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Wednesday 21 April 2021
Manager of Hospice and Home Health Companies Sentenced to Prison for Role in $150 Million Health Care Fraud SchemeRead the Press Release
A Texas man was sentenced today to 27 months in prison for his role in a conspiracy at the Merida Group, a chain of hospice and home health agencies throughout Texas, to falsely convince thousands of patients with long-term incurable diseases they had less than six months to live in order to enroll the patients in hospice programs for which they were otherwise unqualified, thereby increasing revenue to the company.
According to court documents, Jose Garza, 44, of Harlingen, was the operations manager for the Merida Group and responsible for carrying out the business’s day to day operations, including overseeing the recruitment of patients at certain locations throughout the Rio Grande Valley. Garza, and others working at his direction, recruited patients at hospitals and other medical practices by touting that the Merida Group offered “hospice that you don’t have to die to use,” pursuant to the Merida Group’s corporate marketing strategy.
At the trial of co-defendants Rodney Mesquias and Henry McInnis, witnesses testified that from 2009 to 2018, the vast majority of hospice and home health patients at the Merida Group did not qualify for services. Rather, physicians were bribed with illegal kickbacks, under the pretense of medical directorships, to falsely certify unqualified patients for services. Employees were instructed to falsify medical records, making non-terminal patients appear to be terminally ill and declining. Garza admitted to participating in the scheme, facilitating kickback payments to physicians, and directing employees to falsify medical records.
Garza pleaded guilty to one count of conspiracy to commit health care fraud on Sept. 9, 2019. Garza was charged along with three others who were convicted by a federal jury in Brownsville, Texas, in one of the largest criminal hospice fraud cases tried to a jury. Mesquias, 50, the owner of the Merida Group, was sentenced to 20 years in prison in December 2020. McInnis, 50, the CEO of the Merida Group, was sentenced to 15 years in prison in February 2020.
In addition to the prison sentence, Garza was ordered to pay $4,700,000 in restitution.
Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division; Acting U.S. Attorney Jennifer Lowery of the Southern District of Texas; said Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
The Department of Health and Human Service – Office of Inspector General (HHS-OIG); FBI and Texas Health and Human Services Commission conducted the investigation.
Assistant Chief Jacob Foster and Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The Fraud Section leads the Health Care Fraud Strike Force. Since its inception in March 2007, the Health Care Fraud Strike Force, which maintains 15 strike forces operating in 24 districts, has charged more than 4,200 defendants who have collectively billed the Medicare program for nearly $19 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Man Sentenced to 110 Months for Distributing Methamphetamine in Sauk CountyRead the Press Release
MADISON, WIS. – Timothy M. O’Shea, Acting United States Attorney for the Western District of Wisconsin, announced that Timothy Savannah, 29, Waupun, Wisconsin, was sentenced today by Chief U.S. District Judge James D. Peterson to 110 months in federal prison for distributing methamphetamine. Savannah pleaded guilty to this charge on February 2, 2021.
In September 2020, an undercover police officer purchased methamphetamine from Savannah on two separate occasions in Lake Delton, Wisconsin. The two distributions totaled 76 grams of methamphetamine. On September 18, 2020, police officers executed a search warrant at the apartment in Lake Delton where he was staying. During the search, officers recovered a loaded Smith & Wesson 9mm handgun, a variety of drugs including heroin and crack cocaine, and over $7,000 in cash.
In imposing the sentence, Judge Peterson noted that Savannah has an “unrelenting pattern of criminal offenses” including multiple violent felony convictions. Judge Peterson also stated that a substantial sentence was warranted in light of Savannah’s deep involvement in drug trafficking and his possession of a loaded firearm.
The charge against Savannah was a result of an investigation conducted by the Sauk County Sheriff’s Office, Wisconsin Department of Justice Division of Criminal Investigation, Drug Enforcement Administration, and Sauk County District Attorney’s Office. The prosecution of the case has been handled by Assistant U.S. Attorney Aaron Wegner.
Lewis County man guilty of firearms chargeRead the Press Release
ELKINS, WEST VIRGINIA – Samuel Lee Donaldson, Jr., of Weston, West Virginia, was found guilty today of a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
After a two-day trial, a jury found Donaldson, 37, guilty of one count of “Unlawful Possession of a Firearm.” According to court documents and evidence presented at trial, Donaldson is a person prohibited from having a firearm because of prior convictions of domestic battery and third offense DUI. On October 5, 2019, a Lewis County Sheriff’s Deputy and a Weston Police Department K-9 unit responded to a 911 call about a felon with a firearm. When the officers made eye contact with Donaldson, he immediately fled on foot. Just before the officers apprehended him, Donaldson threw a 9mm semi-automatic firearm, which was quickly recovered.
Donaldson is facing up to 10 years of incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorneys Christopher L. Bauer and Andrew R. Cogar are prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives, the Lewis County Sheriff’s Office, and the Weston Police Department investigated.
U.S. District Judge Thomas S. Kleeh presided.
Lee’s Summit Man Sentenced to 25 Years for Conspiracy to Distribute More Than 2,000 Kilos of CocaineRead the Press Release
KANSAS CITY, Mo. – A Lee’s Summit, Missouri, man has been sentenced in federal court for his leadership role in a multi-million dollar conspiracy that distributed more than 2,000 kilograms of cocaine in the metropolitan area.
“This heavily-armed drug dealer was still on court supervised release for a prior federal drug-trafficking conviction while he was engaged in this drug trafficking conspiracy,” said Acting U.S. Attorney Teresa A. Moore. “A long prison sentence will help protect our community from the violence that always accompanies guns and drugs, and send a clear signal to drug traffickers that their criminal activity won’t be tolerated.”
Howard Christopher Walters, also known as “Chris,” 43, was sentenced by U.S. Chief District Judge Beth Phillips on Tuesday, April 20, to 25 years in federal prison without parole. The court also ordered Walters to forfeit $976,862 to the government, which represents the profit he made from the sale of illegal drugs.
“Today’s sentencing further shows that IRS Criminal Investigation along with its law enforcement partners are working vigorously to stop individuals conspiring to distribute cocaine and commit money laundering offenses. IRS CI will go after those who commit crimes that involve a financial nexus,” said David Talcott, Acting Special Agent in Charge of the IRS Criminal Investigation division in the St. Louis Field Office.
On Aug. 6, 2020, Walters pleaded guilty to participating in a drug-trafficking conspiracy and a money-laundering conspiracy from October 2013 to Nov. 15, 2018. His wife, Nina Walters, 39, was sentenced on April 7, 2021, to a year and a day for her role in the money-laundering conspiracy.
Law enforcement believes that Howard Walters directly distributed approximately 25 kilograms of cocaine during his involvement in the conspiracy. He also sold more than 1,421 kilograms of marijuana. In total, he profited at least $976,862 from the sale of illegal drugs.
“This defendant profited off an industry that makes its money off endangering the safety of our citizens,” said Special Agent in Charge Todd Zimmerman of the Drug Enforcement Administration in Missouri. “Working closely with our federal, state and local partners, we’re committed to dismantling and destroying these drug trafficking organizations that bring their drugs into our communities, and then use those proceeds to fund temporary lavish lifestyles.”
“Walters and his co-conspirators flooded the Kansas City area with more than 2,000 kilograms of cocaine and profited from a multi-million dollar conspiracy in the process. This investigation, prosecution and sentencing demonstrates that the FBI and our law enforcement partners are committed to removing drug traffickers from the streets and protecting our community,” said Timothy Langan, Special Agent in Charge of the FBI Kansas City Division.
During the course of the investigation, law enforcement used a confidential source to purchase cocaine directly from Howard Walters on several occasions. During one transaction, the confidential source reported that he saw approximately 15 empty cocaine kilogram wrappers at the residence used by Howard Walters. The source also reported that he observed several kilograms of cocaine in the kitchen cabinets. During the controlled purchase, Walters commented that his source of supply, co-defendant Jesus Campoy-Estrada, 26, of Kansas City, Kansas, received 50 to 60 kilograms of cocaine per delivery. Walters said he purchased 10 to 20 kilograms of cocaine from Campoy-Estrada after each delivery.
On Nov. 19, 2018, federal agents executed a search warrant at the Walters’s residence. Although Howard Walters is prohibited from possessing any firearms, agents seized from his residence a FNH 5.7 x 28mm handgun on the top shelf in the master bathroom closet; a FNH 5.7 x 28mm handgun in a cabinet above a built-in desk in the kitchen; a Taurus Millennium G2 PT111 9mm handgun located under the sink in the master bathroom; a Glock 10mm handgun located under the sink in the master bathroom; a PTR91 .308-caliber rifle on the floor of the master bathroom closet; a Spikes Tactical Model ST-15 multi-caliber rifle; approximately 638 live rounds of 5.7 x 28mm ammunition; 89 rounds of 5.56 x 45mm ammunition; and other assorted ammunition.
Howard Walters also admitted that he used illicit drug proceeds to purchase several vehicles with cash in an effort to conceal the illicit nature of the purchases, including a Cadillac Escalade, a Porsche Panamera, and a Mercedes Benz GLS550 SUV. Nina Walters deposited more cash in her bank accounts than both she and her husband reported to the IRS as their income during those years. Nina Walters knew the cash deposits she made were derived from the illicit activity of Howard Walters.
Campoy-Estrada pleaded guilty to his role in the drug-trafficking conspiracy on Dec. 19, 2019, and awaits sentencing.
Co-defendant Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 40, of Kansas City, Kan., pleaded guilty on Jan. 22, 2020, to his role in the drug-trafficking conspiracy and to money laundering. Armendariz-Rascon was in charge of coordinating the transportation of loads of cocaine from the El Paso area to the Kansas City metropolitan area for distribution. Armendariz-Rascon would then coordinate the collection of bulk cash that was sent back to El Paso as payment for the cocaine. Armendariz-Rascon admitted that he coordinated the distribution of 10 to 15 kilograms of cocaine per week for four years, for a total of more than 2,000 kilograms of cocaine.
Co-defendant Otilio Zaragoza-Navarrette, 64, of El Paso, Texas, pleaded guilty to his role in the drug-trafficking conspiracy and was sentenced on Aug. 28, 2020, to five years in federal prison without parole. Zaragoza-Navarrette admitted that he was a drug courier for the drug-trafficking organization, transporting cocaine to the Kansas City metropolitan area and transporting illicit drug proceeds from the drug-trafficking organization back to Texas and/or to Mexico. Zaragoza-Navarrette hid the cocaine and/or the cash proceeds inside of five-gallon gas cans and anti-freeze jugs on his commercial semi-tractor trailer. Officers seized nearly $500,000 in illegal drug proceeds from Zaragoza-Navarrette at the time of his arrest.
This case is being prosecuted by Assistant U.S. Attorneys Trey Alford and Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Leesburg Men Indicted on Methamphetamine ChargesRead the Press Release
Ocala, Florida – Acting United States Attorney Karin Hoppmann announces the return of an indictment charging Kenneth Wayne Pea, Jr. (39) and Travis Ramone Williams (37), both of Leesburg, with possession of 500 grams or more of methamphetamine with intent to distribute. Pea is also charged with distribution of 50 grams or more of methamphetamine. If convicted, Pea and Williams face a mandatory minimum penalty of 10 years, and up to life, in federal prison.
According to the indictment and other court documents, Pea sold approximately 2 ounces of methamphetamine to a confidential informant on March 31, 2021, at a business in Belleview, Florida. Thereafter, on April 14, 2021, officers attempted to stop a vehicle driven by Williams. After a high-speed chase, Williams and Pea fled from the car on foot and discarded three bags containing 2 pounds of methamphetamine along with scales, baggies, and several bags of cocaine and heroin.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
The case is part of the Middle District of Florida’s anti-opioid strategy to combat opioid trafficking and abuse. It was investigated by the Drug Enforcement Administration and the Marion County Sheriff’s Office. It will be prosecuted by Assistant United States Attorney Michael P. Felicetta.
Leader of International Cocaine Trafficking Organization IndictedRead the Press Release
A federal grand jury returned an indictment today charging former Michigan resident Ylli Didani, 43, with conspiracy to distribute cocaine, announced Acting United States Attorney Saima S. Mohsin.
Mohsin was joined in the announcement by Special Agent in Charge Keith Martin, Drug Enforcement Administration, Detroit Division, Christopher Perry, Director of Fields Operation, US Customs and Border Protection, Acting Special Agent in Charge Kelly Lewis, Internal Revenue Service-Criminal Investigations and Chief Jeff King, Farmington Hills Police Department.
Acting US Attorney Mohsin stated, “This is a very significant and important prosecution of a large scale, well-organized drug trafficking organization involved in the distribution of thousands of kilograms of cocaine worth tens of millions of dollars, across multiple continents. I salute the entire law enforcement team who labored so tirelessly on this case, from prosecutors to police officers, federal agencies to local police departments. Their efforts culminated in today’s indictment and demonstrate cooperation and teamwork at its best.”
Special Agent Martin stated, “This indictment of a major cocaine trafficker is the result of a joint investigation with law enforcement partners from around the globe. Our combined efforts should send a clear message to drug traffickers everywhere that you will be held accountable for your crimes.”
Director Perry stated, “The complexity of this case, which involved so many law enforcement partners throughout the region is a testament to the importance of cooperation among agencies. I’m proud of efforts of our CBP personnel, along with our federal, state, and local partners who played an important role in reaching this indictment.”
“Today’s indictment is a result of the hard work and dedication of our local and federal law enforcement partners. IRS-CI will continue to provide our financial expertise to disrupt and dismantle international drug trafficking organizations,” said Internal Revenue Service – Criminal Investigation, Detroit Field Office, Acting Special Agent in Charge, Kelly Lewis.
Chief King stated, “This is an excellent example of the inter-agency cooperation and capabilities of our investigative taskforce. The Farmington Hills Police Department is extremely proud of our investigator and his tireless commitment toward disrupting and indicting a large scale-international drug trafficking organization.”
As alleged in the indictment, Didani and other unindicted co-conspirators planned and financed the distribution of cocaine from several locations including the Eastern District of Michigan. According to the Indictment, in two transactions that occurred in June 2016 and December 2017, Didani received at least $550,000 from other co-conspirators for the purpose of purchasing bulk cocaine. Allegedly, Didani and other co-conspirators used several means of transportation, including private aircraft and commercial containerships, for purposes of obtaining and distributing the cocaine throughout Europe.
According to a criminal complaint that was unsealed on April 1, 2021, following Didani’s arrest on March 31, 2021 in Charlotte North Carolina, it is alleged that Didani was the leader of an international drug trafficking organization with ties to the United States, Mexico, South America, and Europe. The complaint also alleges that in 2017, a co-conspirator in Didani’s organization was overseeing the design of an underwater drone that would be utilized to transport large quantities of cocaine to Europe. The drone, which was going to be equipped with an underwater modem and GPS antenna, would transport the cocaine while attached to the bottom of a commercial containership. The drone would then be remotely released from the containership off the shore of Europe. The drone and cocaine would then be picked up by a fishing boat controlled by Didani’s organization.
The criminal complaint further alleges that Didani arranged the distribution of several shipments of cocaine from South America to Europe, where the cocaine was seized by law enforcement. In 2019 and 2020, Law enforcement seized over 3400 kilograms of cocaine from Didani’s organization. The seized cocaine has a street value of over $100,000,000.00.
It is important to note that an indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
The case was investigated by the DEA (High Intensity Drug Trafficking Area (HIDTA) Group 6 consisting of both DEA Special Agents and Task Force Officers from Farmington Hills PD, Sterling Heights PD, Troy PD, Novi PD, Dearborn Heights PD, and Northfield Township PD. IRS-CI, and US Customs and Border Protection. The case is being prosecuted by Assistant United States Attorneys Mark Bilkovic, Timothy McDonald and Michael El-Zein.
Kokomo Man Sentenced to 35 Years in Prison for Sextortion SchemeRead the Press Release
FORT WAYNE--Bradley M. Cox, 30, of Kokomo, Indiana, was sentenced by United States District Court Judge Holly A. Brady on April 21, 2021 after his December 2020 conviction on all counts of a six-count Superseding Indictment charging him with extortion, production and attempted production of child pornography, and receipt of child pornography, announced Acting United States Attorney Bell.
Cox was sentenced to 420 months in prison followed by 20 years of supervised release. Cox was ordered to pay restitution to one of his victims in the total amount of $3,000.00.
According to evidence presented at trial, Cox obtained nude photographs of a woman while pretending to be a modeling recruiter. Cox used a social media account in the woman’s name to communicate with a Rochester, Indiana, man. Cox exchanged the photos of the woman with the Rochester man. Eventually, Cox threatened publicly to release the nude pictures of the Rochester man unless the man gave Cox the login to his social media account. Cox was given access to the Rochester man’s account. Once inside the account, Cox found thousands of nude pictures of women and girls. Cox hacked into another social media account, this time of a high school boy. Cox then sent multiple females the nude pictures of themselves he had found in the Rochester man’s social media account and threatened to publicize their nude photos online unless they sent more sexually explicit pictures and videos. At least two of these were high school girls at the time.
When victims refused Cox’s demands, Cox posted their nude pictures to a pornographic website. Using the hacked social media account, Cox demanded sexually explicit pictures and videos from a pregnant 15-year-old girl, bragging to others online that he had this girl “on the payroll,” which was a reference to her sending him pictures and videos. Cox divulged his scheme to at least one other woman whom he met online and eventually met in person. Other evidence in the case showed that Cox also attempted to recruit others, including at least one high school student, to help him with his scheme.
According to the evidence presented at trial, the FBI’s forensic analysis of Cox’s work computer, the social media accounts, and Cox’s cellular telephone identified Cox as the person using the relevant social media accounts, despite Cox’s use of sophisticated concealment efforts. Cox also admitted much of this conduct during later interviews with the FBI.
“Mr. Cox thought he could hide behind the anonymity of the internet to terrorize his young victims, causing them untold mental anguish, but this sentence is a clear message that those who engage in sextortion will be held accountable for their heinous actions,” said FBI Indianapolis Special Agent in Charge Paul Keenan. “The FBI and our partners are dedicated to rooting out these perpetrators and ensuring they can never impose such terror on their victims and their families ever again.”
This case was investigated by the Federal Bureau of Investigation with assistance from the Fulton County Sheriff’s Department, the Rochester, Indiana Police Department, and the Peru Indiana Police Department. This case was prosecuted by Assistant United States Attorneys Lesley J. Miller Lowery and Sarah E. Nokes.
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Kanawha County Man Pleads Guilty to Federal Drug and Gun ChargesRead the Press Release
CHARLESTON, W.Va. – A St. Albans man pleaded guilty today to federal drug and gun crimes.
According to court documents, Ricky Lee Clark, Sr., 53, admitted that on July 2, 2019, a member of the St. Albans Police Department pulled over his truck, which was being driven by a woman, but in which he was the passenger. Clark admitted that handgun ammunition was recovered from the truck and he had approximately thirteen grams of methamphetamine in his pocket. Clark also admitted that pursuant to the execution of a search warrant at his residence, the police recovered six firearms later that day. Clark is prohibited from possessing firearms and ammunition because of a prior felony conviction for conspiring to operate a clandestine drug laboratory.
Clark pleaded guilty to possession with intent to distribute methamphetamine, being a felon in possession of firearms and being a felon in possession of ammunition. He is scheduled to be sentenced on July 22, 2021 and faces up to 40 years in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Lisa G. Johnston of the Southern District of West Virginia made the announcement.
The St. Albans Police Department conducted the investigation with assistance from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the United States Marshals Service. United States District Judge Joseph R. Goodwin presided over the hearing. Assistant United States Attorney Nowles Heinrich is handling 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. 2:21-cr-00034.
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Kansas City Man Sentenced to 96 Months Imprisonment for Possession of a Firearm While Trafficking Drugs and Discharging a Firearm on School PropertyRead the Press Release
TOPEKA, KAN. – A Kansas City man has been sentenced on federal charges of possession of a firearm in furtherance of drug trafficking and discharging a firearm on school property, Acting U.S. Attorney Duston Slinkard said today.
DALLAS SRIVISAY, 21, of Kansas City, Missouri, was sentenced on April 20, 2021 to 96 months in federal prison, followed by 3 years of supervised release. Srivisay entered a guilty plea on October 6, 2020. According to court records, this investigation involved an incident where Srivisay and a codefendant participated in a drug exchange with others in a Manhattan, Kansas high school parking lot. The intended drug deal went bad when the unknown buyer attempted to rob Srivisay’s brother and his codefendant at gunpoint. The attempted robbery ended in an exchange of gunfire between Srivisay and others when Srivisay began discharging a firearm into the would-be robber’s car. Immediately following the shootout at the high school, Srivisay and the codefendant were engaged in a high-speed police chase on I-70 where the vehicle reached speeds exceeding 120 miles per hour until the vehicle was forcibly stopped by law enforcement.
This case was investigated by the Bureau of Alcohol Tobacco and Firearms, Riley County Kansas Police Department, Kansas City Kansas Police Department, Kansas Highway Patrol, and the Overland Park Police Department. Assistant United States Attorney Skipper Jacobs prosecuted the case.
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Jury Convicts Man of Kidnapping and Assaulting his Ex-WifeRead the Press Release
A federal jury today found a man from Choctaw guilty of kidnapping and assaulting his ex-wife in April 2017.
Randy Alan Hamett, 64, was convicted on all 12 counts: kidnapping in Indian Country; carjacking; possessing and receiving a stolen firearm and stolen ammunition; possession of a firearm while subject to a domestic violence protective order; burglary in the second degree in Indian Country; assaults with a dangerous weapons (2 counts) in Indian Country; domestic violence in Indian Country; interstate violation of a protective Order (2 counts); carrying, using, and brandishing firearms during and in relation to a crime of violence (2 counts). U.S. District Judge Claire V. Eagan set sentencing for July 29, 2021.
“A jury considered the evidence and then held Randy Hamett accountable for terrorizing Alisa Henin, the victim in this case,” said Acting U.S. Attorney Clint Johnson. “Alisa faced abuser Randy Hamett through a harrowing ordeal and then two trials. She is a survivor and is to be commended for her courage. She exemplifies the resiliency and strength we see in victims every day.”
On April 25, 2017, Hamett parked his truck at a nearby Wal-Mart, walked to Ms. Henin’s home, and cut a hole in an outside wall to gain entry. When she returned home, Hamett tased her, pointed his own revolver at her, and bound her hands and feet. Hamett then forced the victim into a car, stole a revolver she had purchased after obtaining a protective order against him, then kidnapped her and sexually assaulted her. During the two-day ordeal, Hamett threatened to kill himself, the victim, and anyone who tried to help her.
Convinced that Hamett was going to kill her, she made every effort to prolong the trip and gain the defendant’s trust. She convinced Hamett they should get back together and remarry in Arkansas. The defendant eventually allowed her to text her parents and her boyfriend so they would not become suspicious concerning her whereabouts. Based on the nature of the text, Ms. Henin’s parents became worried that she was in danger and contacted the Broken Arrow Police Department. Through a concerted investigation by the Broken Arrow and Siloam Springs Police Departments, officers were able to locate Hamett and the victim at a hotel in Siloam Springs, Arkansas, where they determined Hamett was holding the victim against her will. Officers found him in possession of a firearm and ammunition, along with Taser cartridges, and Hamett was arrested for violation of a protective order.
At an August 2020 press conference announcing Justice Department domestic violence funding awards, Ms. Henin shared her story of survival and recognized the 28 domestic violence warriors who helped her escape a violent marriage and who ultimately held Hamett accountable for his crimes. Those who assisted her were law enforcement, victim services agencies, friends and family.
As she ended her story, Alisa said, “In June 2020, [Randy Hamett] won an appeal on a procedural technicality, so he will be re-tried in federal court. Am I worried? No, I still have faith in God and confidence in the trained professionals who are fighting for my long-term protection. He may have had a dark plan to control and silence me, but there was obviously a greater plan at work. That plan included meeting extraordinary people who dedicate their lives to protecting and serving others. I will always be grateful to them and to those who provide resources to domestic violence victims.”
Hamett was previously convicted in federal court for the kidnapping, but the 10th U.S. Circuit Court of Appeals reversed his conviction and ordered a new trial. In a 2-1 decision, the appellate court found that the trial judge had “erred in finding that Mr. Hamett knowingly and intelligently waived his right to counsel” at his July 2018 trial.
“I am thankful for the work of Assistant U.S. Attorneys Jeff Gallant and Devon Lash in securing today’s conviction,” said Johnson. “Devon volunteered to join our team from the Eastern District of New York as this office took on an exponential increase in cases. This week was her first trial as a federal prosecutor, and I couldn’t be more proud of her performance in court.”
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Broken Arrow Police and Siloam Springs Police Departments, and the Rogers State University Police.
Jury Convicts Bourbonnais Man for Enticement of a MinorRead the Press Release
PEORIA, Ill. – A federal jury deliberated for approximately one hour before returning its guilty verdict this afternoon against Timothy Lyle Dean, 38, of the 200 block of Spencer Court, Bourbonnais, Ill., for one count of enticement of a minor.
Over two days of testimony this week, the government presented evidence to establish that Dean was identified when he arranged to meet an individual whom he believed to be a 14-year-old minor for sexual activity on the dating application Grindr.
Sentencing for Dean has been scheduled for Sept. 14, 2021, before Senior U.S. District Judge Michael M. Mihm. Dean faces statutory penalties of 10 years to life imprisonment. Dean has remained in the custody of the U.S. Marshals Service since his arrest in February 2020.
Dean was arrested and charged as a result of an investigation by the FBI – Springfield Division, with the assistance of the Bradley Police Department, the Kankakee County Sheriff’s Office, and the Kankakee Area Metropolitan Enforcement Group. Assistant U.S. Attorney Elly M. Peirson and Special Assistant U.S. Attorney Shannon O’Brien-Ranck of the Illinois Attorney General’s Office represent the government.
The case was brought as part of Project Safe Childhood, a nationwide initiative by the Department of Justice to combat the epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Jacksonville Navy Airman Pleads Guilty to Distributing Child Sexual Abuse Images and Video over the InternetRead the Press Release
Jacksonville, Florida - Evan Andrew Bubbers (21, Bettendorf, IA) today pleaded guilty to distributing materials depicting the sexual abuse of children over the internet. Bubbers faces a mandatory minimum term of 5 years, and up to 20 years, in federal prison. Bubbers was arrested on March 30, 2021, at Naval Air Station - Jacksonville. A sentencing hearing has not yet been scheduled.
According to court documents, on March 17, 2021, the Jacksonville Sheriff’s Office (JSO) contacted the Naval Criminal Investigative Service (NCIS) in Jacksonville about an investigative tip, known as a “CyberTip,” that had been received by the National Center for Missing & Exploited Children (NCMEC). NCMEC reported that a particular social media application (app) had filed a CyberTip indicating that videos depicting child sexual abuse had been uploaded over the internet and shared with other users on this app. A JSO investigation determined that the distribution of these videos was connected to Bubbers through the internet service for his barracks residence at Naval Air Station - Jacksonville. During an interview on March 30, 2021, Bubbers admitted to uploading and sharing material depicting the sexual abuse of children using the app, including the video from the Cybertip. This same video was also located during a search of Bubbers’s cell phone.
This case was investigated by the Jacksonville Sheriff’s Office and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Ashley Washington.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.
Holyoke Man Indicted on Child Pornography ChargesRead the Press Release
BOSTON – A Holyoke man was charged in connection with receipt and possession of child pornography.
Alfredo Aldeco, 35, was indicted on one count of receipt of child pornography and one count of possession of child pornography. Alcedo made an initial appearance yesterday in federal court in Springfield. He is currently detained in federal custody in connection with another federal case.
According to the indictment, between March and October 2018, Aldeco received child pornography. On Nov. 21, 2018, Aldeco allegedly possessed material that contained one or more images of child pornography involving a prepubescent minor.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and up to 20 years in prison. The charge of possession of child pornography provides for a sentence of up to 10 years in prison. Each charge also provides for a mandatory 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 Nathanial R. Mendell and Joseph R. Bonavolonta, Special Agent in Charge of Federal Bureau of Investigation, Boston Field Division made the announcement today. Assistant U.S. Attorney Catherine G. Curley of Mendell’s Springfield Branch Office is prosecuting the case.
The case was 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/.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Georgia Correctional Officer Pleads Guilty to Civil Rights Offense for Assaulting InmateRead the Press Release
A Georgia correctional officer pleaded guilty today to violating the civil rights of an inmate.
According to documents filed in connection with the guilty plea, Jamal Scott, 33, an on-duty correctional officer at the Valdosta State Prison (VSP) in Valdosta, struck an inmate with his fist multiple times while the inmate was handcuffed and lying on the ground on Dec. 29, 2018. Specifically, Scott, along with Correctional Officer Brian Ford, Sergeant Patrick Sharpe, and other prison officials, escorted the handcuffed inmate to an outdoor area on the grounds of the prison for the purpose of assaulting the inmate in retaliation for an earlier altercation between the inmate and a female officer. Scott and Ford, carrying out a directive from their supervisor, Sharpe, took the inmate to the ground and struck him multiple times in the body. The inmate was handcuffed and compliant at the time of the assault.
Ford previously pleaded guilty on Nov. 9, 2020, to one count of deprivation of rights under color of law, for his role in this incident. Scott and co-defendant Sharpe were indicted in a four-count indictment on Dec. 11, 2020.
“When Scott assaulted this inmate, he violated the inmate’s civil rights and betrayed his oath of office as a correctional officer,” said Principal Deputy Assistant Attorney General Pam S. Karlan of the Justice Department's Civil Rights Division. “The Justice Department will continue to protect the civil rights of all individuals, and work to ensure that officers who abuse their power are held accountable.”
“Damaging repercussions are felt across our community and beyond whenever a sworn officer violates the civil rights of a person in their charge,” said Acting U.S. Attorney Peter D. Leary for the Middle District of Georgia. “Our office will work tirelessly to protect the civil rights of all people, and we will hold abusive officers accountable for breaking the laws they are sworn to uphold.”
“There is never a reason for a correctional officer to resort to violence that violates an inmate’s constitutional rights,” said Special Agent in Charge Chris Hacker of the FBI Atlanta Field Office. “The FBI understands that working in a correctional institution is stressful and dangerous work, and that the vast majority of the men and women working in these institutions do their jobs honorably on a daily basis. When an officer violates the rights of inmates in their care, it erodes public trust in these important positions and damages the reputation of the hard-working officers who continue to serve.”
Scott faces a maximum statutory penalty of up to 10 years in prison and a fine of up to $250,000. A sentencing hearing has not been scheduled at this time.
This case was investigated by the FBI and was prosecuted by Trial Attorneys Katherine G. DeVar and Nicole Raspa of the Civil Rights Division, with assistance from Criminal Chief Michael Solis of the U.S. Attorney’s Office for the Middle District of Georgia.
Fort Dodge Man Pleads Guilty to Methamphetamine and Firearm Charges Following a Hit and Run AccidentRead the Press Release
A man who conspired to distribute methamphetamine pled guilty April 19, 2021, in federal court in Sioux City.
Daniel Moss, 45, from Fort Dodge, Iowa, was convicted of conspiracy to distribute methamphetamine and illegal possession of a firearm. Previously, in 2009, Moss was convicted of another drug felony offense in the United States District Court for the Northern District of Iowa, of conspiracy to distribute methamphetamine, distribution of methamphetamine within a protected location, and employment or use of person under 18 to assist in conspiracy to distribute methamphetamine.
At the plea hearing, Moss admitted that from June 2020 through about July 5, 2020, he conspired to distribute more than 50 grams of pure methamphetamine to others in the Fort Dodge, Iowa area. On or about July 5, 2020, Moss was involved in a hit and run accident with another vehicle. After fleeing the scene, Fort Dodge police officers pursued Moss and ultimately caught him that same day, at which time Moss assaulted a police officer and a loaded handgun fell from his waistband. The firearm was later determined to be stolen. Moss also had approximately $2,500 and a black Nike sports duffel bag he discarded as he fled the accident. A search of the Nike sports bag revealed a drug ledger, paperwork with Moss’ name, syringes, baggies with residue, a scale, a cell phone, approximately $14,500, and approximately 2 grams of methamphetamine. Another bag found within Moss’ abandoned vehicle contained approximately 54 grams of pure methamphetamine, a scale, and a pipe used for ingesting controlled substances. Moss’s prior felony conviction, and drug use, prohibited him from possessing a gun.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Moss remains in custody of the United States Marshal pending sentencing. On the conspiracy conviction, Moss faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of life imprisonment, a $20,000,000 fine, and at least 10 years of supervised release following any imprisonment. On the firearm conviction, Moss faces a maximum sentence of not more than 10 years’ imprisonment without the possibility of parole, a fine of not more than $250,000, and a term of supervised release of not more than 3 years.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities.
The case is being prosecuted by Special Assistant United States Attorney Patrick T. Greenwood and was investigated by Fort Dodge Police Department, Bureau of Alcohol, Tobacco, Firearms and Explosives, Iowa Division of Narcotics Enforcement, and Iowa DCI.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 21-3002. Follow us on Twitter @USAO_NDIA.
Former Wilmington Fire Department Union President Pleads Guilty to Possessing Prepubescent Child PornographyRead the Press Release
WILIMINGTON, Del. – Joseph J. Leonetti, Jr., Former Union President of the Wilmington Fire Department, pled guilty today before the Honorable Colm F. Connolly to possessing prepubescent child pornography, announced David C. Weiss, U.S. Attorney for the District of Delaware. Mr. Leonetti faces a maximum penalty of 20 years in prison when sentenced on August 24, 2021. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
According to publicly filed documents and statements made in open court, law enforcement officers executed a federal search warrant at Leonetti’s Wilmington residence on June 19, 2020, and seized his personal cellphone. After a later forensic review of that cellphone, investigators found nine videos and more than 500 cached images of child pornography. A cache is a reserved storage location that collects temporary data for easy retrieval. Also, in the cellphone’s “Notes” app, investigators found links to folders associated with cloud-based file storage services Dropbox and Mega. Investigators were able to recover the contents of four linked folders, containing over 2,000 images and 800 videos of child pornography. The child pornography found on the defendant’s cellphone and in the linked folders included depictions of prepubescent minors engaged in various sexual acts and the lascivious exhibition of their genitals.
U.S. Attorney David C. Weiss stated as follows: “The U.S. Attorney’s Office for the District of Delaware is committed to protecting the most vulnerable among us—our children—from the abhorrent shadow industry that produces, distributes, and collects child pornography and from those who lurk in its base marketplace. This Office fulfills its commitment without regard to the occupation or privilege of the wrongdoer. No one is above the law.”
“The defendant, while in a position of trust as the former Wilmington Fire Department Union President, possessed depictions of the sexual exploitation of prepubescent children,” said Brian A. Michael, Special Agent in Charge for Homeland Security Investigations Philadelphia. The innocent children in these images will have to deal with the impact of this tragedy for the rest of their lives. We hope today’s plea brings them some measure of justice.”
Homeland Security Investigations investigated this case. Assistant U.S. Attorney Graham L. Robinson prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the U.S. Department of Justice. Led by U.S. Attorneys’ Offices across the country and the Child Exploitation and Obscenity Section of the Department of Justice, 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.
Former Chase Bank Teller Charged with Bank Fraud for Targeting Older Adult VictimRead the Press Release
An indictment was unsealed today charging Alan Lee Hardy, former bank teller at Chase Bank, with Bank Fraud, Acting U.S. Attorney Saima Mohsin announced today.
Mohsin was joined in the announcement by Special Agent in Charge Douglas Zloto, U.S. Secret Service, Detroit Field Office and Chief of Police David Molloy of the Novi Police Department.
“Elders are among the most vulnerable members of our society,” stated Acting US Mohsin. “They are often seen as an easy target by those who seek to take advantage of them. My office is committed to bringing those who prey on our seniors to justice“
“The U.S. Secret Service is dedicated to ensuring the public remains confident in our country’s financial institutions and therefore takes cases of elder fraud incredibly seriously. These investigations can be time consuming, but law enforcement is committed to bringing individuals who take advantage of our seniors to justice. This case highlights that commitment as well as the partnership between the Novi Police Department, the Southeast Michigan Financial Crimes Taskforce and the U.S Attorney’s Office,” said Douglas J. Zloto, Special Agent in Charge.
“Every year millions of elderly Americans are victims of theft and fraud. I’m very proud of the efforts of our detectives and task force officers who investigated this case and were committed to seeing justice prevail. The relationships the Novi Police Department has with our federal partners affords us additional resources in identifying and prosecuting those who prey on our most vulnerable population," stated Chief Molloy.
Alan Lee Hardy, 37, was charged with one count of Bank Fraud on April 21, 2021. It is alleged in the indictment that in August 2016, while working as a teller at the Chase Bank located at 3300 E. Jefferson Ave. in Detroit, Hardy defrauded a victim’s account of at least $32,000 in a single withdrawal. The victim in this case was over 90 years old at the time of the fraud. To date, the victim, has received no compensation for the money taken from his account.
The investigation was conducted by the United Secret Service and the Novi Police Department. This case is being prosecuted by Assistant United States Attorney Mitra Jafary-Hariri and Chief of the White Collar Crimes Unit John Neal. Ms. Jafary-Hariri serves as the Elder Justice Coordinator for the Eastern District of Michigan.
An indictment is only a charge and is not evidence of guilt. Each defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Fifteen Defendants Charged in a 37-Count Racketeering Indictment Against Lowrider Criminal Street GangRead the Press Release
DAVENPORT, Iowa – Four additional members and associates of the Lowrider Street Gang have been federally charged in a Superseding Indictment. In addition to the added defendants, a Federal Grand Jury charged members and associates with a Racketeering Conspiracy spanning from in and around 2013 to the present. In total, members and associates of the Lowrider Street Gang have been charged with five separate shootings and one stabbing against rival gang members that occurred between August 2015 and June 2020.
In August 2020, charges were previously announced for eleven members and associates of the Lowriders, a Davenport-based street gang, for various crimes including attempted murder in aid of racketeering, drug trafficking, tampering with witnesses, knowingly transfer of a handgun to a juvenile, lying to the grand jury, use of persons under 18 years of age in drug operations, and firearms charges. Five members or associates of the Lowriders have been charged in state court for intimidation with a dangerous weapon, willful injury, criminal gang participation, and drug-related offenses.
Two other members were previously charged with federal firearms violations. Specifically, in November 2019, Alejandro Francisco Herrera, Jr., was sentenced after pleading guilty to prohibited person in possession of a firearm and possession of a controlled substance. In February 2020, Zacharia Allen Clark was sentenced to 200 months of imprisonment after pleading guilty to prohibited person in possession of ammunition related to an incident in which he shot at another person in the parking lot of a Davenport nightclub. As a result of this investigation, twenty-two Lowrider Street Gang members and associates have been charged with crimes.
Those arrested on federal charges include AUSTIN NICHOLS, ADAN HERRERA, CODY HERRERA a/k/a Cody Williamson, KERRI JOANNE REITZ, JOSE MIGUEL PENA, ANDRES JOSEPH ARRIAGA, TEVIN MAXWELL LIRA, JACOB TRUJILLO, ANTONIO HERRERA, CARMELO REYES, ANGEL MORA, MARIO HERRERA, EDUARDO HERRERA SR., and ARNOLDO HERRERA. The identities of those who have not yet been arrested remain sealed at this time.
The charges were announced by Richard D. Westphal, Acting United States Attorney for the Southern District of Iowa, and Paul Sikorski, Davenport Police Chief. In addition, the Federal Bureau of Investigation, Drug Enforcement Administration, Iowa Division of Criminal Investigations, Bettendorf Police Department, Moline Police Department, and Scott County Sheriff’s Office assisted in the investigation.
“The law-abiding citizens in these neighborhoods deserve to feel safe from violent gangs such as the Lowriders, and their criminal rivals,” said Acting United States Attorney Westphal. “Along with our law enforcement partners, we will continue to aggressively pursue this goal of community safety and use every available state and federal prosecution tool to charge those individuals committing these acts of violence.”
It is alleged the Lowrider Street Gang is a criminal enterprise that engaged in racketeering activity, namely offenses involving controlled substances; acts involving murder; and acts relating to the tampering with a witness, victim, or informant. The Lowrider Street Gang and its members are alleged to have preserved and protected the profits of the gang through the threatened or physical use of violence and kept victims and witnesses in fear of the street gang through these threats of violence. In addition, it is alleged that the Lowrider Street Gang provided support to gang members who were incarcerated for gang-related activities; and retaliated against acts of violence perpetrated against the street gang including acts of violence against rival gangs known as the West Side Mafia and Latin King street gang. The Lowrider Street Gang allegedly operated and conducted their affairs through a series of rules and policies; held regular meetings at which they discussed, planned, and otherwise engaged in criminal activity; and initiated new members through the practice of causing them to endure physical assaults conducted by members of the gang at various gang-related gatherings. It is alleged that members agreed to distribute drugs, recruited juveniles to commit violent acts for the gang’s benefit, and agreed or conspired to commit acts of violence, including acts involving murder, against rival gangs.
The charges in the indictment carry maximum penalties of between 10 years and life imprisonment. If convicted, the Court must impose reasonable sentences under federal sentencing statutes and the advisory U.S. Sentencing Guidelines. There is no parole in the federal court system.
The public is reminded that charges contain only accusations and are not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Federal Detainee Charged with Illegally Possessing a Cell Phone in PrisonRead the Press Release
PITTSBURGH, PA – An inmate of Butler County Prison, located in Butler, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on a charge of possessing contraband while in prison, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named William Kelly Penn, age 36, as the sole defendant.
According to the Indictment, on February 20, 2021, Penn, a federal detainee at Butler County Prison, possessed a cell phone while in custody, a prohibited object for inmates.
The law provides for a maximum total sentence of not more than one year in prison, a fine not to exceed $100,000.00, a term of supervised release of not more than 1 year, 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 United States Marshals Service 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.
Ex-law enforcement officer sent to prison for transporting purported drug moneyRead the Press Release
HOUSTON – A former deputy constable and her husband have been ordered to federal prison after admitting to conspiracy to possess with intent to distribute heroin, announced Acting U.S. Attorney Jennifer B. Lowery.
Betty Jean Molina, 58, pleaded guilty Oct. 21, 2020, while her husband - Henry Molina, 60 - entered his plea July 28, 2020. Both reside in Houston.
Today, U.S. District Judge George C. Hanks Jr. ordered Betty and Henry Molina to serve 87 and 80 months in federal prison, respectively. Each was also ordered to serve three years of supervised release following their imprisonment and must pay a $29,000 fine. At the hearing, the court heard how they used their experience, resources and Betty Molina’s law enforcement credentials to help traffic drugs and money from the sale of those drugs for what they believed to be a large-scale drug trafficking organization. In handing down the sentence, Judge Hanks noted the potential harm to the community of trafficking heroin and other illegal drugs, the couple’s disregard of those potential harms and Betty Molina’s abuse of her public trust.
“The FBI Houston Law Enforcement and Border Corruption Task Force is uniquely qualified to ensure that law enforcement officers who blatantly betray their sworn oath for personal gain are rooted out,” said FBI Special Agent in Charge Perrye K. Turner. “As a result of today's sentencing, the Molinas will be held accountable for their actions. The task force especially appreciates those who are willing to come forward to share knowledge of these crimes."
The couple admitted to transporting what they believed to be approximately a half-million dollars in drug trafficking proceeds on multiple occasions. They had also agreed to transport what they believed was two kilograms of heroin.
At the time of the offense, Betty Molina was a deputy constable with Harris County Precinct 5 Constable’s Office. As part of her plea, she admitted to using her law enforcement credentials when stopped for speeding on one of their trips.
As part of the pleas, the couple admitted to obtaining several thousand dollars of what they believed to be drug proceeds and brought it back to Houston. On at least one occasion, they also transported a significant amount of narcotics.
In return, they received approximately $30,000 combined for all of their criminal actions.
Both were permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The FBI Houston Law Enforcement and Border Corruption Task Force, which includes the Houston Police Department, Texas Department of Public Safety and the Department of Homeland Security – Office of Inspector General conducted the investigation with the assistance of Harris County Constable Precinct 5. Assistant U.S. Attorneys Alamdar S. Hamdani and Arthur R. Jones prosecuted the case.
Essex County Man Indicted for Illegally Possessing Firearm and Ammunition and for Possessing with Intent to Distribute HeroinRead the Press Release
NEWARK, N.J. – An Essex County, New Jersey, man was indicted today on charges stemming from illegally possessing ammunition in connection with two shootings, illegally possessing a handgun and possessing heroin with the intent to distribute, Acting U.S. Attorney Rachael A. Honig announced.
Antoine Hawkins, 31, of Newark, is charged with two counts of possession of ammunition by a convicted felon, one count of possession of a firearm and ammunition by a convicted felon, one count of possession with intent to distribute heroin, and one count of possessing a firearm in furtherance of a drug trafficking crime. He will be arraigned on a date to be determined.
According to documents filed in this case and statements made in court:
On Aug. 18, 2020, video surveillance footage showed Hawkins as he fired a gun on a Newark street, striking a victim, who survived. Hawkins was also identified as the perpetrator of another shooting in Newark on Aug. 13, 2020, and cartridge casings from the locations of both shootings are a ballistics match.
On Sept. 16, 2020, law enforcement officers conducted a surveillance operation in connection with the Aug. 18, 2020, shooting. During the surveillance operation, a law enforcement officer approached Hawkins and observed what appeared to be the imprint of a firearm on Hawkins’s jacket. The law enforcement officer frisked Hawkins and located and seized a 9mm Springfield Armory XDM pistol, which was loaded with 19 rounds of ammunition.
After Hawkins was arrested for possessing the pistol and the ammunition, law enforcement executed a search warrant inside of Hawkins’s residence and found 626 glassine envelopes containing suspected heroin and three 9mm magazines.
The firearm and ammunition offenses each carry maximum potential penalties of 10 years in prison and fines of $250,000. The count of possession of a firearm in furtherance of a drug trafficking crime carries a statutory mandatory minimum penalty of five years in prison, which must run consecutively to any other sentence Hawkins receives, and a maximum potential penalty of life in prison. The narcotics offense carries a maximum potential penalty of 30 years in prison, and a fine of $2 million.
Acting U.S. Attorney Honig credited the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Theodore N. Stephens II; members of the Newark Department of Public Safety, under the direction of Director Brian O’Hara; members of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson; and special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Jason J. Molina, with the investigation leading to the charges.
This investigation is part of the Violent Crime Initiative (VCI) in Newark. The Newark VCI was formed in August 2017 by the U.S. Attorney’s Office for the District of New Jersey, the Essex County Prosecutor’s Office, and the City of Newark’s Department of Public Safety for the sole purpose of combatting violent crime in and around the Newark. As part of this partnership, federal, state, county, and city agencies collaborate and pool resources to prosecute violent offenders who endanger the safety of the community. The VCI includes the U.S. Attorney’s Office, the DEA, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, the U.S. Marshals, the Newark Department of Public Safety, the Essex County Prosecutor’s Office, the Essex County Sheriff’s Office, New Jersey State Parole Board, New Jersey State Police Regional Operations and Intelligence Center/Real Time Crime Center, and New Jersey Department of Corrections.
The government is represented by Assistant U.S. Attorney Benjamin Levin of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
Driver in Canada border crossing car chase admits immigration crimeRead the Press Release
MISSOULA — A Washington, D.C., man accused of picking up three individuals suspected of crossing illegally into Montana from Canada and leading law enforcement on a 76-mile, high speed car chase that ended near Whitefish admitted to an immigration crime today, Acting U.S. Attorney Leif Johnson said.
Rastesfaye Alpha Neil, 39, pleaded guilty to transportation of illegal aliens as charged in an indictment. Neil faces a maximum five years in prison, a $250,000 fine and three years of supervised release.
U.S. District Judge Donald W. Molloy presided. Neil was detained pending further proceedings. Sentencing was set for Sept. 2.
In court documents filed in the case, the government alleged that Neil knowingly transported Christopher White, a Jamaica citizen; Naseem Ali Mohammed, a Somalia national and Canadian legal permanent resident; and Afrah Ahmed Abdi, a United States legal permanent resident and Somalia national; to help them remain illegally in the United States. All three were wanted by various Canadian law enforcement agencies.
The government alleged that at about 8:55 a.m. on Jan. 23, the Spokane Sector Border Patrol received information that three subjects with backpacks and wearing dark or camouflage parkas were entering the United States illegally in the West Kootenai area near Eureka.
Border Patrol agents responded to the area, spotted a southbound Nissan Sentra and attempted a traffic stop. While the Nissan initially yielded, it ultimately sped away as agents approached on foot. The Nissan led law enforcement agencies on a chase in which speeds reached 120 mph to 130 mph. The pursuit ended about one mile north of Whitefish when the Whitefish Police Department and Montana Highway Patrol successfully spiked the Nissan’s tires. Law enforcement identified Neil as the driver and White, Mohammed and Abdi as passengers who had illegally entered the United States shortly before the chase began.
The government further alleged that one of the illegal border crossers had been in contact with Neil, rental car companies and travel agencies. Neil had flown to Kalispell on Jan. 22.
White pleaded guilty to illegal reentry of a deported or removed alien and is awaiting sentencing. Abdi is pending extradition to Canada, while Mohammed is a fugitive.
The Border Patrol, Flathead County Sheriff’s Office, Lincoln County Sheriff’s Office, Eureka Police Department, Whitefish Police Department and Montana Highway Patrol investigated the case.
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Department of Justice Awards Emergency Funding to Support Response to Nashville BombingRead the Press Release
NASHVILLE, Tenn. – April 20, 2021 – The Department of Justice today announced that it is awarding more than $1.3 million to the State of Tennessee to meet critical law enforcement needs in the aftermath of last year’s Christmas Day bombing in Nashville. The funds are made available under the Emergency Federal Law Enforcement Assistance Program administered by the Bureau of Justice Assistance, a division of the Department’s Office of Justice Programs.
“These funds are a welcome relief and come at a most critical time for our partners at the Metropolitan Nashville Police Department”, said Acting U.S. Attorney Mary Jane Stewart. “The number of critical incidents responded to in 2020, all of which required a sustained and long-term response, greatly impacted the operational budget of our district’s largest municipal police department. These funds will help offset deficits and allow police operations to continue without major interruption.”
On December 25, 2020, a man detonated an explosive device inside a recreational vehicle in downtown Nashville. The incident resulted in the suspect's death and injured eight citizens. The explosion damaged dozens of buildings in the surrounding area. Already fiscally impacted by the pandemic, the response to community-wide demonstrations and the effects of a devastating tornado earlier in the year, the city will use this grant to cover unbudgeted law enforcement duties, including overtime expenses, that have placed considerable financial hardship on the Metropolitan Nashville Police Department.
“The explosion in downtown Nashville and the serious damage and injury it caused, on what should have been a day of peace and reflection for many, served as a stark reminder that the safety of our communities can never be taken for granted,” said OJP Acting Assistant Attorney General Maureen A. Henneberg. “These resources will help defray the costs associated with law enforcement’s role in responding to this shocking and terrifying public safety emergency.”
The Office of Justice Programs provides federal leadership, grants, training, technical assistance and other resources to improve the nation’s capacity to prevent and reduce crime, advance racial equity in the administration of justice, assist victims and enhance the rule of law. More information about OJP and its components can be found at www.ojp.gov.
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Davenport Man Sentenced to Federal Prison for Firearm ChargeRead the Press Release
DAVENPORT, Iowa — On Tuesday, April 20, 2021, United States District Court Judge Stephanie M. Rose sentenced Phillip Darnell Hicks, age 38, of the Quad Cities-area, to 51 months in prison for Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Hicks was ordered to serve three years of supervised release to follow his prison term and pay $100 to the Crime Victims’ Fund.
The investigation began August of 2019 when Hicks met with an individual with the intent to sell them marijuana. Rather than selling marijuana, Hicks sold an empty bag. As a result, a car chase ensued, and Hicks’s vehicle was fired upon. The vehicle Hicks occupied got into a collision, and Hicks ran from the scene carrying a loaded Taurus Slim PT709 nine-millimeter pistol that he later threw away in a residential neighborhood in Davenport. At the time of this incident, Hicks knew he had a felony conviction for a crime punishable by a term of imprisonment exceeding one year and was prohibited from possessing a gun.
This matter was investigated by the Davenport Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa. 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.
DEA’s 20th Prescription Drug Take-Back Day is SaturdayRead the Press Release
MACON, Ga. – The Drug Enforcement Administration’s (DEA) Atlanta Divisional Office is partnering with national, state, local, and tribal law enforcement officials, as well as community coalition groups, to hold its 20th National Prescription Drug Take-Back Day on Saturday, April 24, 2021 from 10 a.m. to 2 p.m. local time.
This one-day event will make it convenient for the public to rid their homes of potentially dangerous prescription drugs. At the event, Georgians will be able to drop off their expired, unused, and unwanted pills at sites across the state free of charge, no questions asked. By doing so, they will help prevent prescription drug abuse and theft. Georgians participating in DEA’s last take-back held on October 24, 2020, yielded 7,112 pounds of unwanted or expired medications for safe and proper disposal at sites set up throughout the state.
“The abuse of prescription medications often begins with the misuse or theft of these drugs from home medicine cabinets. DEA’s Take Back Day is a great opportunity for the public to be part of the solution and dispose of potentially dangerous drugs safely,” said Acting U.S. Attorney Peter D. Leary.
“DEA’s twentieth take-back event will allow Americans to safely and properly dispose of their unwanted/unused prescription medications,” said the Special Agent in Charge of the DEA Atlanta Field Division Robert J. Murphy. “DEA will work hand-in-hand with a number of law enforcement, Tribal and community partners, all in effort to stem the tide of prescription drug abuse.”
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 87,200 Americans dying as a result of a drug overdose in a one-year period (Sept. 1, 2019 to Sept. 1, 2020), the most ever recorded in a 12-month period. The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency, accelerating significantly during the first months of the pandemic.
The public can drop off potentially dangerous prescription medications at collection sites which will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement. Several communities across the Middle District of Georgia will be holding Take Back Day disposal sites. To find a collection site, please visit www.deatakeback.com.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
Helping people dispose of potentially harmful prescription drugs is just one way DEA is working to reduce addiction and stem overdose deaths. Learn more about the event at www.deatakeback.com, or by calling 800-882-9539.
The DEA also encourages parents, along with their children, to educate themselves about the dangers of legal and illegal drugs by visiting DEA’s interactive websites at www.justhinktwice.com, www.GetSmartAboutDrugs.com and www.dea.gov. Also follow DEA Atlanta via Twitter at @DEAATLANTADiv.
DEA and U.S. Attorney’s Office encourage participation in National Prescription Drug Take Back DayRead the Press Release
With opioid overdose deaths on the rise in the Northern District of Ohio and across the country, Acting U.S. Attorney Bridget M. Brennan and DEA Special Agent in Charge Keith Martin are encouraging Northern Ohio residents to dispose of their unused prescription medication during National Prescription Drug Take Back Day on Saturday, April 24.
“A surge in overdose deaths this year has already put many communities in Northern Ohio on track to meet or eclipse overdose numbers not seen since 2017,” said Acting U.S. Attorney Bridget M. Brennan. “Participation in this year’s Prescription Drug Take Back Day is even more important as law enforcement fights back against this increase. We ask that everyone look through their homes and medicine cabinets for any unused prescription drugs for safe disposal at one of DEA’s identified locations throughout Northern Ohio. Taking part in Prescription Drug Take Back Day is a significant way for all residents to help us combat this crisis.”
“Helping people dispose of potentially harmful prescription drugs is just one way DEA is working to reduce addiction and stem overdose deaths,” said DEA Detroit Field Division Special Agent in Charge Keith Martin. “Take Back Day is not only a great opportunity to rid your home of unused medication but is also a time to have important conversations about proper use and storage of prescription medication.”
The public is encouraged to drop off potentially dangerous prescription medications at collection sites in their community, which will adhere to local COVID-19 guidelines and regulations in order to maintain the safety of all participants and local law enforcement.
Find a collection site using the DEA site locator here: Take Back Day (dea.gov) or contact your local police department.
DEA and its partners will collect tablets, capsules, patches, and other solid forms of prescription drugs. Liquids (including intravenous solutions), syringes and other sharps, and illegal drugs will not be accepted. DEA will continue to accept vaping devices and cartridges at its drop off locations provided lithium batteries are removed.
According to the Centers for Disease Control and Prevention, the U.S. has seen an increase in overdose deaths during the COVID-19 pandemic, with 83,544 Americans overdosing during the 12-month period ending July 1, 2020, the most ever recorded in a 12-month period.
The increase in drug overdose deaths appeared to begin prior to the COVID-19 health emergency but accelerated significantly during the first months of the pandemic. With studies indicating a majority of abused prescription drugs come from family and friends, including from home medicine cabinets, clearing out unused medicine is essential.
The Detroit Field Division, which covers Michigan, Ohio, and parts of Northern Kentucky, collected a record-setting 94,000 pounds during the October 2020 Take Back event.
Learn more about the event at www.deatakeback.com, or by calling 800-882-9539
DEA Prepares for Prescription Drug Takeback DayRead the Press Release
Acting U.S. Attorney Sean R. Berry joins the Drug Enforcement Administration (DEA) in announcing that on April 24th, DEA will hold its 20th National Prescription Drug Take Back Day. The biannual event will be held at thousands of collection sites around the country. The event is an effort to rid homes of potentially dangerous expired, unused, and unwanted prescription drugs.
“The National Prescription Drug Take Back Day aims to provide a safe, convenient, and responsible means of disposing of prescription drugs,” Acting U.S. Attorney Berry stated. “According to the Centers for Disease Control and Prevention, opioid overdose deaths have increased during the pandemic. Prescription medications often end up in the wrong hands, fueling an epidemic that kills more Americans than car accidents. DEA Take Back Day provides a way for any American to step up and help combat this crisis by simply cleaning out their medicine cabinet.”
Last October Americans turned in 492.7 tons (985,392 pounds) of prescription drugs at collection sites operated by the DEA and more than 4,800 of its state and local law enforcement partners. Overall, in its 19 previous Take Back events, DEA and its partners have taken in over 13 million pounds—more than 6,800 tons—of pills. The disposal service is free and anonymous, no questions asked. The DEA cannot accept liquids, needles, or sharps, only pills or patches.
Flushing medications down the toilet or throwing them in the trash pose potential safety and health hazards. This initiative addresses the public safety and public health issues that surround medications languishing in home cabinets, becoming highly susceptible to diversion, misuse, and abuse.
For more information or to locate a collection site near you, go the DEA web site at https://takebackday.dea.gov/ where you can search by zip code, city, or state.
Follow us on Twitter @USAO_NDIA.
Cumberland County Man Sentenced to 12 Years in Prison for Conspiring to Distribute Cocaine and Possessing with Intent to Distribute FentanylRead the Press Release
NEWARK, N.J. – A Cumberland County, New Jersey, man was sentenced today to 144 months in prison for conspiring to distribute cocaine and possessing with intent to distribute fentanyl, Acting U.S. Attorney Rachael Honig announced.
Oscar J. Gonzalez, 37, of Vineland, New Jersey, previously pleaded guilty before U.S. District Judge John Michael Vazquez to an information charging him with conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine and possession with intent to distribute 400 grams or more of fentanyl. Judge Vazquez imposed the sentence today by videoconference.
According to documents filed in this case and statements made in court:
From Jan. 20, 2020, through Jan. 26, 2020, Gonzalez conspired with others to distribute multiple kilograms of cocaine. On Jan. 25, 2020, he agreed to purchase multiple kilograms of cocaine and traveled to a location in Union County, New Jersey, to obtain the cocaine. He brought with him approximately $24,000 in cash to pay for one kilogram of cocaine.
While on release in connection with that case, Gonzalez agreed to distribute five kilograms of fentanyl. On April 24, 2020, Gonzalez arranged for another individual to deliver the fentanyl to a location in Monmouth County, New Jersey.
In addition to the prison term, Judge Vazquez sentenced Gonzalez to five years of supervised release.
Acting U.S. Attorney Rachael A. Honig credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Susan A. Gibson in New Jersey and Special Agent in Charge Raymond Donovan in New York, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Francesca Liquori, of the Organized Crime and Gangs Unit.
Comprehensive Pain Specialists and Former Owners Agree to Pay $4.1 Million to Settle Fraud AllegationsRead the Press Release
NASHVILLE, Tenn. – April 21, 2021 – Acting U.S. Attorney Mary Jane Stewart and Tennessee Attorney General Herbert H. Slatery III announced today that they have entered into agreements with Anesthesia Services Associates, PLLC d/b/a Comprehensive Pain Specialists (“CPS”), its four majority owners, Dr. Peter B. Kroll, Dr. Steven R. Dickerson, Dr. Gilberto A. Carrero, and Dr. Richard J. Muench (collectively, the “Owners”), and Russell S. Smith, D.C. – a former CPS executive – whereby they agreed to pay a total of $4,121,663.94 to settle all claims by the United States and Tennessee involving allegations of wrongdoing at CPS.
CPS, which was based in Brentwood, Tennessee, at one point operated over 40 pain clinics and had operations in 12 states, until it shut down in 2018. On July 22, 2019, the United States and Tennessee filed a Consolidated Complaint in Intervention in the United States District Court for the Middle District of Tennessee against CPS, its former CEO, John Davis, who was convicted in April 2019 of health care fraud, as well as three of the four principal Owners, Drs. Kroll, Dickerson, and Carrero, and, Dr. Smith, a former manager of certain CPS clinics in East Tennessee (the “Civil Action”). The Complaint alleged, among other things, that the defendants submitted false claims for medically unnecessary and/or non-reimbursable testing and acupuncture. Dr. Muench, the only owner not a party to the lawsuit, agreed to settle with the United States and Tennessee prior to the filing of the Complaint.
The agreements with CPS and the Owners resolve the United States’ and Tennessee’s claims for violations of the False Claims Act and the Tennessee Medicaid False Claims Act that arose from the submission of false claims to federal health care programs and TennCare specifically for medically unnecessary and/or non-reimbursable urine drug, specimen validity, genetic and psychological testing, as well as claims for electro-auricular acupuncture during the period from May 2011 through when CPS ceased operating in 2018. The settlement also resolves claims relating to CPS’s submission of false claims under Dr. Kroll’s provider number for services he did not render and testing he did not order. In addition, the agreements resolve common law claims for fraud, payment by mistake, and unjust enrichment against CPS, the Owners and Dr. Smith.
To resolve the Civil Action, CPS agreed to release $2,196,663.94 million in funds held by Medicare in a suspension account and will contribute an additional $750,000 in cash. The Owners will pay a total of $1.05 million to resolve claims against them. Dr. Smith also agreed to pay $125,000 to resolve potential liability for common law claims that could be brought against him by the United States and Tennessee. As part of the settlements, the United States and Tennessee agreed to dismiss the Civil Action, except for their claims against John Davis.
“Even though CPS ceased operations before the United States and Tennessee filed the Civil Action, the United States and Tennessee were still able to recover millions of dollars in damages through litigation and utilizing administrative remedies available through our partners at the Centers for Medicare & Medicaid Services,” said Acting U.S. Attorney Stewart. “The United States will not hesitate to use all of its resources to protect taxpayer dollars, including by going after the individuals who reap the benefits, directly or indirectly, from health care fraud.”
“This type of purposeful, illegal conduct takes money from TennCare that otherwise would be used to pay legitimate claims of others,” said General Slatery. “This settlement should send a message. If you do this, State and federal authorities are coming after you.”
“When physicians and health care companies engage in questionable business practices and unnecessary services, it compromises patient care and the integrity of HHS programs,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Our agency will continue to investigate and hold accountable providers that put profits before patients.”
“We are fortunate to have this strong partnership between state and federal agencies in the pursuit of false claims, to hold accountable those responsible,” said TBI Director David Rausch. “Health care fraud impacts the quality of our health care, in addition to costing consumers and taxpayers.”
The allegations resolved by this settlement were originally raised in lawsuits filed under the qui tam, or whistleblower, provisions of the FCA, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery. The whistleblowers will receive $610,684.62 as their share of the Governments’ settlement proceeds from the CPS settlement and will dismiss their individual actions.
The case was handled by the United States Attorney’s Office for the Middle District of Tennessee and the Tennessee Attorney General’s Office, and investigated by the Department of Health and Human Services, Office of Inspector General and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Kara F. Sweet represented the United States. Assistant Attorney General Philip H. Bangle represented Tennessee.
The Civil Action is captioned United States and the State of Tennessee ex. rel. Suzanne Alt, et al. v. Anesthesia Services Associates, PLLC, et al., Case No. 3:16-cv-00549 (M.D. Tenn.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
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Colorado Businessman Indicted for Employment Tax FraudRead the Press Release
A federal grand jury in Denver, Colorado, returned an indictment charging a Bow Mar, Colorado, businessman with tax evasion, failing to pay over employment taxes, and failing to file tax returns.
According to the indictment, Frank Stevens owned Stevens & Soldwisch Oil and Gas Properties I LLC (Soldwisch) and Northeastern Energy Corporation (Northeastern). Soldwisch owned an oil producing field in Michigan, and Northeastern employed the workers hired to extract oil from Soldwisch’s field. The indictment alleges that during quarters in 2014 and 2015, Stevens withheld taxes from Northeastern employees, but did not pay those withheld funds over to the IRS. The indictment further alleges that Stevens evaded paying taxes that were assessed against Northeastern and himself personally, by transferring funds out of bank accounts in his and Northeastern’s names. He also allegedly did not file tax returns on behalf of his businesses as required by law. According to the indictment, the IRS had assessed more than $700,000 in penalties against Stevens for outstanding employment taxes.
Stevens had his initial court appearance before U.S. Magistrate Judge Scott T. Varholak of the U.S. District Court for the District of Colorado. If convicted, he faces a maximum of five years imprisonment for each of the tax evasion and employment tax counts, and he further faces a maximum of one year in prison on each of the failing to file tax return counts. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division made the announcement.
IRS-Criminal Investigations is investigating the case.
Assistant Chief Yael T. Epstein and Trial Attorneys Peter J. Anthony and Julia M. Rugg of the Justice Department’s Tax Division are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Clinton Man Sentenced to Federal Prison on Drug and Firearm ChargesRead the Press Release
DAVENPORT, Iowa — On Tuesday, April 20, 2021, United States District Court Judge Stephanie M. Rose sentenced Johnathon Lawrence Rose, age 33, of Clinton, to 210 months in prison for Possession with Intent to Distribute Methamphetamine and Felon in Possession of a Firearm announced Acting United States Attorney Richard D. Westphal. Rose was ordered to serve four years of supervised release to follow his prison term and pay $200 to the Crime Victims’ Fund.
The investigation began in January 2020 when Defendant Rose was stopped by police for illegally tinted windows and no valid driver’s license. Officers located pills that tested positive as eutylone, methamphetamine, cocaine, and caffeine in Rose’s pockets. A search warrant was executed at Rose’s residence and yielded a large amount of ammunition, parts for an AR-15, and drug paraphernalia. During the intake process at the jail, a firearm fell out of Rose’s pants during a search by a corrections officer. A search of his jacket revealed additional pills and more than 35 grams of methamphetamine. Rose was previously convicted of a felony and prohibited from possessing firearms.
This matter was investigated by the Clinton Police Department and the Blackhawk Area Task Force. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Chicago Man Indicted in Pittsburgh on Mail Fraud Charge relating to Pandemic Unemployment BenefitsRead the Press Release
PITTSBURGH, PA - One resident of Chicago, IL, has been indicted by a federal grand jury in Pittsburgh on a charge of mail fraud, Acting United States Attorney Stephen R. Kaufman announced today.
The one-count Indictment named Christian Matthews, 32, as the sole defendant.
According to Indictment, Matthews fraudulently obtained personal identifying information belonging to other people and used it, without permission, to file claims for pandemic-related unemployment benefits. The resulting benefits were sent via the United States mail and interstate commercial carriers to locations, including Pittsburgh, PA, where Matthews could retrieve and use them.
The law provides for a maximum total sentence of 20 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. The government is requesting detention.
Assistant United States Attorney Jeffrey R. Bengel is prosecuting this case on behalf of the government.
The United States Department of Labor, United States Department of Homeland Security Investigations, United States Postal Inspection Service, and Findlay Township Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Cedar Rapids Man Sentenced to Federal Prison for Fraud ChargesRead the Press Release
DAVENPORT, Iowa — On Monday, April 19, 2021, United States District Court Judge Stephanie M. Rose sentenced Christopher Michael Goerdt, age 40, of Cedar Rapids, to 69 months in prison for Bank Fraud, Aggravated Identity Theft, Wire Fraud, and Misapplication by Bank Officer announced Acting United States Attorney Richard D. Westphal. Goerdt was ordered to serve five years of supervised release to follow his prison term and pay $1,500 to the Crime Victims’ Fund. Furthermore, Goerdt was ordered to pay $1,124,343.60 in restitution to the victims of his crimes. The victims include County Bank, Peoples Trust and Savings Bank, Farm Bureau Financial Services, and Everest Insurance.
This investigation began as early as 2006 when Goerdt participated in fraudulent activities at multiple financial institutions. Goerdt obtained and used a credit card in the name of a bank for his personal use. Further, Goerdt falsified loan documents, diverted loan proceeds, altered appraisals, made false statements to investigators, and obtained loans without the knowledge of customers. The Court found the loss attributable to Goerdt for the 15 counts he pleaded to was nearly $900,000. Furthermore, Goerdt knew he was being investigated by law enforcement and continued his pattern of deception by seeking employment that would allow him to commit additional fraud at Farm Bureau Financial Services.
This matter was investigated by the Federal Bureau of Investigation and the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC OIG). This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Camden County Man and Woman Indicted for Trafficking High-Dose Oxycodone PillsRead the Press Release
CAMDEN, N.J. – A federal grand jury today separately indicted a Camden man and woman for selling oxycodone pills as part of their roles in South Jersey high-dosage oxycodone trafficking rings, Acting U.S. Attorney Rachael A. Honig announced.
Maurice Williams, 40, of Mount Ephraim, New Jersey, was charged in a five-count indictment with conspiring to distribute and possess with intent to distribute oxycodone, distributing and possessing with intent to distribute quantities of oxycodone, and attempting to do the same, and using a communications facility to further a drug trafficking crime. Lolita Paynter, 56, of Camden, was separately charged in a four-count indictment with conspiring to distribute and possess with intent to distribute oxycodone and distributing and possessing with intent to distribute quantities of oxycodone and attempting to do the same. Williams and Paynter were previously charged by criminal complaint in March 2020. They will be arraigned on dates to be determined.
According to documents filed in this case and statements made in court:
In early 2020, the FBI led a wiretap investigation into drug distribution operations that dealt in, among other drugs, high-dose, 60- and 80-mg oxycodone pills. Intercepted telephone calls revealed that on multiple occasions from January 2020 to March 10, 2020, Williams discussed obtaining redistribution quantities of oxycodone from Erick Bell in and around Camden, and surveillance confirmed their meeting. These included discussions of purchases by Williams from Bell of, on Feb. 3, 2020, 100 80 mg. oxycodone pills, and, on Feb. 18, 2020, 100 60 mg. oxycodone pills. Bell and Williams employed coded language and used multiple phones to conceal their activities. The investigation also revealed that on multiple occasions Paynter supplied quantities of oxycodone to Rocco DePoder on dates from January 2020 to March 10, 2020. Intercepted calls and surveillance showed that DePoder was regularly reselling oxycodone pills to customers in and around Gloucester City, New Jersey.
Oxycodone is a Schedule II controlled substance, meaning that it has a high potential for abuse, a currently accepted medical use with severe restrictions, and abuse of the drug may lead to severe psychological or physical dependence.
The conspiracy and distribution and possession with intent to distribute charges against Williams and Paynter each carry maximum prison terms of 20 years and maximum fines of $1 million. The use of a communication facility charges against Williams each carry a maximum prison term of four years and a maximum fine of $250,000.
Eleven other defendants – Rocco DePoder, 68, Marcus Rushworth, 47, and Kenneth Rushworth, 60, all of Gloucester City; Alfred Kee, Jr., 52, of Blackwood, New Jersey; Robert Pratt, 57, of Myrtle Beach, South Carolina, formerly of Blackwood; Wayne Muse, 74, of Lindenwold, New Jersey; Bell, 50, Steven Walker, 50, and Alexander Siaca, 55, all of Camden; Antwan Tucker, 51, of Woodbury, New Jersey; and Anwar Abdullah, 32, of Pennsauken, New Jersey – previously pleaded guilty before U.S. District Judge Renée Marie Bumb in Camden federal court to informations charging them with drug trafficking offenses involving the distribution of prescription drugs. They are all awaiting sentencing.
Acting U.S. Attorney Honig credited special agents of the FBI Philadelphia Division, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael J. Driscoll; U.S. Department of Health and Human Services-Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert; the Camden County Sheriff's Office, under the direction of Sheriff Gilbert L. Wilson; New Jersey Office of Homeland Security and Preparedness, under the direction of Director Jared M. Maples; the Camden County Police Department, under the direction of Chief Gabriel Rodriguez; and the U.S. Department of Agriculture-Office of Inspector General, under the direction of Special Agent in Charge Bethanne M. Dinkins, with the investigation leading to the charges.
She also thanked the FBI Newark Division, New Jersey State Police, Camden County Prosecutor’s Office, and U.S. Drug Enforcement Administration (DEA) for their assistance.
The government is represented by Assistant U.S. Attorneys Gabriel J. Vidoni of the Office’s Camden office and Sara F. Merin of the Newark Office.
The charges and allegations contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
California Man Charged with COVID-Relief Fraud SchemeRead the Press Release
A federal grand jury in Los Angeles, California, returned an indictment on April 13, charging a California man with stealing hundreds of thousands of dollars from the Paycheck Protection Program (PPP).
According to court documents, Oumar Sissoko, 59, of Temecula, submitted a PPP loan application on behalf of his company, Road Doctor California LLC, that sought and obtained $7.25 million. The loan application certified that the funds would be used to retain workers and maintain payroll or make mortgage-interest payments, lease payments, and utility payments. Between on or about May 1 to May 12, 2020, Sissoko misappropriated hundreds of thousands of dollars of the PPP loan proceeds to use for impermissible purposes, including the purchase of a luxury car for more than $100,000, the satisfaction of a loan made to Sissoko in connection with his prior acquisition of a different luxury car, and the purchase of a computer for almost $6,000. Sissoko also attempted to transmit approximately $150,000 to accounts in Mauritania associated with a different company for which Sissoko purports to serve as CEO.
Sissoko is charged with four counts of wire fraud. The defendant is scheduled for his initial court appearance at a later date in the U.S. District Court for the Central District of California. If convicted, he faces a maximum penalty of 20 years in prison for each count. 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 Tracy L. Wilkison of the Central District of California; 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 (SBA-OIG) 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 (FDIC-OIG) made the announcement.
The FBI, SBA-OIG and FDIC-OIG are investigating the case.
Trial Attorney John “Fritz” Scanlon of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Alexander C.K. Wyman of the Central District of California are prosecuting the case.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act is a federal law enacted on March 29, 2020, designed to provide emergency financial assistance to the millions of Americans who are suffering the economic effects caused by the COVID-19 pandemic. One source of relief provided by the CARES Act was the authorization of up to $349 billion in forgivable loans to small businesses for job retention and certain other expenses, through the PPP. In April 2020, Congress authorized over $300 billion in additional PPP funding.
The PPP allows qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of 1%. PPP loan proceeds must be used by businesses on payroll costs, interest on mortgages, rent, and utilities. The PPP allows the interest and principal on the PPP loan to be forgiven if the business spends the loan proceeds on these expense items within a designated period of time after receiving the proceeds and uses at least a certain percentage of the PPP loan proceeds on payroll expenses.
The Fraud Section leads the Department of Justice’s prosecution of fraud schemes that exploit the CARES Act. In the months since the CARES Act was passed, Fraud Section attorneys have prosecuted more than 100 defendants in more than 70 criminal cases. The Fraud Section has also seized more than $65 million in cash proceeds derived from fraudulently obtained PPP funds, as well as numerous real-estate properties and luxury items purchased with such proceeds. More information can be found at: https://www.justice.gov/criminal-fraud/cares-act-fraud.
Anyone with general information about allegations of attempted fraud involving COVID-19 can report it by calling the Justice Department’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Buffalo Man with Ties to the Alma Avenue Gang Pleads Guilty to Drug ConspiracyRead 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 Quamain Simms-Calhoun, 25, of Buffalo, NY, pleaded guilty before U.S. Magistrate Judge Michael J. Roemer to conspiracy to distribute controlled substances. The charge carries a maximum penalty of 20 years in prison and a $1,000,000 fine.
Assistant U.S. Attorneys Justin G. Bish and Meghan E. Leydecker, who are handling the case, stated that the defendant admitted that he is associated with the Alma Avenue Gang, a group of individuals who grew up around Alma Avenue and “represent” their neighborhood by flashing distinctive group hand signals and distinguish themselves on various social media platforms. Simms-Calhoun conspired with co-defendant Dajon Woods to sell crack cocaine, cocaine, heroin, and fentanyl. Between May 8 and August 15, 2019, the defendant coordinated the distribution of these illegal substances on nine separate occasions to an individual working with law enforcement. Simms-Calhoun also distributed drugs to a number of customers in the Buffalo area.
Charges remain pending against Dajon Woods. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
The plea is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in-Charge John B. Devito; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; and the Lackawanna Police Department, under the direction of Chief Mark Packard.
Sentencing will be scheduled at a later date.
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Baltimore Man Sentenced to 5+ Years as Part of Nationwide Scam to Pass Counterfeit Checks Worth over $1 MillionRead the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Robert Sean Harrington, 42, of Baltimore, MD, was sentenced to five years and four months in prison, three years of supervised release, and ordered to pay restitution in the amount of $204,066 by United States District Judge Joseph F. Leeson, Jr. for aggravated identity theft and conspiracy to commit wire fraud.
In September 2019, the defendant pleaded guilty to charges of aggravated identity theft, conspiracy and wire fraud. Harrington was one of nine men charged in a Superseding Indictment as part of a coordinated scheme that operated for over two years, between June 2016 and July 2018, with the purpose of committing identity theft in order to defraud various banks and Walmart, Inc., by presenting and cashing over $1,000,000 worth of counterfeit checks at Walmart stores throughout the United States.
All nine defendants in this case pleaded guilty to similar charges; many were previously sentenced and received the following sentences from Judge Leeson: Ahmad Becoate, 34, of Philadelphia, PA, was sentenced to 75 months in prison; Jeffrey Roach, 35, of Baltimore, MD, was sentenced to 94 months in prison; Jethro Richardson, 42, of Greensboro, NC, was sentenced to 70 months in prison; Nathaniel Jones, 41, of High Point, NC, was sentenced to 24 months in prison; Leander Rowell, 44, also of Greensboro, NC, was sentenced to 87 months in prison; and Brian Cherry, 45, of Charlotte, NC, was sentenced to 70 months in prison. All defendants were also ordered to pay substantial amounts of restitution.
“This was a sophisticated scheme involving many defendants that took excellent investigative work to unravel,” said Acting U.S. Attorney Williams. “Financial fraud and identity theft harm hard-working individuals every day. Our office will continue to aggressively prosecute the perpetrators and seek justice for victims.”
“Passing stolen or counterfeit checks is as old a scheme as the concept of checks themselves,” said Damon Wood, Postal Inspector in Charge of the Philadelphia Division of Postal Inspection Service. “Investigating and prosecuting these cases is tedious but necessary work as it helps to maintain confidence in our economic system. Also, real people are the ones hurt by these schemes as they are forced to work with their banks to recoup their lost money, close compromised accounts and open new clean accounts. Thank you to the United States Attorney, the Secret Service, and the Office of Inspector General from the Social Security Administration for working with us on this case and many other similar cases.”
“This case exemplifies the shared commitment of Federal law enforcement agencies to combat large-scale identity theft that harms businesses and consumers,” said Gail S. Ennis, Inspector General for the Social Security Administration. “I want to thank the U.S. Secret Service and the U.S. Postal Inspection Service, as well as the U.S. Attorney’s Office, for their partnership as we work to maintain the integrity of the Social Security number as a key identifier.”
The case was investigated by the United States Secret Service, the United States Postal Inspection Service, and Social Security Administration Office of Inspector General, and is being prosecuted by Assistant United States Attorney Mary E. Crawley.
Bakersfield Medical Practice Agrees to Resolve False Claims Act Allegations Involving Cares Act Paycheck Protection ProgramRead the Press Release
SACRAMENTO, Calif. — Sandeep S. Walia, M.D., a Professional Medical Corporation (Walia PMC), and Sandeep S. Walia, M.D., the corporation’s owner and president, have agreed to pay a combined $70,000 in damages and penalties to resolve allegations that they knowingly made a false statement to obtain a loan under the Paycheck Protection Program (PPP) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, Acting U.S. Attorney Phillip A. Talbert announced today.
As part of the settlement, Walia PMC also agreed to repay the $430,000 PPP loan that it obtained because of the false statement, with interest.
The CARES Act was enacted on March 29, 2020, 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, and in December 2020, Congress authorized nearly $285 billion in additional PPP funding.
During the first round of the PPP, no eligible borrower was permitted to receive more than one PPP loan. The SBA determined this limitation was necessary to help ensure that as many eligible borrowers as possible could obtain a PPP loan. This helped advance Congress’s goal of keeping workers employed and paid across the United States in 2020.
The settlement resolves allegations that Dr. Walia falsely certified to a PPP lender that his medical practice had not received a PPP loan after it had already received one for approximately $280,000 from a different lender. As a result, Walia PMC obtained a second PPP loan for $430,000, to which it was not entitled. Walia PMC did not seek forgiveness for the $430,000 loan, but its false statement caused a false claim to be made to the SBA for processing fees. This settlement resolves allegations that Walia and Walia PMC’s conduct violated the False Claims Act, which allows the government to recover damages and penalties for the presentation of false claims for payment to the United States. Walia and Walia PMC cooperated fully with the investigation.
“The second PPP loan should have been disbursed to another small business suffering financially during the COVID-19 pandemic,” said Acting U.S. Attorney Talbert. “The Department of Justice and our partners at the SBA will use all of the tools at our disposal, including civil fraud statutes, to recover funds for federal programs intended to help those in need during this national emergency.”
“It is unacceptable to fraudulently attempt to gain access to a program aimed at assisting small businesses that are struggling to survive for personal gain and profit,” said SBA OIG’s Western Region Special Agent in Charge Weston King. “OIG and its law enforcement partners will relentlessly pursue fraudsters and bring them to justice. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”
Assistant U.S. Attorney Matthew R. Belz handled the case for the United States. The investigation was conducted with the U.S. Small Business Administration, Office of Inspector General.
Attorney General Merrick B. Garland Announces Investigation of the City of Minneapolis, Minnesota, and the Minneapolis Police DepartmentRead the Press Release
WASHINGTON – Attorney General Merrick B. Garland announced today the Justice Department has opened a pattern or practice investigation into the City of Minneapolis (the City) and the Minneapolis Police Department (MPD). The investigation will assess all types of force used by MPD officers, including uses of force involving individuals with behavioral health disabilities and uses of force against individuals engaged in activities protected by the First Amendment. The investigation will also assess whether MPD engages in discriminatory policing. As part of the investigation the Justice Department will conduct a comprehensive review of MPD policies, training and supervision. The department will also examine MPD’s systems of accountability, including complaint intake, investigation, review, disposition and discipline. The Department of Justice will also reach out to community groups and members of the public to learn about their experiences with MPD.
“The investigation I am announcing today will assess whether the Minneapolis Police Department engages in a pattern or practice of using excessive force, including during protests,” said Attorney General Garland. “Building trust between community and law enforcement will take time and effort by all of us, but we undertake this task with determination and urgency, knowing that change cannot wait.”
This morning, Department of Justice officials informed Minneapolis Mayor Jacob Frey, MPD Chief Medaria Arradondo, City Attorney Jim Rowader, City Coordinator Mark Ruff, and City Council President Lisa Bender of the investigation. The department will continue to work closely with both the City and MPD as the investigation progresses.
“One of the Civil Rights Division’s highest priorities is to ensure that every person in this country benefits from public safety systems that are lawful, responsive, transparent and nondiscriminatory,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department's Civil Rights Division. “It is essential that police departments across the country use their law enforcement authority, including the authority to use force, in a manner that respects civil rights and the sanctity of human life.”
“People throughout the city of Minneapolis want a public safety system that protects and serves all members of our community,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This investigation by the Department of Justice provides a vital step to restore and build trust in the Minneapolis Police Department and its officers.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Department of Justice to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the First, Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964 and Title II of the Americans with Disabilities Act.
The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the District of Minnesota, in Minneapolis, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at [email protected] or by phone at 866-432-0268. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available on its website at https://www.justice.gov/usao-mn.
Attorney General Merrick B. Garland Announces Investigation of the City of Minneapolis, Minnesota, and the Minneapolis Police DepartmentRead the Press Release
Attorney General Merrick B. Garland announced today the Justice Department has opened a pattern or practice investigation into the City of Minneapolis (the City) and the Minneapolis Police Department (MPD). The investigation will assess all types of force used by MPD officers, including uses of force involving individuals with behavioral health disabilities and uses of force against individuals engaged in activities protected by the First Amendment. The investigation will also assess whether MPD engages in discriminatory policing. As part of the investigation the Justice Department will conduct a comprehensive review of MPD policies, training and supervision. The department will also examine MPD’s systems of accountability, including complaint intake, investigation, review, disposition and discipline. The Department of Justice will also reach out to community groups and members of the public to learn about their experiences with MPD.
“The investigation I am announcing today will assess whether the Minneapolis Police Department engages in a pattern or practice of using excessive force, including during protests,” said Attorney General Garland. “Building trust between community and law enforcement will take time and effort by all of us, but we undertake this task with determination and urgency, knowing that change cannot wait.”
This morning, Department of Justice officials informed Minneapolis Mayor Jacob Frey, MPD Chief Medaria Arradondo, City Attorney Jim Rowader, City Coordinator Mark Ruff, and City Council President Lisa Bender of the investigation. The department will continue to work closely with both the City and MPD as the investigation progresses.
“One of the Civil Rights Division’s highest priorities is to ensure that every person in this country benefits from public safety systems that are lawful, responsive, transparent and nondiscriminatory,” said Principal Deputy Assistant Attorney General Pamela S. Karlan for the Justice Department's Civil Rights Division. “It is essential that police departments across the country use their law enforcement authority, including the authority to use force, in a manner that respects civil rights and the sanctity of human life.”
“People throughout the city of Minneapolis want a public safety system that protects and serves all members of our community,” said Acting U.S. Attorney W. Anders Folk for the District of Minnesota. “This investigation by the Department of Justice provides a vital step to restore and build trust in the Minneapolis Police Department and its officers.”
The investigation is being conducted pursuant to the Violent Crime Control and Law Enforcement Act of 1994, which prohibits state and local governments from engaging in a pattern or practice of conduct by law enforcement officers that deprives individuals of rights protected by the Constitution or federal law. The Act allows the Department of Justice to remedy such misconduct through civil litigation. The department will be assessing law enforcement practices under the First, Fourth and Fourteenth Amendments to the U.S. Constitution, as well as under the Safe Streets Act of 1968, Title VI of the Civil Rights Act of 1964 and Title II of the Americans with Disabilities Act.
The Special Litigation Section of the Department of Justice Civil Rights Division, in Washington, D.C., and the U.S. Attorney’s Office for the District of Minnesota, in Minneapolis, are jointly conducting this investigation. Individuals with relevant information are encouraged to contact the Department of Justice via email at [email protected] or by phone at 866-432-0268. Individuals can also report civil rights violations regarding this or other matters using the Civil Rights Division’s new reporting portal, available at civilrights.justice.gov.
Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Additional information about the U.S. Attorney’s Office for the District of Minnesota is available on its website at https://www.justice.gov/usao-mn.
Alleged Bay Area Gang Members Charged with August 11, 2018, Murder in San FranciscoRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Jonathan Escobar (aka Wicked, aka Rico) and Jose Aguilar (aka Slim), charging both defendants with firearms violations in connection with crimes including murder and attempted murder committed to enhance the defendants’ position in the Sureño criminal street gang, announced Acting United States Attorney Stephanie M. Hinds and Homeland Security Investigations (HSI) San Francisco Special Agent in Charge Tatum King.
“Street gangs resort to violence to assert control over peaceful neighborhoods, expecting to create safe havens for drug trafficking, robberies, and other violent crimes,” said Acting U.S. Attorney Hinds. “In this case, the indictment describes how firearms are deliberately used to achieve these goals through murder and attempted murder. This office will continue to partner with local and federal law enforcement agencies to wrest control of our streets from the gangs who threaten our residents.”
“Our communities have the right to be safe and not succumb to senseless violence. I am proud of the dedicated agents who have duly executed their duties in our collective pursuit of law, order and justice," said Special Agent in Charge King, who oversees HSI operations in Northern California. "Gang violence will not be tolerated, and law enforcement’s collaborative efforts are key to disrupting the lawless activities that threaten public safety."
The indictment, filed April 15, 2021 and unsealed this morning, alleges that Escobar, 24, of Richmond, Calif., and Aguilar, 32, of San Francisco, were members of a racketeering enterprise referred to in the indictment as “the 19th Street/16th Street Sureños.” The street gang was the amalgamation of two gangs, one that claimed “territory” bounded by 19th Street to the South, 16th Street to the North, Folsom Street to the East, and Dolores Street to the West and the other that generally operated around 16th Street and Mission Street, in the Mission District of San Francisco. The enterprise also operated in Dolores Park and Franklin Square Park (also known as Bryant Park). The indictment describes how the gang sought to maintain control of drug distribution in the areas that it sought to claim and how gang members engaged in numerous illegal acts to meet its aims including narcotics sales, robberies, and other violent crimes, including murder.
According to Count One of the two-count indictment, on August 11, 2018, in San Francisco, Escobar and Aguilar used a firearm during the commission of a murder in aid of racketeering and committed the murder for the purpose of maintaining and increasing their position in the criminal enterprise. The indictment also alleges that the murder was premeditated, deliberate, and willful, and therefore “murder in the first degree” under California law.
In addition to the murder allegations, the indictment alleges in Count Two that Escobar and Aguilar used a firearm during the commission of attempted murder in aid of racketeering. In this count of the indictment, the document alleges that the defendants willfully and with deliberation and premeditation attempted to murder five additional victims, again for the purpose of maintaining and increasing position in the 19th Street/16th Street Sureños.
Both defendants are charged with use or carrying of a firearm resulting in death during and in relation to a crime of violence (murder in aid of racketeering), in violation of 18 U.S.C. §§ 924(j)(1) and 2 and use or carrying of a firearm during and in relation to of a crime of violence (attempted murder in aid of racketeering), in violation of 18 U.S.C. §§ 924(c) and 2. If convicted of the murder count, both defendants are eligible for the death penalty. If convicted of the attempted murder count, both defendants can be sentenced to a maximum prison term of life and a minimum term of not less than ten years. In addition to a prison term, the court may also order a term of supervised release, restitution, and fines; however, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendants were arrested on April 20, 2021 and made their initial federal court appearance this morning before U.S. Magistrate Judge Jacqueline S. Corley. Magistrate Judge Corley ordered the defendants to remain in custody pending trial. The next federal court appearance for the defendants is scheduled for May 12, 2021, before United States Magistrate Judge Thomas S. Hixon for appointment of counsel.
The case is being prosecuted by the Organized Crime Strike Force of the United States Attorney’s Office for the Northern District of California. The prosecution is the result of an investigation by Homeland Security Investigations with assistance from the San Francisco Police Department’s Gang Task Force and Homicide Unit.
23rd Defendant Sentenced in Sweeping Federal Drug and Gang CaseRead the Press Release
SALT LAKE CITY – A joint FBI and DEA federal narcotics investigation has resulted in the conviction of 23 federal defendants in Utah, taking out a large-scale methamphetamine distribution organization in Salt Lake County run by members of eight street gangs and supplied by a Mexican drug cartel.
Throughout the course of the complex multi-year investigation, agents from the FBI, DEA, and multiple federal, state, and local law enforcement agencies worked together using advanced court authorized investigative techniques and undercover purchases to determine that 24 defendants (including one that remains a fugitive in Mexico) were operating a complex methamphetamine distribution scheme in Salt Lake County. The organized narcotics ring was set up like a business which included security, counter-surveillance, secret codes, firearms, and large amounts of cash, with each member having a distinct role in in the group.
During the operation and resulting arrests of the 23 defendants, law enforcement officers seized 41 pounds of methamphetamine and 17 firearms, including 13 firearms and assorted ammunition from one defendant who was prohibited under federal law from possessing a firearm after a felony conviction. Collectively, these 24 defendants were members of eight separate gangs and the organization was supplied by members of a Mexican drug cartel in Southern California.
The street gangs involved were the Surenos, Nortenos, La Raza, Vario Chosen Few, East Side Raskals, Baby Regulators, Soldiers of Aryan Culture, and Tiny Oriental Posse.
The sentences received by each defendant are:
- Cesar Gutierrez, age 41 of Magna, sentenced April 13, 2021, to 164 months in prison for Conspiracy to distribute 500 grams or more of methamphetamine;
- Siosifina Ositamani (aka Fina Halai), age 45 of Salt Lake City sentenced February 25, 2020, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jon Martinez (aka Droopy), age 50 of Salt Lake City, sentenced August 13, 2019, to 5 years of probation;
- Cerina Gutierrez, age 49 of Salt Lake City sentenced June 17, 2019, to 120 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Sompheth Thaodara (aka Diamond), age 52 of West Valley City sentenced January 4, 2019, to 60 months in prison for Conspiracy to distribute 500 grams or more of methamphetamine;
- Timote Fangupo (aka Double Barrel), age 40 of West Jordan, sentenced September 18, 2018, to 18 months in prison for unlawful use of a communication device;
- Linda Sosa, age 42 of Kearns, sentenced September 18, 2018, to 36 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Man Tat Le (aka Asian Le), age 46 of West Valley City sentenced September 17, 2018, to 18 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Melissa Delgado, age 25 of Murray, sentenced August 20, 2018, to time served for conspiracy to distribute 500 grams or more of methamphetamine;
- Silvio McKenzie-Gainza, age 39 of Salt Lake City, sentenced August 2, 2018, to 151 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- David Tyson Madden, age 44 of Salt Lake City sentenced July 17, 2018, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Brandon Callaway, age 33 of Salt Lake City, sentenced July 6, 2018, to 84 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Raul Enrique Lizarraga Lopez (aka Maestro), age 26 of Los Angeles, sentenced July 2, 2018, to 120 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Makasini Lomu (aka Maka), age 54 of West Valley City, sentenced July 2, 2018, to 180 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Morgan Harris (aka Ace), age 62 of Murray sentenced June 8, 2018, to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jake Duran (aka Troublez), age 29 of Salt Lake City, sentenced May 25, 2018, to 84 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Justin Dahlquist, age 30 of Salt Lake City sentenced May 24, 2018, to 24 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Steven Trujillo, age 27 of Tooele sentenced May 8, 2018, to 72 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Jeremy Najera, age 37 of Salt Lake City sentenced May 7, 2018, to 48 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Gary Bronson Dean (aka Gary Dean Bronson), age 46 of Salt Lake City sentenced May 7, 2018, to 18 months in prison for conspiracy to distribute marijuana;
- Mario Cerna (aka Havoc), age 38 of West Valley City sentenced May 7, 2018 to 60 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Michael Shane Tisdale, age of 58 of West Valley City, sentenced May 7, 2018, to 48 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Greg Montoya, age 47 of Salt Lake City, sentenced October 25, 2017, to 49 months in prison for conspiracy to distribute 500 grams or more of methamphetamine;
- Ciro Santamaria-Zepeda, age 39 of Salt Lake City, still a fugitive in Mexico.
“State and federal cooperation is one of the hallmarks of effective law enforcement. This operation highlights these partnerships, which work especially well together in Utah,” said Acting United States Attorney Andrea T. Martinez. “Dangerous, gang-affiliated drug trafficking organizations, like the organization prosecuted in this particular indictment, bring violence and chaos to our city streets. We pledge to continue to work together to disrupt and dismantle any drug trafficking organizations that target our state.”
“This case isn’t just about the massive amount of drugs that were brought into our neighborhoods, but the gang activity and violent crime that often accompanied it. These drug organizations run like a big business, and we were able to target this one at every level,” said Special Agent in Charge Dennis Rice of the Salt Lake City FBI. “The unfortunate reality is that our work is far from over. Rest assured, the FBI and our partners are committed to identifying, investigating, and dismantling these criminal enterprises that threaten the safety of our kids and communities.”
"This long-term joint investigation targeted local area gangs that were responsible for the distribution of significant amounts of methamphetamine within our neighborhoods. As evidenced during the course of this case, these gang members utilized violence and intimidation to maintain control of their territories,” said DEA Assistant Special Agent in Charge Michael J. Tinkler. “Through the concerted efforts of local, state and federal law enforcement agencies, this organization was successfully dismantled highlighting the impact that partnerships have on addressing drug and violence related crime in Utah."
This case was prosecuted by Assistant United States Attorneys Stephen Nelson and Stewart Young from the Utah United States Attorney’s Office under the Department of Justice’s Organized Crime Drug Enforcement Task Force, and the investigation was conducted by Special Agents from the FBI and DEA. Assisting with the investigations were officers from the Salt Lake City Police Department, West Valley City Police Department, Sandy Police Department, West Jordan Police Department, and the Utah Department of Public Safety, who participate as members of the FBI’s Safe Street Task Force; the Unified Police Department and the Metro Gang Unit; the Murray Police Department, the United States Marshals Service, ATF, and ICE Enforcement and Removal Operations.
Tuesday 20 April 2021
Wilkinsburg Man Facing Federal Drug and Gun ChargesRead the Press Release
PITTSBURGH – A resident of Wilkinsburg, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Stephen R. Kaufman announced today.
The three-count Indictment named Andre Randolph, 50, as the sole defendant.
According to the Indictment, on or about March 23, 2021, Randolph was found to be in the possession of heroin and a firearm in furtherance of a drug trafficking crime. His prior felony conviction makes it unlawful for him to possess a firearm.
The law provides for a maximum total sentence of not more than 30 years in prison, a fine of $1.5 million or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendants. The defendant is currently being detained at Allegheny County Jail
Assistant United States Attorney Michael R. Ball is prosecuting this case on behalf of the government.
The Drug Enforcement Administration 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.
U.S. Attorney’s Office, FBI and ADL to Host Discussion on Hate Crimes, Hate Incidents and Discrimination Against Asian AmericansRead the Press Release
LOS ANGELES – The United States Attorney’s Office, along with the FBI’s Los Angeles Field Office and the Anti-Defamation League, will host a virtual discussion on Thursday, April 22, to explain how the federal government investigates and works to combat hate crimes and discrimination, including against the Asian-American and Pacific Islander community. The event will be open to the public on the WebEx platform, and pre-registration is required.
Assistant United States Attorneys will provide information on the legal framework of criminal and civil investigations into hate crimes and discrimination. The prosecutors are expected to discuss the distinction between hate crimes and hate speech, alternatives to prosecution, civil enforcement of civil rights statutes, and an overview of a hypothetical criminal hate crime investigation from complaint to conviction.
Representatives from the FBI will discuss hate crime statistics, local hate crime investigations and the FBI’s collaboration with local partners. The event will also include speakers from the Anti-Defamation League and the Department of Justice’s Community Relations Service will discuss their respective roles in interfacing with the community and stakeholders to monitor and address acts of hate locally and nationally.
The event, called “Federal Responses to AAPI Hate in the Central District of California: Awareness, Civil Actions & Criminal Enforcement,” will include time for questions and answers from the public.
The event announcement is available in English, Korean, Chinese, Tagalog, and Vietnamese. Anyone interested in attending the discussion should register here. Translation services will be available for this event upon request.
“With this program, we hope to continue working with our partners to empower the community with more knowledge about reporting hateful acts and how authorities investigate those reports. Everyone should be free from violence, threats and discrimination based on race or national origin,” said Acting United States Attorney Tracy L. Wilkison. “I encourage anyone with knowledge of discrimination, hate incidents and hate crimes to report them immediately.”
“The FBI is committed to investigating federal hate crimes and protecting the civil rights of Asian Americans and Pacific Islanders,” said Kristi K. Johnson, Assistant Director in Charge of the FBI Los Angeles Division. “Violent acts motivated by bias are not only an attack on the victim, but also threaten and intimidate an entire community and are contrary to our values of equality for all Americans.”
“For over 100 years, ADL has fought against hatred and bigotry of all kinds. ADL wrote the model hate crimes legislation that has now been adopted in 47 states and the District of Columbia, as well as the federal hate crimes statute,” said ADL Deputy Regional Director Ariella Loewenstein. “Hate crimes are message crimes telling victims that they are not safe or welcome in their communities. It is incumbent upon all of us to send a countervailing message of inclusivity and safety for all. We are participating in this important program, along with our federal partners, to show that hate targeting one group is hate targeting all of us, and it will not be tolerated locally or nationally.”
The U.S. Attorney’s Office, the FBI and other partners strongly encourage anyone who has knowledge or information concerning any hate crime or incident involving bias or discrimination on the basis of race, national origin, religion, disability, gender, gender identity, sexual orientation or any other factor prohibited by federal law to report it to the FBI. The FBI’s Los Angeles Field Office can be reached 24 hours a day at (310) 477-6565. Reports also can be made online at https://tips.fbi.gov/. The FBI handles complaints in multiple languages.
Individuals with knowledge or information concerning discrimination based on the above factors in places of public accommodation, housing, lending, education, employment, voting or any other factor prohibited by federal law should file a complaint with the United States Attorney’s Office by calling (213) 894-2879, emailing [email protected] or submitting this form. The U.S. Attorney’s Office is equipped to handle complaints in more than 70 languages.
U.S. Attorney’s Office warns scammers are ‘spoofing’ the office phone number to try to obtain money or personally identifying informationRead the Press Release
Seattle – The U.S. Attorney’s Office Western District of Washington has seen a recent increase in phone calls that “spoof,” or fake, the U.S. Attorney’s Office main phone number, so the call appears to originate from the office on the recipient’s caller ID. Fraudulent callers pose as a “Justice Department investigator.” The scammers attempt to use a fake name and nonexistent case number to trick the victim. The fraudsters have demanded money claiming it is “attorney fees” to resolve the case. In some instances, the scammers appear to have some personally identifiable information on the victim or have reviewed social media posts for information that makes their spiel sound credible.
Law enforcement defines this type of scam as government impersonation fraud, in which criminals impersonate government officials. The criminals often threaten to extort victims with physical or financial harm. Scammers are becoming more sophisticated and organized in their approach, are technologically savvy, and often target young persons and the elderly.
The U.S. Attorney’s Office staff will never ask for money or personally identifying information over the phone.
According to the Internet Crime Complaint Center (IC3), 12,334 people reported being victims of government impersonation scams in 2020, with losses totaling more than $106 million. In Washington State in 2020, 358 victims reported $2 million in losses. Since January 1, 2021, 106 victims have already reported $777,045 in losses in Washington State. To protect yourself from falling victim to this scam, be wary of answering phone calls from unrecognized numbers. Do not send money to anybody that you do not personally know and trust. Never give out your personal information, including banking information, Social Security number, or other personally identifiable information, over the phone or to individuals you do not know.
Anyone who feels they were the victim of this or any other online scam should report the incident immediately using the IC3 website at www.ic3.gov. More information about government impersonation schemes and other online fraud schemes can be found at https://www.fbi.gov/scams-and-safety/common-fraud-schemes.
Two Texas Men Charged with Dealing CocaineRead the Press Release
PITTSBURGH - Two residents of Texas have been indicted by a federal grand jury in Pittsburgh, Pennsylvania on charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The two-count Indictment named Felipe Ramos, age 41, and Ruben David Apellaniz-Figueroa, age 38, as co-defendants.
According to the Indictment, in March 2021, Ramos and Apellaniz-Figueroa possessed and conspired to distribute a mixture and substance containing 500 grams or more of cocaine, a Schedule II controlled substance.
The law provides for a maximum total sentence of not less than five years in prison, a fine of not more than $5,000,000.00, a term of supervised release of at least 4 years, or a combination thereof. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert C. Schupansky 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.
Two Senior Managers in Italy Charged with Conspiracy to Cheat U.S. Emissions Tests and Defraud U.S. ConsumersRead the Press Release
An indictment was unsealed today in the Eastern District of Michigan charging two Italian nationals, along with a previously charged co-conspirator, for their alleged role in a conspiracy to defraud U.S. regulators and customers by making false and misleading statements about the emissions controls and fuel efficiency of more than 100,000 diesel vehicles sold in the United States by FCA US LLC.
According to court documents, Sergio Pasini, 43, of Ferrera, Italy, and Gianluca Sabbioni, 55, of Sala Bolognese, Italy, two senior diesel managers at Fiat Chrysler Automobiles Italy S.p.A. (FCA Italy), a wholly owned subsidiary of Stellantis N.V. — along with a previously charged co-conspirator, Emanuele Palma, 42, of Bloomfield Hills, Michigan — were responsible for developing and calibrating the 3.0-liter diesel engine used in certain FCA diesel vehicles. Their responsibilities included calibrating several software features in the vehicles’ emissions control systems to meet emissions standards for nitrogen oxides (NOx), a family of poisonous gases that are formed when diesel fuels are burned at high temperatures, while also achieving best-in-class fuel efficiency targets set by FCA US LLC.
The superseding indictment alleges that Palma, Pasini, Sabbioni, and their co-conspirators, purposely calibrated the emissions control functions to produce lower NOx emissions under conditions when the subject vehicles would be undergoing testing on the federal test procedures or driving “cycles,” and higher NOx emissions under conditions when the subject vehicles would be driven in the real world. Palma, Pasini, Sabbioni, and their co-conspirators allegedly referred to the manner in which they manipulated one method of emissions control as “cycle beating.” As alleged, by calibrating the emissions control functions on the subject vehicles to produce lower NOx emissions while the vehicles were on the driving “cycle,” and higher NOx emissions when the vehicles were off the driving “cycle,” or “off cycle,” the three defendants purposely misled FCA’s regulators by making it appear that the subject vehicles were producing less NOx emissions than they were, i.e., in real world driving conditions. Palma, Pasini, and Sabbioni also allegedly made and caused others to make false and misleading representations to FCA’s regulators about the emissions control functions of the subject vehicles in order to ensure that FCA obtained regulatory approval to sell the subject vehicles in the United States.
The superseding indictment also alleges that Palma, Pasini, and Sabbioni employed “cycle beating” to achieve best-in-class fuel efficiency and make the subject vehicles more attractive to FCA’s potential customers, i.e., by increasing fuel economy and reducing the frequency of a required emissions control system service interval. The superseding indictment alleges that the co-conspirators understood their “cycle beating” calibration would harm consumers who purchased the vehicle, leading them to acknowledge that “there will always be the unlucky customer who will have the misfortune of using our loser cal[ibration].”
Pasini and Sabbioni are each charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, and six counts of violating the Clean Air Act. If convicted, Pasini and Sabbioni each face up to five years in prison on the conspiracy count to defraud the United States and to violate the Clean Air Act, up to 20 years in prison on the conspiracy count to commit wire fraud, and up to two years in prison for each count of violating the Clean Air Act. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Palma is charged with one count of conspiracy to defraud the United States and to violate the Clean Air Act, one count of conspiracy to commit wire fraud, six counts of violating the Clean Air Act, and two counts of making false statements to representatives of the FBI and the U.S. Environmental Protection Agency’s Criminal Investigation Division (EPA-CID). If convicted, Palma faces up to five years in prison on the conspiracy count to defraud the United States and to violate the Clean Air Act, up to 20 years in prison on the conspiracy count to commit wire fraud, up to two years in prison for each count of violating the Clean Air Act, and up to five years in prison for each count of making false statements. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting Principal Deputy Assistant Attorney General Kevin O. Driscoll of the Justice Department’s Criminal Division; Acting U.S. Attorney Saima S. Mohsin of the U.S Attorney’s Office for the Eastern District of Michigan; Acting Assistant Attorney General Jean E. Williams of the Justice Department’s Environment and Natural Resources Division (ENRD); Special Agent in Charge Timothy Waters of the FBI’s Detroit Field Office; and Special Agent in Charge Lance Ehrig of the EPA-CID’s West-Central Region made the announcement.
Principal Assistant Chief Henry P. Van Dyck and Trial Attorneys Kyle W. Maurer and Jason M. Covert of the Criminal Division’s Fraud Section, ENRD Senior Trial Attorney Todd W. Gleason, and Assistant U.S. Attorneys John K. Neal and Timothy J. Wyse for the Eastern District of Michigan are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Two Plead Guilty to Federal Drug ChargesRead the Press Release
HUNTINGTON, W.Va. – Two defendants pleaded guilty to federal drug charges today before United States District Judge Robert C. Chambers.
Travis Lee Cloninger, 30, of Huntington, pleaded guilty to an Information charging him with possession with intent to distribute 50 grams or more of methamphetamine. According to the plea agreement and statements made in court, law enforcement officers executed a search warrant at Cloninger’s Wayne County home on June 5, 2019 and seized 340 grams of methamphetamine and 453 grams of heroin. Cloninger admitted that he intended to sell the methamphetamine and heroin. Cloninger faces at least five years and up to 40 years in federal prison when he is sentenced on July 19, 2021. The Drug Enforcement Administration (DEA), the Violent Crime and Drug Task Force West, and the Wayne County Sheriff’s Department conducted the investigation. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
In a separate case, Tuniesia Monique Adams, 43, of Detroit, Michigan, pleaded guilty to possession with intent to distribute oxycodone. Adams was indicted by a federal grand jury in April 2017. According to the plea agreement and statements made in court, on November 29, 2016 Adams transported 382 30mg oxycodone pills from Detroit to Fort Gay in Wayne County where she intended to sell the pills with the help of another individual. When Adams met with the individual, they were approached by law enforcement officers who discovered and seized the pills. Adams admitted that she intended to sell the pills and that she had made previous trips from Detroit to sell pills in Wayne County. Adams faces up to 20 years in federal prison when she is sentenced on July 19, 2021. The Drug Enforcement Administration (DEA) conducted the investigation with assistance from the Wayne County Sheriff’s Department and the Huntington Police Department. Assistant United States Attorney Joseph F. Adams is handling 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 Nos. 3:21-cr-00044 (Cloninger) and 3:17-cr-00059 (Adams).
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Two Companies and Nine Individuals Indicted for Alleged Large-Scale Visa Fraud Employment SchemeRead the Press Release
An indictment returned by a federal grand jury in the Southern District of Georgia has been unsealed charging two businesses and nine of their officers and managers located across the country for their roles in an alleged conspiracy to defraud the U.S. government and commit various fraud and criminal immigration offenses for profit.
According to court documents, Regal Hospitality Solutions, LLC; Educational World, Inc.; Karen Makaryan, 42, Sargis Makaryan, 42, and Samvel Nikoghosyan, 40, of Destrehan, La.; Artur Grigoryan, 38, of Biloxi, Miss.; Armen Ayrapetyan, 37, of Duluth, Ga.; Jason Hill, 28, of Virginia Beach, Va.; Fremie Balbastro, 49, of Myrtle Beach, S.C.; and Larisa Khariton, 73, and Jon Clark, 71, of North Port, Fla., were charged in a 36-count indictment returned by a federal grand jury on April 8. Each defendant was charged with one count of conspiracy to defraud and commit offenses against the United States, including encouraging and inducing an alien to reside in the United States, alien harboring, transporting aliens, and visa fraud. Each defendant also was charged with substantive counts of encouraging and inducing an alien to reside in the United States, alien harboring, and transportation of aliens. In addition, Regal Hospitality Solutions, LLC; Karen Makaryan; Sargis Makaryan; Samvel Nikoghosyan; Artur Grigoryan; Armen Ayrapetyan; Fremie Balbastro; and Jason Hill were also charged with one count of conspiracy to commit wire fraud and 10 counts of wire fraud.
“The defendants in this case allegedly engaged in an expansive conspiracy to enrich themselves by exploiting both the immigration system and noncitizen workers,” said Acting Assistant Attorney General Nicholas L. McQuaid of the Justice Department’s Criminal Division. “Systemic fraud and abuse of U.S. visa programs and processes designed to protect American workers and businesses will not be tolerated, and offenders will be held accountable.”
“Hospitality venues often struggle with finding workers, and in recent years that has been an even greater challenge,” said Acting U.S. Attorney David H. Estes for the Southern District of Georgia. “Agencies that provide workers can be exceptionally helpful in such circumstances – but they must provide that assistance in accordance with the law. In this case, businesses in St. Simons Island were among those allegedly exploited along with the illegally provided workers.”
“The Department’s Bureau of Educational and Cultural Affairs aims to increase mutual understanding between the people of the United States and the people of other countries by means of educational and cultural exchange,” said Acting Assistant Inspector General for Investigations Robert Smolich of the U.S. Department of State, Office of Inspector General, Office of Investigations. “When bad actors corrupt these programs for personal gain, it not only diminishes an important tool of diplomacy, it harms the thousands of individuals who participate in these programs hoping to gain skills and experience to make a better life. Today we took a step forward in restoring integrity back to those programs.”
“These defendants’ alleged scheme to game the immigration system and defraud the government has backfired and they will now be held accountable,” said Special Agent in Charge Katrina W. Berger of Homeland Security Investigations (HSI), Georgia and Alabama. “Schemes like this not only exploit the noncitizen workers involved, they also damage the other legitimate businesses in the community. Protecting the integrity of the visa program and immigration system is vital to the security of our nation.”
According to the indictment, from an unknown date through at least May 2017, the individual defendants enriched themselves by participating in a scheme to recruit and hire noncitizen laborers without authorization to work for defendant Regal Hospitality Solutions, LLC (RHS). RHS allegedly entered into contracts to provide hospitality-related businesses with lawful laborers to work in housekeeping, retail, and food service positions. To fill those positions, RHS defendants hired noncitizens who were not authorized to work for RHS in the United States. In some cases, the RHS defendants arranged for and provided housing and transportation to the workers.
The defendants and other co-conspirators also allegedly encouraged and induced noncitizen laborers on expiring and expired J-1 exchange visitor visas to obtain B-2 tourist visas and to work in the United States for RHS, knowing that employing such laborers on B-2 visas was illegal. Educational World, Inc. (Ed World) – a visa preparation company – and the Ed World defendants, after charging noncitizen laborers approximately $650 per application, prepared and submitted applications for B-2 visas on behalf of the workers, which contained false and misleading statements designed to indicate that the noncitizens intended to obtain the B-2 visa for the purpose of engaging in tourism and that the noncitizens were complying with United States immigration laws. In fact, the Ed World defendants knew that those noncitizens were already present in and intended to stay in the United States for employment, not tourism.
The indictment further alleges that the Ed World defendants submitted petitions for H-2B temporary work visas that contained false and misleading information about the location where noncitizen laborers allegedly were to be employed. RHS paid a commission to Ed World for noncitizens Ed World recruited to work for RHS, including those who were not authorized to work for RHS in the United States.
According to the indictment, RHS and the RHS defendants also made false and misleading representations that RHS would staff positions at the hospitality establishments contracting with RHS only with laborers who were legally authorized to work for RHS in the United States.
Individual defendants have made their initial court appearances and the arraignment of all defendants will be scheduled before U.S. Magistrate Judge Benjamin W. Cheesbro of the U.S. District Court for the Southern District of Georgia. If convicted, the individual defendants face maximum potential statutory penalties of five years in prison on the count of conspiracy to defraud and commit offenses against the United States; 10 years in prison on the counts of encouraging and inducing an alien to reside in the United States, alien harboring, and transportation of aliens; and 20 years in prison on the counts of wire fraud conspiracy and substantive wire fraud. The organizational defendants are subject to a maximum fine on each count of conviction of $500,000 or twice the gross amount of gain or loss resulting from the offense. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Department of State Office of Inspector General is investigating the case with assistance provided by HSI and U.S. Citizenship and Immigration Services.
Trial Attorneys Frank Rangoussis and John-Alex Romano of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Alejandro V. Pascual IV of the Southern District of Georgia are prosecuting the case.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Three Brothers Plead Guilty to Conspiracy Charge for Attempting to Steal Guns from FFLsRead the Press Release
PITTSBURGH – Three brothers residing in Pittsburgh, Pennsylvania, pleaded guilty in federal court to a charge of conspiracy to commit an offense against the United States, United States Attorney Stephen R. Kaufman announced today.
Jerwahn Atkins, 24, Jerquay Atkins, 23, and Jamir Atkins, 22, each pleaded guilty to one count before United States District Judge W. Scott Hardy on April 16, 2021, April 19, 2021 and April 20, 2021, respectively.
In connection with the guilty pleas of the three brothers, the court was advised that the Atkins brothers conspired to steal firearms from a federal firearm licensee, Allegheny Arms and Gun Works, on the night of May 30, 2020. The Atkins’s used a crowbar in an attempt to gain entry to the gun store, which triggered a burglary alarm. This alarmed caused the brothers to run away to which Jerquay and Jerwahn left the scene in the same vehicle while Jamir departed in a separate vehicle, not arriving at the next crime scene. Jamir Atkins and Jerwahn Atkins then drove to the National Armory in Moon Township, also a federal firearm licensee. On May 31, 2020, a crowbar was again used to pry open the door triggering the burglary alarm causing the two brothers to flee once more.
Judge W. Scott Hardy scheduled sentencing for Jamir Atkins on August 26, 2021 at 10:00 a.m., Jerquay Atkins on August 25, 2021 at 10:00 a.m., and Jerwahn Atkins on August 24, 2021 at 10:00 a.m. The law provides for a total sentence of not more than five years’ imprisonment, a term of supervised release not more than three years, and/or a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Pending sentencing, the court remanded Jerwahn and Jerquay Atkins to the custody of the United States Marshals Service. Jamir Atkins was continued on bond pending sentencing.
Assistant United States Attorney Brendan J. McKenna is prosecuting this case on behalf of the government.
The Alcohol, Tobacco, Firearms, and Explosives conducted the investigation that led to the prosecution of Jerwahn Atkins, Jamir Atkins and Jerquay Atkins.