food and Drug Administration and the Environmental Protection Agency have tips on how to safely dispose of drugs at home.
In addition to DEA’s National Prescription Drug Take Back Day, prescription drugs can be disposed of at any of the 11,000 DEA authorized collectors at any time throughout the year. For more information, visit: www.apps2.deadiversion.usdoj.gov/.
“It’s important to keep our own homes safe by regularly cleaning out medicine cabinets and any other areas where we store our pharmaceuticals,” said DEA Acting Administrator D. Christopher Evans. “Bringing unused or expired medications to a local collection site for safe disposal helps protect your loved ones and the environment.”
DEA also encourages the public to reach out to their local law enforcement agencies to find out if they have any permanent drug disposal locations throughout their local community.
DEA and its partners will collect tablets, capsules, patches, and other solid forms. DEA will continue to accept vaping devices and cartridges at any drop off location, as long as the lithium batteries are removed. DEA is doing all it can to help dispose safely of vaping devices and liquids to get these products off our streets and out of the hands of children. This service is free and anonymous, no questions asked.
Since it was established in 2010, DEA has held 19 National Prescription Drug Take Back Day events, which have, collectively, removed 13,684,848 pounds (more than 6,842 tons) of medications from circulation.
For more information on DEA’s National Prescription Drug Take Back Day, and to find a collection site near you, visit www.deatakeback.com
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16 Individuals Charged with Drug Trafficking in Aguadilla, Puerto RicoRead the Press Release
SAN JUAN, Puerto Rico – On April 20, 2021, a federal grand jury in the District of Puerto Rico returned a six-count indictment against 16 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced W. Stephen Muldrow, United States Attorney for the District of Puerto Rico, and Rafael Riviere-Vázquez, Special Agent in Charge of the Federal Bureau of Investigation, San Juan Field Office. The FBI and the Puerto Rico Police Bureau (PRPB), Aguadilla Strike Force, are in charge of the investigation.
The indictment alleges that since the year 2015, the drug trafficking organization distributed heroin, cocaine base (crack), cocaine, and marihuana in the Andrés Méndez Liceaga and the Hacienda San Andrés Public Housing Projects in the municipality of San Sebastián, all for financial gain and profit. The 16 defendants acted in different roles in order to further the goals of the organization, to wit: leaders, enforcers, runners, sellers and facilitators. Nine of the defendants are relatives.
As part of the conspiracy, the members of the drug trafficking gang established drug points that moved within different areas inside the public housing projects to avoid police detection. Some co-conspirators collected the profits from the drug trafficking sales and traveled within the municipality of San Sebastián and other areas nearby to deliver the proceeds to the leaders of the organization. The defendants had access to different vehicles to transport money, narcotics, and firearms.
At different points during the conspiracy the leaders provided members of the organization with different types of firearms to protect themselves, the narcotics, and their proceeds. The co-conspirators used force, violence, and intimidation to maintain control of the areas in which they operated. Eight defendants are facing one count of possession of firearms in furtherance of a drug trafficking crime. All the defendants are facing a narcotics forfeiture allegation of 10 million dollars.
The individuals indicted are:
Richard Cardona-Valle, a/k/a “Richy/Gremlins”
Elvin Pérez-Ortiz, a/k/a “El Menor”
Andy Xavier Torres-Negrón, a/k/a “Bebo/Caculo”
Luis Javier Maldonado-Rodríguez, a/k/a “Goldo/Goldo FN”
Richard Acevedo-Rivera, a/k/a “El Manco”
Marcos Cardona-Valle, a/k/a “Marcos/Michael/M”
Pedro J. Zaragoza-Colón
Liset Ortiz, a/k/a/ “Lisy/La Colorá”
Joel Vargas-Torres, a/k/a “Joel El Pato/Joy”
Raúl M. Vargas-Morales, a/k/a “Raulito”
Josué M. Reyes-Vélez, a/k/a “Tres Pesetas”
José A. Lamboy-Cardona, a/k/a “Jochy”
Elizabeth Cardona-Valle, a/k/a “Lisa”
Carlos Y. rosario-Rosado, a/k/a “Onil”
Juan Valentín-Cruz, a/k/a “Pipa”
Carlos J. Marín-Maldonado, a/k/a “Chino”
Assistant U.S. Attorney Enrique Silva and Special Assistant U.S. Attorney Cristina Caraballo-Colón from the Puerto Rico Department of Justice are in charge of the prosecution of the case. If convicted the defendants face a minimum sentence of 10 years, and up to life in prison. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
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Wednesday 21 April 2021
Woodbridge Man Sentenced to More Than 11 Years in Federal Prison for Drug-Related RobberyRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that RONALD CHRISTOPHER SPEAR-ZULETA, also known as “Chris,” 47, of Woodbridge, was sentenced today by U.S. District Judge Janet C. Hall in New Haven to 135 months of imprisonment, followed by three years of supervised release, for his role in a drug-related robbery.
According to court documents and statements made in court, Spear-Zuleta, his wife, Aninha Spear-Zuleta, and Maritza Torres robbed an associate of Chris Spear-Zuleta, who Chris Spear-Zuleta claimed owed him money in relation to narcotics transactions. On November 28, 2017, Aninha Spear-Zuleta invited the associate’s girlfriend to the Spear-Zuleta’s Woodbridge residence, where Chris Spear-Zuleta physically assaulted the girlfriend. At Chris Spear-Zuleta’s instruction, Aninha Spear-Zuleta and Torres then transported the girlfriend to a residence she shared with the associate in Milford, where Aninha Spear-Zuleta and Torres stole several items, including cash, a firearm and several items of expensive clothing.
On April 4, 2018, Chris Spear-Zuleta’s associate was shot to death in front of Spear-Zuleta’s residence. The homicide investigation is ongoing.
Spear-Zuleta was arrested in San Francisco on December 22, 2018, where he had been living and travelling under a variety of false identities. He has been detained since his arrest.
Spear-Zuleta’s criminal history includes convictions for drug offenses and multiple assault offenses, including assaults involving a firearm, an assault on a law enforcement officer, and an assault on state personnel while he was incarcerated for a prior offense.
On September 11, 2019, Chris Spear-Zuleta pleaded guilty to one count of Hobbs Act robbery. Aninha Spear-Zuleta and Maritza Torres pleaded guilty to related charges and are scheduled to be sentenced on April 22 and 23, respectively.
This matter has been investigated by Federal Bureau of Investigation, Connecticut State Police and Woodbridge Police Department. The case is being prosecuted by Acting U.S. Attorney Boyle and Assistant U.S. Attorney Joseph Vizcarrondo.
Water Management Company Sentenced to Pay $2 Million in Fines for Clean Air Act ViolationsRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that on April 20, 2021, United States District Judge Matthew W. Brann sentenced Rockwater Northeast LLC to pay $2 million in fines and $12,400 in special assessments for violating the Clean Air Act.
According to Acting United States Attorney Bruce D. Brandler, Rockwater Northeast LLC, a Pennsylvania-based company that provides water management services to companies in the oil and gas industry, pleaded guilty to an information charging 31 counts of violating the Clean Air Act. The information charged Rockwater Northeast LLC with tampering with the emissions systems on 31 heavy-duty diesel trucks owned by the company, and installing “defeat devices” that disabled emissions diagnostic systems on the trucks. Rockwater Northeast LLC also is alleged to have caused the trucks to pass annual vehicle safety inspections by the Department of Transportation (DOT), despite the modified emissions systems.
Separately, Select Energy Services, Inc., a Texas-based company and the successor in interest to Rockwater Energy Solutions, Inc., parent company of Rockwater Northeast LLC, entered a three-year non-prosecution agreement with the United States. The agreement resolves Clean Air Act violations for modified emissions systems on 29 additional heavy-duty diesel trucks that were owned by Rockwater Energy Solutions, Inc. Select Energy Services, Inc. paid an additional $2.3 million in monetary penalties pursuant to the terms of a non-prosecution agreement.
Select Energy Services, Inc. has cooperated with the investigation since its acquisition of Rockwater Energy Solutions, Inc. in 2017. Under the terms of the non-prosecution agreement, Select Energy Services, Inc. agreed to continue cooperating with the government, and implemented an environmental compliance program designed to prevent future Clean Air Act violations. Select Energy Services, Inc. also commenced conducting annual audits during the three-year term of the agreement, to ensure Clean Air Act compliance.
Six individuals have been prosecuted in connection with this investigation; four of whom are current or former employees of Rockwater Northeast LLC, and two of whom are former third-party vendors of Rockwater Northeast LLC. All six individuals pleaded guilty to conspiring to impede the lawful functions of the Environmental Protection Agency (EPA) and DOT, and to violate the Clean Air Act:
- Brian Mellot, of Cumberland, Maryland, was sentenced to six months’ imprisonment and one year of supervised release;
- Gavin Rexer of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing;
- Dennis Paulhamus of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing;
- Joseph Powell of Hickory, Pennsylvania, pleaded guilty and is awaiting sentencing;
- John Joseph of Canonsburg, Pennsylvania, pleaded guilty and is awaiting sentencing; and
- Timothy Sweitzer of Jersey Shore, Pennsylvania, pleaded guilty and is awaiting sentencing.
The matter was investigated by the EPA’s Criminal Investigations Division and the DOT’s Office of the Inspector General, with the assistance of the Pennsylvania State Police and other law enforcement agencies. Assistant United States Attorneys Phillip J. Caraballo and Sean Camoni, and Special Assistant United States Attorney Patricia C. Miller prosecuted the case.
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U.S. Supreme Court Justice Sotomayor and Puerto Rico Supreme Court Chief Justice Maite Oronoz Address Latin American Judges at Justice Department’s Judicial Studies InstituteRead the Press Release
U.S. Supreme Court Justice Sonia Sotomayor and Puerto Rico Supreme Court Chief Justice Maite Oronoz today addressed over 157 judges from Argentina, Colombia, Costa Rica, Ecuador, El Salvador, Dominican Republic, Guatemala, Honduras, Mexico, Panama and Peru as part of a Department of Justice training program for the judiciaries of the Western Hemisphere.
During the virtual event held at the Judicial Studies Institute (JSI), Justice Sotomayor discussed the role of the judge and judicial independence. She also stressed the importance of their contribution to the rule of law in the hemisphere and lauded them for their role in the transformation of Latin American justice.
Chief Justice Maite Oronoz spoke about transparency, accountability and education as mechanisms to protect and strengthen judicial independence. She also encouraged the judges to participate in education initiatives to promote a better understanding of the role of the courts and therefore increase public confidence in the judiciary.
With the support of Justice Sotomayor, and in partnership with the Department of State’s Bureau of International Narcotics and Law Enforcement Affairs, the Justice Department’s Office of Prosecutorial Development, Assistance and Training (OPDAT) launched JSI in 2012 as a response to the wave of justice sector reforms in Latin America that saw many countries transition from an inquisitorial to an adversarial system of justice. Through Spanish instruction, practical exercises, and observations of courtroom proceedings, participating judges learned about evidentiary guidelines, the role of judges, and courtroom management in an adversarial justice system.
This capacity building is critical to the region as there are significant differences between the two systems. For example, in an inquisitorial system, judges investigate charges and determine guilt through written deliberations behind closed doors. In an adversarial system, the judge acts as an impartial referee responsible for weighing evidence and guaranteeing the rights of both the victim and the accused in an open courtroom setting.
Since establishing JSI in 2012, OPDAT and its partners at the University of Puerto Rico and Inter-American University law schools have trained over 900 Latin American judges.
Please visit https://www.supremecourt.gov/ for more information about the U.S. Supreme Court and https://www.justice.gov/criminal-opdat for more information about OPDAT’s capacity building efforts around the world.
U.S. Attorney’s Office Commemorates National Crime Victims’ Rights WeekRead the Press Release
SHREVEPORT/LAFAYETTE/ALEXANDRIA/MONROE/LAKE CHARLES, La. - Acting United States Attorney Alexander C. Van Hook joins the Department of Justice and communities nationwide in observing National Crime Victims’ Rights Week, celebrating victims’ rights, protections, and services this week. This year is the 40th anniversary of the observance and will be celebrated April 18-24, 2021. The theme is: “Support Victims. Build Trust. Engage Communities.”
“Crime has affected many of us, whether individually or through a family member, friend, or neighbor,” Van Hook stated. “Our office remains steadfast in our commitment to seek justice for victims of crime by prosecuting those who have victimized others and to provide support for crime victims throughout the legal process. This week is a great reminder to each of us to celebrate, honor and support those who have suffered as victims of crime.”
National Crime Victims’ Rights Week is a time to renew our commitment to serving victims of crime, acknowledge achievements made in the victim services field, and remember crime victims and survivors. During the week, victim advocacy organizations, community groups and state, local and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
Some 3.3 million Americans age 12 and older were victims of violent crime in 2018, according to the National Crime Victimization Survey. The Office for Victims of Crime (OVC), part of the Justice Department’s Office of Justice Programs, supports more than 7,000 local victim assistance programs and victim compensation programs in every state and U.S. territory.
Funds for these programs come from the Crime Victims Fund, which is made up of federal criminal fines, penalties and bond forfeitures.
Ronald Reagan proclaimed the first Victims’ Rights Week in 1981, putting crime victims' rights, needs, and concerns in a prominent spot on the American agenda. He also established the President's Task Force on Victims of Crime, which laid the groundwork for a national network of services and legal safeguards for crime victims.
Each year, the National Crime Victims’ Service Awards Ceremony is held to honor individuals, teams, and organizations for their vision, action, and leadership on behalf of crime victims. This year’s ceremony will be held virtually on Friday, April 23, 2021 from 3:00-4:30 p.m. EST. Visit https://ovc.ojp.gov/news/announcement/its-national-crime-victims-rights-week to learn more about this year’s ceremony and other activities offered this week.
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U.S. Attorney's Office Joins in Recognizing 40th Annual National Crime Victims' Rights Week, April 18-24, 2021Read the Press Release
PORTLAND, Ore.—Every April, the Justice Department’s Office for Victims of Crime (OVC) leads communities across the country in observing National Crime Victims’ Rights Week (NCVRW) to honor crime victims, promote their rights and recognize victim advocates. This year’s observance, the 40th annual commemoration, takes place April 18-24, 2021 with the theme: Support Victims | Build Trust | Engage Communities.
The U.S. Attorney’s Office joins its federal, state, local and tribal law enforcement partners in taking this opportunity to highlight the importance of providing necessary services at the earliest possible stage of victimization and litigation. Early intervention helps prevent further victimization and encourages victim involvement in the criminal justice system, mitigating the cycle of violence and restoring hope for the future.
“Protecting victims’ rights in all phases of the federal judicial process is a top priority for the U.S. Attorney’s Office. National Crime Victims’ Rights Week affords us the opportunity to reaffirm our ongoing commitment to crime victims,” said Acting U.S. Attorney Scott Erik Asphaug. “The courage victims show every day in courtrooms across the country motivates all of us in law enforcement to continue vigorously advocating on their behalf.”
During National Crime Victims’ Rights Week, victim advocacy organizations, community groups and state, local, and tribal agencies traditionally host rallies, candlelight vigils, and other events to raise awareness of victims’ rights and services. This year, many communities are organizing virtual gatherings and online public awareness campaigns.
OVC and the U.S. Attorney’s Office encourages widespread participation in the week’s virtual events and in other victim-related observances throughout the year. For additional information about this year’s National Crime Victims’ Rights Week and how to assist victims in your community, please visit OVC’s website at www.ovc.gov. For ongoing updates from OVC and ideas throughout the year on how you can support victims, please subscribe to OVC’s email notifications at https://ovc.ncjrs.gov/ncvrw/subscribe/.
If you or someone you know are in immediate danger, please call 911. If you believe you’ve been the target or victim of a crime, please contact your local law enforcement agency or your nearest FBI field office immediately. The FBI Portland Field Office can be reached at (503) 224-4181 or by submitting tips online at tips.fbi.gov.
U.S. Attorney's Office Joins Law Enforcement Partners, Advocates and Family Members for 40th Annual National Crime Victims' Rights Week CeremonyRead the Press Release
PROVIDENCE, RI – In commemoration of the 40th annual National Crime Victims’ Rights Week, Attorney General Peter F. Neronha, joined by Deputy Criminal Chief Lee H. Vilker, United States Attorney’s Office; General Treasurer Seth Magaziner; Colonel James M. Manni, Superintendent of State Police and Director of Public Safety; Colonel Hugh T. Clements, Providence Chief of Police, gathered in Memorial Park in Providence to honor the strength and resiliency of victims and victim service providers.
“Our Victim Services team is truly part of the backbone of our office,” said Attorney General Neronha. “Throughout the pandemic, while victim service providers have grappled with strained resources and formidable barriers to victim outreach, they have continued, along with advocates from around the state, to work with victims to achieve justice on their behalf.”
Myra Latimer and Diana Garlington, both mothers of homicide victims, courageously shared their personal stories at the ceremony.
Diana Garlington stepped into her role as an activist when her daughter Esscence lost her life to gun violence at the age of 21. Since then, Diana has worked to educate the public on gang violence and gun safety. Her daughter’s killing remains unsolved.
Myra Latimer lost her son Steven to gun violence in 2011. In the years since, she has directed her grief to create positive change, establishing the Steven K. Latimer Memorial Foundation, which raises money for kids who have lost a parent or loved one to violence.
In February 2021, a Boston man was indicted for Steven Latimer’s murder.
“I remember when Myra Latimer was here with us two years ago, in this very spot, being honored for her advocacy work. At that time, we had not yet seen the beginnings of justice for Steven Latimer,” said Attorney General Neronha. “I am grateful today that we are now on the road to justice for Myra and Steven, thanks to the work of the Providence Police Department and members of our office.”
State officials and law enforcement leaders provided words of support in recognition of victims and victim service providers.
“Each year we gather in springtime to renew and recommit our support to victims of crime, to build trust, and to engage our community,” said Acting United States Attorney Richard B. Myrus. “Now more than ever, when so many people are feeling isolated and alone, and at a time when resources are harder to come by, we must marshal our collective resources and our voices to ensure that not a single crime victim’s voice goes unheard and that not a single crime victim goes without access to critical support services.”
“The impacts of crime are often costly, and victims shouldn’t be made to carry that financial burden,” said Treasurer Magaziner. “Our office's Crime Victim’s Compensation Program assisted over 1,000 Rhode Islanders during 2020 in paying medical bills, legal fees, meeting relocation costs and getting through a difficult time in their lives. If you or someone you know has suffered a crime and need assistance, my office is here for you at RICVCP.com.”
“The 40th Anniversary of National Crime Victims’ Right Week reinforces our commitment to victims of physical, emotional, and financial crimes,” said Colonel Manni. “Earlier this year, the Rhode Island State Police established a Special Victims Unit with specially trained members assigned to investigate sexual assault, domestic violence, along with crimes against children and other vulnerable populations. These crimes traumatize not only victims but also their friends and family. This week, we honor those who have been impacted by crime and remember those who have lost their lives to criminal acts.”
“Today in Rhode Island we recognize and salute the countless victims of crime throughout the past year,” said Colonel Clements. “Every day, along with our Victim Advocates, we strive to get individuals to a new and better place in their lives with the support and services they desperately need.”
Since 1981, National Crime Victims’ Rights Week (NCVRW) has been a time to renew our commitment to serving all victims of crime, to acknowledge the achievements in victim services and allied professions, to honor those who have gone above and beyond in their service to others, and to remember crime victims and survivors.
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Two Montana nurse practitioners admit telemedicine scheme to defraud Medicare of more than $18 millionRead the Press Release
GREAT FALLS—Two nurse practitioners in Montana this week admitted charges that they conspired to defraud Medicare of millions of dollars in a scheme in which they received money to sign fraudulent orders for orthotic braces, Acting U.S. Attorney Leif Johnson said today.
Janae Nichole Harper, 34, of Kalispell, pleaded guilty today to conspiracy to commit health care fraud. Harper was a licensed nurse practitioner in Montana, Missouri, Nevada, South Carolina and Wyoming and was enrolled as a medical provider with Medicare.
Mark Allen Hill, 54, of Edinburg, North Dakota, and whose address of record for participation in the Medicare program was in Cut Bank, Montana, pleaded guilty on April 20 to conspiracy to commit health care fraud. Hill was a licensed nurse practitioner in Montana, Iowa, Maine, Minnesota, North Dakota, South Dakota and Washington.
Hill and Harper each face a maximum 10 years in prison and a $250,000 fine.
Chief U.S. District Judge Brian M. Morris presided.
Chief Judge Morris set sentencing for both Harper and Hill for July 27 and continued their release.
Harper and Hill were among those indicted in a historic national health care fraud and opioid enforcement action announced by the U.S. Department of Justice on Sept. 30, 2020. The enforcement action involved 345 charged defendants across 51 federal districts, including more than 100 doctors, nurses and other licensed medical professionals.
These defendants were charged with submitting more than $6 billion in false and fraudulent claims to federal health care programs and private insurers, including more than $4.5 billion connected to telemedicine. Telemedicine uses telecommunications to provide health care services remotely.
In court documents filed in Harper’s case, the government alleged that from Nov. 18, 2017 through July 16, 2019, Harper worked with certain staffing and telemedicine companies to commit health care fraud and received money to sign brace orders that were prepared by telemarketers who had no medical training or certification. Harper routinely signed these orders for Medicare beneficiaries regardless of medical necessity. Harper signed approximately 7,673 brace orders, which resulted in $8,259,849 billed to Medicare, of which Medicare paid approximately $4,307,934. Harper was paid at least $94,395 for the orders she signed.
In court documents filed in Hill’s case, the government alleged that from Oct. 15, 2017 to April 24, 2019, Hill worked with certain staffing and telemedicine companies to commit health care fraud and received money to sign unnecessary brace orders for Medicare beneficiaries regardless of medical necessity, often without ever talking to the Medicare beneficiary to determine whether the braces were medically necessary. Hill signed approximately 7,097 brace orders, which resulted in $10,055,436 billed to Medicare, of which Medicare paid approximately $5,054,866. Hill was paid at least $124,900 for the orders he signed.
The case is being prosecuted by Assistant U.S. Attorney Michael A. Kakuk and Darren Halverson, Trial Attorney, and Robyn Pullio, former Trial Attorney, Fraud Section, Criminal Division of the Justice Department.
The enforcement actions were led and coordinated by the Criminal Division, Fraud Section’s Health Care Fraud Unit, in conjunction with its Health Care Fraud and Appalachian Regional Prescription Opioid (ARPO) Strike Force program, and its core partners, the U.S. Attorneys’ Offices, HHS-OIG, FBI, and DEA, as part of the department’s ongoing efforts to combat the devastating effects of health care fraud and the opioid epidemic.
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St. Charles man pleads guilty to multiple counts of drug distributionRead the Press Release
ST. LOUIS – Nicholas Trueblood, 26, of St. Charles, Missouri, pleaded guilty to four counts of possession with the intent to distribute fentanyl, heroin and methamphetamine. Trueblood appeared today before United States District Judge Ronnie L. White.
Trueblood and his co-defendant were primarily distributing narcotics in the St. Charles County area. They were arrested and charged after selling narcotics to an undercover detective with the St. Charles County Regional Task Force.
In total, Trueblood admitted to possessing with the intent to distribute more than 30 grams of methamphetamine, more than six grams of heroin and more than four grams of fentanyl.
Judge White has set sentencing for July 22, 2021.
The Drug Enforcement Administration and St. Charles County Regional Task Force investigated the case. Assistant United States Attorney Paul D’Agrosa is handling the case.
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Somerset County Man Indicted for Narcotics Offenses and Money LaunderingRead the Press Release
NEWARK, N.J. – A Somerset County, New Jersey, man was indicted today for his role in a large-scale heroin trafficking operation that involved the movement of large sums of money, Acting U.S. Attorney Rachael A. Honig announced.
William T. Bouza, 46, of Watchung, New Jersey, is charged by indictment with one count of conspiracy to distribute heroin and fentanyl, two counts of possession with intent to distribute controlled substances, and one count of conspiracy to commit money laundering. Bouza was previously charged by complaint. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
In February 2019, Bouza arranged for a vehicle equipped with a secret compartment, or “trap,” containing 15 kilograms of heroin, to be shipped from California to a location in Union County, New Jersey. Law enforcement officers intercepted the vehicle, seized the narcotics, and arranged for a controlled delivery. They observed Bouza enter the area, but he departed prior to taking possession of the vehicle. In October 2019, law enforcement officers determined that Bouza was storing and processing narcotics for street-level distribution at multiple locations in Essex County. They approached Bouza, who fled in a motor vehicle. He was apprehended approximately one week later. Law enforcement officers subsequently discovered approximately 1,000 packages, or “bricks” of heroin, each containing approximately 50 individual doses, in one of Bouza’s stash houses. Lab testing confirmed the presence of fentanyl in a portion of these items. The investigation also revealed that Bouza was in possession of approximately $400,000 in cash and was responsible for the illicit transfer of well over $800,000 in narcotics proceeds.
The controlled substances offenses carry a maximum penalty of life imprisonment, a mandatory minimum term of 10 years in prison and a $10 million fine. The money laundering offense carries a maximum penalty of 20 years in prison.
Acting U.S. Attorney Honig credited law enforcement officers with the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark; and the New Jersey State Police, under the direction of Col. Patrick J. Callahan, with the investigation leading to the indictment.
The government is represented by Assistant United States Attorney Shawn Barnes of the U.S. Attorney’s Office Criminal Division in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Saturday, April 24th is National Prescription Drug Take Back DayRead the Press Release
On April 24th, the U.S. Drug Enforcement Administration will again conduct one of its most popular community prevention programs: National Prescription Drug Take Back Day. Between 10 a.m. and 2 p.m. this Saturday, the public can dispose of their expired, unused, and unwanted prescription medications at over 55 locations throughout Vermont, which will be operated by local law enforcement agencies and other community partners. Most collection sites can be found in the lobby of your local Police Department. To find a collection site near you and to learn more, visit www.deatakeback.com or call 1-800-882-9539. The service is free of charge; no questions asked.
The last Prescription Drug Take Back Day resulted in the collection of almost 5,000 pounds of unwanted, expired, unused prescription drugs and electronic vaping devices/cartridges throughout Vermont. The DEA and its partners collected over 57 tons throughout New England.
Acting United States Attorney Jonathan A. Ophardt stressed the importance of properly disposing of expired, unused, and unwanted prescription medications. “In 2020, 158 Vermont residents died of opioid overdose, a 38% increase from 2019. Over 25% of opioid overdose deaths in 2020 involved prescription opioids, and 11% involved prescription stimulants. Unused medication, especially highly addictive prescription opioids, are vulnerable to diversion, misuse, and abuse. By properly disposing of unused prescription drugs, every Vermonter can help keep our communities safe. I thank the DEA and all our partners in coordinating this important effort.”
Riverside County Man Charged in COVID-Relief Fraud SchemeRead the Press Release
LOS ANGELES – Federal authorities this morning arrested a Temecula man on federal fraud charges that allege he stole hundreds of thousands of dollars from the Paycheck Protection Program (PPP) after obtaining more than $7 million in PPP loan funds on behalf of his company that purports to repair potholes.
Oumar Sissoko, 59, was arrested pursuant to a four-count wire fraud indictment that was returned by a federal grand jury on April 13. Sissoko is expected to be arraigned on the indictment Thursday afternoon in United States District Court in Riverside.
According to the indictment, Sissoko obtained a $7.25 million loan for his company, Road Doctor California LLC, after submitting a PPP loan application in April 2020 claiming that Road Doctor was in the process of hiring 450 full-time employees and would have average monthly payroll expenses of $2.9 million. When he applied for the loan, Sissoko acknowledged the funds would be used to retain workers and maintain payroll, or make mortgage interest payments, lease payments and utility payments.
In the days after the PPP loan was funded on May 1, 2020, Sissoko allegedly misappropriated hundreds of thousands of dollars of the loan proceeds to use for impermissible purposes, including purchasing a luxury car for more than $100,000, paying off a loan on a different luxury car, and buying a computer for almost $6,000. “The impermissible uses also included a non-refundable down payment of approximately $100,000 to purchase a company located in New Hampshire, and the attempted transmission of approximately $150,000” to accounts in the African nation of Mauritania associated with a minerals exploration company for which Sissoko purports to serve as CEO, the indictment alleges.
If convicted, Sissoko would face a maximum penalty of 20 years in prison for each of the four counts in the indictment. A federal district court judge will determine any sentence after considering the United States Sentencing Guidelines and other statutory factors.
The arrest of Sissoko was announced by Acting U.S. Attorney Tracy L. Wilkison, Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division, Assistant Director in Charge Kristi K. Johnson of the FBI’s Los Angeles Field Office, Special Agent in Charge Weston King of the U.S. Small Business Administration’s Office of Inspector General’s Western Region, and Special Agent in Charge Wade V. Walters of the San Francisco Regional Office of the Federal Deposit Insurance Corporation’s Office of Inspector General.
Assistant United States Attorney Alexander C.K. Wyman of the Major Frauds Section and DOJ Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section are prosecuting this case. Assistant United States Attorney Jonathan S. Galatzan of the Asset Forfeiture Section is providing substantial assistance, including the seizure of two luxury automobiles allegedly purchased with PPP loan funds.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, and is designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Reston Man Sentenced for Distributing Fentanyl That Caused Fatal OverdoseRead the Press Release
ALEXANDRIA, Va. – A Reston man was sentenced today to 12 years in prison for selling fentanyl to an individual who later suffered a fatal overdose.
“The defendant’s fentanyl trafficking significantly endangered our communities and caused victim N.G. to suffer a tragic overdose,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “While no prosecution can bring victim N.G. back to his family and loved ones, we hope that this case has brought some measure of peace and closure to them, all of whom deserve justice and healing for their devastating loss.”
According to court documents, Peter Andrew Romm, 36, regularly traveled to Baltimore to buy heroin and fentanyl, which he then sold to customers in Northern Virginia. Romm sold the drugs in two forms: enclosed in small plastic capsules and folded in small slips of paper.
Romm’s customers included an individual identified in court documents as N.G. On October 7, 2019, Romm sold fentanyl to N.G. through a middleman, Tyler Huston. N.G. later consumed the fentanyl and fatally overdosed; he was found dead in his home the next morning. The Office of the Chief Medical Examiner determined that the cause of N.G.’s death was acute fentanyl poisoning. Text messages recovered from N.G.’s phone indicate that Huston had nonfatally overdosed on drugs obtained from Romm prior to the transaction that resulted in N.G.’s death.
As recently as February 2020, Romm was traveling to Baltimore regularly to buy fentanyl, sometimes with his girlfriend and co-conspirator, Donnetta Ferguson, who aided him in distributing narcotics. On February 11, 2020, Romm was arrested on his way back from Baltimore in possession of approximately 75 capsules of fentanyl. During a post-arrest interview with law enforcement, Romm admitted to selling fentanyl in Northern Virginia, including to N.G. through a middleman. Despite being informed by law enforcement during this interview that N.G. had died of a drug overdose, Romm was arrested again eight days later, along with Ferguson, on his way back from Baltimore with another 72 capsules of fentanyl in his vehicle.
On November 4, 2020, Romm pleaded guilty to one count of conspiracy to distribute one kilogram or more of heroin and 400 grams or more of fentanyl, and one count of distribution of fentanyl. As part of his plea agreement, Romm admitted that the fentanyl he distributed caused N.G.’s death. Tyler Huston and Donnetta Ferguson also pleaded guilty to charges relating to their roles in the conspiracy.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and David M. Rohrer, Fairfax County Interim Chief of Police and Deputy County Executive for Public Safety, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
Assistant U.S. Attorney Katherine E. Rumbaugh and former Special Assistant U.S. Attorney Karolina Klyuchnikova prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:20-cr-176.
Readout of Deputy Attorney General Lisa O. Monaco's First DayRead the Press Release
Today, Lisa O. Monaco was sworn in as the 39th Deputy Attorney General (DAG) of the United States. She returns to the Department of Justice where she first arrived as an intern 26 years ago, and went on to hold a variety of leadership roles at both the Department and the FBI. DAG Monaco held a series of meetings with DOJ staff and received briefings on the January 6th Capitol Attack investigation and on national security. In an all hands meeting with her immediate staff, DAG Monaco reiterated her commitment to reaffirming the Department’s foundational mission and core values, pursuing the Constitution’s promise of equal justice, and ensuring the safety of all who call America home. Late in the day she sent an email to the DOJ workforce thanking them for their dedication, and conveying how honored she is to serve alongside them.
She is pictured here looking on as Attorney General Merrick Garland delivers remarks at her swearing in ceremony.
Queens Pharmacy Owner Pleads Guilty to Health Care FraudRead the Press Release
BROOKLYN, NY – Earlier today, in federal court in Brooklyn, Aleah Mohammed pleaded guilty before United States District Judge Eric N. Vitaliano to mail fraud, health care fraud, and conspiracy to commit health care fraud stemming from multiple schemes to defraud health care programs, including obtaining more than $6.5 million from Medicare Part D Plans and Medicaid drug plans. When sentenced, the defendant faces up to 40 years’ imprisonment. As part of her plea agreement, Mohammed has agreed to forfeit $5.1 million and pay over $6.5 million in restitution.
Mark. J. Lesko, Acting United States Attorney for the Eastern District of New York; Nicholas L. McQuaid, Acting Assistant Attorney General of the Justice Department’s Criminal Division; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG); announced the guilty plea.
“With today’s guilty plea, Mohammed is held accountable for stealing millions of dollars from the taxpayer-funded Medicare and Medicaid programs to line her own pockets,” stated Acting U.S. Attorney Lesko. “This Office and our law enforcement partners are committed to safeguarding these vital health care programs and recovering ill-gotten proceeds from corrupt healthcare operators.”
“In attempting to finance a lavish lifestyle, Mohammed stole millions of dollars intended to provide medical and health services to the elder population, individuals with disabilities, and other HHS beneficiaries,” stated HHS-OIG Special Agent-in-Charge Lampert. “HHS-OIG, in collaboration with our law enforcement partners, is boldly committed to investigating illegal acts that target Federal health care programs and bringing the fraudsters to justice.”
According to court filings, Mohammed, 36, of Queens, New York, was an owner and operator of Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. From approximately May 2015 to January 2018 and December 2018 to March 2020, Mohammed submitted fraudulent claims to Medicare and Medicaid, for reimbursement for prescription drugs that were not dispensed, prescribed as claimed, or medically necessary, or that were purportedly dispensed during a time when Village Stardrugs was no longer registered with the State of New York. The fraudulent claims included claims for prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed used the proceeds of the scheme, among other things, to purchase luxury items such a Porsche and jewelry.
The FBI and HHS-OIG are investigating the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.
The Defendant:
ALEAH MOHAMMED
Age: 36
Queens, New YorkE.D.N.Y Docket Nos: 18-CR-509 and 20-CR-581 (ENV)
Provincetown Man Pleads Guilty to Child Pornography OffensesRead the Press Release
BOSTON – A Provincetown man pleaded guilty yesterday in federal court in Boston to distribution, receipt and possession of child pornography.
Kerry Adams, 61, pleaded guilty to one count each of distribution, receipt and possession of child pornography. U.S. District Court Judge Patti B. Saris scheduled sentencing for July 22, 2021. In October 2019, Adams was arrested and charged by criminal complaint.
Over the course of several months in 2019, investigators engaged in a covert investigation of individuals using peer-to-peer networks for the trafficking of child pornography. In the course of that investigation, agents downloaded child pornography files on four occasions from the same computer, which was traced to Adams’s residence. On Oct. 17, 2019, investigators seized multiple devices, including laptops, thumb drives and SD cards from Adams’s residence. During the on-scene forensic review of a laptop, investigators located files containing child pornography in folders associated with peer-to-peer software installed on the computer, including the files that the undercover investigator had downloaded directly from Adams’s computer. Subsequent forensic analysis revealed hundreds of child pornography files on Adams’s devices.
The charging statutes provide for sentences of up to 20 years in prison, with a mandatory minimum term of five years on convictions for distribution and receipt of child pornography, a minimum of five years and up to a lifetime of supervised release and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Frederick J. Regan, Special Agent in Charge of U.S. Secret Service in Boston; and Barnstable Police Chief Matthew Sonnabend made the announcement. Valuable assistance was provided by Provincetown Police Department. Assistant U.S. Attorneys Lindsey E. Weinstein, of Mendell’s Criminal Division, and Anne Paruti, Mendell’s Project Safe Childhood Coordinator and Deputy Chief of the Major Crimes Unit, are prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
Providence Man Detained After Accepting Cocaine ShipmentRead the Press Release
PROVIDENCE – A Dominican national living in Providence was arrested on Monday on a federal drug trafficking charge shortly after he allegedly retrieved a package from a Providence Post Office that contained more than two kilograms of cocaine shipped from Puerto Rico.
According to court documents, on April 15, 2021, Postal Service employees intercepted a heavily taped package shipped from Puerto Rico to a Providence residence. The packaging resembled packages law enforcement previously intercepted that were packaged in a way to avoid K-9 detection from the odor of controlled substances. Additionally, postal workers were unable to associate a “Jose A azcona” at the shipping address.
According to court documents, on April 15, shortly after a Postal Service employee attempted to make a controlled delivery of the package to the address on the package, the postal worker was approached by an individual claiming to be a relative of the addressee. The person claimed the package contained medication for his relative and requested to take custody of it. The individual was informed that the addressee would have to inquire about a redelivery and personally claim the package.
After a series of telephone calls to the Post Office, on April 17, a person claiming to be “Jose Azcona,” and another person, went to the Elmwood Post Office attempting to claim the package, but were told they would have to contact the redelivery unit. On April 19, having contacted the redelivery unit, “ Jose Azcona” was told he could retrieve the package at the main Post Office in Providence. In the meantime, a court-authorized search revealed the package contained approximately 2.22 kilograms of cocaine. “Jose Azcona,” accompanied by the second person, retrieved the package, and was detained by law enforcement in the parking lot.
Following his arrest, law enforcement determined that “Jose Azcona” was actually 37-year-old Robinson Padilla-Rosario. He was found to be carrying a Rhode Island driver’s license depicting his photograph and the name Jose A. Azcona, and a home address being the same address to which the package containing the cocaine was mailed. The driver’s license number on the license seized by law enforcement is assigned to another person with a North Providence address.
While reviewing Padilla-Rosario’s cell phone, it was discovered that he was using an online app to communicate with a person in Puerto Rico. Included in the communication was an image of the Postal Service redelivery slip for the package containing the cocaine.
Padilla-Rosario appeared in U.S. District Court on Tuesday and was ordered detained, charged by way of a federal criminal complaint with possession with intent to distribute cocaine and using a communication facility to facilitate a drug felony, announced Acting United States Attorney Richard B. Myrus, Joshua McCallister, Acting Inspector in Charge of the U.S. Postal Inspection Service, Boston Division, and Superintendent of the Rhode Island State Police Colonel James M. Manni.
According to court documents, Padilla-Rosario was issued a voluntary return to the Dominican Republic on February 15, 2004, after being encountered by Border Patrol in Aguadilla, Puerto Rico.
A federal criminal complaint is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Prolific Document Counterfeiter from Montgomery County Sentenced to over Two Years in PrisonRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Danial Gomez-Velazquillo, 34, of Norristown, PA, was sentenced to two years and three months in prison, three years of supervised release by United States District Judge R. Barclay Surrick for producing unlawful and counterfeit federal documents, including Social Security Administration and Alien Registration cards.
In March 2020, the defendant pleaded guilty to six counts of unlawful production of identification documents, six counts of sale of Social Security cards (which utilized the social security numbers of five living victims and one deceased victim), and five counts of sale of alien registration cards. According to court documents, Gomez-Velazquillo was a mass producer of high-quality counterfeit documents, including social security cards and alien registration documents, so much so that he earned the nickname, “Photo Guy.” Evidence gathered in the investigation of the case indicated that the defendant produced over 7,000 separate identification documents.
“When we prosecute a fraudster for stealing personal identification information, we recognize that each nine-digit social security number is an American citizen,” said Acting U.S. Williams. “Social security cards and other identification documents have become critical in modern society to confirm individuals’ identities for a wide range of purposes, and those who commit these offenses can cause lifelong harm to the victims. We will continue to prioritize aggressive prosecution of these cases.”
“Homeland Security Investigations has been at the forefront of investigating fraud schemes,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. “Together with our law enforcement partners we remain steadfast in our pursuit to safeguard the public and hold accountable fraudsters like the defendant, who profit from the production of unlawful and counterfeit federal documents.”
The case was investigated by Homeland Security Investigations and the Social Security Administration- Office of the Inspector General, and is being prosecuted by Special Assistant United States Attorney Megan Curran.
Pittsburgh Man Charged with Possessing Material Depicting the Sexual Exploitation of MinorsRead the Press Release
PITTSBURGH – One resident of Pittsburgh, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of possession of material depicting the sexual exploitation of a minor, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named David Stanton, age 53, as the sole defendant.
According to the Indictment, on March 5, 2021, Stanton knowingly possessed visual depictions, namely, videos in computer graphic and digital files, the production of which involved the use of minors engaging in sexually explicit conduct.
The law provides for a maximum total sentence of not more than 20 years in prison, a fine not to exceed $250,000.00, a term of supervised release of at least five years and up to life, or a combination thereof. 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 Benjamin J. Risacher is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation 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.
Pharmacy Owner Pleads Guilty to $6.5 million Health Care Fraud SchemesRead the Press Release
A New York woman pleaded guilty today to perpetrating schemes to defraud health care programs, including obtaining more than $6.5 million from Medicare Part D Plans and Medicaid drug plans.
According to court documents, Aleah Mohammed, 36, of Queens, was an owner and operator of five pharmacies: Superdrugs Inc., Superdrugs I Inc., Superdrugs II Inc., S&A Superdrugs II Inc. and Village Stardrugs Inc. Between 2018 and 2020, the defendant engaged in schemes that defrauded health care programs, including Medicare and Medicaid, through claims for prescription drugs that were not dispensed, not prescribed as claimed, not medically necessary, or that were purportedly dispensed during a time when the pharmacy was no longer registered with the State of New York. The fraudulent claims included, among others, claims for prescription drugs for the treatment of the human immunodeficiency virus (HIV). Mohammed admitted to using the proceeds of the scheme, among other things, to purchase luxury items such a Porsche and jewelry.
Mohammed pleaded guilty to mail fraud, health care fraud, and conspiracy to commit health care fraud. She is scheduled to be sentenced at a later date and faces a maximum penalty of 40 years in prison. Mohammed is required to pay $6.5 million in restitution to Medicare and Medicaid, and, as part of her plea agreement, agreed to a $5.1 million forfeiture money judgment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Mark J. Lesko of the Eastern District of New York; Assistant Director in Charge William F. Sweeney Jr. of the FBI’s New York Field Office; and Special Agent in Charge Scott J. Lampert of the Health and Human Services Office of Inspector General (HHS-OIG) made the announcement.
The FBI and HHS-OIG are investigating the case.
Trial Attorney Andrew Estes of the Criminal Division’s Fraud Section is prosecuting the case.
Pennsylvania man admits to his role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Lance Smith, of Confluence, Pennsylvania, has admitted to his role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Smith, 47, pled guilty to one count of “Conspiracy to Distribute Heroin and Cocaine Base.” Smith admitted to working with others to distribute heroin and cocaine base, also known as “crack,” from March 2018 to September 2020 in Monongalia County and elsewhere.
Smith 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
U.S. Magistrate Judge Michael John Aloi presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Owner of the Surrogacy Group Sentenced in Maryland to 32 Months in Federal Prison for Defrauding Clients of Fees Paid to Find and Support a Pregnancy SurrogateRead the Press Release
Baltimore, Maryland – U.S. District Judge Ellen L. Hollander today sentenced Gregory Ray Blosser, age 39, of Tampa, Florida, to 32 months in federal prison, followed by three years of supervised release, for a wire fraud charge in connection with a scheme to defraud clients of The Surrogacy Group (TSG), which he owned and operated from offices in Annapolis, Maryland and Tampa, Florida. Judge Hollander also ordered that Blosser must forfeit $1,104,706 and pay restitution in the amount of $1,194,519.54. Blosser was arrested on April 29, 2019 in Florida and has been under home confinement since his arrest.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner and Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office.
“Gregory Blosser took advantage of and defrauded 44 individuals who were trying to become parents,” said Acting U.S. Attorney Jonathan F. Lenzner. “Blosser misappropriated funds from escrow accounts that belonged to families and were owed to surrogates carrying babies. This sentence should send a message to heartless criminals like Blosser who choose to line their pockets by taking advantage of people who are simply trying to start a family.”
“Dreams, hopes and bank accounts were wiped clean by Mr. Blosser who preyed on couples who were already in a vulnerable place,” said Jennifer C. Boone, Special Agent in Charge of the FBI Baltimore Field Office. “Today’s sentencing is a reminder that the FBI will use our resources appropriately to root out fraudulent surrogacy schemes that violate the trust of the American public.”
According to Blosser’s plea agreement, TSG was incorporated in Maryland on January 5, 2012 and offered and sold surrogacy-related services throughout the United States and internationally to individuals who desired to have children using a pregnancy surrogate. From at least 2015 until his arrest in 2019, Blosser solicited and accepted funds from TSG clients who desired to have children using a surrogate, representing that these funds would be held in escrow. Blosser told the clients that he would act as their agent disbursing the funds to the surrogate pursuant to contracts between the TSG client and TSG, and the TSG client and the surrogate.
Instead, Blosser admitted that beginning in 2017, he converted a significant portion of the funds he promised to hold in escrow to his own use without the authorization of the TSG client and failed to pay the surrogate as he had agreed to do. Blosser did not, as promised, create separate escrow accounts for these funds and as a result, those funds intermingled with TSG’s operating accounts and were used to pay business expenses, service business loans, and for other purposes not permitted under the escrow agreements. TSG clients were forced to pay the surrogate’s expenses themselves, effectively paying twice for the services Blosser had promised to deliver.
As detailed in his plea agreement, at Blosser’s direction, at least seven victims paid fees to establish an escrow account to be controlled by Blosser, with the funds to be used to find a suitable surrogate, and to support the surrogate during a pregnancy. The victims lived in Maryland, Australia, North Carolina, Germany, and Virginia. In each case, after the victims deposited funds into the escrow account, Blosser either did not locate a suitable surrogate, or did not pay the surrogate the agreed-upon fees.
In total, Blosser fraudulently obtained approximately $1,104,706 from approximately 44 victims.
Blosser is also facing related civil suits filed by the States of Maryland and Florida.
Acting United States Attorney Jonathan F. Lenzner commended the FBI for its work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorney Leo J. Wise, who prosecuted the case.
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Omaha Man Sentenced to 151 Months for Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Nicholas Andrew Travis, age 33, of Omaha, Nebraska, was sentenced today in Omaha by United States District Court Judge Brian C. Buescher to 151 months’ imprisonment for Receipt of Child Pornography. There is no parole in the federal system. After his release, Travis will serve a 5-year term of supervised release and be required to register as a sex offender. Travis was also ordered to pay $33,000 in restitution and a $100 special assessment.
On January 24, 2020, special agents and task force officers with Homeland Security executed a search warrant at Travis’s apartment at the Open Door Mission in Omaha. They seized Travis’s cell phone. Travis admitted to the investigators that he had used his cell phone to download child pornography from the Internet while at his apartment in Omaha. As one method to receive child pornography, Travis admitted that he had paid for access to a foreign provider to download child pornography. A forensic examination of Travis’s cell phone revealed 3,127 images and videos depicting children, specifically girls between the ages of 3 to 10, engaging in sexually explicit conduct.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Council Bluffs Police Department and Homeland Security Investigations.
Omaha Man Sentenced for Meth Conspiracy and Use of a WeaponRead the Press Release
Acting United States Attorney Jan Sharp announced that Michael Rogers, 27, of Omaha, Nebraska, was sentenced today by United States District Judge Brian C. Buescher for conspiracy to distribute methamphetamine and use of a firearm during a drug trafficking crime. He was sentenced of 180 months’ imprisonment. After his release from prison, he will begin a five-year term of supervised release. There is no parole in the federal system.
On March 31, 2020, Omaha Metro Drug Task Force Officers utilized a Confidential Informant to purchase 25 grams of actual methamphetamine from Rogers. On April 15, 2020, a second informant purchased 23.9 grams of actual methamphetamine from Rogers. The informant observed Rogers with a .38 caliber revolver and a 9mm Taurus handgun.
On April 16, 2020, a search warrant was served on Rogers’s hotel room. Rogers attempted to escape. In his backpack, TFOs found a loaded Ruger LCR .38 caliber revolver, a loaded Taurus PT111 handgun, 58.6 grams of actual methamphetamine and a digital scale. In his hotel room, a Hi-point JHP handgun, drug packaging materials, and more methamphetamine were found.
This case was investigated by the Omaha Police Department. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Omaha Man Sentenced as an Armed Career CriminalRead the Press Release
Acting United States Attorney Jan Sharp announced that Lionell Bland, 43, of Omaha, Nebraska, was sentenced today by United States District Judge Brian C. Buescher for possession of a firearm by an armed career criminal. He received a sentence of 180 months’ imprisonment with a five-year term of supervised release to follow. The term of incarceration will run consecutive to a sentence he is currently serving as a result of violating state parole. There is no parole in the federal system. An armed career criminal is a felon in possession of a firearm after three prior convictions involving crimes of violence or drug trafficking.
On August 20, 2019, Omaha Police officers received a call to Dailey’s Liquor Store located in northeast Omaha, regarding an armed party. Bland was outside in the parking lot and attempting to hide a loaded FN Hi Power 9mm handgun. Officers found the firearm on top of a t-shirt underneath the vehicle next to where Bland had been standing. Bland ultimately admitted to handling the firearm. At the time of the offense, Bland was on parole. He had four prior convictions for possession of cocaine with intent to distribute, and prior convictions for use of a weapon and terroristic threats.
This case was investigated by the Omaha Police Department. This case was part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
Ohio man sentenced for selling cocaineRead the Press Release
WHEELING, WEST VIRGINIA – Quaison Maurice Harris, of Willoughby Hills, Ohio, was sentenced today to 41 months of incarceration for a drug charge, Acting United States Attorney Randolph J. Bernard announced.
Harris, also known as “Action,” age 35, pled guilty to one count of “Distribution of Cocaine Base within 1000 feet of a Protected Location” in November 2020. Harris admitted to selling cocaine near Belle Isle Playground on Wheeling Island in February 2020.
Assistant U.S. Attorneys Shawn M. Adkins and Clayton J. Reid prosecuted the case on behalf of the government. The Ohio Valley Drug and Violent Crimes Task Force, a HIDTA-funded initiative, which includes the Drug Enforcement Administration, West Virginia State Police, Ohio County Sheriff’s Office, and the Wheeling Police Department, investigated. The U.S. Marshal Service, Columbus Police Department Gang Crimes Unit, the Martins Ferry Police Department, and the Bellaire Police Department also assisted.
U.S. District Judge John Preston Bailey presided.
See related case here: https://www.justice.gov/usao-ndwv/pr/26-charged-drug-conspiracy-involving-heroin-fentanyl-crack-cocaine-and-meth-wheeling
New York Fisherman and Fish Dealer Charged with Conspiracy, Fraud, and ObstructionRead the Press Release
Today, a federal grand jury in the Eastern District of New York unsealed the indictment of one fisherman, a wholesale fish dealer, and two of its managers for conspiracy to commit mail and wire fraud and obstruction in connection with a scheme to illegally overharvest fluke and black sea bass. All four defendants are from Montauk.
Christopher Winkler, 61, Bryan Gosman, 48, Asa Gosman, 45, and Bob Gosman Co. Inc. were charged with one count of conspiracy to commit mail and wire fraud as well as to unlawfully frustrate the National Ocean and Atmospheric Administration's (NOAA) efforts at regulating federal fisheries. Winker and the corporate defendant each face substantive fraud charges. In addition, each of the defendants was charged with obstruction.
The indictment alleges that between May 2014 and July 2016, Winkler, as captain of the New Age, went on approximately 70 fishing trips where he caught fluke or black sea bass in excess of applicable quotas. This fish was then sold to a now-defunct company and unindicted co-conspirator in the New Fulton Fish Market in the Bronx. Both Asa Gosman and Bryan Gosman had an ownership interest in the defunct company. After the Bronx company went under, Winkler sold a smaller quantity of his illegal catch directly to Bob Gosman Co. Inc., a Montauk fish dealer in which Asa Gosman and Bryan Gosman had a management role. The overages of fish included at least 74,000 pounds of fluke, and the overall over-quota fish (of all species) were valued at least $250,000 wholesale.
Under federal law, a fishing captain is required to accurately detail his catch on a form known as a Fishing Vessel Trip Report (FVTR), which is mailed to NOAA. Similarly, the first company that buys fish directly from a fishing vessel is termed a fish dealer, and fish dealers are required to specify what they purchase on a federal form known as a dealer report, which is transmitted electronically to NOAA. Pursuant to statutory mandate, NOAA utilizes this information to set policies designed to ensure a sustainable fishery. The indictment alleges that the part of the conspiracy was to falsify both FVTRs and dealer reports in order to cover-up the fact that fish were taken in excess of quotas.
Additionally, Asa Gosman, Bryan Gosman, and Bob Gosman Co. Inc., acting through its agents and employees, were charged with obstructing the investigation into these crimes by corruptly withholding certain documents and records sought by a federal grand jury.
Initiated as part of Operation One-Way Chandelier, the indictment is part of a multi-year, ongoing investigation into fisheries fraud on Long Island. The case is being investigated by NOAA’s Office of Law Enforcement. Trial Attorney Christopher Hale of the Justice Department’s Environment and Natural Resources Division's Environmental Crimes Section is prosecuting the case.
The defendants will be arraigned at a future date.
An indictment is only an accusation, and the defendants are presumed innocent until proven otherwise before a jury at trial.
New Haven Man Admits Illegally Possessing FirearmRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that DEMETRIUS DREW, 26, of New Haven, pleaded guilty yesterday before U.S. District Judge Jeffrey A. Meyer in New Haven to possession of a firearm by a felon.
According to court documents and statements made in court, New Haven Police arrested Drew on August 18, 2020, after a court-authorized search of his residence revealed a loaded Glock model 26, 9mm pistol and a box containing 50 rounds of .38 Special ammunition.
Drew’s criminal history includes state convictions for felony narcotics and larceny offenses. It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Judge Meyer scheduled sentencing for July 13, 2021, at which time Drew faces a maximum term of imprisonment of 10 years.
Drew is released on a $100,000 bond pending sentencing.
This matter is being investigated by the New Haven Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is being prosecuted by Assistant U.S. Attorneys Tara E. Levens and Anthony E. Kaplan.
Acting U.S. Attorney Boyle noted that this prosecution is a part of the Justice’s Department’s Project Safe Neighborhoods (PSN) program and Project Longevity. PSN is a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make neighborhoods safer for everyone. Project Longevity is a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Nebraska Fugitive Pleads Guilty to Fraud ChargesRead the Press Release
Ocala, Florida – Howard D. Farley, Jr. (72, Weirsdale) has pleaded guilty to passport fraud, aggravated identity theft, and operating as a pilot without a legitimate airman’s certificate. Farley faces a maximum penalty of 15 years in federal prison. A sentencing date has not yet been scheduled. As part of the agreement, Farley also agreed to forfeit a firearm and ammunition in his home, as well as an aircraft that was seized by the Department of Homeland Security.
According to the plea agreement, Farley admitted to using the identity of a deceased person to obtain a United States passport and an Airman’s Certificate (pilot’s license). Farley admitted to operating as an airman using the fraudulently obtained certificate between January 4, 2016, until his arrest by federal authorities on November 28, 2020.
Other court documents established that Farley used the identity of a deceased infant for over 35 years to avoid apprehension in the District of Nebraska where, in 1985, he had been indicted with a narcotics conspiracy. Those charges were dismissed in 2014.
This case was investigated by the Department of State, Diplomatic Security Service, the Department of Transportation, Office of Inspector General, the Social Security Administration, Office of Inspector General, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Internal Revenue Service, Criminal Investigations Division, and with support from the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Michael P. Felicetta.
National Park Service Official Arrested on Theft and Fraud ChargesRead the Press Release
St. Croix, USVI – U.S. Attorney Gretchen C.F. Shappert announced today that Gregory Camacho, 41, of St. Croix, appeared before Magistrate Judge George W. Cannon, Jr., for an Initial Appearance and Arraignment after his arrest by Special Agents of the Inspector General of the U.S. Department of the Interior on the charges of:
Counts 1–15: Conversion of Government Property, 18 U.S.C. § 641;
Count 16: Acts Affecting a Personal Financial Interest, 18 U.S.C. § 208;
Count 17: Wire Fraud, 18 U.S.C. § 1343;
Count 18: False, Fictitious or Fraudulent Claims, 18 U.S.C. § 287;
Count 19: Theft of Government Money, 18 U.S.C. § 641;
Count 20-26: Wire Fraud, 18 U.S.C. § 1343;
Count 27-33: False, Fictitious or Fraudulent Claims, 18 U.S.C. § 287; and
Count 34-36: Theft of Government Money, 18 U.S.C. § 641.According to court documents, Camacho failed to pay the required rent at National Park Service government housing from June 2019 – August 2020, directed a subordinate to change the housing classification to lessen the rent that was required from him in June 2020, submitted a change of duty station voucher that falsely reflected he was relocating various family members to St. Croix in August 2019, and submitted overlapping travel vouchers claiming meals and incidental expenses for two locations simultaneously from October 2018 – November 2019. The total loss amount alleged is over $46,000.00.
The case was investigated by the Office of the Inspector General of the U.S. Department of the Interior and is being prosecuted by Assistant U.S. Attorney Daniel H. Huston.
Camacho faces up to the following maximum penalties if convicted:
- Conversion/Theft of Government Property – a maximum of 10 years, fine up to $250,000 per count
- Acts Affecting a Personal Financial Interest – a maximum of 5 years, fine up to $250,000;
- Wire Fraud– a maximum of 20 years, fine up to $250,000
- False, Fictitious or Fraudulent Claims - a maximum of 5 years, fine up to $250,000.
United States Attorney Gretchen C.F. Shappert reminds the public that an Indictment is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Morris County Man Admits Role in Health Care Fraud Conspiracy, Conspiring to Obstruct JusticeRead the Press Release
CAMDEN, N.J. – A Morris County man today admitted defrauding New Jersey county health benefits programs and obstructing justice by seeking to provide false information to federal agents and the grand jury investigating the scheme, Acting U.S. Attorney Rachael A. Honig announced.
Rocco Cammalleri, 49, of Budd Lake, New Jersey, pleaded guilty by videoconference before U.S. District Judge Robert B. Kugler to an information charging him with one count of conspiracy to commit health care fraud and one count of conspiracy to obstruct justice.
According to documents filed in this case and statements made in court:
Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although compounded drugs are not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredient.
In 2015, the conspirators learned that certain New Jersey local government employees, including county prison guards, had insurance coverage for these compounded medications. An entity referred to as the “Pharmacy Benefits Administrator” provided pharmacy benefit management services for the Bergen County Prescription Benefits Program (BCPBP), which covered certain local government employees, including county prison guards. The Pharmacy Benefits Administrator paid prescription drug claims and then billed the BCPBP for the amounts paid.
The conspirators learned that certain compounded medication prescriptions – including vitamins and pain, scar, antifungal, migraine, and libido creams – reimbursed thousands of dollars for a one-month supply. From September 2015 through April 2017, the conspirators – a including Cammalleri and an individual referred as Individual 2 – recruited local government employees and others to obtain medically unnecessary compounded medications. Cammalleri, who had no medical or sales background or training, recruited several individuals to receive medically unnecessary compound medications. Cammalleri and Individual 2 directed the recruits to an unnamed doctor – referred to as Individual 1 – to obtain his authorization for the compounded prescription medications. The recruits agreed to receive the very expensive compounded medications not because they needed them, but rather because they were paid to do so. Cammalleri received $175,467 in payments for the prescriptions he arranged and agreed to receive, and caused $2.98 million in fraudulent claims for compounded medications.
In 2017, Individual 2 informed Cammalleri that a federal grand jury was investigating the health care fraud conspiracy. Individual 2 and Cammalleri conspired to obstruct the federal investigation by providing and seeking to provide false information to federal agents and the grand jury.
The health care fraud conspiracy count to which Cammalleri pleaded guilty carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gain or loss from the offense, whichever is greater. The obstruction of justice conspiracy count carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for Nov. 18, 2021.
Acting U.S. Attorney Rachael A. Honig credited special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; special agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and special agents of the U.S. Department of Labor Office of Inspector General, New York Region, under the direction of Special Agent in Charge Michael C. Mikulka, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Christina O. Hud and R. David Walk Jr. of the U.S. Attorney’s Office in Camden.
Monongalia County woman sentenced for her role in a drug trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Candice Marie Adams, of Morgantown, West Virginia, was sentenced today to 15 months of incarceration for her role in a drug trafficking conspiracy, Acting United States Attorney Randolph J. Bernard announced.
Adams, 31, pled guilty to one count of “Unlawful Use of Communication Facility” in November 2020. Adams admitted to using a phone to distribute drugs in March 2020 in Monongalia County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the case on behalf of the government. The Drug Enforcement Administration, the Mon Metro Drug & Violent Crimes Task Force, a HIDTA-funded initiative, and the Monongalia County Sheriff’s Office investigated.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
Senior U.S. District Judge Irene M. Keeley presided.
Related press release: https://www.justice.gov/usao-ndwv/pr/seventeen-people-charged-heroin-and-crack-cocaine-distribution-operation
Middlesex Man Admits Paycheck Protection Program Fraud Scheme and Obtaining Funds from a Deposited Stolen and Altered U.S. Treasury CheckRead the Press Release
TRENTON, N.J. – A Middlesex County, New Jersey, man today admitted fraudulently receiving Payment Protection Program (PPP) funds and depositing a stolen and altered U.S. Treasury check, Acting U.S. Attorney Rachael A. Honig announced today.
Bernard Lopez, 40, pleaded guilty by videoconference before U.S. District Judge Peter G. Sheridan to an information charging him with one count each of bank fraud and theft of government funds.
According to the documents filed in this case and statements made in court:
Lopez devised a scheme to commit bank fraud through which a stolen and altered U.S. Treasury check was deposited into a corporate bank account Lopez created in the name of Pezlo Management LLC. The check was altered to be made payable to Pezlo in the amount of $211,886 and was then deposited into Pezlo’s corporate bank account. Lopez later withdrew or transferred the stolen proceeds from Pezlo’s bank account before the bank could detect the fraud.
On June 24, 2020, Lopez caused to be submitted a fraudulent PPP loan application to a lender on behalf of Company-1, a purported business that Lopez controlled. The Small Business Administration oversees the PPP, which is designed to provide forgivable loans to small businesses affected by the coronavirus pandemic. Applicants for PPP loans apply directly to banks or financial institutions participating in the program; in those applications, applicants make affirmative certifications about their average monthly payroll expenses and number of employees. Applicants also certify their intent to spend PPP proceeds on permissible business expenses, such as payroll costs, rent, utilities, and interest on mortgages. PPP loans may be entirely forgiven if the recipient spends the loan proceeds on these permissible expenses within a designated period after receiving the proceeds.
Lopez’s PPP application falsely represented that Company-1 employed 25 employees, had a monthly payroll expense of approximately $192,000, and had mortgage/lease and utilities expenses. Company-1 did not, in fact, employ any employees, nor did it incur payroll or utility expenses. Based on Lopez’s misrepresentations, the lender approved Lopez’s PPP loan application and provided Lopez’s purported business with $481,502 in federal COVID-19 emergency relief funds meant for distressed small businesses. Lopez then converted a portion of the proceeds for his own use.
The count of bank fraud is punishable by a maximum penalty of 30 years in prison and a $1 million fine, or twice the gross gain to the defendant or gross loss to the victim, whichever is greater. The count of theft of government funds is punishable by a maximum of 10 years in prison and a fine of up to $250,000, or twice the gross gain or loss from the offense, whichever is greater. Sentencing is scheduled for Oct. 6, 2021.
Acting U.S. Attorney Honig credited special agents and task force officers of the U.S. Department of the Treasury-OIG, under the direction of Assistant Inspector General for Investigations Sally D. Luttrell, with the investigation leading to the charges. She also thanked special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina in Newark, and special agents of the Federal Deposit Insurance Corporation Office of Inspector General, under the direction of Special Agent in Charge Patricia Tarasca for assistance.
The government is represented by Assistant U.S. Attorney Perry Farhat of the Government Fraud Unit of the U.S. Attorney’s Office’s Criminal Division in Newark.
Mexican National Sentenced to 8 Years in Federal Prison for Conspiracy to Distribute over 50 Grams of Actual MethamphetamineRead the Press Release
Jackson, TN – Saul Vega Flores, 51, has been sentenced to 100 months in federal prison for conspiracy to distribute and possess with the intent to distribute over 50 grams of actual methamphetamine. Acting U.S. Attorney, Joseph C. Murphy Jr., announced the sentence today.
According to information presented in court, in March 2017, DEA agents in the Nashville, TN office began an investigation into Rolando Lopez and his drug trafficking organization. Agents discovered Lopez and other co-conspirators were trafficking methamphetamine, heroin, marijuana, and other illegal substances from Texas to Tennessee. Investigators utilized several Title III wiretaps along with physical surveillance, confidential sources, traffic stops, and search warrants to investigate this organization, which was responsible for trafficking hundreds of pounds of actual methamphetamine/ICE. Saul Flores was found to have taken part in this conspiracy.
In early November 2017, investigators discovered through wiretap interceptions of Lopez's phone calls that he and Flores were meeting with individuals involved in the drug trafficking organization to pass out telephones. On November 13, 2017, Lopez and Flores met with Kenneth Garrett who transported Flores to Ronald Parham’s residence in Martin, Tennessee where Flores cooked methamphetamine/ICE.
On December 1, 2017, DEA agents developed information that Lopez was arranging a shipment of a significant amount of methamphetamine from Mexico to Tennessee. The shipment was to be picked up in Mexico by Virginia Torres and delivered to Parham's residence in Martin. This address was being used to convert liquid and powder methamphetamine into crystal methamphetamine.
On December 3, 2017, DEA agents set up surveillance at Parham’s residence. Investigators also followed Garrett and Flores from Nashville to Martin and Union City, TN. Through wiretap interceptions of phone calls between Lopez, Garrett, Flores, and Torres, investigators tracked Torres from Mexico to a Days Inn in West Memphis, Arkansas. Investigators observed Garrett and Flores meet with Torres who was driving a 2004 Lincoln Navigator. All three suspects left the Days Inn and headed toward Martin, Tennessee along Highway 51. DEA agents and members of the Tennessee Highway Patrol conducted a traffic stop on the vehicles on Highway 51 in Obion County.
On December 5, 2017, investigators searched the Lincoln Navigator and discovered a large quantity of methamphetamine/ICE in a hidden lead compartment in the tires and wrapped around the wheels. A DEA forensic laboratory examination revealed that Torres was carrying 44.85 kilograms of 98% pure ICE. Investigators confirmed that Parham's garage was being used to store and convert methamphetamine, and that either Flores or Parham would convert the powder or liquid methamphetamine to crystal methamphetamine.
Investigators also learned from cooperating witnesses that Flores is an "expert" at converting methamphetamine and that Lopez arranged for him to be transported from Mexico to Tennessee to convert methamphetamine into crystal form for distribution.
The Drug Enforcement Administration and the Tennessee Highway Patrol investigated this case.
On April 2, 2021, Chief U.S. District Judge S. Thomas Anderson sentenced Flores to 100 months in federal prison to be followed by three years supervised release. The co-defendants in this case received the following sentences: Kenneth Garnett was sentenced to 200 months; Ronald Parham was sentenced 120 months; Virginia Torres was sentenced to 60 months and Ronald Lopez was sentenced to life imprisonment. There is no parole in the federal system.
Assistant U.S. Attorneys Josh Morrow and Jerry Kitchen prosecuted this case on behalf of the government.
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Mathematics Professor and University Researcher Indicted for Grant FraudRead the Press Release
Note: A full copy of the indictment can be viewed
here.WASHINGTON – Today, a federal grand jury in Carbondale, Ill. returned an indictment charging a mathematics professor and researcher at Southern Illinois University – Carbondale (SIUC) with two counts of wire fraud and one count of making a false statement.
According to court documents, Mingqing Xiao, 59, of Makanda, Illinois, fraudulently obtained $151,099 in federal grant money from the National Science Foundation (NSF) by concealing support he was receiving from the Chinese government and a Chinese university.
“Again, an American professor stands accused of enabling the Chinese government’s efforts to corruptly benefit from U.S. research funding by lying about his obligations to, and support from, an arm of the Chinese government and a Chinese public university,” said Assistant Attorney General John C. Demers for the Justice Department’s National Security Division (NSD). “Honesty and transparency about funding sources lie at the heart of the scientific research enterprise. They enable U.S. agencies to distribute scarce grants for scientific research fairly and equitably. And they allow other researchers to evaluate potential conflicts of interest and conflicts of commitment. When researchers fall short of fulfilling these core academic values in ways that violate the law, the Department stand ready to investigate and prosecute.”
“Fraudulently obtaining U.S. taxpayer funding is a slap in the face to the vast majority of university researchers who do the right thing and abide by the rules,” said Alan E. Kohler, Jr., Assistant Director of the FBI’s Counterintelligence Division. “To those individuals who choose to conceal affiliations with foreign universities or foreign governments while applying for U.S. taxpayer-funded grants, the message should be clear: the FBI and its partners are aggressively investigating allegations of grant fraud.”
“The FBI takes seriously its commitment to work with our partners in academia to protect U.S. research funded grants,” said Special Agent in Charge Sean M. Cox of the FBI’s Springfield Field Office. “This investigation, like so many others, should serve as a reminder that failure to be truthful and transparent on an application for U.S. funded grants is a violation of the law. In this case the applicant allegedly failed to disclose his affiliation with China. Individuals who fail to disclose their affiliation with any foreign nation will be held accountable.”
“The charges in this case are very serious,” said U.S. Attorney Steven D. Weinhoeft for the Southern District of Illinois. “University grant fraud allows China to co-opt U.S. research and development at a fraction of the cost. Prosecutions like this one play an important role, not just in protecting American investments in academic research from foreign exploitation, but also in combating the growing threat that China poses to our national security. We will continue to work with our partners at NSD and the FBI on these important cases.”
According to the indictment, Xiao has worked in SIUC’s mathematics department since 2000, focusing his research on partial differential equations, control theory, optimization theory, dynamical systems, and computational science. In that position, Xiao allegedly applied for and received NSF grant funds for a project set to run from 2019 to 2022 without informing NSF about another, overlapping grant he had already received from the Natural Science Foundation of Guangdong Province, China. Xiao also allegedly failed to inform NSF that he was on the payroll of Shenzhen University, a public university in Guangdong Province, and that he had already committed to teaching and conducting research at Shenzhen University from 2018 to 2023.
The indictment further alleges that in March 2019, while his NSF grant proposal was still pending, Xiao submitted another grant proposal to the Natural Science Foundation of China. According to the indictment, Xiao allegedly applied for the funds as an employee of Shenzhen University and did not disclose the new Chinese proposal to NSF. Xiao is charged with falsely certifying to SIUC that his NSF grant proposal was true, complete, and accurate.
Before awarding the grant, NSF questioned Xiao about any current or pending funding from “worldwide sources,” including specifically whether he held any position outside of the United States or had obtained funding from non-U.S. funding sources. The indictment accuses Xiao of falsely reporting to NSF that he had nothing else to disclose.
If convicted, Xiao faces up to 20 years in prison on each count of wire fraud and up to five years in prison for making a false statement. All three charges are also punishable by a fine of up to $250,000. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The investigation was conducted by the FBI, the IRS, and the Department of Homeland Security. Assistant U.S. Attorney Peter T. Reed is prosecuting the case, with assistance from NSD’s Counterintelligence & Export Section.
The prosecution is part of the Justice Department’s ongoing China Initiative. Led by the Department’s National Security Division, the China Initiative is a broad, multi-faceted effort to counter Chinese national security threats and safeguard American intellectual property.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Maple Heights man sentenced to 39 months for elder fraud schemeRead the Press Release
Acting U.S. Attorney Bridget M. Brennan announced that Andrew V. Thomas, 35, of Maple Heights, Ohio, was sentenced on Tuesday, March 20, to 39 months imprisonment by U.S. Judge Donald C. Nugent. Thomas pleaded guilty in December of 2020 to wire fraud and aggravated identify theft. Thomas devised a scheme to defraud three elderly victims out of more than $62,000.
“Mr. Thomas targeted multiple elderly victims, including one suffering from dementia, and stole their hard-earned life savings,” said Acting U.S. Attorney Bridget M. Brennan. “Working with our partners to raise awareness about such schemes, protecting aging and vulnerable populations, and prosecuting those who seek to exploit others for personal gain is an important part of the work we do every day at the Department of Justice.”
“This individual took advantage of his position to financially victimize elderly customers,” said FBI Special Agent in Charge Eric B. Smith. “It is imperative that we as a community educate and look out for our elderly who are often targets of financial scams. Mr. Thomas will now be held accountable for the fraud and deception he perpetrated against the more trusting and vulnerable among us. The FBI will continue collaborative efforts to inform and educate older communities and their caregivers and aggressively investigate allegations like this wherever and whenever appropriate.”
According to court documents, from November 2018 to November 2019, Thomas was employed as a Call Center Representative for an insurance company with an office in Cleveland, Ohio, tasked with speaking to clients and their agents regarding annuities, updating client bank account information and processing withdrawal transactions.
During this time, Thomas devised a scam to defraud three elderly victims by transferring money from his victim’s annuities into his personal bank accounts. Court documents state that Victim 1 was an 84-year-old woman in Avon, Connecticut; Victim 2, an 83-year woman with dementia in Philadelphia, Pennsylvania; and Victim 3, a 96-year-old woman and a resident of Metairie, Louisiana, were all victims of the scheme to defraud.
Victim 1, Victim 2’s power of attorney and Victim 3 all called Thomas to inquire about a policy-related matter. Thomas spoke to all of the victims or their agents and had access to their accounts.
Thomas would then use the company’s computer system to make unauthorized transfers from the annuities of Victim 1, Victim 2 and Victim 3 into his personal bank accounts. As a result of the unauthorized transfers, Victim 1, Victim 2 and Victim 3 suffered a total loss of approximately $62,600.
The investigation was conducted by the Federal Bureau of Investigation, Cleveland Division and was prosecuted by Assistant U.S. Attorney Brian McDonough.
If you or someone you know is age 60 or older and has been a victim of financial fraud, help is standing by at the National Elder Fraud Hotline: 1-833-FRAUD-11 (1-833-372-8311). This U.S. Department of Justice hotline, managed by the Office for Victims of Crime, is staffed by experienced professionals who provide personalized support to callers by assessing the needs of the victim and identifying relevant next steps.
Case managers will identify appropriate reporting agencies, provide information to callers to assist them in reporting, connect callers directly with appropriate agencies, and provide resources and referrals on a case-by-case basis.
Reporting is the first step. Reporting can help authorities identify those who commit fraud and reporting certain financial losses due to fraud as soon as possible can increase the likelihood of recovering losses.
The hotline is staffed seven days a week from 6:00 a.m. to 11:00 p.m. eastern time. English, Spanish and other languages are available.
Manchester Man Sentenced to 180 Months for Child Pornography CrimesRead the Press Release
CONCORD - Robert Severance, 61, of Manchester, was sentenced to 180 months in federal prison for distributing and possessing child pornography, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on July 15, 2019, the Manchester Police Department (“MPD”) received a tip previously submitted to the National Center for Missing and Exploited Children by the social media website Instagram. The tip reported that on June 6, 2019, a file uploaded to Instagram was identified as a Child Sexual Abuse Image. MPD investigators later determined that the Instagram account was associated with Severance, who was a registered sex offender in Manchester, New Hampshire.
MPD investigators spoke with Severance at his residence in Manchester on July 22, 2019. He voluntarily went to the MPD and consented to an interview. Severance admitted to creating the Instagram account and explained that he portrayed himself as a 15-year-old female in order to talk with other young females. He stated that he had a laptop at home and admitted to receiving thousands of pictures and/or videos of child pornography via email.
A search warrant executed at Severance’s home the following day resulted in the seizure of numerous electronic devices and other media items. Forensic review of all items seized from the defendant revealed thousands of images and over one hundred videos of child pornography.
Severance previously pleaded guilty on November 23, 2020. In addition to the prison sentence, Severance must spend 10 years on supervised release and pay a total of $9,000 in restitution to three victims.
“Child pornography crimes exploit innocent youngsters and cause immeasurable damage to their lives,” said Acting U.S. Attorney Farley. “This sentence reflects the seriousness of the defendant’s conduct and demonstrates the commitment of the law enforcement community to protecting children in the Granite State. As Mr. Severance has learned, those who engage in child pornography offenses in New Hampshire will face substantial consequences for their illegal conduct.”
"The dedicated men and women associated with the NH ICAC Task Force will continue to be vigilant and partner with hard working agencies like the Manchester Police Department, Homeland Security Investigations, and the Department of Justice in an effort to hold individuals accountable and keep our children safe,” said Lt. Eric Kinsman, Commander, NH ICAC Task Force. “For more information and tips about internet safety, please go to http://www.nhicac.org."
This matter was investigated by Homeland Security Investigations, the NH Internet Crimes Against Children Task Force, and the Manchester Police Department. The case was prosecuted by Assistant U.S. Attorney Kasey Weiland.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s 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 www.projectsafechildhood.gov.
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