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21 May 2021
Thibodaux Man Pleads Guilty to Violation of Federal Gun Control ActRead the Press Release
NEW ORLEANS - U.S. Attorney Duane A. Evans for the Eastern District of Louisiana, announced that DONOVAN DIRON JOHNSON (“JOHNSON”), age 27, of Thibodaux, LA pled guilty on May 18, 2021 in federal court before U.S. District Judge Jay C. Zainey to being a person convicted of a misdemeanor crime of violence found in possession of a firearm, in violation of Title 18, United States Code, Section 922(g)(9).
According to court documents, on February 1, 2017, JOHNSON was found in possession of a Glock 22 .40 caliber pistol with an extended magazine.
The Court set sentencing in this matter for August 17, 2021. JOHNSON faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment.
The U.S. Attorney’s Office praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Thibodaux Police Department. The prosecution of the case was handled by Assistant U.S. Attorney Kathryn McHugh.
Taunton Man Charged with Child Pornography OffenseRead the Press Release
BOSTON – A Taunton man was arrested on Wednesday, May 19, 2021 and charged with possession of child pornography.
Rudy Frabizio, 59, was charged by criminal complaint with one count of possession of child pornography. Frabizio was detained following an initial appearance yesterday in federal court in Boston. U.S. District Court Magistrate Judge Marianne B. Bowler scheduled a probable cause and detention hearing for May 25, 2021.
According to charging documents, during a search of Frabizio’s residence, agents found at least 465 images and videos depicting child pornography. It is also alleged that Frabizio uploaded images depicting child pornography via his Google account. Frabizio is a registered Level 2 sex offender due to an April 2009 conviction for possession of child pornography.
The charge of possession of child pornography provides for a sentence of up to 20 years in prison, five years and up to a lifetime of supervised release and a fine of $250,000. Due to prior his prior conviction, Frabizio faces a minimum mandatory sentence of 10 years in prison if he is convicted. 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 and William S. Walker, Acting Special Agent in Charge of Homeland Security Investigations in Boston made the announcement today. The Taunton Police Department provided valuable assistance with the investigation. Assistant U.S. Attorney Adam Deitch of Mendell’s Major Crimes Unit is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by the U.S. Attorneys’ Offices and the DOJ’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The details contained in the criminal complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tampa Credit Union Employee Sentenced for Bank Fraud and Identity TheftRead the Press Release
Tampa, FL – U.S. District Judge Steven Merryday has sentenced Diamond Hamilton (23, Tampa) to two years in federal prison for bank fraud and aggravated identity theft. Hamilton had pleaded guilty on February 17, 2021.
According to court documents, Hamilton was an employee of a federally insured credit union (Credit Union 1) in Tampa. In 2019, Hamilton and others engaged in a scheme to defraud the credit union by fraudulently obtaining money under the credit union’s control. To accomplish the scheme, Hamilton accessed bank account information of the Credit Union 1 victim account holders without the account holders’ knowledge or permission and added email addresses controlled by other conspirators in the scheme. Hamilton also added and/or changed online passwords associated with the victims’ accounts, then caused funds to be transferred from the victim account holders’ bank accounts to accounts controlled by her and other co-conspirators. Afterwards, the funds were subsequently withdrawn and shared amongst the conspirators.
This case was investigated by the Federal Housing Finance Agency – Office of Inspector General, the Federal Bureau of Investigation, and the Hillsborough County Sheriff’s Office. It was prosecuted by Special Assistant United States Attorney Chris Poor.
Syracuse Man Pleads Guilty to Drug, Money Laundering and Firearms ChargesRead the Press Release
SYRACUSE, NEW YORK – John Wright, age 33, of Syracuse, pled guilty yesterday to conspiracy to distribute, and possess with intent to distribute marijuana, as well as conspiracy to commit money laundering of drug proceeds, possession of marijuana with the intent to distribute, possession of firearms by a convicted felon, and possessing firearms in connection with a drug trafficking crime, announced Acting United States Attorney Antoinette T. Bacon, Kevin Kelly, Special Agent in Charge of the Buffalo Field Office of Homeland Security Investigations (HSI), and Gregory S. Oakes, Oswego County District Attorney.
As part of his guilty plea, Wright admitted that between May 2017 and August 2017, he received bulk quantities of marijuana from a source of supply who imported marijuana via the Akwesasne Mohawk Reservation in Northern New York State. Wright sold marijuana he received to customers in Syracuse, and sent the proceeds back to his source of supply. As part of his guilty plea, Wright admitted that he distributed at least 54 kilograms (118 pounds) of marijuana. Wright further admitted that he possessed a handgun and a loaded shotgun in his home to protect his drugs and the proceeds from drug sales. In 2008, Wright was convicted in Onondaga County Court of Criminal Possession of a Weapon in the Third Degree, and was prohibited from possessing firearms at the time of his commission of his federal crimes.
Sentencing is scheduled for September 23, 2021, in Binghamton, New York, at which time Wright faces a maximum sentence of up to 20 years imprisonment for his conviction for conspiracy to possess with intent to distribute and distribution of marijuana, a fine of up to $1,000,000, and a term of supervised release of at least 3 years and up to life. He also faces up to 20 years imprisonment for conspiracy to commit money laundering of drug proceeds. Wright faces a mandatory consecutive sentence of five years, and up to life for his conviction for possession of firearms in connection with a drug trafficking crime. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by Homeland Security Investigations (HSI), the U.S. Internal Revenue Service-Criminal Investigation (IRS-CI), and the Oswego County Drug Task Force, comprised of Special Agents of HSI, members of the City of Oswego Police Department, the Oswego County Sheriff’s Office, Investigators from the Oswego County District Attorney’s Office, the SUNY Oswego Police Department, and Agents of the U.S. Border Patrol. The case is being prosecuted by Assistant United States Attorney Thomas Sutcliffe.
Surgeon Sentenced to 15 Months in Prison for Accepting Illicit Payments in Exchange for Referring Patients for Spinal SurgeriesRead the Press Release
SANTA ANA, California – An orthopedic surgeon was sentenced today to 15 months in federal prison for accepting nearly $623,000 in bribes and kickbacks in exchange for referring his patients to receive spinal surgeries at a corrupt Long Beach hospital.
Dr. Jeffrey David Gross, 55, who resides in Dana Point and Las Vegas, was sentenced by United States District Judge Josephine L. Staton, who also ordered him to forfeit $622,936. Gross pleaded guilty in August 2020 to one felony count of conspiracy to commit honest services mail and wire fraud.
The kickback scheme centered on Pacific Hospital in Long Beach, which specialized in surgeries, especially spinal and orthopedic procedures. The owner of Pacific Hospital, Michael D. Drobot, conspired with doctors, chiropractors and marketers to pay kickbacks in return for the referral of thousands of patients to Pacific Hospital for spinal surgeries and other medical services paid for primarily through the California workers’ compensation system.
During its final five years, the scheme resulted in the submission of more than $500 million in fraudulent medical bills. To date, 15 defendants have been convicted for participating in the kickback scheme.
From 2008 to 2013, Gross, a licensed neurosurgeon who operated Oasis Medical Providers Inc. in Laguna Niguel, agreed with Drobot to participate in a scheme to defraud patients of their right to honest services by accepting bribes and kickbacks that were paid to induce Gross to refer patients to Pacific Hospital for spinal surgeries and other medical services.
In February 2008, Gross agreed with Drobot to sublease Oasis’s medical office space to a Pacific Hospital-affiliated company, Pacific Specialty Physician Management Inc. (PSPM), in return for monthly payments of $15,000. In November 2008, Gross entered into an option contract with PSPM in which Oasis was paid $15,000 per month to purchase the accounts receivable and all other tangible assets of Oasis.
For both the sublease and option agreements, Gross knew and understood that one purpose of the agreements was to induce him to bring certain spinal surgery patients to Pacific Hospital, though that information wasn’t specified on the lease agreement, nor did Gross disclose that information to his patients.
PSPM paid Oasis $145,000 under the sublease agreement and $105,000 under the option agreement.
In April 2009, Gross entered into an outsourced collections agreement with Pacific Hospital that called for him to assist with collections on some of the spinal surgery cases that he performed at that hospital in exchange for 15 percent of any amounts the hospital collected in relation to those surgeries. This agreement, later amended, called for Gross to be paid 10 percent of the collected amount on other outpatient surgeries. During surgeries, if Gross used hardware from International Implants (I2), a Drobot-formed hardware distribution company, he was advanced $5,000 regardless of subsequent collections. Once again, Gross did not disclose this information to his patients. Pacific Hospital paid Oasis $372,936 under this agreement.
In total, between April 2008 and May 2013, Drobot paid Gross $622,936 pursuant to these agreements. During the same period, Gross referred dozens of patients to Pacific Hospital for spinal surgeries based in part on payments made to him under those agreements.
The FBI, IRS Criminal Investigation, California Department of Insurance, and the United States Postal Service Office of Inspector General investigated this matter.
Assistant United States Attorneys Joseph T. McNally of the Violent and Organized Crime Section and Scott D. Tenley of the Santa Ana Branch Office prosecuted this case.
Six Arrested and Indicted in Juneau Drug Ring BustRead the Press Release
JUNEAU – Six individuals from Juneau, Alaska, have been arrested and charged in connection to a drug trafficking ring which conspired to distribute methamphetamine, heroin and cocaine between July 2017 and May 2021. They are also charged with firearm offenses in connection with drug trafficking.
Those charged are:
- David Powers, 50;
- Janel Davis aka “Janel Ellis,” 48;
- Keoni Bischoff, 41;
- Catherine Demars aka “Catherine McCoy,” 50;
- Eliza Nicole Coyle, 35; and
- Lorvin Baraoidan Uddipa, 33.
According to court documents, over the last four years, Powers and Davis obtained drugs in Washington and distributed them across southeast Alaska using cell phones to connect with buyers. Bischoff, Demars, Coyle and Uddipa were members of the drug ring who assisted Powers and Davis in obtaining and distributing the controlled substances. The group also acquired a variety of firearms, including seven pistols, seven rifles and a shotgun many of which had silencers. Investigators also found a suspected selector switch which could potentially be used to convert a handgun into a machine gun. Other items found included numerous rounds of ammunition, additional silencer parts, laser sights and various firearm parts and accessories.
If convicted, the individuals face a maximum sentence of lifetime in prison, up to a lifetime of supervised release and a fine of up to $10 million. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The Federal Bureau of Investigation (FBI), the Juneau Police Department (JPD), Alaska State Troopers (AST), Drug Enforcement Administration (DEA), Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), United States Coast Guard Investigative Service (USCGIS) and United States Postal Inspector Service (USPIS) are members of the South East Alaska Cities Against Drugs (SEACAD) Taskforce and are investigating the case.
Assistant U.S. Attorneys Jack Schmidt and Christopher Schroeder are prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Second Man Sentenced to Prison in Traveling Bank FraudRead the Press Release
BENTON, Ill. – Johnny J. Collado, 30, of Bronx, New York, was sentenced today to 28 months in federal prison and 2 years of court supervision after his release. In January, Collado pled guilty to conspiracy to commit bank fraud and aggravated identity theft. His co-defendant, Elvin
Lugo-Cales, was sentenced to 51 months in prison on May 6.On March 2, 2020, Collado and Lugo-Cales flew from New York to St. Louis for the sole purpose of defrauding banks using stolen identities. They were paid members of a criminal organization based in New York. Collado was the driver and coordinated the scheme through text messages with a co-conspirator in New York. Lugo- Cales was known in the scheme as a “soldier” – a person willing to travel to a new city, walk into banks, and conduct fraudulent transactions face-to-face with bank tellers using fake IDs and counterfeit checks.
On March 5, 2020, Collado drove Lugo-Cales in a rental car to a US Bank location in Edwardsville, Illinois. Lugo-Cales went inside the bank while Collado waited in the car. Lugo-Cales walked up to a bank teller and presented a counterfeit check in the amount of $3,650.00 made payable to an identity theft victim from Colorado. The check had a forged endorsement and the victim’s social security number written on the back. Lugo-Cales also presented a false U.S. passport card bearing Lugo-Cales’ photograph and the name of the victim. He then asked the bank teller to cash the check.
The bank teller recalled an internal e-mail she had received warning branches about a man traveling around the St. Louis area attempting to cash counterfeit checks. Seeing that Lugo-Cales fit the description of the suspect, she notified her bank manager and stalled the transaction while the bank manager called the police.
Lugo-Cales grew nervous and demanded the bank teller return his check and passport card. When the teller refused, he left the bank and drove away with Collado, leaving behind the counterfeit check and passport card with his picture on it. The two men were pulled over and arrested nearby.
Police found numerous items concealed under Collado’s clothing, including over $25,000 in cash, multiple counterfeit IDs, counterfeit credit cards, and 19 blank counterfeit checks. A subsequent search of Collado’s cell phone revealed that he had traveled to at least two other cities to conduct the same scam with the names and banking information of at least 45 identity theft victims.
During the sentencing hearing, United States District Judge Staci M. Yandle remarked that “identity theft is a big problem that has severe and lasting consequences” for victims.
The investigation was conducted by the Edwardsville Police Department and United States Secret
Service. The case is being prosecuted by Assistant United States Attorney Luke J. Weissler.Scranton Man Sentenced to More Than 11 Years’ Imprisonment for Receiving and Distributing Child PornographyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Shawn Howells, age 48, of Scranton, was sentenced to 135 months’ imprisonment to be followed by 10 years on supervised release on May 20, 2021, by U.S. District Court Judge Robert D. Mariani for receiving and distributing child pornography.
According to Acting United States Attorney Bruce D. Brandler, Howells previously pleaded guilty to using his laptop computer to access images and videos of child pornography and traded them with others on the internet. Howells committed the offense between November 2016 and January 2017.
Judge Mariani deferred for 90 days a determination as to the amount of restitution Howells owes to the victims depicted in the images and videos of child pornography that he received and distributed. Howells was also ordered to undergo sex offender treatment and to comply with the Sex Offender Registration and Notification Act.
The matter was investigated by the Federal Bureau of Investigation. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Schuylkill County Man Sentenced to 51 Months’ Imprisonment for His Involvement in A Conspiracy to Distribute FentanylRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Sean Scott, 43, of Schuylkill County, was sentenced to 51 months’ imprisonment to be followed by four years on supervised release on May 20, 2021 by U.S. District Court Judge Malachy E. Mannion for conspiring to possess and distribute fentanyl.
According to Acting United States Attorney Bruce D. Brandler, Scott previously pleaded guilty to conspiring to possess and distribute at least 280 grams but less than 400 grams of fentanyl throughout Luzerne and Schuylkill Counties. Scott’s involvement in the charged conspiracy began in May of 2017 through November 2017.
The matter was investigated jointly by the Drug Enforcement Administration and the Pennsylvania State Police. Assistant United States Attorney Michelle Olshefski prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin and fentanyl. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
This case is also part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
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Schaller Man Sentenced to Five Years in Federal Prison for COVID-19 Unemployment Benefits FraudRead the Press Release
A man who received and transferred over $35,000 in fraudulently obtained CARES Act unemployment funds from multiple states was sentenced on May 20, 2021, to five years in federal prison. Alvin Lavon Rex, age 61, from Schaller, Iowa, received the prison term after a December 18, 2020, guilty plea to one count of mail fraud.
In a plea agreement, and at his plea and sentencing hearings, Rex admitted he opened multiple bank accounts in the Storm Lake, Iowa, area in May and June 2020. Rex received over $35,000 in unemployment benefits in the names of other individuals from Arizona, Ohio, and Massachusetts. He then withdrew the benefits in cash and mailed the cash through the United States Postal Service. Rex also admitted that, in the months preceding the pandemic, he had received a false and fraudulent tax refund in the name of another person and cashed counterfeit checks at local banks. As a part of his plea agreement, Rex agreed to make full restitution to those banks.
Rex was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Rex was sentenced to 60 months’ imprisonment. He was ordered to make $63,070.03 in restitution. He must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system.
“Alvin Rex took advantage of unemployment benefits intended for those who lost their jobs because of the COVID-19 pandemic,” said Acting United States Attorney Sean R. Berry. “We will vigorously investigate and prosecute those who seek to profit from fraud involving COVID-19 benefits. Rex’s sentence reflects the seriousness of his offense and demonstrates that there will be consequences for committing fraud, including prison.”
This prosecution is an example of the Department of Justice’s strong commitment to combating fraud and criminal activity related to COVID-19. Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
The case was prosecuted by Assistant United States Attorney Tim Vavricek and was investigated by the Federal Bureau of Investigation, the United States Department of Labor, Office of Inspector General, the United States Postal Inspection Service, and the Storm Lake Police Department. The Sac County Sheriff’s Office, the State of Arizona’s UI Benefit Fraud Investigation Unit, Office of Inspector General, the State of Massachusetts’ Program Integrity Unit, Department of Unemployment Assistance, and the State of Ohio’s Benefit Payment Fraud Control Unit, Department of Job and Family Services provided assistance to the investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-4062.
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SavaSeniorCare LLC Agrees to Pay $11.2 Million to Resolve False Claims Act AllegationsRead the Press Release
SavaSeniorCare LLC and related entities (Sava), based in Georgia, have agreed to pay $11.2 million, plus additional amounts if certain financial contingencies occur, to resolve allegations that Sava violated the False Claims Act by causing its skilled nursing facilities (SNFs) to bill the Medicare program for rehabilitation therapy services that were not reasonable, necessary or skilled, and to resolve allegations that Sava billed the Medicare and Medicaid programs for grossly substandard skilled nursing services. Sava currently owns and operates SNFs across the country.
“Nursing home operators will be held accountable when they engage in fraudulent schemes and put their own financial gain ahead of the needs of their vulnerable residents,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “To ensure the integrity of our public health care programs, the department will pursue operators who bill Medicare and Medicaid for unnecessary or grossly substandard services and who fail to provide adequate care.”
In 2015, the government filed a consolidated False Claims Act complaint against Sava, alleging that between October 2008 and September 2012, Sava knowingly submitted false claims for rehabilitation therapy services as a result of a systematic effort to increase its Medicare billings. The United States’ complaint alleged that, through corporate-wide policies and practices, Sava exerted significant pressure on its SNFs to meet unrealistic financial goals, resulting in the provision of medically unreasonable, unnecessary or unskilled services to Medicare patients. Sava allegedly set these aggressive, prospective corporate targets for the highest Medicare reimbursement rates without regard for its patients’ actual clinical needs and then pressured its staff to meet those targets. Sava also allegedly sought to increase its Medicare payments by delaying the discharge of patients from its facilities, even though the patients were medically ready to be discharged.
This settlement also resolves allegations that between October 2008 and September 2012, Sava knowingly submitted false claims to Medicaid for coinsurance amounts for rehabilitation therapy services for beneficiaries eligible for both Medicare and Medicaid and for whom Sava also allegedly submitted or caused the submission of false claims to Medicare for those services.
In addition, this settlement resolves allegations that between January 2008 and December 2018, Sava knowingly submitted false claims for payment to Medicare and Medicaid for grossly and materially substandard and/or worthless skilled nursing services. The government alleged that some of the nursing services provided by Sava failed to meet federal standards of care and federal statutory and regulatory requirements, including failing to have sufficient staffing in certain facilities to meet certain residents’ needs. The government also alleged that in certain skilled nursing facilities, Sava failed to follow appropriate pressure ulcer protocols and appropriate falls protocols, and failed to appropriately administer medications to some of the residents.
“When corporate greed rises to the level of defrauding federal health care programs, while subjecting one of our most vulnerable populations to grossly substandard care and unnecessary medical services, we must hold the companies accountable,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “Any fraud that undermines the care being provided to elderly nursing home residents cannot continue and will be exposed and rooted out. We are grateful to the courageous whistleblowers who reported this egregious conduct.”
“Nursing home residents should not be at the mercy of nursing home operators that put their own economic gain ahead of the needs of the residents, and we will continue to aggressively pursue those operators who bill Medicare and Medicaid for substandard care,” said Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “This settlement holds Sava accountable, and the resulting Corporate Integrity Agreement should ensure that Sava provides seniors with quality care and treats its residents with dignity and respect.”
“Too many unscrupulous nursing homes operators seek maximum profit by routinely inflating bills while providing grossly substandard care,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Medicare and Medicaid patients deserve so much better. With our law enforcement partners, we will continue to investigate and hold accountable those who place profits over patients.”
Under the settlement with the United States, and separate settlements with participating states, Sava has agreed to pay a total of approximately $11.2 million, plus additional amounts if certain financial contingencies occur. The settlement was based on the company’s ability to pay.
In connection with the settlement, Sava entered into a five-year chain-wide Corporate Integrity Agreement (CIA) with HHS-OIG that requires an independent review organization to annually review patient stays and associated paid claims by Medicare for those stays. In addition, Sava is required to engage an Independent Monitor to review the quality of resident care. CIAs promote compliance and protect vulnerable nursing home residents.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Sava by Relators Rita Hayward, Trammel Kukoyi, Terrence Scott, James Thornton and Barbara Roberts. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Hayward v. SavaSeniorCare, LLC, et al., No. 3:11-cv-0821 (M.D. Tenn.); United States ex rel. Scott v. SavaSeniorCare Administrative Services, LLC, 3:15-cv-0404 (M.D. Tenn.); United States ex rel. Kukoyi v. Sava Senior Care, L.L.C., et al., No. 3:15-cv-1102 (M.D. Tenn.); and United States, et al. ex rel. Thornton, et al. v. SavaSeniorCare, Inc., et al., Civil Action No. 16-CV-0840 (E.D. Pa.).
The resolutions obtained in these matters were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Middle District of Tennessee and the Eastern District of Pennsylvania, with assistance from the U.S. Attorneys’ Offices for the Southern District of Texas and the Western District of Texas, as well as from HHS-OIG and the National Association of Medicaid Fraud Control Units. The quality of care investigation was supported by the Justice Department’s Elder Justice Initiative, which helps to coordinate the department’s law enforcement and programmatic efforts to combat elder abuse, neglect, and financial exploitation. Learn more about the Elder Justice Initiative and the department’s elder justice efforts at www.elderjustice.gov.
The investigation and resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement can be reported to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These matters were handled by Fraud Section attorneys Alison Rousseau, Susan Lynch, Seth Greene, Breanna Peterson, Christopher Terranova, and Laura Hill; Assistant U.S. Attorney Mark Wildasin of the Middle District of Tennessee; and Assistant U.S. Attorneys Charlene Fullmer, David Degnan, and Gerald Sullivan of the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
SavaSeniorCare LLC Agrees to Pay $11.2 Million to Resolve False Claims Act AllegationsRead the Press Release
WASHINGTON – SavaSeniorCare LLC and related entities (Sava), based in Georgia, have agreed to pay $11.2 million, plus additional amounts if certain financial contingencies occur, to resolve allegations that Sava violated the False Claims Act by causing its skilled nursing facilities (SNFs) to bill the Medicare program for rehabilitation therapy services that were not reasonable, necessary or skilled, and to resolve allegations that Sava billed the Medicare and Medicaid programs for grossly substandard skilled nursing services. Sava currently owns and operates SNFs across the country.
“Nursing home operators will be held accountable when they engage in fraudulent schemes and put their own financial gain ahead of the needs of their vulnerable residents,” said Acting Assistant Attorney General Brian M. Boynton of the Justice Department’s Civil Division. “To ensure the integrity of our public health care programs, the department will pursue operators who bill Medicare and Medicaid for unnecessary or grossly substandard services and who fail to provide adequate care.”
In 2015, the government filed a consolidated False Claims Act complaint against Sava, alleging that between October 2008 and September 2012, Sava knowingly submitted false claims for rehabilitation therapy services as a result of a systematic effort to increase its Medicare billings. The United States’ complaint alleged that, through corporate-wide policies and practices, Sava exerted significant pressure on its SNFs to meet unrealistic financial goals, resulting in the provision of medically unreasonable, unnecessary, or unskilled services to Medicare patients. Sava allegedly set these aggressive, prospective corporate targets for the highest Medicare reimbursement rates without regard for its patients’ actual clinical needs and then pressured its staff to meet those targets. Sava also allegedly sought to increase its Medicare payments by delaying the discharge of patients from its facilities, even though the patients were medically ready to be discharged.
This settlement also resolves allegations that between October 2008 and September 2012, Sava knowingly submitted false claims to Medicaid for coinsurance amounts for rehabilitation therapy services for beneficiaries eligible for both Medicare and Medicaid and for whom Sava also allegedly submitted or caused the submission of false claims to Medicare for those services.
In addition, this settlement resolves allegations that between January 2008 and December 2018, Sava knowingly submitted false claims for payment to Medicare and Medicaid for grossly and materially substandard and/or worthless skilled nursing services. The government alleged that some of the nursing services provided by Sava failed to meet federal standards of care and federal statutory and regulatory requirements, including failing to have sufficient staffing in certain facilities to meet certain residents’ needs. The government also alleged that in certain skilled nursing facilities, Sava failed to follow appropriate pressure ulcer protocols and appropriate falls protocols, and failed to appropriately administer medications to some of the residents.
“When corporate greed rises to the level of defrauding federal health care programs, while subjecting one of our most vulnerable populations to grossly substandard care and unnecessary medical services, we must hold the companies accountable,” said Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee. “Any fraud that undermines the care being provided to elderly nursing home residents cannot continue and will be exposed and rooted out. We are grateful to the courageous whistleblowers who reported this egregious conduct.”
“Nursing home residents should not be at the mercy of nursing home operators that put their own economic gain ahead of the needs of the residents, and we will continue to aggressively pursue those operators who bill Medicare and Medicaid for substandard care,” said Acting U.S. Attorney Jennifer Arbittier Williams for the Eastern District of Pennsylvania. “This settlement holds Sava accountable, and the resulting Corporate Integrity Agreement should ensure that Sava provides seniors with quality care and treats its residents with dignity and respect.”
“Too many unscrupulous nursing homes operators seek maximum profit by routinely inflating bills while providing grossly substandard care,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Medicare and Medicaid patients deserve so much better. With our law enforcement partners, we will continue to investigate and hold accountable those who place profits over patients.”
Under the settlement with the United States, and separate settlements with participating states, Sava has agreed to pay a total of approximately $11.2 million, plus additional amounts if certain financial contingencies occur. The settlement was based on the company’s ability to pay.
In connection with the settlement, Sava entered into a five-year chain-wide Corporate Integrity Agreement (CIA) with HHS-OIG that requires an independent review organization to annually review patient stays and associated paid claims by Medicare for those stays. In addition, Sava is required to engage an Independent Monitor to review the quality of resident care. CIAs promote compliance and protect vulnerable nursing home residents.
The civil settlement includes the resolution of claims brought under the qui tam or whistleblower provisions of the False Claims Act against Sava by Relators Rita Hayward, Trammel Kukoyi, Terrence Scott, James Thornton, and Barbara Roberts. Under those provisions, a private party can file an action on behalf of the United States and receive a portion of any recovery. The qui tam cases are captioned United States ex rel. Hayward v. SavaSeniorCare, LLC, et al., No. 3:11-cv-0821 (M.D. Tenn.); United States ex rel. Scott v. SavaSeniorCare Administrative Services, LLC, 3:15-cv-0404 (M.D. Tenn.); United States ex rel. Kukoyi v. Sava Senior Care, L.L.C., et al., No. 3:15-cv-1102 (M.D. Tenn.); and United States, et al. ex rel. Thornton, et al. v. SavaSeniorCare, Inc., et al., Civil Action No. 16-CV-0840 (E.D. Pa.).
The resolutions obtained in these matters were the result of a coordinated effort between the Civil Division’s Commercial Litigation Branch, Fraud Section, and the U.S. Attorneys’ Offices for the Middle District of Tennessee and the Eastern District of Pennsylvania, with assistance from the U.S. Attorneys’ Offices for the Southern District of Texas and the Western District of Texas, as well as from HHS-OIG and the National Association of Medicaid Fraud Control Units. The quality of care investigation was supported by the Justice Department’s Elder Justice Initiative, which helps to coordinate the department’s law enforcement and programmatic efforts to combat elder abuse, neglect, and financial exploitation. Learn more about the Elder Justice Initiative and the department’s elder justice efforts at www.elderjustice.gov.
The investigation and resolution of these matters illustrates the government’s emphasis on combating healthcare fraud. One of the most powerful tools in this effort is the False Claims Act. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, can be reported to the U.S. Department of Health and Human Services at 800-HHS-TIPS (800-447-8477).
These matters were handled by Fraud Section attorneys Alison Rousseau, Susan Lynch, Seth Greene, Breanna Peterson, Christopher Terranova, and Laura Hill; Assistant U.S. Attorney and Civil Chief Mark Wildasin of the Middle District of Tennessee; and Assistant U.S. Attorneys Charlene Fullmer, David Degnan, and Gerald Sullivan of the Eastern District of Pennsylvania.
The claims resolved by the settlement are allegations only and there has been no determination of liability.
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Residente de California sentenciado a 121 Meses en prisión por propiciar conspiración de telemercadeo que defraudó a miles de consumidores vulnerables de EE.UU.Read the Press Release
WASHINGTON – Un hombre de California fue sentenciado a 10 años en prisión por asociarse con centros de llamadas en Perú que defraudaron a ciudadanos de habla hispana de Estados Unidos, por medio de mentiras y amenazas.
“Esta sustancial sentencia de prisión demuestra que la Rama de Protección al Consumidor del Departamento de Justicia perseguirá vigorosamente y enjuiciará a los estafadores que victimizan a otras personas por medio de esquemas de telemercadeo internacionales”, dijo Brian M. Boynton, Fiscal General Adjunto Interino, de la División Civil del Departamento de Justicia. “La Rama de Protección al Consumidor, que trabaja junto con el Servicio de Inspección Postal y nuestros socios de la Oficina del Fiscal Federal, llevará justicia a quienes amenazaron y defraudaron a los consumidores, que incluyen a inmigrantes que pueden ser vulnerables a losbesquemas que involucran amenazas a su libertad falsas y la habilidad de permanecer en los Estados Unidos”.
De acuerdo con los documentos del tribunal, Angel Armando Adrianzen, 46, se asoció con una serie de centros de llamadas peruanos que se comunicaron con consumidores estadounidenses, muchos de ellos eran personas recién inmigradas vulnerables, utilizando llamadas telefónicas basadas en internet. Quienes hicieron las llamadas decían ser abogados o representantes del gobierno y le indicaron falsamente a las víctimas que no habían recibido el pago de o la entrega de productos. Las personas que llamaron también amenazaron a las víctimas con procesos judiciales, calificaciones negativas en sus reportes de crédito, encarcelamiento o consecuencias de inmigración falsos si no pagaban de inmediato los productos que supuestamente entregaron o los honorarios de liquidación. Muchas víctimas hicieron pagos basados en estas amenazas infundadas. Adrianzen recibió los pagos de las víctimas y envió productos a las víctimas de estos centros de llamadas, a sabiendas que los centros de llamadas utilizaron medios engañosos y excesivos para extraer dinero de las víctimas vulnerables. A Adrianzen se le declaró culpable y fue sentenciado por dos cargos de posesión de pornografía infantil, que encontraron en su computadora portátil y en su teléfono celular cuando se ejecutaron las órdenes de registro en esos dispositivos.
Como parte de su admisión de culpabilidad, Adrianzen admitió que desde abril de 2011 hasta al menos septiembre de 2019, era el dueño y operador del Centro de Aprendizaje AAD (AAD). Adrianzen operaba y supervisaba AAD en California y trabajaba en asociación con los centros de llamadas en Perú para contactar a consumidores de habla hispana en Estados Unidos, incluyendo el Distrito Sur de Florida. En ADD, Adrianzen participaba en un esquema de telemercadeo fraudulento que ofrecía varios productos para consumidores de habla hispana en para obtener pagos de víctimas vulnerables.
“La sentencia de hoy no solo sirve como castigo para el acusado, pero como aviso a otras personas que podrían aprovechar de víctimas vulnerables¨, dijo el Fiscal Federal Interino, Juan Antonio González, del Distrito Sur de Florida. “El Departamento de Justicia y sus socios investigarán energéticamente dicha actividad criminal. Los encontraremos y nos aseguraremos que se hacen responsables de sus crímenes”.
“En este esquema internacional de telemercadeo, se usaron tácticas de intimidación engañosas para amenazar a miles de consumidores de Estados Unidos, para que compraran productos que no se entregaron, al afirmar falsamente que usarían el sistema legal americano en su contra y al coaccionarles con millones de dólares”, declaró el Inspector Responsable, Joseph Cronin, del Servicio de Inspección Postal de EE.UU., División de Miami. “Esperamos que la sentencia de hoy brinde alivio a los residentes e inmigrantes de Estados Unidos que fueron víctimas de este esquema transnacional fraudulento. El Servicio de Inspección Postal, junto con la rama de Protección al Consumidor del Departamento de Justicia y la Oficina del Fiscal de EE.UU., están comprometidos a hacer responsables a las personas que usan el correo de EE.UU. para defraudar a consumidores”.
Al declararse culpable, Adrianzen admitió que ayudaba a sus co-conspiradores en Perú a establecer y a contratar personal para los centros de llamadas que contactaban a las víctimas en Estados Unidos y, a veces, le proporcionaba listas de consumidores a contactar a los centros de llamadas y les daba guiones para usarlos en las llamadas. Los guiones incorporaban varias declaraciones falsas, incluyendo dirigir a las personas que realizaban la llamada a afirmar falsamente que eran abogados del Departamento de Educación de EE.UU. En otros guiones, las personas que llamaban afirmaban falsamente que estaban asociados con los canales de televisión, estaciones de radio o empresas de pasta de dientes de habla hispana.
Adrianzen admitió además que sus co-conspiradores afirmaban falsamente que eran abogados, algunas veces llamaban del “departamento legal” de una compañía o de un supuesto “tribunal de delitos menores”. Los co-conspiradores de Adrianzen amenazaban falsamente a las víctimas de deportarlas, arrestarlas o acusarlas de crímenes y de poner calificaciones negativas en sus reportes de crédito si no pagaban cientos de dólares en honorarios exigidos. Por último, Adrianzen proceso más de $3,500,000 en pagos como parte de este esquema.
El Juez de Distrito de EE.UU., Robert N. Scola Jr., sentenció a Adrianzen a una condena de 121 meses en prisión, seguida de quince años de liberación supervisada. También se le ordenó que restituyera el pago a las víctimas de sus ofensas. El 16 de septiembre de 2010 arrestaron a Adrianzen y ha permanecido encarcelado. El 21 de noviembre de 2019, se declaró culpable de conspiración de uso fraudulento del correo y giros bancarios.
La División de Miami del Servicio de Inspección Postal de EE.UU. y la Rama de Protección al Consumidor del Departamento de Justicia investigaron el caso.
Los abogados litigantes Phil Toomajian y Joshua Rothman de la Rama de Protección al Consumidor procesaron el caso. La Fiscal Federal Auxiliar, Bertila Fernandez, del Distrito Sur de Florida asistió con el proceso de los cargos de pornografía infantil.
Para más información sobre la Rama de Protección al Consumidor, visite su página web en www.justice.gov/civil/consumer-protection-branch.
Residente de California Sentenciado a 121 Meses en Prisión por Propiciar Conspiración de Telemercadeo que Defraudó a Miles de Consumidores Vulnerables de EE.UU.Read the Press Release
Miami, Florida -- Un hombre de California fue sentenciado a 10 años en prisión por asociarse con centros de llamadas en Perú que defraudaron a ciudadanos de habla hispana de Estados Unidos, por medio de mentiras y amenazas.
De acuerdo con los documentos del tribunal, Angel Armando Adrianzen, 46, se asoció con una serie de centros de llamadas peruanos que se comunicaron con consumidores estadounidenses, muchos de ellos eran personas recién inmigradas vulnerables, utilizando llamadas telefónicas basadas en internet. Quienes hicieron las llamadas decían ser abogados o representantes del gobierno y le indicaron falsamente a las víctimas que no habían recibido el pago de o la entrega de productos. Las personas que llamaron también amenazaron a las víctimas con procesos judiciales, calificaciones negativas en sus reportes de crédito, encarcelamiento o consecuencias de inmigración falsos si no pagaban de inmediato los productos que supuestamente entregaron o los honorarios de liquidación. Muchas víctimas hicieron pagos basados en estas amenazas infundadas. Adrianzen recibió los pagos de las víctimas y envió productos a las víctimas de estos centros de llamadas, a sabiendas que los centros de llamadas utilizaron medios engañosos y excesivos para extraer dinero de las víctimas vulnerables. A Adrianzen se le declaró culpable y fue sentenciado por dos cargos de posesión de pornografía infantil, que encontraron en su computadora portátil y en su teléfono celular cuando se ejecutaron las órdenes de registro en esos dispositivos.
Como parte de su admisión de culpabilidad, Adrianzen admitió que desde abril de 2011 hasta al menos septiembre de 2019, era el dueño y operador del Centro de Aprendizaje AAD (AAD). Adrianzen operaba y supervisaba AAD en California y trabajaba en asociación con los centros de llamadas en Perú para contactar a consumidores de habla hispana en Estados Unidos, incluyendo el Distrito Sur de Florida. En ADD, Adrianzen participaba en un esquema de telemercadeo fraudulento que ofrecía varios productos para consumidores de habla hispana en para obtener pagos de víctimas vulnerables.
“La sentencia de hoy no solo sirve como castigo para el acusado, pero como aviso a otras personas que podrían aprovechar de víctimas vulnerables¨, dijo el Fiscal Federal Interino, Juan Antonio González, del Distrito Sur de Florida. “El Departamento de Justicia y sus socios investigarán energéticamente dicha actividad criminal. Los encontraremos y nos aseguraremos que se hacen responsables de sus crímenes.”
“Esta sustancial sentencia de prisión demuestra que la Rama de Protección al Consumidor del Departamento de Justicia perseguirá vigorosamente y enjuiciará a los estafadores que victimizan a otras personas por medio de esquemas de telemercadeo internacionales”, dijo Brian M. Boynton, Fiscal General Adjunto Interino, de la División Civil del Departamento de Justicia. “La Rama de Protección al Consumidor, que trabaja junto con el Servicio de Inspección Postal y nuestros socios de la Oficina del Fiscal Federal, llevará justicia a quienes amenazaron y defraudaron a los consumidores, que incluyen a inmigrantes que pueden ser vulnerables a losbesquemas que involucran amenazas a su libertad falsas y la habilidad de permanecer en los Estados Unidos”..
“En este esquema internacional de telemercadeo, se usaron tácticas de intimidación engañosas para amenazar a miles de consumidores de Estados Unidos, para que compraran productos que no se entregaron, al afirmar falsamente que usarían el sistema legal americano en su contra y al coaccionarles con millones de dólares”, declaró el Inspector Responsable, Joseph Cronin, del Servicio de Inspección Postal de EE.UU., División de Miami. “Esperamos que la sentencia de hoy brinde alivio a los residentes e inmigrantes de Estados Unidos que fueron víctimas de este esquema transnacional fraudulento. El Servicio de Inspección Postal, junto con la rama de Protección al Consumidor del Departamento de Justicia y la Oficina del Fiscal de EE.UU., están comprometidos a hacer responsables a las personas que usan el correo de EE.UU. para defraudar a consumidores”.
Al declararse culpable, Adrianzen admitió que ayudaba a sus co-conspiradores en Perú a establecer y a contratar personal para los centros de llamadas que contactaban a las víctimas en Estados Unidos y, a veces, le proporcionaba listas de consumidores a contactar a los centros de llamadas y les daba guiones para usarlos en las llamadas. Los guiones incorporaban varias declaraciones falsas, incluyendo dirigir a las personas que realizaban la llamada a afirmar falsamente que eran abogados del Departamento de Educación de EE.UU. En otros guiones, las personas que llamaban afirmaban falsamente que estaban asociados con los canales de televisión, estaciones de radio o empresas de pasta de dientes de habla hispana.
Adrianzen admitió además que sus co-conspiradores afirmaban falsamente que eran abogados, algunas veces llamaban del “departamento legal” de una compañía o de un supuesto “tribunal de delitos menores”. Los co-conspiradores de Adrianzen amenazaban falsamente a las víctimas de deportarlas, arrestarlas o acusarlas de crímenes y de poner calificaciones negativas en sus reportes de crédito si no pagaban cientos de dólares en honorarios exigidos. Por último, Adrianzen proceso más de $3,500,000 en pagos como parte de este esquema.
El Juez de Distrito de EE.UU., Robert N. Scola Jr., sentenció a Adrianzen a una condena de 121 meses en prisión, seguida de quince años de liberación supervisada. También se le ordenó que restituyera el pago a las víctimas de sus ofensas. El 16 de septiembre de 2010 arrestaron a Adrianzen y ha permanecido encarcelado. El 21 de noviembre de 2019, se declaró culpable de conspiración de uso fraudulento del correo y giros bancarios.
La División de Miami del Servicio de Inspección Postal de EE.UU. y la Rama de Protección al Consumidor del Departamento de Justicia investigaron el caso.
Los abogados litigantes Phil Toomajian y Joshua Rothman de la Rama de Protección al Consumidor procesaron el caso. La Fiscal Federal Auxiliar, Bertila Fernandez, del Distrito Sur de Florida asistió con el proceso de los cargos de pornografía infantil.
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Quitman Man Sentenced to 16 Years in Prison for Armed Robbery of Choctaw CasinoRead the Press Release
Hattiesburg, Miss. – A Quitman man was sentenced today to 192 months in federal prison for the armed robbery of a Choctaw casino, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
On July 9, 2020, William Christopher Belk, 33, of Quitman entered the Bok Homa Casino located on the Choctaw Indian Reservation near Sandersville, Mississippi, armed with a handgun. Once inside, Belk pointed the handgun at a casino security officer, took several items of property from the casino officer, then fled the scene in a resort vehicle. Shortly after leaving the casino property, a Sandersville Police officer spotted the casino vehicle and attempted to arrest Belk. Belk fired upon and injured the officer, then drove away toward Laurel, Mississippi. Laurel police officers eventually spotted the vehicle and were able to arrest Belk on state charges including assault on a police officer.
In August 2020, a federal grand jury indicted Belk, charging him with robbery, use of a firearm during a crime of violence and theft from an Indian gaming establishment. In February 2021, Belk pled guilty to robbery and the use of a firearm during a crime of violence.
Acting U.S. Attorney LaMarca commended the work of the Choctaw Police Department of the Mississippi Band of Choctaw Indians, and the Federal Bureau of Investigation who investigated the case. The case was prosecuted by Assistant United States Attorney Kevin J. Payne.
Queens Man Charged with Eight Robberies of Grocery Stores and Other BusinessesRead the Press Release
A complaint was unsealed today in federal court in Brooklyn charging Manuel Guzman Breton with eight counts of Hobbs Act robbery in connection with the robberies of eight grocery stores, laundromats, and other businesses during the month of April 2021. An employee was injured during one of the robberies.
Mark J. Lesko, Acting United States Attorney for the Eastern District of New York, John B. DeVito, Special Agent-in-Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dermot F. Shea, Commissioner, New York City Police Department (NYPD), announced the arrest and charges.
“As alleged, Guzman Breton embarked on a one-man crime spree to rob and terrorize hard-working store clerks and employees while armed with a knife or a boxcutter,” stated Acting U.S. Attorney Lesko. “This Office and our partners at the ATF and the NYPD relentlessly pursued this serial armed robber and, by bringing him to justice, stopped him from inflicting further harm on businesses in our communities.” Mr. Lesko expressed his appreciation to the NYPD detectives and ATF special agents assigned to the ATF/NYPD Robbery Task Force for their investigative work.
“ATF is committed to the investigation and prosecution of violent and dangerous offenders in order to make our communities safer,” stated ATF Special Agent-in-Charge DeVito. “The defendant’s alleged violent crime spree has been stopped as a result of that commitment. We thank the NYPD and the U.S. Attorney’s Office for their continued partnership and their dedication to the safety of New York City’s residents and businesses.”
As set forth in the complaint and as captured on video surveillance, between April 7, 2021 and April 27, 2021, Guzman Breton, wearing a hooded sweatshirt, committed a spree of robberies in which he entered each store, threatened employees with a knife or boxcutter, and stole thousands of dollars from his victims. An employee of a laundromat suffered cuts on the hand trying to wrest a knife away from the defendant during one of the robberies.
The charges in the indictment are allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, Guzman Breton faces up to 20 years in prison.
The complaint charges Guzman Breton with the following robberies, all in Queens:
- Grocery store on Corona Avenue in Corona on April 7, 2021.
- Grocery store on 74th Street in Jackson Heights on April 10, 2021.
- Grocery store on Astoria Boulevard in East Elmhurst on April 12, 2021.
- Grocery store on Roosevelt Avenue in Woodside on April 16, 2021.
- Grocery store on Hampton Street in Elmhurst on April 19, 2021.
- Laundromat on 81st Street in Jackson Heights on April 25, 2021.
- Laundromat on Elmhurst Avenue in Elmhurst on April 26, 2021.
- Clothing store on 37th Avenue in Jackson Heights on April 27, 2021.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Ellen H. Sise is in charge of the prosecution.
The Defendant:
MANUEL GUZMAN BRETON
Age: 31
Queens, New YorkE.D.N.Y. Docket No. 21-MJ-603
Previously convicted felon charged in federal court for firearms possessionRead the Press Release
ALBUQUERQUE, N.M. – Richard Kuykendall, 41, of Albuquerque, was charged in federal court on May 20 with being a felon in possession of a firearm and ammunition. Kuykendall will remain detained pending trial.
As alleged in a criminal complaint and other court records, on May 12 in an alley in northeast Albuquerque, Kuykendall was attempting to enter the back seat of a car through the rear passenger-side door when someone inside the vehicle shot at him. Kuykendall allegedly maneuvered around the car and entered the vehicle through the rear driver-side door, then got back out of the vehicle with an object in his hand and walked to a nearby dumpster where he lingered a few moments.
Kuykendall allegedly returned to the vehicle and entered into the driver’s seat. He then allegedly drove the car to a hospital a few miles away. Kuykendall allegedly fled the scene, leaving three dead individuals inside the vehicle.
Albuquerque police searched the dumpster to which Kuykendall allegedly had walked with an object in hand. Police located a handgun inside the dumpster, as well as two more firearms inside the vehicle Kuykendall allegedly drove to the hospital. As a previously convicted felon, Kuykendall cannot legally possess a firearm or ammunition.
A complaint is only an allegation. A defendant is presumed innocent unless and until proven guilty. If convicted, Kuykendall faces up to 10 years in prison.
The FBI investigated this case with assistance from the Albuquerque Police Department. Assistant U.S. Attorney Jaymie L. Roybal is prosecuting the case.
Ponzi Scheme Operator Sentenced, Ordered to Pay $13M in RestitutionRead the Press Release
A McKinney man who ran a Ponzi scheme has been sentenced to five years in federal prison and ordered to pay $13 million in restitution to his victims, announced Acting U.S. Attorney for the Northern District of Texas Prerak Shah.
Patrick O. Howard – owner of Insured Liquidity Partners CGF I, Insured Liquidity Partners CGF II, and Capital Ventures, LLC – pleaded guilty to securities fraud in November 2020. He was sentenced Thursday by U.S. District Judge Jane J. Boyle and taken into custody immediately after the hearing.
In plea papers, Mr. Howard, 49, admitted to running a Ponzi-type scheme, recruiting more than 100 investors to purchase $13 million in membership units for $50,000 apiece.
His companies promised investors 12% annual returns, paid quarterly, and “insured liquidity.”
However, instead of properly investing the money, the companies issued phony account statements and paid any investors who elected to receive their earnings quarterly out of the investments of later investors, rather than out of the earnings of the fund.
Mr. Howard falsely represented himself as a registered investment advisor and claimed his companies saw 20% annual earnings. Promising that investors could not possibly lose money due to insurance that offset poor performance, the defendant induced at least one investor to turn over his entire retirement savings to the fund.
Two victims testified at his sentencing hearing, including one who told the judge she lost her daughter’s college savings after investing with Mr. Howard.
The Federal Bureau of Investigation’s Dallas Field Office and the U.S. Postal Inspection Service conducted the investigation, with a parallel investigation conducted by the U.S. Securities & Exchange Commission. Assistant U.S. Attorney Andrew Wirmani prosecuted the criminal case.
Pennsylvania Man Sentenced to Serve 220 Months for Child Enticement and Travel to Engage in Illicit Sexual ActivityRead the Press Release
BINGHAMTON, NEW YORK – Anthony Miceli, age 28, of East Stroudsburg, Pennsylvania was sentenced in United States District Court on May 19, 2021 to serve 220 months in prison for attempted enticement of a minor and traveling to engage in illicit sexual activity, announced Acting United States Attorney Antoinette T. Bacon and Thomas J. Relford, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
As part of his previously entered guilty plea, Miceli admitted that from January 25, 2020 through February 3, 2020, he communicated with an undercover officer he believed was the parent of two young children, and that through the undercover officer acting as the parent of the children, he knowingly attempted to persuade, induce, entice or coerce an 8 year old female child and a 5 year old female child to engage in unlawful sexual activity with him. Miceli further admitted that on February 3, 2020, he traveled from Pennsylvania to the Northern District of New York to meet and engage in sexual acts with both children.
Senior United States District Court Judge Thomas J. McAvoy also imposed a 15-year term of supervised release, which will start after Miceli is released from prison. As a result of his conviction, Miceli will be required to register as a sex offender upon his release from incarceration.
This case was investigated by the FBI Mid-State Child Exploitation Task Force and is being prosecuted by Assistant U.S. Attorney Kristen Grabowski.
This case is prosecuted as part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s offices, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc/.
Palatka Man Sentenced to 22 Years in Prison for Armed Robberies of PharmaciesRead the Press Release
Tampa, Florida – U.S. District Judge Thomas Barber has sentenced Arsenio Dennis (31, Palatka) to 22 years in federal prison for robbery and brandishing a firearm during and in relation to a crime of violence. The court also ordered Dennis to pay $46,236 in restitution, and to forfeit a firearm and ammunition that were seized during the investigation.
Dennis had pleaded guilty on February 17, 2021.
According to court documents, between August 2017 and March 2018, several pharmacies in the Middle District of Florida were robbed in a similar manner. The robbers wore disguises or other clothing to conceal their identity, used firearms to rob the pharmacists, took prescription opioids, and used local drug dealers to sell the pills. Investigators determined that several coconspirators had planned and committed the robberies, and Dennis was involved in at least three of them.
In August 2017, Dennis robbed pharmacies in Tampa and Lakeland. On both occasions, he entered the pharmacy, jumped over the counter, pointed a firearm at the pharmacist’s head and demanded opioids. He then took bottles containing prescription opioid pills and put them in a bag. Dennis ordered the pharmacists to lay on the ground and count to 1,000, then walked out of the store.
This case was investigated by the Federal Bureau of Investigation, the Tampa Police Department, the Polk County Sheriff’s Office, the Apopka Police Department, the Orange County Sheriff’s Office, the Putnam County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Michael Sinacore.
Orchard Park Gang Member Pleads Guilty to Drug Distribution and Firearm ChargesRead the Press Release
BOSTON – A Boston man with ties to the Orchard Park housing development in Roxbury pleaded guilty yesterday in federal court in Boston to drug trafficking charges.
Lyndon Scott, 32, pleaded guilty to possession with intent to distribute cocaine base, being a felon in possession of a firearm and ammunition and possession of a firearm during and in relation to a drug trafficking offense. U.S. District Court Judge Patti B. Saris scheduled sentencing for Sept. 14, 2021. Scott was indicted in October 2019.
In September 2019, investigators conducted a search of Scott’s vehicle and recovered approximately 17 grams of crack cocaine packaged for sale and a Taurus 9 millimeter pistol loaded with 13 rounds of 9 millimeter ammunition from a hidden compartment in the center console of his car. Additional drug trafficking paraphernalia was recovered from Scott’s apartment. At the time of his arrest, Scott was on supervised release for a 2017 federal conviction for cocaine distribution.
The charge of possession with intent to distribute cocaine base provides for a sentence of up to 20 years in prison, at least three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides for a sentence of up to 10 years in prison, up to three years of supervised release and a fine of up to $250,000. The charge of possession of a firearm during and in relation to a drug trafficking offense provides for a mandatory minimum sentence of five years and up to life in prison to be served consecutive to any other sentence imposed, up to five years of supervised release and a fine of up to $250,000. Pursuant to Scott’s plea agreement, the government will recommend a sentence of between 117 and 131 months in prison. Sentences are imposed based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney Nathaniel R. Mendell; Kelly D. Brady, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Suffolk County Sheriff Steven W. Tompkins; and Acting Boston Police Commissioner Gregory Long made the announcement today. Assistant U.S. Attorney Christopher Pohl of Mendell’s Narcotics and Money Laundering Unit is prosecuting the case.
Operation Second Wave Update: Four Defendants Appear in Federal CourtRead the Press Release
CHARLESTON, W.Va. – Four men charged as a result of a long-term investigation known as “Second Wave” appeared in federal court this week. Jason Michael Terrell, 37, of Mount Carbon was sentenced to 14 years in prison for conspiracy to distribute more than 500 grams of methamphetamine. Ronald Lee Thomas, III, 29, of Charleston pleaded guilty to conspiracy to distribute marijuana. Roger Jarea Drake, 32, of Charleston pleaded guilty to conspiracy to distribute 500 grams or more of methamphetamine, and Craig Redman, 42, of Kimberly pleaded guilty to conspiracy to distribute methamphetamine.
According to court records and statements made at plea and sentencing hearings in the case, the defendants were part of a drug trafficking organization operating in Charleston and the upper Kanawha Valley from at least August 2018 until the federal arrests on August 26, 2020. Terrell was identified as a multi-pound methamphetamine dealer operating in and around Montgomery. Larry Martin and Roger Drake were multi-pound methamphetamine dealers operating in and around Charleston. Martin also distributed large quantities of marijuana during the time of the conspiracy. Terrell and Drake, accompanied by Tonya Simerly traveled to Columbus, Ohio in March 2020 where they met Rashawn Miller who connected them with a supplier who sold them approximately two pounds of methamphetamine. Martin had other sources of supply and provided methamphetamine or marijuana to Drake and Thomas, among others. Terrell supplied methamphetamine to dealers in the upper Kanawha Valley including Craig Redman, Carol Belton, and Jimmy Coleman.
When they are sentenced in September, Thomas faces up to five years, Redman faces up to 20 years, and Drake faces 10 years to life in federal prison.
Martin, Belton, and Miller have entered guilty pleas to conspiracy to distribute methamphetamine and are scheduled to be sentenced later this year. Sammy Joe Fragale, Sr. pled guilty in December 2019 to distribution of methamphetamine and is scheduled for sentencing in June. Jimmy Coleman was sentenced last month to three years in federal prison. Gregory Woods was sentenced in February to 184 months after pleading guilty to possession with intent to distribute cocaine and violating the terms of his federal supervised release.
Tonya Simerly and Steven Bumpus are scheduled to plead guilty to their roles in the drug trafficking organization next week.
Acting United States Attorney Lisa G. Johnston made the announcement and commended the excellent investigative work of all the law enforcement agencies involved in the case. The long-term investigation was conducted by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the United States Postal Inspection Service (USPIS), the Central West Virginia Drug Task Force (CWVDTF), the Kanawha County Sheriff’s Department, the Charleston Police Department, the Metropolitan Drug Enforcement Network Team (MDENT) and the United States Postal Service-Office of Inspector General.
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), 2:20-cr-00184 (Fragale Sr.), 2:20-cr-00176 (Fragale, Jr.), 2:21-cr-00064 (Bumpus), and 2:20-cr-00154 (Terrell et al).
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Ocala Man Pleads Guilty to Conspiring to Distribute NarcoticsRead the Press Release
Ocala, Florida – Corey Andrew Carnegie (34, Ocala) has pleaded guilty to conspiring to distribute narcotics, including 50 grams or more of methamphetamine and 28 grams or more of cocaine base. He faces a minimum mandatory penalty of 10 years, and up to life, in federal prison.
Carnegie had been indicted on September 2, 2020.
According to the plea agreement, on November 26, 2019, pursuant to a search warrant, law enforcement officers searched a vehicle that Carnegie had been driving and found nearly 900 grams of methamphetamine. During the execution of a search warrant of Carnegie’s cellphone, agents found evidence that Carnegie had been operating a marijuana grow operation at another residence. When that home was searched pursuant to a search warrant in December 2020, agents located numerous firearms and ammunition and nearly half a kilogram of powder cocaine. Agents also located the marijuana grow operation in a shed behind the home.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the Ocala Police Department, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney William S. Hamilton.
Monongalia County man sentenced for role in firearms conspiracyRead the Press Release
CLARKSBURG, WEST VIRGINIA – Brandon J. Martino, of Wadestown, West Virginia, was sentenced today to three years of probation for his role in a firearms conspiracy, Acting U.S. Attorney Randolph J. Bernard announced.
Martino, age 26, pled guilty in January 2021 to one count of “False Statement During Attempted Purchase of Firearm.” Martino admitted to falsifying documents to illegally purchase a 9mm pistol in May 2018 in Monongalia County.
Assistant U.S. Attorney Christopher L. Bauer prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms & Explosives investigated.
Chief U.S. District Judge Irene M. Keeley presided.
Mexican Woman Sentenced to Prison for Illegally Reentering the United States After Being DeportedRead the Press Release
Maria Manzo-Melchor, age 40, a citizen of Mexico illegally present in the United States and residing in Waterloo, Iowa, received the prison term after a guilty plea on January 21, 2021, to one count of illegal reentry into the United States after having been deported following a conviction for an aggravated felony.
In a plea agreement, Manzo-Melchor admitted she had previously been deported from the United States and illegally reentered the United States without the permission of the United States government. Manzo-Melchor was deported in November 2008 following a conviction in the Iowa District Court for Black Hawk County for forgery, an aggravated felony, for using a fraudulent permanent resident card, also known as a “Green” card. In September 2020, Manzo-Melchor came to the attention of immigration agents following her arrest for Domestic Abuse Assault and Reckless Use of Fire or Explosives in Black Hawk County, Iowa. These charges are still pending in state court.
Manzo-Melchor was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Manzo-Melchor was sentenced to six months’ imprisonment. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Manzo-Melchor is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-CR-2047.
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Mexican National Sentenced for Possession of a Firearm by an Illegal AlienRead the Press Release
Hattiesburg, Miss. - A Mexican national was sentenced today to 10 months in prison for possession of a firearm by an illegal alien, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi; Diane Witte, Field Office Director of Immigration and Customs Enforcement (ICE), Enforcement & Removal Operations in New Orleans; and Kurt Thielhorn, Special Agent in Charge of the Bureau of Alcohol, Tobacco Firearms and Explosives.
According to court documents, Immigration & Customs Enforcement (ICE) arrested Cano-Elvira, 34, an illegal alien from Mexico, who was being held by Jones County officials on a state charge after his arrest for felony domestic violence. On September 7, 2020, Jones County deputies had been dispatched to a domestic disturbance at Cano-Elvira’s residence. When deputies arrived, they were told Cano-Elvira had a rifle in the residence. Cano-Elvira fled on foot, and deputies found a Remington, Model 597, .22 caliber rifle, readily accessible in the unlocked closet of his bedroom. Deputies confiscated the firearm, and Cano-Elvira was arrested the following day when he surrendered to deputies at his residence. The Remington rifle later was turned over to the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).
As part of the investigation, Cano-Elvira’s fingerprints were scanned into Homeland Security databases. A positive match of his fingerprints was made with prior immigration records including fingerprints and photographs, and he was identified as a removed alien. A removal order had been issued, and Cano-Elvira had been removed from the U.S. to Mexico in April 2014. Thereafter, he illegally reentered the United States and was encountered by Homeland Security officials, on May 3, 2014. His original order of removal was reinstated, and he was again physically removed from the United States to Mexico on May 31, 2014. At the time of his last removal in 2014, Cano-Elvira was prohibited from entering the U.S. for 20 years.
Cano-Elvira was sentenced today by U.S. District Judge Taylor B. McNeel in Hattiesburg to 10 months in prison, followed by three years of supervised release. He also may face Department of Homeland Security removal proceedings. He pled guilty to the charge on February 4, 2021.
Acting U.S. Attorney Darren J. LaMarca praised the coordination of ICE and the Jones County Sheriff’s Department who investigated the case. Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Maryland Man Pleads Guilty to Financial Scams Using Online Dating SitesRead the Press Release
RICHMOND, Va. – A Leonardtown, Maryland man pleaded guilty today to mail fraud in connection with an online dating site romance scam.
“Through his use of fictitious personas, the defendant’s fraudulent scheme preyed on members of our community who thought they were helping a servicemember with significant financial needs,” said Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia. “As this case demonstrates, we will continue to hold accountable those who use online forums to defraud victims.”
According to court documents, beginning in December 2014 and continuing through at least January 2018, Eugene Johnson Jr., 39, used online dating sites to establish romantic connections with various women. In these communications, Johnson used aliases and made other false claims about his identity, frequently describing himself as a U.S. Marine with a son whose mother had died. When purporting to establish a romantic relationship with his victims, Johnson claimed that he wanted to marry each victim, buy a house with her, and raise his son and any children they might have together.
Shortly thereafter, Johnson would ask the victims to send him money for various pressing financial needs. Although his claims varied, they generally involved some form of car, financial, legal, or health problems about which Johnson claimed to be very emotional. To bolster these claims, Johnson sent the victims text messages from different phone numbers in which he posed as individuals who could corroborate his prior claims. Johnson also falsely promised to repay the victims from income sources that he did not actually possess.
When victims agreed to send him money, Johnson directed them to do so via interstate wire transfers and bulk cash shipments. Thereafter, Johnson continued to ask the same victims for more money to meet other claimed needs until the victims exhausted their own resources, refused, or questioned the truth of his claims. In total, Johnson obtained at least $276,361 from at least eight women residing in three different states. Contrary to his claims and promises, Johnson used the victims’ money to pay personal debts and expenses and never repaid any of the victims.
Johnson is scheduled to be sentenced on September 17. He faces a maximum penalty of 20 years in prison. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia, and Stanley M. Meador, Special Agent in Charge of the FBI’s Richmond Field Office, made the announcement after Senior U.S. District Judge Henry E. Hudson accepted the plea.
Assistant U.S. Attorneys Heather H. Mansfield and Kaitlin G. Cooke are prosecuting 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. 3:21-cr-45.
Manchester Man Sentenced to 252 Months for Sexual Exploitation of a MinorRead the Press Release
CONCORD - Glen Lanchester, 53, of Manchester, was sentenced to 252 months in federal prison for sexual exploitation of a minor, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, in November 2018, the Manchester Police Department executed a search warrant at the defendant’s residence. They seized various electronic devices that contained child pornography. The defendant later admitted that he had previously used spy cameras which he placed in the bathroom of his apartment to film minor girls using the bathroom and showering. He used these to create child pornography of at least two minor victims. Minor Victim #1, who is now an adult, viewed one of the images found on the defendant’s computer and identified herself as being approximately seven or eight years old at the time it was taken. The image of Minor Victim #1 constitutes child pornography.
Lanchester previously pleaded guilty on October 8, 2020.
“By filming young children to create pornography, this defendant committed a horrific crime that cannot be tolerated,” said Acting U.S. Attorney Farley. “Not only is the crime itself disturbing, but it can have a lasting impact on the young victims whose innocence was stolen. This lengthy sentence helps to protect other children from being victimized. This case also demonstrates the New Hampshire law enforcement community’s ongoing commitment to identifying and prosecuting child predators.”
“We welcome today’s sentence of Lanchester, whose actions represented a real threat to the community.” said William S. Walker, Acting Special Agent In Charge, Homeland Security Investigations, Boston. “There’s no crime more disturbing than the sexual exploitation of children, especially through production of pornographic materials, which only adds to the level of victimization in these cases. HSI is grateful for the solid teamwork of our partners in the Manchester Police Department and the U.S. Attorney for New Hampshire for ensuring that a measure of justice for the victims was achieved in this case.”
This matter was investigated by Homeland Security Investigations, Boston and the Manchester Police Department. The case is being prosecuted by Assistant U.S. Attorney Georgiana L. MacDonald.
In February 2006, the Department of Justice introduced Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the United States Attorney’s Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
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Man from Gallup arraigned on charges of aggravated sexual abuse of a child in Indian CountryRead the Press Release
ALBUQUERQUE, N.M. – Armando Segovia, 31, of Gallup, New Mexico, was arraigned today in federal court on an indictment charging him with two counts of aggravated sexual abuse of a child who had not attained the age of 12. A federal grand jury indicted Segovia on April 14. Segovia will remain in custody pending a detention hearing scheduled for May 24.
According to the indictment, on or about July 1, 2016, and Nov. 1, 2016, Segovia, who is non-Indian, allegedly engaged in sexual acts with the victim, identified in court records as Jane Doe, in Indian Country in McKinley County, New Mexico. The victim is an Indian by law.
An indictment is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Segovia faces a minimum of 30 years and up to life in prison.
The FBI investigated this case jointly with the Gallup Police Department. Special Assistant U.S. Attorney Chelsea Van Deventer is prosecuting the case.
Man with a “Long-Term Relationship with Lawlessness” Sentenced to over Six Years in Prison for Possessing a GunRead the Press Release
A man who has a lengthy criminal history and possessed a loaded gun and drugs was sentenced today to more than six years in federal prison.
Zaire Young, age 34, from Waterloo, Iowa, received the prison term after a December 7, 2020 guilty plea to being a felon in possession of a firearm.
At the guilty plea, Young admitted he possessed a firearm after felony convictions for possession of cocaine base with the intent to distribute, drug tax stamp, and eluding. Evidence in the case showed that Young was a passenger in a vehicle that was stopped by law enforcement in May 2020. Officers found a loaded gun inside the car. Young admitted possessing the gun. He also had marijuana in his pocket.
In a previous written order, the court described Young as having a “long-term relationship with lawlessness—spanning more than two decades.” The court also noted that prior to his federal charge, Young had “willfully flouted the law, disregarded authority, and disobeyed the orders of every court he has appeared before.”
Young was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams. Young was sentenced to 78 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
This case was brought as part of Project Safe Neighborhoods (PSN). PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
This case is also part of Project Guardian, the Department of Justice’s signature initiative to reduce gun violence and enforce federal firearms laws. Initiated by the Attorney General in the fall of 2019, Project Guardian draws upon the Department’s past successful programs to reduce gun violence; enhances coordination of federal, state, local, and tribal authorities in investigating and prosecuting gun crimes; improves information-sharing by the Bureau of Alcohol, Tobacco, Firearms and Explosives when a prohibited individual attempts to purchase a firearm and is denied by the National Instant Criminal Background Check System (NICS), to include taking appropriate actions when a prospective purchaser is denied by the NICS for mental health reasons; and ensures that federal resources are directed at the criminals posing the greatest threat to our communities. For more information about Project Guardian, please see /media/1122011/dl?inline.
Young is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Emily K. Nydle and was investigated by a Federal Task Force composed of the Waterloo Police Department, the Federal Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives, assisted by the Black Hawk County Sheriff’s Office and Cedar Falls Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 20-cr-2040.
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Man Sentenced for Impersonating Homeland Security AgentRead the Press Release
WILMINGTON, N.C. – A Holly Springs man was sentenced today to one year of probation for impersonating an agent of the Department of Homeland Security. On February 19, 2021, Allen David Reinemund pled guilty to a one count criminal information charging him with Impersonation of an Officer or Employee of the United States. Reinemund was also ordered to pay a $500 fine.
According to court documents and other information presented in court, Allen David Reinemund, 58, was operating a 1965 Shelby Cobra on US 401 in Fuquay-Varina, when he was stopped by the North Carolina Highway Patrol for speeding 80-mph in a 50-mph zone. When asked for his license, Reinemund told the trooper he “was on the job” and stated he worked for Homeland Security Investigations (HSI) in an effort to avoid a speeding ticket.
The trooper ultimately arrested Reinemund for impersonation and speeding. Doubling-down, Reinemund presented the Wake County District Attorney’s Office a photograph of a HSI ballistic vest with his name and badge indicting that he was an agent of HSI, in an effort to have his state charges dismissed.
HSI agents were contacted and obtained sufficient information to obtain a search warrant for the residence of Reinemund. During the execution of the search warrant, agents seized an HSI badge, a ballistic vest, and other law enforcement paraphernalia from Reinemund’ s home.
“Impersonating a federal agent is a serious crime, one that is not victimless and harms law enforcement officers’ ability to protect the public from scam artists and others who exploit people’s fear for no other reason than to enrich themselves,” said G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina.
“Playing cops and robbers is a game best left to kids, because impersonating a special agent is a serious crime that has even more serious consequences,” said Special Agent in Charge Ronnie Martinez, who oversees Homeland Security Investigations (HSI) operations in North Carolina. “The officers and agents of HSI work hard every day to protect this country and imposters, committing crimes and ruining our reputation, will not be tolerated.”
Mr. Acker made the announcement after sentencing by Chief U.S. District Judge Richard E. Myers II. Homeland Security Investigations, HSI, Office of Professional Responsibility, and the North Carolina Highway Patrol investigated the case and Assistant U.S. Attorney Gabriel Diaz prosecuted the case.
Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 5:21-CR-15-M.
Man Pleads Guilty to Murder on Choctaw Indian ReservationRead the Press Release
Hattiesburg, Miss. – A member of the Mississippi Band of Choctaw Indians pleaded guilty today to the 2017 murder of a female tribal member on the Choctaw Indian Reservation, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi and Michelle Sutphin, Special Agent in Charge of the Federal Bureau of Investigation in Mississippi.
According to court documents, on July 1, 2017, Stuart Brian Nickey, 37, of the Bogue Homa Community of the Choctaw Indian Reservation, beat his tribal member girlfriend in the face with his fists which resulted in her death.
A federal grand jury in September of 2017 indicted Nickey on the charge of murder in the second degree. Nickey pleaded guilty to the indictment and is scheduled to be sentenced on September 29, 2021 at 9:30 a.m. He faces a maximum penalty of life in prison. A federal district judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Acting U.S. Attorney LaMarca commended the work of the Choctaw Police Department of the Mississippi Band of Choctaw Indians, and the Federal Bureau of Investigation who investigated the case. The case was prosecuted by Assistant United States Attorneys Kevin J. Payne and Lynn Murray.
Macon County, Tennessee Resolves ADA Complaint over Courthouse Access for A Disabled Individual with A Service DogRead the Press Release
NASHVILLE – Macon County, Tennessee has resolved a complaint that it violated the Americans with Disabilities Act (ADA) by denying a disabled individual accompanied by a service dog access to a public court proceeding, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.
“The ADA prohibits disabled individuals with service dogs from being treated differently than non-disabled individuals in all manners of access to public facilities,” said Acting U.S. Attorney Stewart. “We appreciate the prompt attention by Macon County to resolve these issues and ensure that all individuals with disabilities have equal access to the courthouse and that Macon County complies with the ADA.”
In December 2020, an individual with a disability recognized under the ADA attempted to enter the Macon County Courthouse in Lafayette, Tennessee, with a service dog to attend a public court proceeding. The Macon County General Sessions Judge would not allow the service dog to be permitted in his courtroom. Although Macon County received a complaint about the incident, no resolution was reached. The complaint was then brought to the attention of the U.S. Attorney’s Office to investigate whether an ADA violation occurred.
To resolve the complaint, Macon County entered into a Letter of Resolution whereby it agreed to post signage in the entry area to the courthouse and on the court’s public website indicating that service dogs are permitted in the courthouse. Macon County also will provide training to courthouse employees on the ADA and distribute DOJ guidance on allowing access to individuals with service dogs.
The Letter of Resolution does not constitute a finding by the United States that Macon County is in full compliance with the ADA, nor does it constitute an admission by Macon County of fault or noncompliance with the ADA.
General information about the ADA, is available through the ADA information line at 800-514-0301 (voice), 800-514-0383 (TTY), or on the ADA homepage at www.ada.gov. If you believe your civil rights have been violated, including ADA rights, you may submit a report to the Department of Justice at https://civilrights.justice.gov/report/.
Assistant U.S. Attorneys Anica C. Jones and Kara F. Sweet represented the United States in this matter.
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Lincoln Man Sentenced for Possessing Firearms After Domestic Violence ConvictionRead the Press Release
BANGOR, Maine: A Lincoln man was sentenced today in federal court for possessing firearms after being convicted of a misdemeanor crime of domestic violence, Acting U.S. Attorney Donald E. Clark announced.
U.S. District Judge John A. Woodcock, Jr. sentenced Matthew Cole, 34, to time served and three years of supervised release. Cole has been in federal custody since November 19, 2020. He pleaded guilty on April 26, 2021.
According to court records, in May 2020, law enforcement officers were called to Cole’s home after a family fight complaint. While on scene, officers learned that Cole had recently possessed two firearms—a 9 mm semi-automatic handgun and a shotgun. After obtaining a search warrant, officers found the shotgun in Cole’s bedroom. Officers found Cole about two miles away from his residence. He admitted that he had thrown a handgun while he was walking and directed troopers to the gun on the ground. During a subsequent interview, Cole admitted that he owned the handgun. He stated that he purchased the gun two or three years earlier. Cole was prohibited from possessing firearms following a 2018 conviction for Domestic Violence Assault in Penobscot County.
The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Penobscot County Sheriff’s Office investigated the case.
Kemah Man Sentenced for Liberty County Attempted Bank RobberyRead the Press Release
BEAUMONT, Texas – A Kemah man has been sentenced to federal prison for violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei.
Jimmy James Mamoth, Jr., 59, pleaded guilty on July 13, 2020, to attempted bank robbery and was sentenced to 87 months in federal prison today by U.S. District Judge Marcia A. Crone.
According to information presented in court, on Sep. 27, 2019, a witness observed Mamoth approach the entrance to the Texas First Bank in Hull, Texas, wearing a dark hooded jacket, gloves, a Halloween-style mask on his face, and carrying a duffle bag. The witness honked his vehicle’s horn to draw attention to Mamoth, who subsequently fled into the nearby woods. Law enforcement was able to locate and arrest Mamoth, and from him recovered an Airsoft-style replica gun meant to resemble a Beretta 9mm pistol. Mamoth was indicted by a federal grand jury on Oct. 9, 2019.
As part of his plea agreement, Mamoth admitted his participation in a string of other robberies and attempted robberies, specifically, the robbery of the Arbor 8 movie theater in Austin, Texas, on March 17, 2019; an attempted robbery of the Benchmark Bank in West Lake Hills, Texas, on June 4, 2019; the robbery of the Broadway Bank in Wimberley, Texas, on June 19, 2019; and the robbery of the First National Bank of Hughes Springs in Kilgore, Texas, on June 28, 2019.
“The brave actions of this witness not only stopped the bank robbery, but also put an end to the Defendant’s violent crime spree,” said Acting U.S. Attorney Nicholas J. Ganjei. “We applaud this citizen’s courage and quick thinking and extend our sincere thanks on behalf of law enforcement.”
This case was investigated by the Federal Bureau of Investigation, Beaumont Resident Agency, the Liberty County Sheriff’s Office, the Austin Police Department, the West Lake Hills Police Department, the Hays County Sheriff’s Office, and the Gregg County Sheriff’s Office and prosecuted by Assistant U.S. Attorneys Christopher Rapp and Rachel Grove.
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KCK Man Sentenced to 15 Years for Conspiracy to Distribute More Than 2,600 Kilos of CocaineRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Kansas, man who was a leader of a $56 million criminal enterprise was sentenced in federal court today for his role in the conspiracy that distributed more than 2,600 kilograms of cocaine in the metropolitan area.
Jose Luis Armendariz-Rascon, also known as “Uncle” or “Rambo,” 40, was sentenced by U.S. Chief District Judge Beth Phillips to 15 years in federal prison without parole. The court also ordered Armendariz-Rascon to forfeit to the government more than $56 million, which represents the proceeds of illegal drug trafficking.
On Jan. 22, 2020, Armendariz-Rascon pleaded guilty to his role in the drug-trafficking conspiracy and to money laundering. Armendariz-Rascon admitted that he purchased and distributed 10 to 15 kilograms of powder cocaine per week for a period of about four years.
Armendariz-Rascon was in charge of coordinating the transportation of loads of cocaine from the El Paso, Texas, area to the Kansas City metropolitan area for distribution. Armendariz-Rascon would then coordinate the collection of bulk cash that was sent back to El Paso as payment for the cocaine.
Armendariz-Rascon is among 13 defendants convicted in this case, of whom 12 have now been sentenced. Howard Christopher Walters, also known as “Chris,” 43, of Lee’s Summit, Missouri, was sentenced on April 21, 2021, to 25 years in federal prison without parole after pleading guilty to his role in the drug-trafficking conspiracy.
Co-defendant Otilio Zaragoza-Navarrette, 64, of El Paso, delivered cocaine to Jose Armendariz-Rascon as well as to co-defendants Miguel Armendariz-Rascon, 33, a citizen of Mexico residing in Olathe, Kan., and Jesus Salvador Campoy-Estrada, also known as “Chava” and “Chavita,” 26, of Kansas City, Kan. Zaragoza-Navarrette and Miguel Armendariz-Rascon have pleaded guilty and been sentenced. Campoy-Estrada pleaded guilty and awaits sentencing.
Zaragoza-Navarette also transported illicit drug proceeds from the drug-trafficking organization back to Texas and/or to Mexico. Zaragoza-Navarrette hid the cocaine and/or the cash proceeds inside of five-gallon gas cans and anti-freeze jugs on his commercial semi-tractor trailer.
In one instance, law enforcement officers seized nearly $500,000 from Zaragoza-Navarrette, who was transferring the illicit drug proceeds in an operation orchestrated by Armendariz-Rascon. On May 21, 2017, investigators were conducting surveillance at a residence in the 4700 block of North Mulberry Court in Kansas City as Campoy-Estrada was driving a white Chevrolet van with Miguel Armendariz-Rascon in the passenger’s seat. Investigators followed the van as it proceeded to the area of Candlewood Suites, 4450 Randolph Road, Kansas City, and pulled onto Corrington Road on the west side of Candlewood Suites. The van parked in front of a diesel tractor-trailer. Campoy-Estrada carried a white plastic jug from the van to the passenger side of the tractor-trailer. Campoy-Estrada then returned to the van with a red plastic gas can and placed the gas can into the rear of the van. Campoy-Estrada and Miguel Armendariz-Rascon then left the area.
Law enforcement officers continued to surveil the tractor-trailer, being driven by Zaragoza-Navarrette, as it left the Candlewood Suites and began to drive northbound on I-35. The Missouri State Highway Patrol conducted a traffic stop of the tractor-trailer at mile marker 68. Troopers searched the vehicle and found a red five-gallon plastic gas can and two white plastic jugs that contained a total of $491,211.
A confidential source has indicated the drug-trafficking organization purchased cocaine for approximately $27,000 to $27,500 per kilogram. Accordingly, $491,211 in illicit drug proceeds would convert to between 15 and 19 kilograms of powder cocaine.
This case is being prosecuted by Assistant U.S. Attorneys Trey Alford and Robert Smith. It was investigated by the Drug Enforcement Administration, the FBI, IRS-Criminal Investigation and the Lee’s Summit, Mo., Police Department.
Organized Crime Drug Enforcement Task Forces
This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
Jury finds St. Louis County business owner guilty on two counts of tax fraudRead the Press Release
ST. LOUIS – A jury found Ramsey Windsor, 39, of St. Charles, Missouri guilty on two counts of assisting in the preparation of false tax returns following a four-day jury trial. United States District Judge Audrey G. Fleissig presided over the trial.
The evidence during the trial proved Windsor was the owner of a St. Louis County company that produced mass mailers for its customers. During the years 2013 and 2014, large sums of money, which were business receipts, were deposited into Windsor’s personal bank account. These funds were payments from only one client. All other business receipts from other company customers were deposited in Windsor’s business account. A majority of the sales which were deposited into Windsor’s personal account were not reported on his tax returns. This methodology caused the gross receipts to be underreported on Windsor’s tax documentation in years 2013 and 2014. Thus, Windsor assisted in the preparation of personal tax returns that were fraudulent.
"Windsor’s guilty verdict is a reminder to all of us that every individual must report all income and file an accurate tax return to the Internal Revenue Service,” said David Talcott, Acting Special Agent in Charge for the St. Louis field office. “IRS Special Agents will continue to serve the American public by investigating potential criminal violations of the Internal Revenue Code and related financial crimes.”
The Internal Revenue Service investigated this case.
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Jury Convicts Norfolk Man on Fentanyl Distribution Resulting in Overdose DeathRead the Press Release
NORFOLK, Va. – A federal jury convicted a Norfolk man today on charges of participating in a conspiracy to manufacture and distribute fentanyl, acetyl-fentanyl, and heroin in the Hampton Roads region. He was convicted of all five counts related to the drug conspiracy, including distribution of fentanyl resulting in a young woman’s death.
According to court records and evidence presented at trial, between early 2017 and May 2020, Daniel Carrington (a.k.a. “Eastside” and “E”), 27, traveled to Baltimore, Maryland and purchased heroin, fentanyl, and acetyl-fentanyl to resell in Chesapeake and throughout the Hampton Roads region. The drugs distributed by Carrington resulted in the December 27, 2019 overdose death of a Chesapeake woman, identified in court documents as D.J. Although Carrington was aware of D.J.’s death, he continued to sell fentanyl until his arrest in May 2020.
Evidence introduced at trial included a video of the defendant laughing at his “tester” while he was falling out of consciousness because of a fentanyl dose, and proudly declaring how strong his fentanyl was. Other videos introduced to the jury included large quantities of cash, a firearm, and illegal narcotics. Text messages introduced at trial showed the defendant knew that he was distributing pure fentanyl and that he was aware of its lethal effects. A medical examiner testified that the levels of fentanyl in the victim’s body were five times the minimum level considered to be lethal by forensic pathologists.
Carrington faces a mandatory minimum sentence of 20 years and a maximum of life in prison when sentenced on October 29. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Raj Parekh, Acting U.S. Attorney for the Eastern District of Virginia; Brian Dugan, Special Agent in Charge of the FBI’s Norfolk Field Office; and Kelvin L. Wright, Chief of the Chesapeake Police Department, made the announcement after U.S. District Judge John A. Gibney accepted the verdict.
Assistant U.S. Attorneys John F. Butler and Joseph E. DePadilla are prosecuting 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-106.
Interlachen Man Pleads Guilty to Transmitting Interstate Threats to Injure United States SenatorRead the Press Release
Jacksonville, Florida – Brian Christopher King (62, Interlachen) has pleaded guilty to transmitting communications in interstate commerce that contained threats to injure the person of another. He faces a maximum penalty of five years in federal prison. A sentencing date has not been set.
According to the plea agreement, in March 2020, King placed two telephone calls in one evening to a United States senator’s office in Washington, D.C. On both occasions, King left voicemails laced with profanity, threatening to cut off the senator’s head. Four days later, when interviewed by federal investigators, King agreed that it was his voice on a voicemail recording but denied any intent to travel to Washington or to harm anyone.
An FBI agent reminded King that, in 2018, he had interviewed him in connection with a similar incident, and again cautioned King that threatening elected officials was a serious matter. At the conclusion of that interview, King was not arrested. Despite the agent’s warnings, King’s continued making threatening calls. Specifically, in June 2020, King called a police department in California and stated that he had heard someone was going to cut the heads off a particular U.S. senator and a particular member of the House of Representatives.
This case was investigated by the Federal Bureau of Investigation, the U.S. Capitol Police, the Volusia County Sheriff’s Office, the Putnam County Sheriff’s Office, and the Daytona Beach Police Department. It is being prosecuted by Assistant United States Attorney Michael J. Coolican.
Informational: Federal Court arraignmentsRead the Press Release
The U.S. Attorney’s Office announced that the following persons were arraigned or appeared this week before U.S. Magistrate judges on indictments handed down by the Grand Jury or on criminal complaints. The charging documents are merely accusations and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law:
Appearing in Billings before U.S. Magistrate Judge Timothy J. Cavan and pleading not guilty on May 18 was:
Gregg Lawrence Haywood Sr., 54, of Billings, on charges of felon in possession of a firearm. If convicted of the most serious crime, Haywood faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Haywood was detained pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 21-32.
Appearing on May 20 and pleading not guilty was:
Elizabeth Marie Stephenson, 35, of Billings, on charges of wire fraud, bank fraud and aggravated identity theft. If convicted of the most serious fraud crime, Stephenson faces a maximum 30 years in prison, a $1 million fine and five years of supervised release. If convicted of aggravated identity theft, Stephenson faces a mandatory minimum two years in prison consecutive to any other punishment. Stephenson was released pending further proceedings. The U.S. Secret Service investigated the case. PACER case reference. 21-28.
William Orville Deshaw III, 36, of Whitehall, on charges of false statement during a firearms transaction. If convicted of the most serious crime, Deshaw faces a maximum 10 years in prison, a $250,000 fine and three years of supervised release. Deshaw was released pending further proceedings. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated the case. PACER case reference. 20-35.
Appearing in Great Falls before Chief U.S. District Judge Brian M. Morris and pleading not guilty on May 20 was:
Tasha Leigh Morsette, 33, of Havre, on charges of conspiracy to distribute fentanyl, and distribution of fentanyl. If convicted of the most serious crime, Morsette faces a maximum 20 years in prison, a $1 million fine and three years of supervised release. Morsette was detained pending further proceedings. The FBI investigated the case. PACER case reference. 21-35.
The progress of cases may be monitored through the U.S. District Court Calendar and the PACER system. To establish a PACER account, which provides electronic access to review documents filed in a case, please visit http://www.pacer.gov/register.html. To access the District Court’s calendar, please visit https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
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Individual Arrested for Firearms Offenses and Drug TraffickingRead the Press Release
SAN JUAN, Puerto Rico– United States Magistrate Judge Marcos E. López authorized a criminal complaint against Noel Ramán-Santiago, from Arecibo, charging him with possession of a firearm in furtherance of a drug trafficking crime and possession with intent to distribute controlled substances, announced United States Attorney for the District of Puerto Rico W. Stephen Muldrow. The Bureau of Alcohol, Tobacco, Firearms and Explosives is in charge of the investigation of the case.
According to the information contained in the affidavit, on May 19, 2021, agents from the Puerto Rico Police Bureau assigned to the Arecibo special arrest unit went to execute a state issued arrest warrant for a fugitive at the Las Mesetas Public Housing Project in the municipality of Arecibo. When the agents arrived they observed Román-Santiago placing a firearm with a high capacity magazine inside a backpack he was carrying.
The agents placed the defendant under arrest and found one white pistol with a Glock slide and barrel, .40 caliber with one round in the chamber and no rounds in the magazine. There were two other empty Glock, .40 caliber magazines; one with 29 rounds capacity and the other with nine rounds capacity. The officers also found 66 small bags with marihuana inside, 58 small bags with crack, and five small bags with cocaine inside. The narcotics were for sale.
If convicted, Ramán-Santiago faces a mandatory minimum of five years to life in prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Pedro R. Casablanca is prosecuting the case.
A criminal complaint is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
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Guatemalan Man Sentenced for Causing Misuse of a Social Security NumberRead the Press Release
Hattiesburg, Miss. - A Guatemalan national was sentenced to “time served” (effectively 9 months in prison), for the federal crime of causing misuse of a social security number, announced Acting U.S. Attorney Darren J. LaMarca of the Southern District of Mississippi, and Jack Staton, Acting Special Agent in Charge of Homeland Security Investigations in New Orleans.
Angel Perez-Valezquez, 19, was also sentenced to three years of supervised release and may face Department of Homeland Security removal proceedings. Perez-Valezquez was convicted after pleading guilty on March 31, 2021.
On August 25, 2020, the Department of Homeland Security, Border Enforcement Security Task Force in Gulfport, received information from the Hattiesburg Police regarding the arrest of Perez-Valezqez who had been working at the Mar-Jac Poultry Plant, under an assumed identity. Hattiesburg Police had been contacted by a victim living in another state who reported an Internal Revenue Service W-2 Form for 2019, in the victim’s name from Mar-Jac Poultry. The victim said he had never been to Hattiesburg and had never worked for Mar-Jac Poultry.
Homeland Security Investigations agents determined that Perez-Valezquez worked at Mar-Jac Poultry under the victim’s name. Perez-Valezquez wore and displayed an employee ID card bearing his photograph and the victim’s name. He knew that the card had been falsely made and that his wages were paid using his false identity. He also knew that the name and Social Security Number he used were key parts of the identity information, and that deductions from his wages were made each pay period for taxes and Social Security using the false identity. Each time Perez-Valezquez was paid, he caused his employer, Mar-Jac Poultry, to report false information to the Social Security Administration, using the victim’s name and Social Security Number.
Acting U.S. Attorney Darren J. LaMarca praised the investigative work and coordination of Homeland Security Investigations and the Hattiesburg Police Department. Assistant U.S. Attorney Stan Harris was the prosecutor for the case.
Georgia Man Pleads Guilty to Child Sex TraffickingRead the Press Release
MACON, Ga. – An Albany, Georgia resident has pleaded guilty to federal child sex trafficking in a case involving a run-away teenage victim.
Demetrius Hunter aka Red, pleaded guilty to one count sex trafficking of children before U.S. District Judge Marc Treadwell on Thursday, May 20. Hunter faces a mandatory minimum sentence of ten years up to a maximum sentence of life imprisonment, a maximum fine of $250,000 and a term of supervised release of at least five years up to a lifetime of supervision. Hunter’s sentencing is scheduled for August 18. Co-defendant Tamara Taylor aka Coco, 30, of Albany, pleaded guilty to one count use of facilities in interstate and foreign commerce to transmit information about a minor on May 4. Taylor faces a maximum sentence of five years imprisonment, a maximum fine of $250,000 and a term of supervised release of at least five years up to the possibility of a lifetime of supervision. Taylor’s sentencing is scheduled for July 28. There is no parole in the federal system.
“Demetrius Hunter and Tamara Taylor will spend well deserved time in federal prison for the cruelty, manipulation and sexual abuse they inflicted on a runaway foster child in need. Our office will do everything in our power to ensure justice is served to predators who exploit and harm children,” said Acting U.S. Attorney Peter D. Leary. “I am thankful to the FBI and local law enforcement for finding the victim and returning her to safety, as well as removing these child predators from our streets.”
“When most adults would have felt a responsibility to try to help a lost and helpless young child, Hunter and Taylor ruthlessly took advantage of her, selling her for sex,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Now they will spend time in prison while their innocent victim begins to recover from the emotional scars they left her with.”
On October 5, 2016, Taylor came across the victim, a 15-year-old female, at the Bridgeview hotel in Macon, Georgia. The day prior, the victim had run away from a group foster home and was at the hotel looking for her sister. The victim did not find her sister and had been abandoned by her ride. The victim informed Taylor of her age and that she had run away from a group home. Taylor invited the victim to her room where Taylor introduced the victim to Hunter, who knew her age and that she had run away. Hunter told the victim that they were traveling the world and invited her to stay with them, but told her that she would have to make money. The victim did not understand at that time how she would be expected to make money.
After staying one night at the Bridgeview, Hunter and Taylor took the victim to another hotel in Warner Robins, Georgia. The victim’s profile was placed on Backpage, a website commonly used for online advertisements for commercial sex acts. Records from Backpage verify that the victim’s profile had been posted by Taylor on Backpage. The advertisements included photographs of the victim in underwear and included a cell phone number to call that was provided by Hunter and Taylor. Hunter explained the victim would have to do “tricks” to get money and forced the victim to perform sex acts on him. The victim remained with Hunter and Taylor until October 18, 2016, when they were encountered by law enforcement, and the victim was returned to her group foster home. As a result of the advertisements posted on Backpage, the victim had to engage in two to five commercial sex acts. During her time with Hunter and Taylor, the victim relied on them for her shelter and food. She stated in her interview with law enforcement that when having to engage in one commercial sex act, she told herself “you gotta do this, you gotta get the money, that’s how you eat.”
The case was investigated by the FBI.
Assistant U.S. Attorneys Melody Ellis and Beth Howard are prosecuting the case.
Fresno Man Sentenced to 32 Months in Prison for Unlawfully Possessing a GunRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Shawn Darnyel Matthews, 23, of Fresno, today to two years and eight months in prison for being a felon in possession of a firearm, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, on Sept. 9, 2020, law enforcement officers arrested Matthews on several felony warrants as well as a parole warrant. During the arrest, Matthews was found to be in possession of a firearm. Matthews is prohibited from possessing firearms because of a June 2017 felony conviction for assault with a firearm. He was charged with one count of being a felon in possession of a firearm and pleaded guilty on Feb. 19, 2021.
This case was the product of an investigation by the Federal Bureau of Investigation and the Fresno Police Department. Assistant U.S. Attorney Antonio J. Pataca prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime. To learn more about Project Safe Neighborhoods, go to www.justice.gov/psn.
Former Police Officer Sentenced to Six Years in Prison for Civil Rights ViolationRead the Press Release
A former officer with the St. Paul Police Department in St. Paul, Minnesota, was sentenced today to six years in prison after a jury found him guilty of a civil rights violation.
Brett Palkowitsch, 31, was sentenced on May 21 after being found guilty of using excessive force against an unarmed civilian. At the sentencing hearing, Palkowitsch waived the right to appeal his conviction and publicly apologized for his use of excessive force.
“Instead of lawfully carrying out his critical public safety responsibilities, Palkowitsch abused his authority by using excessive force,” said Principal Deputy Assistant Attorney General for Pamela S. Karlan of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously prosecute officers who engage in criminal misconduct.”
“Law enforcement officers take an oath to serve and protect the public,” said Special Agent in Charge of the FBI Minneapolis Field Office. “When an officer betrays that oath and violates a person's civil rights, that officer must be held accountable. Our community, and our profession, deserve no less.”
The evidence presented at trial established that the defendant and other officers responded to a 911 call alleging that an unidentified black male with dreadlocks and a white t-shirt had been involved in a street fight and was carrying a gun. Upon their arrival on scene, officers found no evidence of any street fight, but they noticed one man who matched that general description, sitting in his car talking on a cellphone. One of the responding officers, along with his police K-9, approached the man’s car and, without identifying himself as a police officer, yelled at the man to get out. The man, later identified as Frank Baker, got out of the car, as the officer yelled commands and the police K-9 barked loudly at him. Seven seconds later, the officer released the K-9, which took Baker to the ground and began mauling his leg. While Baker was on the ground, screaming in pain, the defendant arrived and kicked Baker three times in the ribs. The defendant’s kicks broke seven of Baker’s ribs and caused both of his lungs to collapse, putting him in critical condition. Officers found no gun at the scene and no evidence that Baker, a 52-year-old grandfather who lived in the neighborhood, had been involved in any fight.
Two veteran officers who witnessed the defendant’s actions that night, officers Joseph Dick and Anthony Spencer, reported the defendant to their supervisor. Dick and Spencer both testified at trial about the defendant’s use of excessive force and about the harassment and retaliation they suffered after stepping forward to report a fellow officer. They and other officers also testified that after the arrest, back at the police station, the defendant boasted to several officers about the force of his kicks and about having seriously injured Baker.
At the sentencing hearing, District Judge Wilhelmina Wright of the District of Minnesota told the defendant, who had been entrusted with a position of authority, “You flagrantly abused that trust.”
This case was investigated by the Minneapolis Division of the FBI and was prosecuted by Special Litigation Counsel Christopher J. Perras and former Trial Attorney Zachary Dembo of the Civil Rights Division.
Former Oconomowoc Investment Broker Sentenced to 63 Months in Federal Prison for $2,600,000 Scheme That Defrauded Elderly VictimsRead the Press Release
Acting United States Attorney Richard G. Frohling of the Eastern District of Wisconsin announced that on May 20, 2021, Edward E. Matthes (age 51), of Milwaukee, Wisconsin, was sentenced to 63 months in federal prison for carrying out a $2.6 million dollar investment scheme that defrauded 27 victims, most of whom were elderly. Matthes had earlier pleaded guilty to three counts of wire fraud, in violation of 18 U.S.C. § 1343.
The information presented at the sentencing hearing showed that Matthes was a prominent member of the Oconomowoc community who solicited family, friends, and community members to use his services as an independent broker-dealer for Mutual of Omaha Investor Services, Inc. (“Mutual of Omaha”). Matthes previously worked in the same capacity for Thrivent in St. Louis, Missouri, and Pewaukee, Wisconsin. According to court records, over the course of six years, Matthes persuaded his clients, which included his own parents and a cognitively disabled individual, to invest in fictitious Mutual of Omaha accounts which he claimed would perform better for them. Instead, Matthes diverted over $2.6 million into his personal accounts to enrich himself. During his scheme, Matthes lulled his clients into believing their investments were performing well by manufacturing fake quarterly earnings statements for the non-existent accounts.
Several victims filed impact statements with the court prior to the sentencing. Two victims made in-person remarks during the sentencing hearing, explaining how Matthes betrayed their trust, causing them significant financial and emotional harm. Additionally, a representative of Mutual of Omaha spoke during the hearing and explained how Matthes’ actions caused the company to expend considerable resources to investigate the matter and to reimburse most of the victims for their losses.
In pronouncing sentence, United States District Court Judge Brett H. Ludwig described the defendant’s conduct as “aggravated,” noting how he “cultivated trust” and maintained a “veneer of friendship” with the victims while simultaneously robbing them of their retirement savings. He commented that the protracted nature of the offense conduct, the magnitude of loss, and Matthes’ betrayal of trust, required a sentence that both punished and deterred.
“Matthes betrayed the trust of family, friends, and others who simply were trying to invest their hard-earned savings to provide financial security for themselves in retirement. The Department of Justice is committed to working with our law enforcement partners to seek justice on behalf of victims of financial fraud,” said Acting U.S. Attorney Frohling.
“This fraudster took advantage of some of our most vulnerable citizens,” said FBI Special Agent in Charge Robert Hughes. “Most of his victims were elderly, and he spent years gaining their trust, only to wipe out a lifetime of their savings. I commend the tireless efforts of our special agents and law enforcement partners who worked jointly to bring this case to justice.”
Jeffrey Monhart, Regional Director of the U.S. Department of Labor, Employee Benefits Security Administration (“EBSA”) commented, “EBSA will continue to work aggressively with our law enforcement partners to stop the financial harm caused by these types of schemes.”
This case was jointly investigated by the Federal Bureau of Investigation, the U.S. Department of Labor, Employee Benefits Security Administration, and the Oconomowoc Police Department. The investigation was aided by representatives of Mutual of Omaha and the United States Securities and Exchange Commission. Assistant United States Attorney Kelly B. Watzka prosecuted the case.
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Former Local Doctor Going to Prison for 5 Years for Illegally Distributing Controlled SubstancesRead 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 James T. Keefe, 40, of Florida, who was convicted of conspiring to possess with intent to distribute, and distributing, oxycodone, hydrocodone, and amphetamine, was sentenced to serve 60 months in prison by U.S. District Judge Lawrence J. Vilardo. The defendant was also sentenced to serve five years supervised release to include six months home detention.
“This case highlights the powerful grip of addiction,” stated U.S. Attorney Kennedy. “The defendant was a medical professional and was well aware of the dangers of the illegal use of prescription medications, yet he created a web of accomplices which allowed him to obtain controlled substances and continue to fuel his addiction.”
“Now, more than ever, the public entrusts doctors with their health and well-being. Today’s sentence demonstrates that when a doctor betrays that trust and risks the welfare of others, there are very real consequences,” said DEA Special-Agent-in-Charge Ray Donovan. “I applaud the hard work of our Buffalo District Office Diversion Investigators and Intelligence Analysts, as well as the fortitude of our colleagues at the U.S. Attorney’s Office, Western District of New York, who saw this case through.”
Assistant U.S. Attorney Joshua Violanti, who handled the case, stated that the defendant was a New York State licensed physician who was previously employed as a contracted physician at the Erie County Medical Center (ECMC), Mercy Hospital of Buffalo, and the Monsignor Carr Institute. Between January 1, 2014, and February 23, 2018, Keefe conspired to divert, and diverted, Schedule II and Schedule IV controlled substances by issuing fraudulent prescriptions to his co-workers, friends, and drug-dealing and drug-using associates, including, co-defendants Benjamin Rivera, Laura Ricotta, Takeya Rainey, and Phousavath Luangrath. These prescriptions were issued without a legitimate medical purpose and outside the usual course of professional practice.
The defendant and co-defendant Rivera have been associates for several years. For nearly five years, Rivera sold cocaine to Keefe, who was active user of cocaine, Adderall, and prescription opiates. In January 2014, the defendant began issuing prescriptions in the names of Rivera and nine of Rivera’s relatives and associates to exchange for cocaine and for a share of the prescribed drugs. Neither Rivera nor any of his relatives or associates were patients of Keefe.
In April 2015, the defendant began issuing prescriptions to Rivera’s girlfriend, co-defendant Laura Ricotta. Keefe also used the names and personal information of six relatives and associates of Ricotta to issue fraudulent prescriptions. Neither Ricotta nor any of her relatives or associates were patients of the defendant. Keefe often drove Ricotta to a pharmacy to a pharmacy to fill the prescriptions, which the two then split.
In the summer of 2017, the defendant began issuing prescriptions to co-defendant Takeya Rainey. Rainey also provided the names of her relatives and associates to Keefe, none of whom were his patients. In exchange for the controlled substances, the defendant sometimes gave Rainey gift or Visa cash cards.
Beginning in January of 2017, Keefe and co-defendant Luangrath were involved in an intimate relationship. At some point, the defendant Luangrath agreed to allow the defendant to issue prescriptions in her name.
Between January 1, 2014, and February 23, 2018, the defendant issued 179 fraudulent prescriptions in his own name and the names of others, for Schedule II and Schedule IV controlled substances.
Defendants Rivera, Ricotta and Luangrath were previously convicted and sentenced. Rivera was sentenced to time served (28 months). Ricotta was also sentenced to time served (15 months). Luangrath was sentenced to serve one-year probation. Defendant Rainey was also previously convicted and is awaiting sentencing.
Today’s sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan.
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Former Financial Professional Charged with Embezzlement from Jewish Federation and the Philly POPS!Read the Press Release
PHILADELPHIA – Acting United States Attorney Jennifer Arbittier Williams announced that Cheryl Lutts, 42, of Philadelphia, PA, was arrested and charged by Indictment on charges of wire fraud and mail fraud. These charges resulted from Lutts’ employment with the Jewish Federation of Greater Philadelphia and its subsidiary, the Jewish Exponent, and later, the Encore Series, d/b/a The Philly POPS! Lutts is no longer employed by either non-profit organization.
The Indictment alleges that Lutts used her position as Director of Business Operations at the Jewish Federation of Greater Philadelphia, and later as Controller at the Philly POPS!, to steal money from each non-profit and use it to pay her personal credit card bills, and for a wide variety of personal expenses charged to company credit or debit cards including rideshare services, airline tickets, entertainment, travel and lodging, healthcare and exercise services, utilities, education and career services, legal services, funeral and burial services, clothing, food and alcohol, and other items from retail stores, grocery stores, convenience stores, websites, restaurants, and delivery services. The defendant is also charged with routinely using her personal credit cards and her corporate credit and debit cards to transfer company funds to various individuals who were not vendors of either non-profit using, among other things, PayPal and CashApp.
The defendant allegedly went to great lengths to disguise her fraudulent activities from her employers. According to the Indictment, Lutts provided management at both organizations with financial statements that did not include a balance sheet, or that included a balance sheet or bank reconciliation that was later determined to be false because it did not match the account balances and/or the transactions reflected on the bank statements.
The Indictment seeks forfeiture of $1,443,375.57, which represents the total amount of money Lutts allegedly embezzled from both former employers.
“This defendant allegedly swindled hundreds of thousands of dollars from not one, but two former employers” said Acting U.S. Attorney Williams. “Non-profit organizations exist for the people and constituencies they serve, not as personal piggy banks for those entrusted with managing their funds. Our office will continue to aggressively pursue and prosecute those who steal from non-profits.”
“The usual reward of nonprofit work is personal fulfillment, not financial enrichment,” said Michael J. Driscoll, Special Agent in Charge of the FBI’s Philadelphia Division. “Lutts, however, allegedly treated these organizations like her very own ATM, shortchanging their efforts and the community in the process. The FBI will pursue and hold accountable anyone foolish enough to engage in this kind of fraud.”
If convicted, the defendant faces a maximum possible sentence of 480 years in prison, 3 years of supervised release, at $6,000,000 fine, and a $2,400 special assessment.
The case was investigated by the Federal Bureau of Investigation.
An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Former Chairman of Massachusetts Latin Kings Crown Council Sentenced for Racketeering ConspiracyRead the Press Release
BOSTON – A former member of the Boston-based Devon Street Chapter of the Massachusetts Almighty Latin King and Queen Nation (“Latin Kings”) was sentenced yesterday on racketeering charges.
Angel Rodriguez, a/k/a “King Ace,” 29, was sentenced by U.S. Senior District Court Judge Rya W. Zobel to 44 months in prison and three years of supervised release. On Jan. 5, 2021, Rodriguez pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as RICO conspiracy.
Named for its origin on Devon Street in Boston, the Devon Street Kings or D5K Chapter of the Latin Kings, included approximately a dozen members. The Devon Street Kings, in turn, reported to the Massachusetts State Leadership of the Latin Kings, providing information, structure, funds and other resources to further the Latin Kings goals and directives in the state. During the investigation, various meetings were covertly recorded where members of the Devon Street Kings discussed the business of the racketeering enterprise.
Evidence developed during the investigation, including a video depicting Rodriguez bagging up crack cocaine for distribution, proved that Rodriguez conspired with other members and leaders of the Latin Kings to distribute controlled substances. In December 2019, Rodriguez served as Chairman of the Crown Council for the D5K Chapter. The Crown Council is a body that sits independently of the leadership and provides guidance to the leadership team and resolves disputes that arise.
The Latin Kings are a violent criminal enterprise comprised of thousands of members across the United States. The Latin Kings adhere to a national manifesto, employ an internal judiciary and use a sophisticated system of communication to maintain the hierarchy of the organization. As alleged in court documents, the gang uses drug distribution to generate revenue, and engages in violence against witnesses and rival gangs to further its influence and to protect its turf.
In December 2019, a federal grand jury returned an indictment alleging racketeering conspiracy, drug conspiracy and firearms charges against 62 leaders, members and associates of the Latin Kings. Angel Rodriguez is the 25th defendant to be sentenced in the case.
Acting United States Attorney Nathaniel R. Mendell; Joseph R. Bonavolonta, Special Agent in Charge of the Federal Bureau of Investigation, Boston Division; Commissioner Carol Mici of the Massachusetts Department of Correction; and Boston Police Acting Commissioner Gregory Long made the announcement today. Valuable assistance was also provided by the FBI North Shore Gang Task Force and the Bristol County and Suffolk County District Attorney’s Offices. Assistant U.S. Attorneys Philip A. Mallard and Lauren Graber of Mendell’s Criminal Division prosecuted the case.
This case is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at https://www.justice.gov/OCDETF.
The details contained in the charging documents are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Foreign National Sentenced to Federal Prison for Illegally Re-Entering the United States and for Assaulting Federal Officers During ArrestRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis has sentenced Julian Salazar-Zavala (32, Jacksonville) to 18 months in federal prison for forcibly assaulting and resisting immigration officers during his arrest and being unlawfully present in the United States after having been previously deported.
Salazar-Zavala had pleaded guilty on February 4, 2021.
According to court documents and testimony, Salazar Zavala was the subject of an administrative arrest operation after U.S. Immigration and Customs Enforcement (ICE) learned that he was issued a traffic citation in Jacksonville after he had been deported from the United States in 2018. On the morning of September 22, 2020, officers from ICE Enforcement and Removal Operations (ERO) followed Salazar-Zavala as he drove from his home to a gas station in Jacksonville, where he stopped at a gas pump. After Salazar-Zavala got out of his vehicle, the ERO officers approached him and told him that he was being placed under arrest for immigration violations and instructed Salazar-Zavala to place his hands on the gas pump so that they could detain him. After initially complying, Salazar-Zavala removed his hands from the pump, pushed the officers out of the way—knocking one into a parked car—and fled on foot. The officers pursued Salazar-Zavala into an adjacent parking lot, then followed him as he doubled back and entered the convenience store at the gas station.
While inside the convenience store, Salazar-Zavala continued to resist arrest, struggling with the officers, and urging bystanders to fight the officers and film them. The officers eventually restrained Salazar-Zavala and placed him under arrest. Following his arrest, the officers confirmed that Salazar-Zavala was a citizen of Mexico who had been previously deported on December 27, 2018, and was unlawfully present in the United States.
“This criminal assaulted federal law enforcement officers who were working to keep our communities safe,” said Miami ERO Field Office Director Michael Meade. “He will now learn that lesson behind bars.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.