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Monday 12 April 2021
Pine Ridge Man Receives 35-Year Sentence for Second Degree MurderRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Pine Ridge, South Dakota, man convicted of Second Degree Murder was sentenced by Jeffrey L. Viken, U.S. District Court.
Ricky Bagola, age 34, was sentenced on April 6, 2021, to 35 years in federal prison, followed by 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund for each charge.
Bagola was indicted by a federal grand jury in June 2020. On the morning of January 3, 2020, Bagola and two others went to a residence in Pine Ridge to confront an individual about being shorted methamphetamine. Bagola was denied entry into the home by the occupants. Bagola used his .22 caliber firearm to shoot seven rounds into the home, two of which struck and killed the victim.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Bagola was immediately turned over to the custody of the U.S. Marshals Service.
Phony Immigration Attorney Who Filed Hundreds of Fraudulent Asylum Applications Sentenced to More Than 20 Years in Federal PrisonRead the Press Release
Tampa, Florida – Senior U.S. District Judge Virginia M. Hernandez Covington today sentenced Elvis Harold Reyes (56, Brandon, Florida) to 20 years and 9 months in federal prison for mail fraud and aggravated identity theft in connection with a scheme where he posed as an immigration attorney and filed hundreds of fraudulent asylum applications. The Court deferred consideration of victim restitution to a later date.
Reyes had pleaded guilty on December 15, 2020.
According to court documents, Reyes, who owned and operated EHR Ministries Inc., portrayed himself as an immigration attorney. He is not and has never been a licensed attorney. Reyes targeted undocumented immigrants from Spanish-speaking countries who were seeking Florida driver licenses and work authorization. Reyes gave false, inaccurate, and incomplete legal and immigration advice to victims in order to induce them to retain his services and those of EHR Ministries.
Victims retained and paid Reyes to represent them in immigration-related matters before U.S. Citizenship and Immigration Services (USCIS) and other agencies. Reyes filed fraudulent immigration applications in the victims’ names, seeking asylum relief and withholding-of-removal protections provided for under the United Nations Convention Against Torture. In doing so, Reyes falsified answers to questions in the asylum applications—fabricating stories about threats, persecution, and the applicants’ fear of returning to their native countries. Reyes did not inform the victims of the answers that he had provided on their behalf. He also did not inform the victims about the legal, administrative, and other immigration-related consequences that might follow from filing for asylum relief or for Convention Against Torture protection.
Reyes filed more than 225 fraudulent applications, intending to cause victim loss of more than $1 million. His victims’ actual losses exceeded $411,000. Reyes spent the criminal proceeds on, among other things, travel, luxury shopping, spas, jewelry, beautification/anti-aging procedures, and an allowance for his girlfriend.
Reyes threatened aggrieved victims who confronted him by claiming that he could have them deported. And, when investigative reporting revealed Reyes’s scheme, he attempted to obstruct justice by having a friend wipe his computers.
“Posing as an immigration attorney, Reyes targeted hundreds of vulnerable people in the Tampa community with his immigration scam,” said USCIS Tampa District Director Michael Borgen. “USCIS is committed to finding and stopping those who want to cheat the immigration system, and preserving it for those who qualify for immigration benefits.”
“This criminal defrauded hundreds of victims who thought they were starting a path to legal citizenship,” said HSI Tampa Assistant Special in Charge Michael Cochran. “Identity and benefit fraud are crimes that threaten the national security and public safety of the U.S. by creating vulnerabilities to our legal immigration system. Thanks to HSI special agents, and our partners with U.S. Citizenship and Immigration Services and Hillsborough County Sheriff’s Office, he will now be held accountable for his crimes.”
“It is appalling that Elvis Reyes was preying on vulnerable individuals living in fear within our county,” said Hillsborough County Sheriff Chad Chronister. “I am proud of our detectives, who thoroughly investigated claims made by each victim, and our diligent efforts to reach undocumented members of our community through both English and Spanish PSAs, encouraging them to come forward if they were taken advantage of by Mr. Reyes. I am confident that these efforts ultimately helped lead to a conviction.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations, the United States Citizenship and Immigration Service, and the Hillsborough County Sheriff’s Office. It was prosecuted by Assistant United States Attorney Frank Murray.
Operation Second Wave Update: Columbus Man Pleads Guilty to Methamphetamine ConspiracyRead the Press Release
CHARLESTON, W.Va. – A Columbus, Ohio man pleaded guilty today to conspiracy to distribute methamphetamine. Rashawn Akmed Miller, 37, was one of 14 defendants charged as a result of a long-term investigation known as “Second Wave,” which dismantled a poly-drug network operating in Kanawha and Fayette counties.
According to the plea agreement and statements made in court, Miller brokered a deal between a Columbus, Ohio supplier and Jason Michael Terrell along with Roger Jarea Drake. Terrell and Drake traveled from Kanawha County to Columbus where Miller introduced them to the supplier who sold them approximately two pounds of methamphetamine. Terrell and Drake returned to West Virginia where they distributed the methamphetamine.
Miller faces between five and forty years in prison when he is sentenced on July 27, 2021.
Other defendants, including Carol Belton, Jimmie Coleman, Sammy Joe Fragale, Sr., Sammy Joe Fragale II, Larry Martin, and Jason Terrell have pled guilty and are awaiting sentencing. Gregory Woods was sentenced to 184 months in federal prison on February 8, 2021. Steven Matthew Bumpus, Roger Jarea Drake, Craig Redman, Tonya Simerly, and Ronald Lee Thomas III are scheduled for trial on June 1, 2021.
The Federal Bureau of Investigation (FBI), the Central West Virginia Drug Task Force (CWVDTF), the Kanawha County Sheriff’s Department, the Charleston Police Department, the United States Postal Inspection Service (USPIS) and the Metropolitan Drug Enforcement Network Team (MDENT) conducted the investigation with assistance from the Drug Enforcement Administration (DEA), who led the investigation of Sammy Joe Fragale, Sr., and Sammy Joe Fragale II, also prosecuted as part of the Second Wave investigation. Senior United States District Judge David A. Faber presided over the hearing. Assistant United States Attorney Joshua C. Hanks 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. 2:21-cr-00045 (Miller), 2:20-cr-00153 (Woods), and 2:20-cr-00154 (Terrell et al).
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Oklahoma City Man Sentenced to Serve 52 Months in Federal Prison for Bank RobberyRead the Press Release
OKLAHOMA CITY – Today, JOHNELLE FABRE SHELLS, 31, of Oklahoma City, was sentenced to serve 52 months in federal prison for bank robbery, announced Acting U.S. Attorney Robert J. Troester.
On September 17, 2019, a federal grand jury returned a one-count Indictment charging Shells with the robbery of a branch of MidFirst Bank, located at 2225 N. May Avenue, in Oklahoma City.
According to public record and court documents, Shells entered the bank on May 21, 2018. He handed the teller a demand note requesting she give him all the cash in the drawer, and she complied. Later that day, Oklahoma City Police Department arrested Shells in possession of the stolen cash. On October 24, 2019, Shells pleaded guilty to the Indictment.
Today, U.S. District Judge Scott L. Palk sentenced Shells to serve 52 months in federal prison, followed by three years of supervised release. In imposing the sentence, Judge Palk noted the nature and circumstances of the offense and the need for the sentence to reflect the seriousness of the offense.
This case is the result of an investigation by the Federal Bureau of Investigation’s Oklahoma City Field Division and the Oklahoma City Police Department. Former Assistant U.S. Attorney Ed Kumiega and Deputy Criminal Chief Lori Hines prosecuted the case.
Reference is made to court filings for further information.
Newaygo Man Charged with Possession of Destructive DevicesRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced that David Robert-Daniel Saylor, Sr., a resident of Newaygo, Michigan was indicted and charged with multiple federal offenses, including possession of destructive devices and possession of a stolen firearm.
The indictment alleges that on or about March 8, 2021, Saylor possessed in Newaygo County two different improvised explosive devices. One device is described colloquially as a “pipe bomb.” The other is described as “an improvised explosive consisting of a brass fitting wrapped in tape that contained an explosive material.” Neither device was registered to Saylor, as required by federal law. The indictment includes a forfeiture allegation that explains the explosive devices were seized on March 8 and that Saylor must permanently forfeit them to the federal government if he is convicted. Saylor is also charged with possessing on that same date a firearm, specifically a Berretta .22 caliber rifle, knowing that it had been stolen from its lawful owner. Each of the three charges is punishable by up to 10 years’ imprisonment.
The charges in the indictment are merely accusations and are not evidence of guilt. David Saylor Sr. is presumed innocent unless and until proven guilty in a court of law. The government has the burden of proving guilt beyond a reasonable doubt.
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New Castle Woman Indicted on Multiple Drug CountsRead the Press Release
PITTSBURGH - A resident of New Castle, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics laws, Acting United States Attorney Stephen R. Kaufman announced today.
The four-count Indictment, returned on April 7 and unsealed today, named Deia Eggleston, age 46, as the sole defendant.
According to the Indictment, from January 2017 through May 2019, Eggleston conspired with individuals known and unknown to possess with the intent to distribute and distribute Schedule I and Schedule II substances, including acetyl fentanyl, fentanyl, crack cocaine, heroin and cocaine. The Indictment further alleges that on May 3, 2019 and May 13, 2019, Eggleston aided and abetted others known and unknown to possess with the intent to distribute the previously named controlled substances. The Indictment further alleges that from January 2017 through May 2019, Eggleston did manage and control a place, that is, her Bleakley Avenue residence, in New Castle, Pennsylvania, as an occupant and did intentionally and knowingly make that residence available for the use and for the purpose of unlawfully manufacturing, storing, and distributing controlled substances.
The law provides for a maximum total sentence of not less than ten years to a maximum of life in prison, a fine of $35,000,000 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, if any, of the defendant.
Assistant United States Attorney Brendan T. Conway is prosecuting this case on behalf of the government.
A federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) conducted the investigation leading to the Indictment in this case. The task force is headed by the Drug Enforcement Administration and is comprised of members drawn from the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Lawrence County Drug Task Force, Pennsylvania Office of Attorney General, Borough of Baldwin Police Department, McKees Rocks Police Department, Munhall Police Department, Allegheny County Sheriff’s Office, Pittsburgh Bureau of Police, and the Pennsylvania State Police. The Lawrence County Drug Task Force and the New Castle Police Department also participated in the investigation.
This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Nebraska Man Sentenced for Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Gordon, Nebraska, man convicted of Sexual Abuse of a Minor was sentenced by Jeffrey L. Viken, U.S. District Court.
Aaron Wade, age 48, was sentenced on April 6, 2021, to 46 months in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for each charge.
Wade was indicted by a federal grand jury in January 2019. The charge related to Wade sexually abusing a juvenile female in 2017 at Pine Ridge.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Wade was immediately turned over to the custody of the U.S. Marshals Service.
Mullins Man Sentenced to over Six Years in Federal Prison on Gun ChargeRead the Press Release
Florence, South Carolina --- Acting United States Attorney M. Rhett DeHart announced today that Robert Anton Warren, 26, of Mullins, was sentenced to over six years in federal prison after pleading guilty to possessing a firearm and ammunition as a felon.
Evidence presented to the court showed that on October 13, 2019, a sergeant with the Mullins Police Department was patrolling the area of Academy Street in Mullins when he saw a car that had no tag lights on the license plate. The sergeant initiated a traffic stop and made contact with the driver, who only had a beginner’s permit and had no licensed driver in the car. The sergeant also noticed that the expiration date on the tag was incorrect and appeared to have been altered. The sergeant issued the driver citations and asked the driver and passenger, Robert Warren, to step out of the car. Because the car was not registered, the sergeant proceeded with having the car towed. During an inventory of the car, the sergeant located an extended magazine with seven rounds of 9mm ammunition under the passenger seat where Warren had been sitting. The sergeant conducted a pat-down of Warren for weapons but did not locate any. Another officer who had arrived on scene to assist attempted to detain Warren, and Warren ran. After Warren ran, officers located a 9mm handgun in the grass in a nearby ditch. The firearm had one round in the chamber. Warren is prohibited from possessing firearms and ammunition based on his prior convictions for strong arm robbery and possession of a stolen pistol.
Chief United States District Judge R. Bryan Harwell sentenced Warren to 78 months in federal prison, to be followed by 36 months of court-ordered supervision. There is no parole in the federal system.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Mullins Police Department, and the Marion County Combined Drug Unit. Assistant United States Attorney Lauren Hummel prosecuted the case.
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Meth and Cocaine Distribution Leader known as “Picasso” SentencedRead the Press Release
Indianapolis – Acting U.S. Attorney John E. Childress announced today that Kenyatta Ray, 43, Indianapolis, was sentenced to 278 months in federal prison by U.S. District Judge James R. Sweeney for conspiracy to distribute methamphetamine and conspiracy to launder monetary instruments.
“The violence and social devastation that methamphetamine brings to our communities is a problem that law enforcement must address.” said Childress. “In addition to illegal drugs, our communities have suffered too much violence at the hands of felons in possession of firearms. Preventing violent crime through dismantling drug trafficking organizations and taking guns out of the hands of those unable to possess a firearm, remains a top priority of my office and I will use every available federal resource to help keep our communities safe.”
Starting in February 2019, federal agents began investigating an Indianapolis based methamphetamine and cocaine distribution organization. Throughout the investigation it was determined that a part time tattoo artist named Kenyatta Ray a.k.a. Picasso was the leader, John Michael Griffin and others transported the methamphetamine and other illegal drugs to Indianapolis to be distributed, and Amanda Rodriguez, as well as Ray were the ones who delivered the illegal drugs to the customers.
Ray would be contacted, usually by phone, and a certain amount of methamphetamine and or other illegal drugs were requested. Then Ray and or Rodriguez would meet the buyer at a predetermined location and deliver the illegal drugs to the buyer. On several occasions the buyer would be an undercover federal agent.
In July 2019, agents conducted search warrants at the residence where Ray was staying, the tattoo shop where Ray worked part time, and at Rodriguez’s residence in Indianapolis. During those searches, multiple firearms belonging to Ray were discovered as well as illegal drugs and other items associated with drug trafficking. The investigation also confirmed that Ray was laundering illegal drug proceeds by having them wired to his California based source of drug supply.
Ray has a lengthy criminal history which includes eight felony drug convictions in both Indianapolis and Los Angeles, California, as well as felony firearms convictions in both cities (to include Assault with a Firearm in Los Angeles).
Ray’s accomplices, Amanda Rodriguez and John Michael Griffin have already been sentenced.
- Rodriguez sentenced to 64 months in federal prison, followed by two years’ supervised release.
- Griffin sentenced to 168 months in federal prison, followed by five years’ supervised release.
This case was investigated by the DEA, IRS-Criminal Investigation, Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Indianapolis Metropolitan Police Department.
DEA Assistant Special Agent in Charge, Michael Gannon said, “Operation Picasso was a perfect example of how local, federal and state law enforcement partners collaborated at the highest possible levels and crushed a violent drug trafficking organization operating out of central Indiana. DEA and our partners remain committed to keeping our communities safe and holding drug traffickers like Mr. Ray accountable for trying to destroy our communities with debilitating drugs like methamphetamine.”
“The sentencing of Kenyatta Ray is a decisive blow against the spread of methamphetamine in the community,” said Tamera Cantu, Acting Special Agent in Charge, IRS Criminal Investigation Chicago Field Office. “All financial transactions leave a trail and our special agents have the unique expertise to follow those leads. IRS Criminal Investigation was proud to provide this financial expertise as we worked alongside our law enforcement partners and bring these brutal criminals to justice."
“Ray and his associates have a demonstrated history of poisoning our communities with drugs and violence,” stated Roland H. Herndon, Jr., Special Agent in Charge for ATF’s Columbus Field Division. “ATF and our partners will continue to target the sources of criminal activity for investigation and prosecution. We will not give up and we will continue to work to ensure that anyone who is using a firearm to further their criminal enterprise, especially those who are prohibited from possessing a gun, are brought to justice.”
According to Assistant U.S. Attorneys Michelle Brady, who prosecuted this case for the government, Ray must pay a $2500 fine and will serve 10 years supervised released after his imprisonment.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.
In November of 2020, Acting United States Attorney John E. Childress renewed a Strategic Plan designed to shape and strengthen the District’s response to its most significant public safety challenges. This prosecution demonstrates the Office’s enduring commitment to investigate and prosecute more organizations that supply and distribute methamphetamine and/or heroin in the district See United States Attorney’s Office, Southern District of Indiana Strategic Plan Section 3.1.
Manufacturer Sentenced for Conspiring to Manufacture and Sell Counterfeit GoodsRead the Press Release
PROVIDENCE – A Brooklyn, NY, businessman who admitted to arranging the manufacture of counterfeit clothing, apparel, and gear, in China and Pakistan, that was shipped to wholesalers for distribution in the United States, including to the United States military, has been sentenced to 18 months in federal prison and ordered to pay a $15,000 fine.
Bernard Klein, 40, conspired with New York wholesaler Ramin Kohanbash, 51, to arrange the mass production of goods in China and Pakistan that carried counterfeit markings and labels identical to genuine trademarks registered with the U.S. Patent and Trademark Office.
According to court documents, Klein was provided samples of genuine clothing, apparel, and gear by Kohanbash, for reverse engineering in China. Prior to the approval of mass production of the counterfeit goods, Klein provided a preproduction sample of the counterfeit and falsely labeled goods to Kohanbash, and Klein emailed photographs of the counterfeit goods, as well as false hangtags and labels, to Kohanbash for approval. After making changes ordered by Kohanbash, Klein facilitated the manufacturing of goods that contained counterfeit markings identical to genuine marks registered with the U.S. Patent and Trademark Office. During the course of the conspiracy, Kohanbash paid Klein $10.9 million dollars for the counterfeit and falsely labeled goods.
Among the counterfeit items produced in China and Pakistan, and shipped to Kohanbash in the United States for distribution, were counterfeit FREE® hoods, counterfeit Polartec® fleece shirts, counterfeit United Joint Forces® Multicam® APEC parkas, and Gen III Level 7 parkas bearing counterfeit Primaloft® and ADS® hangtags. The FREE® hoods were falsely labeled as meeting flame resistance standards, when in fact they lacked such safety features. Likewise, the Multicam® APEC parkas lacked the important near-infrared signature management technology designed to make the wearer more difficult to detect with equipment such as night-vision goggles. Klein and Kohanbash instructed the Chinese factories on how to package the counterfeit goods and to affix removable “Made in China” stickers to avoid detection by U.S. Customs.
Klein pleaded guilty on August 26, 2020, to conspiracy to commit mail fraud. He was sentenced on April 9, 2021, by U.S. District Court Judge William E. Smith to 18 months in federal prison to be followed by three years of federal supervised release, and ordered to pay a fine of $15,000, together with restitution to be determined at a later date.
In tandem with the criminal case, Klein also entered into a civil settlement agreement under which he has paid $348,000 to resolve liability to the United States under the federal False Claims Act for goods sold to certain government purchasers.
Klein’s sentence is announced by Acting United States Attorney Richard B. Myrus; Patrick Hegarty, Special Agent-in-Charge of Defense Criminal Investigative Service, Northeast Field Office; Special Agent in Charge Joseph P. Dattoria, General Services Administration Office of Inspector General, New England Regional Investigations Office; Resident Agent in Charge Michael D. Conner, Major Fraud Unit, US Army Criminal Investigation Command; William W. Richards, Special Agent in Charge, Office of Special Investigations, Office of Procurement Fraud Detachment 6, Joint Base Andrews, MD; Homeland Security Investigations Newark, NJ, Special Agent in Charge Jason J. Molina; and Marty C. Raybon, Acting Director of Field Operations, Customs and Border Protection, New York Field Office.
On June 13, 2019, Ramin Kohanbash pleaded guilty to conspiracy to commit wire fraud and trafficking in counterfeit goods. At the time of his guilty plea, Kohanbash admitted that among the items he and others arranged to counterfeit were 200 military parkas of a type used by U.S. Air Force personnel stationed in Afghanistan. These parkas were falsely represented to be genuine Multicam. He is scheduled to be sentenced on May 7, 2021. Kohanbash has separately paid a $694,398 civil False Claims Act settlement arising out of his admitted role in ordering, producing, procuring and selling foreign made products that were intended for sale to government purchasers.
Terry Roe, 48, of Burlington, ND, a manager of a Minot, ND, company that sold uniform items and gear to the United States military and its Base Supply centers, the National Guard, police, and other government agencies, was indicted on September 30, 2020, for his alleged role in the conspiracy. Roe is awaiting trial on charges of conspiracy to commit wire fraud and trafficking in counterfeit goods; mail fraud and aiding and abetting; and trafficking in counterfeit goods and aiding and abetting.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert, Zachary A. Cunha, and Lee H. Vilker.
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Man from Ranchos de Taos sentenced to 12 years in federal prison for carjackingRead the Press Release
ALBUQUERQUE, N.M. – Tranquilino Valencia, 37, of Ranchos de Taos, New Mexico, was sentenced in federal court on April 7 to 12 years in prison for carjacking.
Valencia pleaded guilty on May 28, 2020. According to the plea agreement, on Oct. 13, 2017, Valencia approached a group of campers at the Dalton Canyon Campground in San Miguel County, New Mexico, and carjacked one of the members at gunpoint. Valencia pointed his firearm at the victim and demanded his car keys, wallet and cellphone. Before driving off, Valencia fired a shot over the victim’s head and stole $50 before throwing the wallet out of the car window.
The Albuquerque Field Office of the FBI and the New Mexico State Police investigated this case. Assistant U.S. Attorney Samuel A. Hurtado prosecuted the case.
Man Pleads Guilty to Federal Drug ChargeRead the Press Release
HUNTINGTON, W.Va. – Rafael Starks, 36, of Detroit, Michigan pleaded guilty today to an indictment charging him with aiding and abetting the distribution of heroin. Starks was indicted by a federal grand jury in October 2018.
Starks admitted that on August 1, 2018, he and another individual sold heroin to a confidential informant in the 1100 block of 9th Avenue in Huntington.
Starks faces up to 20 years in federal prison when he is sentenced on July 12, 2021.
The Cabell County Sheriff’s Department conducted the investigation. The plea hearing was held before United States District Judge Robert C. Chambers. Assistant United States Attorney Stephanie S. Taylor is handling the prosecution.
The case was prosecuted as part of Operation Synthetic Opioid Surge (S.O.S.), an enforcement surge that seeks to reduce the supply of deadly synthetic opioids in high impact areas.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:18-cr-00249.
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Man Pleads Guilty to Distributing Fentanyl While Released on Bond in Federal Gun CaseRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that BRIAN VELEZ, also known as “Whites,” 32, formerly of Hartford and West Hartford, pleaded guilty today to distributing fentanyl while released on bond in a federal gun case.
Pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), the court proceeding before U.S. Magistrate Judge Donna F. Martinez occurred via videoconference.
According to court documents and statements made in court, at approximately 10:20 a.m. on November 27, 2018, a car Velez was operating sped away from Hartford Police officers who were attempting to stop the vehicle in Hartford’s South End. Velez parked in a driveway of a residence on Newbury Street and then ran from the car while carrying a duffel bag. After Velez was apprehended, a detective located the duffel bag in Velez’s path of travel. The bag contained a disassembled Ruger AR 556 semi-automatic rifle.
Velez was detained from the date of his arrest until April 2, 2019, when he was released on a $100,000 bond.
In January 2020, law enforcement received information that Velez was involved in ongoing criminal activity, including the distribution of narcotics. On January 28, 2020, investigators conducted a controlled purchase of 20 bags of fentanyl from Velez in Hartford.
On January 29, 2020, Velez pleaded guilty to possession of a firearm by a felon, stemming from his arrest in November 2018.
Velez has been detained since March 12, 2020, after he was arrested on a criminal complaint charging him with distributing fentanyl.
Velez is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant on July 7, 2021, at which time he faces a maximum term of imprisonment of 10 years for unlawfully possessing a firearm, and a maximum term of imprisonment of 30 years for distributing fentanyl while on release in a pending federal case.
This investigation has been conducted by the FBI’s Northern Connecticut Violent Crimes Gang Task Force, the FBI’s Connecticut Violent Crime Task Force, and the Hartford Police Department. The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Luling Man Charged with Possession of Files Depicting the Sexual Victimization of ChildrenRead the Press Release
NEW ORLEANS – U.S. Attorney Duane A. Evans announced that DOMINIC ROMANO, age 20, a resident of Luling, Louisiana, was charged on Friday, April 9, 2021, by a federal grand jury sitting in the Eastern District of Louisiana in a one-count Indictment with possession of images and videos depicting the sexual exploitation of children under the age of twelve years old, in violation of 18 U.S.C. ' 2252(a)(4)(B).
ROMANO faces a maximum term of imprisonment of twenty (20) years. ROMANO also faces a lifetime of supervised release, a $250,000 fine, and he can be required to register as a sex offender.
U. S. Attorney Evans reiterated that an indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States 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.
U.S. Attorney Evans praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg is in charge of the prosecution.
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Kyle Man Sentenced to 45 Years in Federal Prison for Sexual AssaultRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that a Kyle, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced by Jeffrey L. Viken, U.S. District Court.
Antonio Frazier, age 35, was sentenced on April 5, 2021, to 45 years in federal prison, followed by a lifetime of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund for each charge. The time in federal prison is to be served concurrently.
Frazier was indicted by a federal grand jury in February 2020. The charges related to Frazier, between 2005 and 2011, having sexual contact with a minor female child at a housing development near Kyle. Between 2003 and 2004, Frazier also had sexual contact with another juvenile female near Kyle.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the Federal Bureau of Investigation. Assistant U.S. Attorney Megan Poppen prosecuted the case.
Frazier was immediately turned over to the custody of the U.S. Marshals Service.
Kingwood Man Indicted for Fraudulent Online Sales of Purported Native American-Made GoodsRead the Press Release
In San Antonio, a federal grand jury indicted a Kingwood man for selling allegedly fraudulent Native American-made goods on the internet, announced U.S. Attorney Ashley C. Hoff; Edward Grace, Assistant Director, U.S. Fish and Wildlife Service (USFWS) Office of Law Enforcement; and Meridith Stanton, Director of the Indian Arts and Crafts Board, U.S. Department of the Interior.
A federal grand jury indictment unsealed today charges 58-year-old Kevin Charles Kowalis with four counts of mail fraud and four counts of misrepresentation of Indian goods under the Indian Arts and Crafts Act. The indictment alleges that from January 23, 2020 to July 15, 2020, Kowalis fraudulently marketed and sold on eBay.com pieces of jewelry he received from a manufacturer in the Philippines unaffiliated with any federally recognized Native American tribe. The indictment alleges that Kowalis described the items for sale on eBay as “Native American Indian Handmade,” “Zuni,” “Navajo,” and “genuine Indian handcrafted” and received payment for the jewelry using the online payment platform, PayPal.com. As further alleged in the indictment, once he received payment Kowalis shipped the jewelry to the customer using the U.S. Postal Service including several packages containing counterfeit Native American-style jewelry to a purchaser in San Antonio.
“Native American art fraud is a serious crime that hurts consumers and severely impacts the economic and cultural livelihood of Native American artists, craftspeople and Tribes,” said Edward Grace, Assistant Director of the U.S. Fish and Wildlife Service Office of Law Enforcement. “Our special agents investigate crimes in violation of the Indian Arts and Crafts Act on behalf of the U.S. Department of the Interior and the Indian Arts and Crafts Board. By working together, we can help protect and preserve Native American art and craftwork for future generations.”
“The Indian Arts and Crafts Board is responsible for the Indian Arts and Crafts Act, which makes it a crime to sell counterfeit Indian art and craftwork. The Board is committed to protecting the integrity of Indian art. Texas has a vibrant Indian art market and we want consumers to have confidence that they are purchasing authentic work,” said Director Stanton. “We strongly commend our colleagues in the U.S. Attorney’s Office for the Western District of Texas. As a result of their expertise, hard work, and dedication, in concert with the U.S. Fish and Wildlife Service’s Indian Arts and Crafts Act Investigative Unit, this alleged counterfeiter has now been stopped by this key indictment and arrest. This is a vital step in protecting Indian artists, economies, and culture.”
Upon conviction, Kowalis faces up to 20 years in federal prison for mail fraud and up to five years in federal prison for misrepresentation of Indian goods.
The USFWS Office of Law Enforcement with assistance from the Indian Arts and Crafts Board, conducted this investigation. Assistant U.S. Attorney William F. Calve is prosecuting this case.
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.
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Justice Department Files Sexual Harassment Lawsuit Against Owners and Managers of Rental Properties in PennsylvaniaRead the Press Release
The Justice Department announced today that it has filed a lawsuit against Allen and Heidi Woodcock, owners and managers of rental properties in Oil City, alleging sexual harassment and retaliation in violation of the Fair Housing Act.
The lawsuit, filed in the U.S. District Court for the Western District of Pennsylvania, alleges that Allen Woodcock sexually harassed a female tenant in April 2019 after he entered her home to perform maintenance. According to the complaint, Allen Woodcock touched the tenant’s body without her consent and forcibly tried to kiss her, and the Woodcocks evicted the tenant after she reported the harassment to Heidi Woodcock.
“People should never have to endure sexual harassment in their home, where they should feel safe and secure,” said Principal Deputy Assistant Attorney General Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will vigorously enforce the Fair Housing Act against landlords who engage in this kind of abusive and illegal behavior.”
“Combatting sexual harassment in housing is a high priority at the Department of Housing and Urban Development (HUD),” said Acting Assistant Secretary for Fair Housing Jeanine Worden. “This is an example of how HUD and the Justice Department work together to enforce the Fair Housing Act.”
“Sexual harassment in housing is illegal,” said Acting U.S. Attorney Stephen R. Kaufman for the Western District of Pennsylvania. “Landlords, property managers or anyone else with control over housing should recognize by the filing of this lawsuit that we take action to combat such despicable conduct.”
The lawsuit arose from a complaint that the former tenant filed with the Department of Housing and Urban Development (HUD). After HUD investigated the complaint, it issued a charge of discrimination and the matter was referred to the Justice Department.
Today’s lawsuit seeks monetary damages to compensate the victim and a court order barring future discrimination. The complaint contains allegations of unlawful conduct; the allegations must be proven in court.
The Justice Department’s Sexual Harassment in Housing Initiative is led by the Civil Rights Division, in coordination with U.S. Attorney’s Offices across the country. The goal of the initiative is to address and raise awareness about sexual harassment by landlords, property managers, maintenance workers, loan officers or other people who have control over housing. Since launching the Initiative in October 2017, the Justice Department has filed 21 lawsuits alleging sexual harassment in housing.
The Justice Department’s Civil Rights Division enforces the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, national origin, sex, disability and familial status. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Individuals who believe that they may have been victims of sexual harassment or other types of housing discrimination at rental dwellings owned or managed by Allen and Heidi Woodcock, or who have other information that may be relevant to this case, should call the Justice Department’s Housing Discrimination Tip Line at 1-800-896-7743, email the Justice Department at [email protected], or submit a report online.
Individuals can also report sexual harassment and other forms of housing discrimination by contacting HUD at 1-800-669-9777 or by filing a HUD complaint online.
Jamaican national arrested in Canada border crossing near Eureka admits immigration crimeRead the Press Release
MISSOULA — A Jamaican national who crossed into Montana from Canada and was arrested with others near Whitefish after a 75-mile car case admitted to an immigration charge today, Acting U.S. Attorney Leif Johnson said.
Christopher White, 41, also known as Gregory White, Jahnyi Foster and Raymond White, pleaded guilty to illegal reentry of a deported or removed alien. White faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release.
U.S. Magistrate Judge Kathleen L. DeSoto presided. White was detained pending further proceedings. Sentencing was set for Aug. 12 before U.S. District Judge Dana L. Christensen.
In court documents filed in the case, the government alleged that White, a Jamaican national, was removed from the United States in March 2020 through New York to Canada. White did not have permission from the Department of Homeland Security to reenter the United States. On Jan. 23, White returned to the United States near West Kootenai, near Eureka, and not a port of entry. White, who was a passenger in a vehicle, was arrested after a 75-mile car chase in which a defendant, Rastesfaye Neil, was the driver. Neil has pleaded not guilty to charges.
The government further alleged that on Jan. 23, at about 8:55 a.m., the Spokane Sector Border Patrol Dispatch received information that three subjects dressed in camouflage and dark clothing and carrying black backpacks were crossing the border from Canada into the United States near the area of West Kootenai.
Border Patrol agents located a Nissan Sentra on West Kootenai road leaving the area where the three subjects had crossed over the international boundary. The agents attempted to stop the vehicle, and the Nissan eventually pulled to the side of the road. As agents approached the vehicle on foot, the Nissan sped away and headed southeast on Highway 93. Law enforcement ultimately deployed a vehicle immobilization device on the Nissan, and it came to a stop down a small embankment off the highway north of Whitefish. Law enforcement arrested the four occupants.
The Border Patrol, Flathead County Sheriff’s Office, Lincoln County Sheriff’s Office, Eureka Police Department, Whitefish Police Department and Montana Highway Patrol.
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Home Health Company Pays $28K for Employing "Excluded" IndividualRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, today announced that CARECO MEDICAL, INC. and its owner and CEO, HELGA PFANNER, have entered into a civil settlement agreement with the federal government in which they will pay $28,246 to resolve allegations that they improperly employed an individual who was excluded from all federal healthcare programs. CareCo Medical (“CareCo”) is a Waterford-based home healthcare organization that provides skilled nursing services, medical social worker services, and rehabilitative therapies.
Acting U.S. Attorney Boyle explained that when the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG) excludes an individual or entity from federal health care programs, no program payments may be made for items or services furnished by that excluded individual or entity. In September 1999, HHS-OIG issued a Special Advisory Bulletin to provide guidance to health care providers who might employ or contract with an excluded individual or entity. In May 2013, HHS-OIG issued an Updated Special Advisory Bulletin containing additional guidance. Both the original and updated Special Advisory Bulletins advised that, in order to avoid potential liability, health care providers should check the List of Excluded Individuals/Entities on the HHS-OIG web site (http://oig.hhs.gov/exclusions).
In 2012, Todd Roberts, a physical therapist, pleaded guilty to one count of obstructing a federal audit and, pursuant to a related civil settlement agreement, agreed to pay $328,828. In addition, Roberts entered into a six-year Integrity Agreement with the U.S. Department of Health and Human Services designed to ensure future compliance with the requirements of the Medicare program. Roberts later defaulted on his obligations under the Integrity Agreement and was excluded from all federal health care programs in 2015.
In November 2018, CareCo and Pfanner hired Roberts for a management position at CareCo. Roberts served in that position until March 2019.
To resolve their liability for hiring and employing Roberts while he was excluded from all federal healthcare programs, CareCo and Pfanner will pay $28,246.
This matter was investigated by HHS-OIG and is being prosecuted by Assistant U.S. Attorney Richard M. Molot.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
Harrison County man sentenced for firearms chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Mark Allen Riffle, of Clarksburg, West Virginia, was sentenced today to 48 months of incarceration for a firearms charge, Acting United States Attorney Randolph J. Bernard announced.
Riffle, 32, pled guilty in November 2020 to one count of “Unlawful Possession of a Firearm.” Riffle, a person prohibited from having a firearm because of a prior conviction, had a .380 caliber pistol, a .40 caliber pistol, a .22 caliber rifle, a .410-gauge shotgun, a .22 caliber rifle, and a 12-gauge shotgun in May 2019 in Harrison County.
Assistant U.S. Attorney Zelda E. Wesley prosecuted the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug & Violent Crimes Task Force, a HIDTA-funded initiative investigated.
U.S. District Judge Thomas S. Kleeh presided.
Hampton Roads Tax Preparer Sentenced for FraudRead the Press Release
NORFOLK, Va. – A Norfolk woman was sentenced today to 33 months in prison for wire fraud and participating in the preparation of over 30 fraudulent income tax returns while she served as the co-owner of a tax preparation service with multiple offices in the Hampton Roads area.
“As the evidence demonstrated at trial, the defendant repeatedly violated her trusted position as a tax preparer and ran a business based on deceptive and duplicitous practices in order to enrich herself,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “Tax fraud schemes are serious offenses that deprive our communities of necessary resources, and those who engage in this conduct will be held accountable in EDVA.”
According to court documents and the evidence presented at trial, Nikia Tull, 44, was the co-owner, operator, and manager of YT Phoenix Enterprises, Inc., aka Phoenix Financial Tax Service, a tax preparation service based in Virginia Beach, Chesapeake, and Suffolk. Between 2014 and 2018, Tull willfully participated in preparing and submitting 33 federal income tax returns to the IRS containing numerous false and fraudulent items. In 2019, Tull continued her fraud by submitting forged and fraudulently altered bank statements to a private lending company in support of loan applications for $70,000.
According to court documents, Tull included a variety of false and fraudulent items on the income tax returns of her clients without their knowledge or consent. Some of the fraudulent items Tull included were residential energy credits, unreimbursed employee expenses, charitable contributions, and business losses. Tull charged her clients based on the number of separate forms filed with each return, so she was able to collect more fees for herself by including the false items and amounts. As a result of Tull’s fraudulent conduct, the IRS suffered a total loss of approximately $230,000.
In addition to defrauding the IRS, Tull also devised a wire fraud scheme aimed at a small business lender in which she submitted materially false and fraudulently altered bank statements in support of online applications for loans of $20,000 and $50,000 for her business.
After a seven-day trial, a federal jury convicted Tull on November 12, 2020 on five counts of wire fraud and 33 counts of aiding and assisting in the preparation of false and fraudulent income tax returns. As part of her sentencing today, Tull was ordered to pay restitution in the amount of $162,460.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Darrell J. Waldon, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar.
Assistant U.S. Attorneys Daniel P. Shean and Joseph L. Kosky prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:20-cr-9.
Georgia Man Pleads Guilty to Stealing Millions from the San Felipe Del Rio Consolidated Independent School DistrictRead the Press Release
In Del Rio this afternoon, Donald Ray Lockard admitted to stealing over $2 million from the San Felipe Del Rio Consolidated Independent School District, announced U.S. Attorney Ashley C. Hoff and FBI Special Agent in Charge Christopher Combs, San Antonio Field Office.
Appearing before U.S. District Judge Alia Moses, the 66-year-old Douglasville, Georgia resident pleaded guilty to one count of conspiracy to commit wire fraud. By pleading guilty, Lockard admitted that while doing business as DL Investments from August 2019 to February 2020, he stole school district funds and used them for his own personal benefit. According to court records, unknown co-conspirators sent fraudulent emails to the school district’s comptroller claiming to be representatives of the financial institution to which the school district made bi-annual bond payments. Those fraudulent emails resulted in the diversion of the school district’s bond payments to a different financial account established and controlled by Lockard. Three separate fraudulent wire transfers to Lockard’s account on February 12, 2020, totaled $2,013,762.50.
During this investigation, federal authorities seized over $1.8 million from the defendant’s bank accounts. Lockard has agreed to forfeit those funds and pay a monetary judgment for the remaining amount derived from his scheme that was not recovered by the government.
Lockard, who remains on bond, faces up to 20 years in federal prison. Sentencing has yet to be scheduled.
The FBI is conducting this ongoing investigation. Assistant U.S. Attorney Joshua Banister is prosecuting this case.
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Georgia Inmate Sentenced to 15 Years on Federal Methamphetamine ChargeRead the Press Release
HARRISONBURG, Va. – Abel Gallegos Hernandez, an inmate serving prison time in Georgia, who coordinated the distribution of more than 500 grams of methamphetamine using drug packages hidden in tires of vehicles being shipped from New Mexico to Virginia, was sentenced last week in U.S. District Court to 180 months in federal prison. Acting United States Attorney Daniel P. Bubar and Special Agent in Charge Raymond Villanueva for HSI’s Washington, D.C. field office announced the sentence today.
Hernandez, 30, pleaded guilty in June 2020 to one count of conspiring to distribute 500 grams or more of methamphetamine and one count of aiding and abetting another’s attempt to knowingly and intentionally possess with the intent to distribute 500 grams or more of methamphetamine.
According to court documents, in June 2018, while incarcerated in the Bureau of Prisons in Georgia, Hernandez was actively involved in the trafficking of virtually pure methamphetamine into the Western District of Virginia.
Using Facebook and a contraband cellphone from inside McRae Correctional Facility in Georgia, Hernandez arranged for the delivery of four separate shipments of methamphetamine from New Mexico to the Waynesboro area. The shipments, occurring between January and June of 2018, totaled nearly 30 kilograms of pure methamphetamine. Hernandez arranged for the drugs to be hidden inside the tires of vehicles being hauled on tractor-trailer car-haulers.
The investigation of the case was conducted by Homeland Security Investigations, Waynesboro Police Department, the Drug Enforcement Administration and the New Mexico State Police. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Gallup man charged with possession and distribution of child pornographyRead the Press Release
ALBUQUERQUE, N.M. – Ervinson Yazzie, 30, of Gallup, New Mexico, was charged in federal court on April 7 with receipt, possession and distribution of child pornography. Yazzie was ordered to remain in custody pending release to a halfway house.
According to a criminal complaint, on Oct. 10, 2018, the New Mexico Attorney General’s Office received a CyberTipline report from the National Center for Missing and Exploited Children, which alleged that Yazzie had used Facebook to send child pornography to another Facebook user. The investigation that followed revealed that Yazzie allegedly had sent additional child pornography files through Facebook and possessed more child pornography on a computer hard drive.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Yazzie faces a minimum of five years and up to 20 years in prison.
The Gallup Resident Agency of the FBI’s Albuquerque Field Office investigated this case with assistance from the New Mexico Attorney General’s Office and the New Mexico Regional Computer Forensics Lab. Assistant U.S. Attorney Sarah J. Mease is prosecuting the case.
Fort Bend County home health owner charged with copying and pasting doctor signaturesRead the Press Release
HOUSTON ‐ A 60-year-old Richmond man is now in custody on charges of making false statements in his scheme to defraud Medicare, announced Acting U.S. Attorney Jennifer B. Lowery.
Paul Njoku is expected to make his initial appearance before U.S. Magistrate Judge Peter Bray at 2 p.m.
The five-count indictment, returned Feb. 3, alleges Njoku made false statements relating to health care matters by copying and pasting doctor and nurse signatures onto patient paperwork.
According to the charges, Njoku owned and operated Opnet Healthcare Services Inc. doing business as P&P Healthcare Services. Medicare had made several requests to them seeking supporting documentation for billed claims. In response, Njoku allegedly falsified patient treatment notes and home health certification paperwork by copying and pasting the signatures of a doctor and a nurse.
Each conviction of making false statements relating to health care matters carries a possible five-year term of imprisonment and a maximum $250,000 fine.
The Department of Health and Human Services ‐ Office of Inspector General, FBI and Texas Attorney General’s Medicaid Fraud Control Unit conducted the investigation. Special Assistant U.S. Attorney Abdul Farukhi is prosecuting the case.
An indictment is an accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Santa Maria Resident Sentenced to Three Months in Federal Prison for Shooting Elephant Seal to DeathRead the Press Release
LOS ANGELES – A former resident of Santa Barbara County was sentenced today to three months in federal prison for fatally shooting a northern elephant seal on a beach near San Simeon.
Jordan Gerbich, 30, who at the time of the offense resided in Santa Maria and who now lives in Coalville, Utah, was sentenced by United States District Judge Dale S. Fischer. Judge Fischer also ordered Gerbich to be placed on one year of supervised release following his release from prison, serve a three-month term of home detention, perform 120 hours of community service, and pay a $1,000 fine.
Gerbich pleaded guilty in December 2020 to one misdemeanor count of illegally taking a marine mammal.
On September 28, 2019, Gerbich drove to an elephant seal viewing area adjacent to the Piedras Blancas Marine Reserve and Monterey Bay National Marine Sanctuary. Gerbich brought a .45-caliber pistol and, aided with a flashlight, used the firearm to shoot and kill a northern elephant seal as the animal was resting on the beach in the Piedras Blancas rookery. The next day, the elephant seal was discovered on the beach with a bullet hole in its head.
“It remains unclear what motivated [Gerbich] to commit such an act; nevertheless, [Gerbich] knew it was wrong,” prosecutors wrote in their sentencing memorandum.
Northern elephant seals are a protected species under the Marine Mammal Protection Act. They live up and down North America’s Pacific coast and haul out on land in areas called rookeries. These rookeries are typically populated with elephant seals year-round, but populations vary throughout the year based on breeding and molting cycles.
The National Oceanic and Atmospheric Administration’s Office of Law Enforcement investigated this matter. The California Department of Fish and Wildlife provided substantial assistance.
Assistant United States Attorney Heather C. Gorman of the Environmental and Community Safety Crimes Section prosecuted this case.
Former Police Officer Admits Unlawfully Possessing and Transferring FirearmsRead the Press Release
Leonard C Boyle, Acting United States Attorney for the District of Connecticut, announced that JOSEPH RYAN, 57, of Trumbull, waived his right to be indicted and pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to a federal firearm charge related to his unlawful possession and transfer of five firearms on behalf of his drug dealer.
According to court documents and statements made in court, on April 27, 2018, Ansonia Police executed a state search warrant at an address in Ansonia in order to locate and seize 12 firearms that were registered to a pistol permit holder at the residence. Investigators could only locate five firearms during the search. The five firearms were then transported to the Ansonia Police Department for safekeeping. On April 3, 2019, Ryan, who at the time was a police officer with the Greenwich Police Department, went to the Ansonia Police Department and took custody of the five firearms that had been seized.
In August and September 2019, members of ATF and the New Haven Police Department made controlled purchases of four firearms from Malique Martin. Three of the four firearms purchased were among the firearms that Ryan took into his custody from the Ansonia Police Department on April 3, 2019. The investigation revealed that Ryan, who was addicted to heroin transferred firearms to an individual who was a convicted felon, and who helped facilitate heroin transactions between Ryan and a heroin supplier. Some of the firearms were then transferred to Martin.
Ryan was arrested on a federal criminal complaint on February 21, 2020.
Ryan pleaded guilty to one count of possession of firearms by an unlawful user of a controlled substance, an offense that carries a maximum term of imprisonment of 10 years. Judge Meyer scheduled sentencing for July 6, 2021.
Ryan is released on a $100,000 bond pending sentencing.
Martin, of Ansonia, previously pleaded guilty to one count of dealing firearms without a license and one count of possession of a firearm with an obliterated serial number. On June 16, 2020, he was sentenced to 12 months and one day of imprisonment.
This investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), New Haven Police Department, Ansonia Police Department and Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Maria del Pilar Gonzalez.
This prosecution 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 neighborhoods safer for everyone.
Former Nike Marketing Manager Pleads Guilty to Wire Fraud, Money Laundering, and Making False StatementsRead the Press Release
PORTLAND, Ore.—Errol Andam, 49, of Beaverton, Oregon, a former marketing manager at Nike, Inc., pleaded guilty today to wire fraud, money laundering, and making false statements on a loan application as part of a scheme to defraud his former employer, announced Acting U.S. Attorney Scott Erik Asphaug.
According to court documents, from 2001 until his termination in 2018, Andam was employed by Nike at its headquarters in Beaverton. Most recently, Andam worked as a manager in the company’s North American Retail Brand Marketing division wherein he managed the design, build-out, and operation of “pop-up” retail venues, temporary Nike shops situated near and tailored to sports competitions and other special events around the U.S.
In the summer of 2016, Andam recruited a childhood friend to establish a company to design and build the pop-up venues as an independent contractor for Nike. Andam used his authority as a manager at Nike to ensure that his friend’s company was consistently awarded the contracts for these jobs. Though he had no formal role in his friend’s company, Andam assumed control of much of the company’s financial operations, managing financial accounts and issuing invoices to Nike.
To conceal his role in the scheme, Andam used an alter ego, “Frank Little,” to invoice Nike and manage the contract company’s account with Square, Inc., a California-based provider of mobile credit-card-processing services. In 2016, Andam also renewed the lapsed registration of an Oregon-based limited liability corporation (LLC) he owned so that he could use the defunct entity as a shell company to funnel the proceeds diverted from Nike and his friend’s company to accounts under his personal control.
Beginning in September 2016, Andam caused credit-card sales at various pop-up venues around the U.S. to be run through card readers associated with a Square account owned by his friend’s company. These proceeds were transferred to Square in California and then to Andam’s LLC bank account in Oregon. Andam represented to both Nike and his friend that the proceeds of these sales were credited against the total amount Nike owed to his friend’s company. In truth, Andam simply pocketed the proceeds and, as “Frank Little,” invoiced Nike for the full cost of the contracted services.
From September 2016 through December 2018, Andam diverted and embezzled nearly $1.5 million in Nike proceeds for his own use. In July 2018, Andam submitted a fake financial statement from his LLC in support of a residential mortgage loan application. The financial statement falsely reflected as revenue checks for $194,000 drawn on a bank account owned by his friend’s business. Andam forged his friend’s signature on one of the checks and withdrew much of that money without his friend’s knowledge.
On February 4, 2021, Andam was charged by criminal information with wire fraud, money laundering, and making false statements on a loan application.
Under the terms of Andam’s plea agreement, the U.S. Attorney’s Office will recommend a sentence of 37 months in federal prison when he is sentenced on July 12, 2021. Andam will ask for a sentence of not less than 24 months. He has also agreed to pay more than $1.6 million in restitution and forfeit $212,838 in criminally-derived proceeds.
This case was investigated by the FBI and IRS Criminal Investigation. It is being prosecuted by Ryan W. Bounds, Assistant U.S. Attorney for the District of Oregon.
Former Bridgeport Police Chief Sentenced to Prison for Scheme to Rig City’s Police Chief SearchRead the Press Release
Audrey Strauss, United States Attorney for the Southern District of New York, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that ARMANDO J. PEREZ, the former Chief of Police of the City of Bridgeport, Connecticut (the “City”), was sentenced today to 12 months and one day in prison for participating in a scheme to defraud the City by rigging the 2018 police chief examination in order to ensure he would be selected for the position, and to making false statements to federal agents in the course of the investigation. PEREZ previously pled guilty in Bridgeport federal court on October 5, 2020, before U.S. District Judge Kari A. Dooley, who also imposed today’s sentence.
U.S. Attorney Audrey Strauss said: “Former Chief Perez schemed to rig the search for a permanent police chief to ensure the position was awarded to him, and then he repeatedly lied to federal agents in order to conceal his conduct. Today’s sentence sends a strong message that public officials will be held accountable when they corruptly put their own self-interest above their duties to faithfully serve their citizens.”
According to the allegations contained in the Complaint, the Information, other court filings, statements made during court proceedings, and publicly available information:
The Scheme to Rig the City of Bridgeport’s Police Chief Exam
In or about 2018, PEREZ participated in a criminal scheme to rig the City’s search for a new Bridgeport Police Department (“BPD”) chief in 2018. During the course of this scheme, PEREZ – who was serving as the acting BPD chief at the time – conspired with David Dunn, who was at that time the City’s acting personnel director, to deceive the City by secretly rigging the supposedly independent search process for a new BPD chief to ensure that PEREZ was ranked as one of the top three candidates and could therefore be awarded a five-year contract to serve as the BPD chief.
More specifically, in or about February 2018, the City commenced a search to fill the position of permanent Chief of Police. Under the City’s Charter, the City was required to conduct an “open and competitive examination” to determine the top three scoring candidates for the position, from which the mayor could then choose. Dunn, in his role as the personnel director, oversaw the police chief examination process, and retained an outside consultant (“Consultant-1”) to assist with developing and carrying out the exam. PEREZ and Dunn then manipulated that examination process in multiple ways: Dunn stole confidential examination questions and related information developed by Consultant-1, and provided those materials to PEREZ, including by email; Dunn had Consultant-1 tailor the examination scoring criteria to favor PEREZ; PEREZ enlisted two BPD officers to secretly draft and write PEREZ’s written exam; and Dunn attempted to influence a panelist, tasked with ranking the candidates in the last stage of the exam, to ensure that PEREZ was scored as one of the top three candidates.
As a result of the scheme, the City was deceived into ranking PEREZ among the top three candidates, which rendered him eligible for the permanent police chief position. The mayor ultimately offered the position to PEREZ, and the City, under the assurance that PEREZ had been appointed in accordance with the City Charter, entered into a five-year contract with PEREZ, the terms of which included a payout to PEREZ for accrued leave.
PEREZ’s False Statements
PEREZ was voluntarily interviewed in connection with the FBI’s investigation. In an attempt to conceal his conduct, during those interviews he lied to FBI agents about facts material to the criminal investigation. PEREZ provided false and misleading information about the assistance Dunn and others had provided him in connection with the examination process, including his requests to a BPD officer to sneak into headquarters to retrieve stolen confidential information provided by Dunn.
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In addition to the prison term, PEREZ, 64, of Trumbull, Connecticut, was sentenced to two years of supervised release, a fine in the amount of $7,500, and restitution of $299,407.
On October 5, 2020, Dunn pled guilty to his participation in the scheme to rig the City’s police chief search and to making false statements to federal investigators, and is scheduled to be sentenced by Judge Dooley tomorrow.
Ms. Strauss praised the outstanding work of the FBI and the Special Agents of the U.S. Attorney’s Office.
The case is being prosecuted by the Office’s Public Corruption Unit and White Plains Division. Assistant U.S. Attorneys Eli J. Mark and Jeffrey C. Coffman, and Assistant U.S. Attorney Jonathan N. Francis of the U.S. Attorney’s Office for the District of Connecticut, are in charge of the prosecution.
Federal Jury Convicts Boise Man of Attempted Coercion and Enticement of a MinorRead the Press Release
BOISE – After a three day jury trial, a federal jury sitting in Boise found Jordan Michael Drake, 33 of Boise, guilty of attempted coercion and enticement of a minor, and attempted use of interstate facilities to transmit information about a minor, Acting U.S. Attorney Rafael M. Gonzalez, Jr. announced today. Chief U.S. District Judge David C. Nye presided over the trial, which began on April 5th, and concluded with the guilty verdicts on April 8th.
According to testimony and evidence presented at trial, Drake communicated online with an undercover detective posing as a 15-year-old girl. During the communications, Drake attempted to persuade, induce, and entice the minor into engaging in sexual activity with him and requested the minor’s address so that he could meet with the minor for sexual activity. Drake traveled to an address where he believed the minor resided, where law enforcement officers arrested him.
“Online predators who attempt to entice minors take advantage of our most precious resource, our children,” said Acting U.S. Attorney Gonzalez. “We are committed to prosecuting dangerous offenders who troll the internet looking to sexually exploit children, and we will continue to work together with our partners to identify these predators and their victims.”
The charge of attempted coercion and enticement of a minor carries a minimum of ten years and up to life in federal prison, a fine of up to $250,000, and at least five years and up to lifetime of supervised release. The charge of attempted use of interstate facilities to transmit information about a minor carries a term of up to five years of federal prison, a fine of up to $250,000, and at least five years and up to lifetime of supervised release. Drake will be required to register as a sex offender as a result of the conviction.
Sentencing is set for July 27, 2021, before Judge Nye at the federal courthouse in Boise.
The investigation was part of “Operation Butterball,” a joint state and federal undercover operation conducted in Ada County in November 2019 to identify individuals predisposed to meet minors for sexual contact. Participating agencies included Homeland Security Investigations (HSI), Idaho Internet Crimes Against Children Task Force, Idaho Attorney General’s Office, Idaho State Police, Meridian Police Department, United States Postal Inspection Service, ICE Enforcement and Removal Operations (ERO), Rupert Police Department, Jerome County Sheriff’s Office, Ada County Prosecutor’s Office, and the United States Attorney’s Office.
“The collaboration between ICAC and our federal law enforcement partners continues to yield results that help protect Idaho children from online predators,” Idaho Attorney General Lawrence Wasden said. “This conviction and the previous sentences stemming from this operation highlight the partnerships in place between local, state and federal law enforcement agencies that continue to put dangerous individuals in prison and keep them away from our young people.”
Drake is among five defendants arrested and charged in federal court as a result of Operation Butterball. Previously, the following defendants were sentenced in federal court:
- Christopher Niday, 54, of Summerville, Oregon, was sentenced on October 20, 2020, by Chief Judge Nye to four years in federal prison, followed by ten years of supervised release, for travel with the intent to engage in illicit sexual conduct.
- Jesse Kelly-Castillo, 24, of Boise was sentenced on December 9, 2020, by Chief Judge Nye to ten years in federal prison, followed by 15 years of supervised release, for attempted coercion and enticement of a minor.
- Maxwell Hennerley, 24, formerly of Boise, was sentenced on January 7, 2021, by U.S. District Judge B. Lynn Winmill to five years in federal prison, followed by five years of supervised release, for attempted use of interstate facilities to transmit information about a minor.
- Vern Leeroy Moore, 56, of Kuna, was sentenced on April 7, 2021, by Chief Judge Nye to five years in federal prison, followed by five years of supervised release, for attempted use of interstate facilities to transmit information about a minor.
These cases were brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal 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.
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Ex-L.A. Sheriff’s Deputy Sentenced to Seven Years in Federal Prison for Leading $2 Million Armed Robbery of Marijuana WarehouseRead the Press Release
LOS ANGELES – A former Los Angeles County Sheriff’s deputy was sentenced today to 84 months in federal prison for orchestrating and leading a $2 million armed robbery – staged as a legitimate law enforcement search – at a downtown Los Angeles warehouse where more than half a ton of marijuana and over $600,000 in cash was stolen.
Marc Antrim, 43, of South El Monte, who formerly was assigned to the LASD station in Temple City, was sentenced by United States District Judge Virginia A. Phillips, who said, “the seriousness of the crime could not be overstated.” The heist, which “sounded like a movie script,” was “tragic” for the victims and eroded “the public’s trust (in law enforcement),” the judge said.
Antrim pleaded guilty in March 2019 to a five-count information charging him with conspiracy to distribute marijuana, possession with intent to distribute marijuana, conspiracy to deprive rights under color of law, deprivation of rights under color of law, and brandishing a firearm in furtherance of a drug trafficking crime.
During the early morning hours of October 29, 2018, Antrim and his co-conspirators dressed as armed LASD deputies and approached the warehouse in an LASD Ford Explorer. Upon arrival, Antrim flashed his LASD badge and a fake search warrant to the security guards to gain entry to the warehouse. To perpetuate the ruse that they were legitimate law enforcement officers, Antrim and two fake deputies sported LASD clothing, wore duty belts, and carried firearms. One fake deputy also visibly carried a long gun to further intimidate the guards into submission.
At the beginning of the two-hour robbery, Antrim and his co-conspirators detained the three warehouse security guards in the cage of the LASD Ford Explorer. Soon after the guards were detained, a fourth man arrived at the warehouse in a large rental truck, and all four men began loading marijuana into the truck.
When Los Angeles Police Department officers legitimately responded to a call for service at the warehouse during the robbery, Antrim falsely told the LAPD officers that he was an LASD narcotics deputy conducting a legitimate search. To facilitate the sham, Antrim handed his phone to one of the LAPD officers so that the police officer could speak to someone on the phone claiming to be Antrim’s LASD sergeant. The individual on the phone was not Antrim’s sergeant, and Antrim did not have a legitimate search warrant for the warehouse.
After LAPD officers left the warehouse, other co-conspirators arrived and the robbery continued, allowing the fake law enforcement crew to steal even more marijuana and two large safes containing over half a million dollars in cash.
At the time of the robbery, Antrim was a patrol deputy assigned to the Temple City station, but he was not on duty, was not assigned to the department’s narcotics unit, was not a detective, and would not have had a legitimate reason to search a marijuana distribution warehouse in the City of Los Angeles.
Prosecutors have secured six convictions in this case for the co-conspirators who took part in the raid alongside Antrim.
Christopher Myung Kim, 31, of Walnut, a disgruntled former warehouse employee, is serving a 14-year federal prison sentence after being found guilty by a jury for his role in planning the heist and making off with $1.5 million in stolen marijuana after the raid. Antrim testified at Kim’s trial, which the judge credited as a significant reason to reduce Antrim’s sentence.
Kevin McBride, 45, of Glendora, and Eric Rodriguez, 35, of Adelanto, are serving federal prison sentences of six and nine years, respectively, after pleading guilty to felony charges in this case. In a related case, Antrim’s other co-conspirators, Matthew James Perez, 44, of Ontario, Daniel Aguilera, 33, of Los Angeles, and Jay Colby Sanford, 43, of Pomona, are serving sentences of six years’ imprisonment, two years’ imprisonment, and five years’ probation, respectively.
This case was investigated by the Drug Enforcement Administration; the FBI; and the Bureau of Alcohol, Tobacco, Firearms and Explosives. LASD’s Internal Criminal Investigations Bureau provided substantial assistance to the federal investigation.
Assistant United States Attorney Lindsey Greer Dotson of the Public Corruption and Civil Rights Section and Assistant United States Attorney Joseph D. Axelrad of the Violent and Organized Crime Section prosecuted this case.
Ellenville Felon Pleads Guilty to Drug Conspiracy and Firearm ChargesRead the Press Release
ALBANY, NEW YORK – Antonio Naveo, a/k/a “Gratto,” a/k/a “Green Eyes,” age 40, of Ellenville, New York, pled guilty today to drug and firearm charges, and admitted his leadership of a drug trafficking organization that distributed crack cocaine and fentanyl in Ulster County.
The announcement was made by Acting United States Attorney Antoinette T. Bacon; Peter C. Fitzhugh, Special Agent in Charge of Homeland Security Investigations (HSI), New York; and Ulster County Sheriff Juan Figueroa, whose office leads the Ulster Regional Gang Enforcement Narcotics Team (URGENT).
In connection with his plea, Naveo admitted that, between September 2017 and December 2018, he led an organization that trafficked crack cocaine and fentanyl from New York City and Pennsylvania, respectively, to Ellenville, for redistribution in various locations around the Rondout Valley. Naveo further admitted that he unlawfully possessed a firearm as a felon.
Naveo faces at least 10 years and up to life in prison, a term of supervised release of at least 5 years and up to life, and a maximum fine of $10 million, when he is sentenced by United States District Judge Mae A. D’Agostino on July 13, 2021. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The following defendants have also pled guilty in connection with the conspiracy, and were sentenced as follows:
Name
Age
Prison Term
Supervised Release Term
Iqwan Mandiville, aka “Qwan”
27
70 months
4 years
Randy Mandiville, aka “B-Murda”
31
42 months
6 years
Jennifer McCombs
49
24 months
3 years
The following defendants have also pled guilty in connection with the conspiracy, and face the following penalties:
Name
Age
Minimum
Maximum
Margaret Vandyke
58
10 years
Life
Luis Curet
35
5 years
40 years
Edwin Jorge
46
None
20 years
This case was investigated by HIS; the Ulster County Sheriff’s Office in conjunction with URGENT, an inter-agency taskforce targeting drug dealers and gang members in Ulster County; and the New York State Police, with assistance from the Village of Ellenville Police and the Ulster County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Emmet J. O’Hanlon.
Eagle Grove Man Sentenced to Federal Prison for MethRead the Press Release
A man who conspired to distribute methamphetamine was sentenced April 10, 2021, in federal court in Sioux City.
James Calvert, 44, from Eagle Grove, Iowa, pled guilty on November 13, 2020, to one count of conspiracy to distribute methamphetamine and two counts of possession with intent to distribute methamphetamine.
At the plea and sentencing hearings, evidence showed that Calvert and others conspired to distribute more than 500 grams of mixed methamphetamine from January 2019 through March 2020 in the Wright and Webster County areas. Law enforcement caught Calvert removing approximately ¼ pound of methamphetamine from a vehicle. On at least 5 occasions Calvert was observed on home security recordings obtaining multiple ounces of methamphetamine for further distribution. The residence that Calvert and others used as a hub for their methamphetamine trafficking was located within 1,000 feet of a protected location, namely Greenwood Park, in Eagle Grove, Iowa.
Sentencing was held before United States District Court Chief Judge Leonard T. Strand. Calvert was sentenced to 90 months’ imprisonment and must serve a 4-year term of supervised release following imprisonment. There is no parole in the federal system. Calvert remains in custody of the United States Marshal until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by Iowa Division of Narcotics Enforcement, Wright County Sheriff’s Office, Eagle Grove Police Department, and the Iowa Division of Criminal Investigation’s Laboratory.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-3012. Follow us on Twitter @USAO_NDIA.
Eagle Butte Man Charged with Sexual Abuse of a MinorRead the Press Release
Acting United States Attorney Dennis R. Holmes announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Luis Torres, a/k/a “Bubba”, age 21, was indicted on March 9, 2021. He appeared before U.S. Magistrate Judge Mark A. Moreno on April 8, 2021, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 15 years in federal prison and/or a $250,000 fine, 5 years, and up to life, of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2019, and February 28, 2019, in Eagle Butte, Torres knowingly caused and attempted to cause a minor who had not attained the age of 16, to engage in a sexual act.
The charge is merely an accusation and Torres is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Torres was released on bond pending trial. A trial date has not been set.
Dominican National Sentenced for ID Theft, Theft of Public FundsRead the Press Release
PROVIDENCE – A Dominican national who used the stolen Social Security number and identity of a person living in Puerto Rico to fraudulently collect more than $50,000 in government- funded benefits in Rhode Island has been sentenced to 30 months in federal prison and is expected to face deportation proceedings.
Beginning in February 2014, Sonia Jourdain, 56, began using the stolen Social Security number and identity when applying to obtain Medicaid and Supplemental Nutrition Assistance Program (SNAP) benefits. On the SNAP application, Jourdain falsely stated that neither she, nor anyone in her household, was not a United States citizen.
In May 2016, Jourdain used the stolen identity to fraudulently obtain a Rhode Island driver’s license, and, later, twice obtained temporary disability insurance (TDI) from the Rhode Island Department of Labor and Training.
According to the government’s evidence presented at sentencing, Jourdain fraudulently obtained $40,070.90 in Medicaid benefits, $3,800.56 in SNAP benefits, and $8,213 in TDI payments.
On February 5, 2020, Jourdain pleaded guilty to false representation of citizenship, false representation of a Social Security number, aggravated identity theft, theft of public money, and two counts of wire fraud. She was sentenced on April 7, 2021, to 30 months in federal prison to be followed by one year of federal supervised release, and to pay restitution in the amount of $52,084.46.
Jourdain is expected to face deportation proceedings upon completion of her term of incarceration.
Jourdain’s sentence is announced by Acting United States Attorney Richard B. Myrus; Homeland Security Investigations Acting Special Agent in Charge William S. Walker; Special Agent in Charge of the Department of Health and Human Services, Office of Inspector General Phillip Coyne; Michael C. Mikulka, Special Agent in Charge of the New York Region of the Department of Labor - Office of Labor Racketeering and Fraud Investigations; and Bethanne M. Dinkins, Special Agent in Charge of the Northeast Region of the United States Department of Agriculture Office of Inspector General.
The case was prosecuted by Assistant U.S. Attorney Dulce Donovan.
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Detroit Man Pleads Guilty to Federal Gun CrimeRead the Press Release
HUNTINGTON, W.Va. – Jamaile Huey, 42, of Detroit, Michigan pleaded guilty today to being a felon in possession of a firearm. A federal grand jury indicted him on the charge in February 2021.
According to court documents and statements made in court, on or about January 8, 2021, members of the Huntington Police Department SWAT Team executed a search warrant for the person of Jamaile Huey at an apartment on Bridge Street in Huntington. During the execution of the warrant, Huey was located in the residence and placed into custody and another individual was located and detained. While the SWAT Team was conducting a protective sweep of the residence, a small quantity of a green leafy vegetation was located on a nightstand in plain view in the bedroom where Huey was observed coming from. After Huey was secured, officers observed that he did not have any clothing on the bottom half of his body. Huey requested from officers a black pair of pants. One of the officers located a pair of black pants in the bedroom Huey was observed coming from and searched them prior to giving them to Huey. Inside of one of the pants pockets, officers located a plastic baggy containing suspected narcotics. An additional search warrant was then obtained for the residence due to the suspected marijuana that was observed in plain view and the suspected narcotics that had been in Huey’s pants. During the search of the residence, a loaded Glock, model 17, 9mm pistol, serial number BFYY530 was located in the nightstand in the room that Huey had been observed coming from when apprehended by the SWAT team. A loaded high-capacity magazine for the Glock pistol was also located in the same room. While in the room where the firearm was located, investigators also observed that the items in the room matched the background of a photograph of Huey that had been provided by a confidential informant. The located firearm and magazine also matched the firearm that Huey possessed in the photograph.
Huey faces up to 10 years in prison when sentenced on July 12, 2021.
The Huntington Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) conducted the investigation. United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorney Greg McVey 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. 3:21-cr-00030.
Follow us on Twitter: SDWVNews
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D.C. Woman Pleads Guilty to Defrauding Two Non-Profit OrganizationsRead the Press Release
WASHINGTON – Maxine Marie Williams, 49, of Washington, D.C., pled guilty on April 6, 2021 to attempting to steal more than $200,000 from two former employers, both non-profit organizations in the District of Columbia. The guilty plea was announced by Acting U.S. Attorney Channing D. Phillips, U.S Postal Inspector in Charge for the Washington Division Peter Rendina, and Metropolitan Police Department Acting Chief Robert J. Contee III.
Williams worked for one non-profit organization from approximately 2015 through March 2018. Her job responsibilities included processing donation checks that were mailed to the office, and preparing and mailing checks to vendors, service providers, and individuals. From November 2015 through March 2018, she stole 171 checks totaling $161,084.23 from the organization. Most of the checks were charitable contributions that were mailed to the organization’s office in Washington. Other checks consisted of outgoing payments from the organization to vendors, service providers, and individuals. Of the $161,084.23 in stolen checks, more than $140,000 was successfully deposited into accounts associated with Williams, including a $5,000 donor check that Williams deposited at an ATM in Hyattsville, Maryland.
After Williams was terminated from the first organization in March 2018, she secured employment with the second organization, a non-profit trade association headquartered in Washington. Between December 2018 and June 2019, Williams stole 33 checks totaling $43,398.93 from the second organization. She successfully deposited more than $38,000 into her bank account.
Williams pled guilty to one count of interstate transportation of stolen property, in violation of 18 U.S.C. § 2314. The maximum sentence for this offense is ten years of imprisonment. Under federal sentencing guidelines, however, Williams faces a likely recommended sentence of between 12 and 18 months in prison. As part of her plea agreement, she will be responsible for repaying the stolen funds. The Honorable Amit P. Mehta, who accepted Williams’ guilty plea, scheduled sentencing for July 13, 2021.
In announcing the plea, Acting U.S. Attorney Phillips, Inspector in Charge Rendina, and Acting Chief Contee commended the work of those who investigated the case from the U.S. Postal Inspection Service and Metropolitan Police Department. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia including Assistant U.S. Attorney Kondi Kleinman, Financial Analyst Bryan Snitselaar, Paralegal Specialist Michon Tart, and former Paralegal Specialist Brittany Phillips.
Columbia Man Convicted at Trial of Being a Felon in Possession of a Loaded Firearm and Possession of Crack CocaineRead the Press Release
Columbia, South Carolina --- Acting United States Attorney M. Rhett DeHart. announced that Eric Jahann Nixon, 39, of Columbia, was convicted Friday by a jury following a three-day trial in federal court in Columbia. Nixon was convicted of being a felon in possession of a firearm and ammunition, as well as possession of crack cocaine.
Evidence presented in court showed that at approximately 7:00 PM on Friday, October 16, 2020, Columbia Police Department officers responded to Wash City Laundromat off Broad River Road after receiving a number of 911 calls about a man brandishing a firearm and assaulting a 65-year-old female attendant at the laundromat. At the scene, officers were approached by witnesses who provided a detailed description of the man and also provided officers with a cellphone video taken of him during the incident. A screenshot of the man from that cellphone video was distributed to other officers who were canvassing the area in search of him. A short time later, an officer encountered the man walking nearby and placed him in investigative detention. During a lawful pat-down search of the man, officers recovered a loaded Hi-Point .380 caliber handgun in the man’s waistband of his shorts. A further search revealed a pill bottle containing a baggie of 3 grams of crack cocaine and a razor blade. The man was later identified as Eric Jahann Nixon. Surveillance video from the Laundromat confirmed that Nixon was the man who pulled a handgun from his waistband and assaulted the laundromat attendant.
Nixon is a felon and prohibited from possessing firearms and ammunition under federal law based upon prior state and federal convictions. Nixon’s prior convictions include: possession of a stolen motor vehicle (1998, Lexington County), conspiracy to commit money laundering (2005, federal conviction in Columbia), assault and battery of a high and aggravated nature (2005, Lexington County), throwing bodily fluid on correctional officer (2005, Lexington County), indecent exposure to adult (2010, federal conviction in West Virginia), forgery (2013, Lexington County), distribution of crack cocaine near a school (2016, Richland County), and unlawful carrying of a firearm (2018, Richland County).
Nixon faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge. Due to a prior felony drug offense, Nixon faces a minimum 15 days to maximum of 2 years imprisonment and a fine of $2,500 on the possession of crack cocaine charge.
Senior United States District Judge Cameron McGowan Currie of Columbia presided over the trial and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office. According to court filings, the sentencing is scheduled for July 13, 2021.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Columbia Police Department and prosecuted by Assistant United States Attorney Stacey D. Haynes. Witnesses at trial also included representatives from the South Carolina Law Enforcement Division (SLED), the South Carolina Department of Corrections (SCDC), the South Carolina Department of Probation, Pardon, & Parole Services, the Lexington County Clerk of Court’s Office, the United States Probation Office, and the Federal Bureau of Investigation (FBI).
The case was prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
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Charleston Woman Pleads Guilty to Role in Multi-State Meth ConspiracyRead the Press Release
HUNTINGTON, W.Va. – A Charleston woman who took part in a conspiracy to distribute methamphetamine in 2019 entered a guilty plea today in federal court. Kathryn Elizabeth Casto, 35, pleaded guilty to conspiracy to distribute 50 grams or more of methamphetamine.
Casto admitted that between April and September of 2019 she conspired with multiple individuals to distribute methamphetamine. During the conspiracy, Casto repeatedly obtained quantities of methamphetamine which were transported from Akron, Ohio to various locations in West Virginia. Casto would in turn supply other drug dealers with methamphetamine that would be sold in the Huntington and Charleston areas. Casto admitted that she was aware some of her customers intended to distribute the methamphetamine she provided to them and that she was responsible for the distribution of up to 1.5 kilograms of methamphetamine.
Casto faces 5 to 40 years in federal prison when she is sentenced on July 12, 2021.
This joint investigation was spearheaded by the Federal Bureau of Investigation (FBI). Other agencies which participated and assisted in the investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Violent Crime and Drug Task Force West, the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Drug Enforcement Administration (DEA) Task Force, the Beckley/Raleigh County Drug and Violent Crime Unit, the United States Marshals Service, the Cabell County Sheriff’s Department, the Charleston Police Department, the Putnam County Sheriff’s Department, the Ohio State Highway Patrol, the Akron, Ohio Police Department, and the Brecksville, Ohio Police Department. United States District Judge Robert C. Chambers presided over the hearing. 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 No. 3:19-cr-00245.
Follow us on Twitter: SDWVNews
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Charleston Man Indicted for Allegedly Failing to Pay Employment Taxes and Personal Income TaxesRead the Press Release
URBANA, Ill. – An indictment returned by a federal grand jury charges Jay Fisher, of Charleston, Ill., with 21 counts of tax fraud, for allegedly failing to report and pay federal employment taxes and personal income taxes. Fisher is scheduled to make his initial court appearance in federal court on April 19, 2021, at 10:30 a.m. The court hearing will take place in Urbana, via videoconference, before U.S. Magistrate Judge Eric I. Long.
According to the indictment, Jay Fisher was responsible for the business of Financial Logic Inc., and, as such, was obligated to file a Form 941 and remit employment taxes for his employees. Employment taxes are comprised of federal income tax, social security, and Medicare taxes. The indictment alleges that between 2015 and 2018, Fisher failed to pay more than $300,000 in employment taxes. The indictment also alleges that, between 2014 and 2018, Fisher failed to file and pay his individual income taxes.
The IRS Criminal Investigation Division investigated the charges with assistance from the Illinois Department of Revenue. Assistant U.S. Attorney Melissa Moody is representing the government in the prosecution
The maximum penalty for each of the sixteen counts of failure to pay employment tax is five years in prison, up to $10,000 in fines, or both. The maximum penalty for each of the five counts of failure to pay individual income tax is up to one year in prison, up to $25,000 in fines, or both.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Berkeley County man admits to drug conspiracyRead the Press Release
MARTINSBURG, WEST VIRGINIA – Orville Darby, of Martinsburg, West Virginia, has admitted to drug distribution, Acting United States Attorney Randolph J. Bernard announced.
Darby, age 35, pled guilty to one count of “Conspiracy to Possess with Intent to Distribute and to Distribute Heroin, Cocaine Hydrochloride and Cocaine Base.” Darby admitted to working with others to distribute heroin, cocaine hydrochloride, and cocaine base from February 2019 to June 2019 in Berkeley County and elsewhere.Darby faces up to 20 years of incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Saturday 10 April 2021
Former Grand Island Resident Sentenced for Possessing Child PornographyRead the Press Release
Acting United States Attorney Jan Sharp announced that Michael Gonzalez, 44, formerly of Grand Island, Nebraska, was sentenced on April 9, 2021 in Lincoln, Nebraska, by Chief United States District Judge John M. Gerrard for possession of child pornography. Gonzalez was sentenced to 48 months in prison and will also serve 6 years on supervised release. There is no parole in the federal system. After serving his prison sentence, Gonzalez will also be required to register as a sex offender.
In January 2016, the Nebraska State Patrol received information from the National Center for Missing and Exploited Children (NCMEC) that a user, later identified to be Gonzalez, was uploading an image of child pornography.
A search warrant was served at Gonzalez’s residence and that search resulted in the seizure of numerous electronic items, including both a laptop and desktop computers, and a cell phone and other storage media. Law enforcement forensically examined the equipment and located 19 images of child pornography depicting children under the age of twelve.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Nebraska State Patrol.
Friday 9 April 2021
Youth Pastor Charged with Production of Child PornographyRead 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 Nathan L. Rogers, 37, of East Aurora, NY, was arrested and charged by criminal complaint with production of child pornography. The charge carries a mandatory minimum penalty of 15 years in prison and a maximum of 30 years.
Assistant U.S. Attorney Paul E. Bonanno, who is handling the case, stated that according to the complaint, in July 2019, a mother contacted the Genesee County Sheriff’s Office and stated that her 12-year-old daughter (Victim) attended a Christian music festival at Darien Lake with her church youth group. After going to the water park, the church’s youth pastor, the defendant, invited the Victim to change her wet clothes in his camper. After she finished changing, the Victim discovered an iPhone hidden in clothing on a ledge. The Victim looked at the iPhone and discovered it had been recording for about 13 minutes. After deleting the video of her changing, the Victim replaced the iPhone on the ledge. The Victim next discovered a second iPhone hidden in the sheets on the bed. She also deleted that video as well, replaced the device, and left the camper. The Victim called her mother to tell her what happened. The mother went to Darien Lake, picked up her daughter and contacted the Sheriff’s Office. Rogers was subsequently arrested, charged with Unlawful Surveillance in the Second Degree, convicted in Genesee County Court, and sentenced to five years’ probation in December 2020, with the first six months to be served in jail.
A review of the defendant’s cell phones recovered 24,017 picture files and 2,389 video files on the phone, some of which constituted child pornography.
The defendant made an initial appearance before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained.
The complaint is the result of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Stephen Belongia, and the Genesee County Sheriff’s Office, under the direction of William A. Sheron, Jr.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
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Wife and Husband Sentenced to 18 Months in Federal Prison for Conspiracy to Distribute Controlled Substances and a Money Laundering ConspiracyRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Sonyia Cruz, age 52, of San Jose, California, and Frankie Cruz, age 46, of San Jose, California, to 18 months in federal prison, followed by three years of supervised release, for conspiring to distribute controlled substances and conspiring to commit money laundering.
The sentence was announced by Acting United States Attorney for the District of Maryland Jonathan F. Lenzner; Special Agent in Charge James R. Mancuso of Homeland Security Investigations (HSI) Baltimore; and Colonel Woodrow W. Jones III, Superintendent of the Maryland State Police.
According to their plea agreements, beginning in at least 2014, the married couple of Frankie and Sonyia Cruz conducted marijuana sales by purchasing bulk amounts of marijuana (24 to 25 pounds per order), shipping the marijuana to their rental home in Laurel, Maryland, and repackaging the drug parcels to sell in the District of Columbia for $2,800 or $2,900 per pound. The Cruzes then shipped the proceeds back to California after laundering the money at a Maryland Casino. In the spring of 2016, they also conducted marijuana sales in North Carolina.
From October 2015 through November 2016, Frankie Cruz, Sonyia Cruz, and other conspirators laundered approximately $674,897 derived from marijuana sales at a Maryland casino. The Cruzes attempted to laundered funds by feeding large amounts of currency into slot machines, engaging in minimal gaming activity, and cashing out the remainder of the proceeds. For example, on January 6, 2016, surveillance cameras captured Sonyia Cruz retrieving large stacks of money in small denominations from her purse and handing the funds to Frankie Cruz and a co-conspirator. Sonyia Cruz, Frankie Cruz, and a co-conspirator inserted the large piles of cash into various slot machines and engaged in minimal gaming activity when others walked by, spending less than $10 for every $500 they put into the machine. They then collected their fraudulent winnings in the form of a barcode encoded ticket, which totaled the equal value of the currency the conspirators deposited into the slot machines minus the minimal gaming expenditures. In some instances, Frankie Cruz deposited as much as $2,000 into a slot machine and cashed the same amount in the form of a ticket.
Sonyia Cruz, Frankie Cruz and a co-conspirator conducted this activity for four hours from 9 pm on January 6, 2016 to 1 am on January 7, 2016. Sonyia Cruz divided the fixed winnings amongst herself, Frankie Cruz, and a co-conspirator. All three individuals used various automated cash-out kiosks to retrieve the value of their tickets in $20 denominations.
Acting United States Attorney Jonathan F. Lenzner praised the HSI and Maryland State Police for their work in the investigation. Mr. Lenzner thanked Assistant U.S. Attorneys Dwight Draughon and David I. Salem, who prosecuted the case.
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WDLA News Round-Up for the Week of April 5, 2021Read the Press Release
LAFAYETTE/MONROE/SHREVEPORT, La. - Acting United States Attorney Alexander C. Van Hook announced the resolution of numerous cases this week in United States District Court in the Western District of Louisiana, all of which are listed below.
SENTENCING HEARING – LAFAYETTE
Eric J. Richard, 42, of Ville Platte, Louisiana, was sentenced by United States District Judge James D. Cain, Jr. to 71 months (6 years, 11 months) in prison, followed by 5 years of supervised release, for possession of methamphetamine with intent to distribute cocaine.
Richard was indicted by a federal grand jury in December 2018 charging him with possession with intent to distribute cocaine. The charges in the indictment stemmed from an incident on October 25, 2017, when a Louisiana State Trooper conducted a traffic stop of the vehicle Richard was driving on Interstate 10 in Calcasieu Parish. During the stop, a law enforcement canine performed a sniff around the vehicle and alerted to the presence of narcotics. Troopers searched Richard’s vehicle and found a white powdery substance, believed to be cocaine, inside a duffel bag belonging to Richard. The only other items inside the bag were a small set of scales and one shirt. The suspected cocaine was sent to the laboratory for analysis and it was confirmed that the substance found was 1,060 grams of cocaine.
The FBI and Louisiana State Police conducted the investigation and Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
SENTENCING HEARING – MONROE
Dustin Jamond Savoie, 34, of Choudrant, Louisiana, was sentenced by United States District Judge Terry A. Doughty to 180 months (15 years) in prison, followed by 3 years of supervised release, on drug trafficking and firearms charges. On January 17, 2020, Louisiana State Troopers observed a vehicle exceeding the speed limit near Ruston, Louisiana, activated his emergency lights and attempted to pull the driver over. The driver fled from officers and accelerated to a speed of over 110 mph. Once forced to stop, troopers deployed a police dog to remove the driver, who was identified as Savoie, from the vehicle. Troopers found inside Savoie’s vehicle a backpack containing a large amount of marijuana and other drug paraphernalia, as well as a loaded semi-automatic pistol. Further investigation revealed the firearm had been reported stolen in Lincoln Parish.
Savoie has prior felony convictions for distribution of marijuana (2011); possession of a controlled substance (2014); simple escape (2016); unauthorized use of a motor vehicle (2017); attempted possession of contraband in a penal institution (2017); and possession of controlled substances (2017) and is prohibited from possessing a firearm.
The ATF and Louisiana State Police conducted the investigation and Assistant U.S. Attorney Robert F. Moody prosecuted the case.
SENTENCING HEARINGS – SHREVEPORT, LA
United States District Judge Elizabeth E. Foote sentenced the following individuals this week:
Claiborne Wayne Williams, 51, of Shreveport, was sentenced to 72 months (6 years) in prison, followed by 3 years of supervised release, on firearms charges. On November 13, 2019, Shreveport Police Department officers executed a search warrant at a room at the Royal Inn in Shreveport where Williams was present. When officers searched the room, they discovered several documents addressed to Williams, which were found near a revolver. Williams has prior felony convictions for conspiracy to launder drug proceeds and aiding and abetting possession with intent to distribute cocaine in Mississippi, and possession with intent to distribute a Schedule II CDS in Caddo Parish.
The ATF and Shreveport Police Department conducted the investigation and Assistant U.S. Attorney Robert F. Moody prosecuted the case.
Jamarion Deandre Young, 29, of Shreveport, was sentenced to a total of 156 months (13 years) in prison, followed by 5 years of supervised release, on drug trafficking and firearms charges. On November 24, 2019 around 1:00 a.m., Shreveport Police Department officers observed a vehicle with no lights on traveling on Mansfield Road in Shreveport. Officers initiated a stop of the vehicle and made contact with the driver, who was Jamarion Young. Officers observed a pill bottle on the floorboard and asked Young to verify the pills were prescribed to him, which he could not. The pill bottle was retrieved and inside was suspected ecstasy pills. Young was placed in handcuffs and after being advised of his Miranda rights, stated there was no other contraband in the vehicle. However, officers observed a black bag in the back seat which contained marijuana, small clear baggies, and a digital scale, as well as other small bags with marijuana on the back seat of the vehicle. A loaded handgun was also found under the seat which came back as stolen out of Oklahoma. After a lab analysis, it was determined the ecstasy pills contained methamphetamine.
A federal grand jury indicted Young in August 2020 and he subsequently pleaded guilty on December 11, 2020 to possession with intent to distribute methamphetamine and possession of a firearm during the commission of a drug trafficking crime. Young’s prior felony convictions are for possession with intent to distribute a Schedule I controlled substance in Caddo Parish (2009); unauthorized use of a movable in Caddo Parish (2011); aggravated flight from an officer in Caddo Parish (2013); and illegal use of a weapon (2015).
The ATF and Shreveport Police Department conducted the investigation and Assistant U.S. Attorney J. Aaron Crawford prosecuted the case.
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United States Intervenes in False Claims Act Lawsuit Against Connections Community Support Programs, Inc.Read the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that the United States has filed a complaint in partial intervention against Connections Community Support Programs, Inc. (“Connections”) in the United States District Court for the District of Delaware. The United States alleges that Connections violated the False Claims Act by knowingly submitting claims for payment to Medicare and Medicaid that falsely represented the identity and professional qualification of individuals providing mental health services.
Connections provides mental health treatment services at facilities located throughout Delaware. Medicare regulations and policies only allow providers to bill for mental health services rendered by individuals holding specific professional qualifications. Delaware Medicaid regulations and policies similarly condition whether mental health services can be reimbursed, and at which fee rate, on the professional qualification of the rendering provider.
The United States alleges that from at least January 2015 through October 2019, Connections submitted over 4,000 claims to Medicare in which it falsely certified that an individual holding an eligible qualification provided mental health services to Medicare beneficiaries when, in reality, a different Connections staff member who did not hold an eligible qualification provided the mental health service. With respect to Medicaid, the United States alleges that Connections submitted over 250,000 false claims that resulted in either full or partial overpayments due to Connections falsely certifying to the licensure or education level of the rendering provider. As a result of the false claims Connections submitted to Medicare and Medicaid, the United States alleges that Connections was paid more than $4,500,000 for mental health services for which it was not entitled to reimbursement.
“Federal healthcare regulations and policies that govern mental health services exist to ensure that Medicare and Medicaid beneficiaries are treated by qualified professionals,” said U.S. Attorney Weiss. “We expect all providers to submit claims that are true, accurate, and complete, and entrust that they will do so. Connections violated that trust, and in the process, defrauded Medicare and Medicaid out of more than $4.5 million dollars. My office is committed to pursuing all providers who submit false claims to federal healthcare programs to obtain money to which they are not entitled.”
The original complaint was filed in 2019 under the qui tam or whistleblower provisions of the False Claims Act, which allow private parties to file suit on behalf of the United States for false claims and receive a share of any recovery. The act permits the United States to intervene in whole or in part in such actions, as the government has done here. Those who violate the Act are subject to treble damages and applicable penalties.
The matter is being investigated by the U.S. Department of Health and Human Services Office of Inspector General and the Delaware Medicaid Fraud Control Unit. The investigation and litigation are being handled by Assistant U.S. Attorneys Laura D. Hatcher and Jesse S. Wenger.
The claims asserted by the United States are allegations only and there has been no determination of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER. The case is captioned United States ex rel. Spruill et al. v. Connections Community Support Programs, Inc., Case No. 19-475-CFC (D. Del.).
United States Brings Federal Controlled Substances Act Lawsuit Against Connections Community Support ProgramsRead the Press Release
WILMINGTON, Del. – U.S. Attorney David C. Weiss announced today that the United States filed a civil complaint against Connections Community Support Programs, Inc. as well as three of its current and former corporate officers, Catherine Devaney McKay, William Northey, and Steven Davis, in the United States District Court for the District of Delaware. The United States alleges that Connections and its corporate officers violated the Controlled Substances Act by negligently failing to keep required documentation of its distribution and dispensing of controlled substances, particularly methadone and buprenorphine used in Connections’ treatment of opioid use disorder. Each violation of the recordkeeping requirements under the Controlled Substances Act carries a civil penalty of up to $15,040.
During an inspection and audit in March 2019, diversion investigators from the Drug Enforcement Administration determined that Connections was unable to provide records identifying the location of more than 244 bottles of methadone liquid and more than 1,100 doses of buprenorphine. Subsequent investigation revealed numerous additional citations from DEA at multiple Connections locations as well as dozens of additional violations not specifically identified in DEA inspections.
To ensure that prescription medications are not diverted for sale or abuse, the Controlled Substances Act and DEA regulations impose strict reporting and recordkeeping requirements on the manufacture, distribution, and dispensing of controlled substances. As detailed in the Complaint filed today, the United States alleges that Connections has a long history of negligent failure to maintain proper records, in addition to numerous instances in which required records were created after the fact and backdated to make it appear that they had been created at an earlier time. The United States also alleges that, on numerous occasions, Connections represented to DEA that it was undertaking additional measures to improve its compliance and then failed to do so.
The Complaint also alleges that McKay, Northey, and Davis, all of whom were corporate officers of Connections, negligently delegated responsibility for compliance with the Controlled Substances Act to individuals they knew were unqualified and ill-suited to those responsibilities, and that they failed to provide adequate training and supervision for those individuals.
“As one of the largest providers of substance abuse treatment in Delaware, Connections is well aware of the extent of the opioid crisis in our state,” said U.S. Attorney Weiss. “By failing for years to properly document their distribution and dispensing of controlled substances, Connections and its executives have shirked their responsibility to ensure that they were not contributing to the crisis by creating an environment in which their own inventory of controlled substances could be diverted for abuse or sale.”
“Narcotics treatment programs such as Connections Community Support Programs are entrusted with providing critical care and support to people struggling with opioid use disorder. Their mission is more vital than ever, especially during the current opioid crisis,” said Jonathan A. Wilson, Special Agent in Charge of the Drug Enforcement Administration’s (DEA) Philadelphia Field Division. “With that responsibility comes the obligation to properly safeguard and document the dispensing of treatment drugs such as methadone and buprenorphine, which Connections and its corporate officers failed to do.”
This matter was investigated by the Drug Enforcement Administration. The investigation and litigation are being handled by Assistant U.S. Attorneys Laura D. Hatcher and Dylan J. Steinberg.
The complaint contains allegations only, and not findings of liability.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the District of Delaware. Related court documents and information is located on the website of the District Court for the District of Delaware or on PACER.
U.S. Attorney's Office and FBI Hold Virtual Meeting with AAPI Community Leaders to Confront Rising Discrimination Against Asian AmericansRead the Press Release
Detroit - The U.S. Attorney’s office and the FBI met with Asian American and Pacific Islander (AAPI) community leaders to address the rising violence against Asian Americans.
Today, Acting United States Attorney Saima Mohsin along with Special Agent in Charge Timothy Waters, and other law enforcement officials from their offices, participated in a listening session with approximately 20 Asian American community leaders, and members of civil rights organizations. The event took place virtually due to COVID-19 and covered topics including how the FBI conducts civil rights investigations, when cases can be prosecuted as federal hate crimes, and how incidents that do not rise to the level of a crime can be addressed through civil enforcement of federal civil rights laws.
“The United States Attorney’s Office is committed to upholding and protecting the civil rights of Asian Americans and every citizen in this state,” said Acting US Attorney Mohsin. “Hate against any community should be a concern for every community. Federal law enforcement will take action against violence or threats of violence directed at anyone based on race, religion, ethnicity, national origin, gender, or sexual orientation."
“The FBI is committed to establishing trust and open communication and strengthening partnerships with communities across the State. It is important for all Michiganders to remember that any violent criminal act or threat against any person because of their race, color, religion or national origin is a hate crime. This includes violence against Asian Americans, Pacific Islanders, or individuals from East Asian countries,” said Timothy Waters, Special Agent in Charge of the FBI’s Detroit Field Office. “Anyone with knowledge of hate crimes against any member of our community is asked to report the incident to local police and/or the FBI.”
The event is one of many outreach efforts by the FBI and US Attorney’s Office to address discrimination, violence and harassment targeting people because of what they look like, which country they come from, where they worship or who they love. The aim is to learn directly from the affected community about their concerns and reaffirm the Department of Justice’s commitment to protecting civil rights and preventing and prosecuting hate crimes.
Acting United States Attorney Saima S. Mohsin encourages anyone who has knowledge or information concerning any hate crime or incident involving bias or discrimination to contact the U.S. Attorney’s Office for the Eastern District of Michigan by calling the Civil Rights Hotline at 313.226.9151 or by sending an email to [email protected].
U.S. Attorney Announces Extradition of Canadian Citizen for His Role in an International Fraud and Money Laundering NetworkRead the Press Release
Audrey Strauss, the United States Attorney for the Southern District of New York, announced that YUSUF OWOLABI ABDUL, a/k/a “Saheed Sador,” a citizen of Nigeria and a resident of Canada, was extradited today from Germany. ABDUL was charged with participation in a fraud scheme from at least in or about 2013 until at least April 2019 involving the theft and laundering of victim funds. ABDUL was arrested in Germany on December 11, 2020, on an Interpol Red Notice, and is the fifth defendant charged in this case. ABDUL is expected to be presented on Monday, April 12, before U.S. Magistrate Judge Ona T. Wang. ABDUL’s case is assigned to U.S. District Judge Katherine Polk Failla.
U.S. Attorney Audrey Strauss said: “As alleged, Yusuf Owolabi Abdul and his codefendants used a widely available telephone ‘spoofing’ service and other deceitful means to steal and conceal millions of dollars in victim funds. Thanks to the FBI and international cooperation, Abdul is in U.S. custody and facing charges in this District.”
According to the allegations in the Indictment [1]:
From at least 2013 through in or about 2018, ABDUL and various other conspirators, located in countries including the United States, Canada, Italy, the United Kingdom, and the United Arab Emirates (collectively, the “Conspirators”), were involved in a scheme to fraudulently access individuals’ and corporations’ bank accounts and to conduct financial transactions using those bank accounts without the knowledge or authority of the accounts’ legitimate owners (the “Bank Scheme”). As part of the Bank Scheme, the Conspirators placed thousands of calls to various United States banks, holding themselves out as legitimate accountholders of particular targeted bank accounts and using the stolen personal identifying information belonging to those accountholders. Using a particular telephone number “spoofing” service, and voice-altering technology, the Conspirators would deceive bank representatives into believing that the Conspirators were actual accountholders. In so doing, they convinced multiple U.S. banks to, among other things: move money from a victim’s savings account to the victim’s checking account (so that the Conspirators could more easily access the funds and conduct unauthorized transactions); falsely note on the account that the accountholder was traveling abroad (making the bank less likely to void suspicious international transactions made by the Conspirators); have “replacement” credit cards mailed to international addresses controlled by the Conspirators (whereupon the Conspirators could use them to make unauthorized purchases); and authorize foreign purchases made by the Conspirators.
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ABDUL, 45, a citizen of Nigeria and resident of Canada, is charged with one count of conspiracy to commit bank and wire fraud, which carries a maximum sentence of 30 years in prison; one count of conspiracy to commit money laundering, which carries a maximum of 20 years in prison; and one count of aggravated identity theft, which carries a mandatory sentence of two years in prison, to be served consecutively to the other charges. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Other defendants charged in this case include Alade Kazeem Sodiq, a/k/a “Eluku,” a citizen of the United Arab Emirates and Abdulai Kennedy Saaka, a/k/a “Kenny,” of Atlanta, Georgia, who each pled guilty to one count of money laundering conspiracy and were sentenced to 50 months in prison and 32 months in prison, respectively; Habeeb Audu, a/k/a “Dickson” whose case remains pending; and Dominic Francis Labiran, a citizen of the United Kingdom, who remains at large.
Ms. Strauss praised the outstanding investigative work of the Federal Bureau of Investigation. The U.S. Department of Justice’s Office of International Affairs of the Department’s Criminal Division provided significant assistance in securing the defendant’s extradition from Germany.
The prosecution of this case is being handled by the Office’s Money Laundering and Transnational Criminal Enterprises Unit. Assistant United States Attorneys Kiersten A. Fletcher, Jonathan E. Rebold, and Andrew A. Rohrbach are in charge of the prosecution.
The charges against ABDUL, Audu, and Labiran contained in the Indictment are merely accusations, and they are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Two Stoneham Residents Arrested on Charges of Identity Theft and Unemployment Fraud Related to COVID-19 PandemicRead the Press Release
BOSTON – Two Stoneham residents were arrested today in connection with their alleged involvement in a scheme to fraudulently obtain COVID-19-related unemployment assistance.
Daniel Maleus, 33, and Lilly Nguyen, 24, were charged in a criminal complaint with wire fraud, conspiracy to commit wire fraud and aggravated identity theft. Nguyen was also charged with bank fraud, conspiracy to commit bank fraud and lying to a federal agent. Maleus and Nguyen were released on conditions after an initial appearance in federal court in Boston this afternoon.
According to the charging documents, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) created a temporary federal unemployment insurance program called Pandemic Unemployment Assistance (PUA). PUA, administered by the Massachusetts Department of Unemployment Assistance, provides unemployment insurance benefits for individuals who are not eligible for other types of unemployment benefits (e.g., the self-employed, independent contractors, or gig economy workers).
As alleged in the complaint, Maleus and Nguyen conspired to file fraudulent claims for PUA using others’ personally identifiable information. The investigation connected Maleus and Nguyen to more than $400,000 in unemployment claims between April 2020 and March 2021. Nguyen also allegedly lied to a federal agent when questioned about pandemic-related deposits into her bank accounts in others’ names.
The charges of bank fraud and conspiracy to commit bank fraud each provide for a sentence of up to 30 years in prison, up to five years of supervised release and a fine of $1 million. The charges of wire fraud and conspiracy to commit wire fraud each provide for a sentence of up to 20 years in prison, up to three years of supervised release and a fine of $250,000. The charge of aggravated identity theft provides for a mandatory sentence of two years in prison to be served consecutively to any other sentenced imposed, one year of supervised release and a fine of $250,000. The charge of lying to a federal agent provides for a sentence of up to five years in prison, one year of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolanta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Mikulka, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Investigations made the announcement. Special assistance was provided by the Massachusetts Department of Unemployment Assistance. Assistant U.S. Attorney Christopher J. Markham of Mendell’s Securities, Financial & Cyber Fraud Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.